EX-15.4 11 d525945dex154.htm EX-15.4

Exhibit 15.4

ENFORCEMENT DECREE OF THE PUBLIC AGENCIES MANAGEMENT ACT

Enforced on Oct. 15, 2011

Amended by Presidential Decree No.23221, Oct. 14, 2011

Presidential Decree No.11690, Mar. 23, 2013

Article 1 (Purpose)

The purpose of this Decree is to provide for the matters delegated by the PUBLIC AGENCIES MANAGEMENT ACT and the matters necessary for the enforcement thereof.

Article 2 (Amount of Total Revenue)

The term “amount of total revenue” in Articles 4 (1) 2 and Article 5 (2) and (3) 1 (a) of the PUBLIC AGENCIES MANAGEMENT ACT (hereinafter referred to as the “Act”) means an amount calculated in accordance with the attached Table 1, excluding the amount of obligations to pay in the future from the revenue acquired by the institution as earnings from its business or granted as an aid by the State, a local government, a private sector, etc. and the derivative revenue yielded from such revenue.

Article 3 (Amount of Government Aid)

The term “amount of the Government grants” in Article 4 (1) 2 of the Act means the aggregate of the following amounts out of the amount of total revenue:

| 1. | The amount of revenue transferred from the Government including contributions and subsidies, and the amount of revenue transferred from a private sector, etc. in compliance with a mandatory provision of a statute including charges under the Framework Act on the Management of Charges;

| 2. | The amount of revenue earned from a business specified by a statute as a business of the institution or commissioned on the ground prescribed for such commission by a statute or the amount of revenue earned from an monopoly provided for by a statute or granted on the ground prescribed by a statute. In this case, the amount of revenue means all revenues earned from a commissioned business or monopoly including fee, admission fee, use charge, insurance premium, contribution, charge, etc. in whatsoever name; and

| 3. | The amount of derivative revenue yielded from the management of the revenues specified in subparagraphs 1 and 2.

Article 4 (Criterion of Securing Practical Control)

The term “secure practical control over” in Article 4 (1) 3 through 5 of the Act means one of the following cases:

| 1. | Where it is possible, because of the largest shares in possession, to control the institution by the exercise of shareholder rights in the light of the diversification of shares;

| 2. | Where involvement in appointment (including approval and recommendation) of the head of the institution or a majority of members of its board of directors is secured by a statute or the articles of incorporation; or

| 3. | Where an authority to approve the budget or business plan of the institution is secured by a statute or the articles of incorporation.

Article 5 (Self-Generating Revenue)

The term “self-generating revenue” in Article 5 (2) and (3) 1 (a) of the Act means the aggregate of the following revenues, excluding the amount falling under subparagraph 1 of Article 3 from calculation of the following revenues:

| 1. | Revenue from the business for its original purpose: The amount of revenue directly generated from the business specified in the Act that provides for the ground for the establishment of the institution or its articles of incorporation, as calculated in accordance with the attached Table 2;

| 2. | Revenue from other business: The amount of revenue generated from the business not specified in the Act that provides for the ground for the establishment of the institution or its articles of incorporation, as calculated in accordance with the attached Table 2; and

| 3. | Revenue from any sources other than business: The amount of incidental revenue accrued derivatively from the business specified in subparagraphs 1 and 2 such as interest income accrued from the momentary fund management, as calculated in accordance with the attached Table 2.

Article 6 (Method for Calculating Total Revenue, etc.)

(1) | The amount of total revenue under Articles 4 (1) 2 and 5 (2) and (3) 1 (a) of the Act, the amount of the Government grants under Article 4 (1) 2 of the Act, and the amount of self-generating revenue under Article 5 (2) and (3) 1 (a) of the Act (hereinafter referred to as the “amount of total revenue, etc.”) shall be the average amount for the latest three years, calculated based on the financial statements for the settlement of accounts for the latest three years.

(2) | In calculating total revenue, etc. in accordance with paragraph (1), an institution whose financial statements have been prepared for less than three years shall calculate its total revenue, etc. utilizing the financial statements for the corresponding period of time, while an institution whose financial statements have not been prepared yet shall prepare data equivalent to those statements based on its budget for such calculation.

(3) | The financial statements under paragraph (1) shall be basically the financial statements prepared on the basis of accruals: Provided, That an institution that does not prepare such statements in accordance with accruals shall prepare data equivalent to those statements for such calculation.

(4) | The prescribed number of personnel in applying Article 5 (1) of the Act, Article 3 (2) of the Addenda to the Act and Articles 21 and 22 of this Decree shall mean the prescribed number of personnel as of the end of the year immediately preceding the designation as a public institution or the appointment or removal of executives: Provided, That in cases of a public institution in which the prescribed number of personnel as of the end of the immediately preceding year does not exist due to reasons, such as being newly designated as a public institution under the proviso to the part, other than the subparagraphs of Article 6 (1) of the Act, it refers to the prescribed number on the day such reason arises. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

(5) | The asset size under Article 5 (3) 1 (a), the main sentence of the Article 18 (2) and (4), the main sentence of Article 20 (2) and (3) and the proviso to the Article 21 (2) of the Act and Article 22 (1) 2 of this Decree shall be calculated based on the financial statements for the settlement of accounts for the latest year: Provided, That in cases of a public institution, financial statements of which are not prepared due to reasons, such as being newly designated as a public institution under the proviso to the part, other than the subparagraphs of Article 6 (1) of the Act, the asset size shall be calculated based on the budget of the year in which such reason arises. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

(6) | The amount of total revenue under Articles 21 and 22 (1) 1 shall be calculated based on the financial statements for the settlement of accounts for the latest year: Provided, That in cases of a public institution, financial statements of which are not prepared due to reasons, such as being newly designated as a public institution under the proviso to the part other than the subparagraphs of Article 6 (1) of the Act, the amount of total revenue shall be calculated based on the budget of the year in which such reason arises. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

(7) | The Minister of Strategy and Finance may prepare more specific guidelines for calculating total revenue, etc. to notify them to the administrative agencies that control the affairs of public corporations, quasi-governmental institutions, and non-classified public institutions under relevant statutes (hereinafter referred to as the “competent agencies”). <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

Article 7 (Criterion of Designation of Market-based Public Corporations)

“Criterion prescribed by Presidential Decree” in Article 5 (3) 1 (a) of the Act means 85 percent.

Article 8 (Procedure for Designation of Public Institutions. etc.)

(1) | The head of the competent agency shall notify the Minister of Strategy and Finance of the institutions subject to designation of public institutions under Article 4 of the Act no later than one month before the beginning of each fiscal year. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

(2) | If a change occurs in the legal personality, name, etc. of a public institution, or any reason for initial designation of or designation of a public institution by changing the classification or any reason for the cancellation of designation under the proviso to the part, other than the subparagraphs of Article 6 (1) of the Act occurs, the head of the competent agency shall immediately notify the details thereof to the Minister of Strategy and Finance. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

Article 9 (Examination on Establishment of New Institution)

When the head of the competent agency requests the Minister of Strategy and Finance to examine the feasibility of the establishment of a new institution in accordance with Article 7 (1) of the Act, the head shall submit a plan containing the following descriptions and materials: <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

| 1. | Scope and substance of the business of the institution;

| 2. | Services and goods that the new institution will provide;

| 3. | Annual revenue expected and budget of the Government grants required in the next five years;

| 4. | Plan for the management of the organization and human resources for the next five years;

| 5. | Current status of related institutions already established;

| 6. | Other materials requested by the Minister of Strategy and Finance.

Article 10 (Matter Subject to Deliberation and Resolution by Management Committee)

“Other matters prescribed by Presidential Decree concerning management of public institutions” in subparagraph 14 of Article 8 of the Act means the following matters:

| 1. | Matters concerning the items, guidelines, procedure, etc. for the consolidated publication under Article 16;

| 2. | Matters concerning the scope of public institutions that provide direct services to the people under Article 17 (1);

| 3. | Matters concerning the designation of the institutions exempt from the function adjustment. etc. under Article 18 (2);

| 4. | Matters concerning the request for evaluation of business performance under Article 27 (1);

| 5. | Matters concerning the management of the management evaluation team for public corporations and quasi-governmental institutions under Article 28 (4);

| 6. | Matters concerning the determination on whether to consider as actual revenue under subparagraph 3 (c) of attached Table 1.

Article 11 (Composition of Management Committee)

(1) | “Vice Minister, Deputy Administrator, or an equivalent public official of the related administrative agency as prescribed by Presidential Decree” in Article 9 (1) 2 of the Act means one of the following persons: <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

| 1. | One Vice-Minister of the Ministry of Strategy and Finance nominated by the Minister of the Ministry of Strategy and Finance;

| 2. | One Vice-Minister of the Ministry of Security and Public Administration nominated by the Minister of the Ministry of Security and Public Administration;

| 3. | One Vice-Minister level public official nominated by the Chairman of Anti-Corruption & Civil Rights Commission.

(2) | “People who have good knowledge and experience in the area of the management and business administration of public institutions” in Article 9 (1) 4 of the Act means the following persons: <Amended by Presidential Decree No. 20947, Jul. 29, 2008>

| 1. | Persons who have a career of working for a university, a college, or an officially recognized research institute as an adjunct professor or in an equivalent position for at least five years;

| 2. | Persons who have a career as a judge, a public prosecutor, or a lawyer for at least ten years;

| 3. | Persons who have a career of working for a public institution under the Act and this Decree or a stock-listed corporation under Article 9 (15) 3 of the Financial Investment Services and Capital Markets Act for at least twenty years and who have served as an executive for at least three years;

| 4. | Persons who have a career of engaging in the area of audit or accounting for the institutions enumerated in subparagraph 3 with a license of certified public accountant for at least ten years;

| 5. | Persons who have worked as a public official in the Senior Civil Service or a public official in political service;

| 6. | Other persons whose career, etc. relating to the management of a public institution are recognized as equivalent to the criteria set forth in subparagraphs 1 through 5.

(3) | The management committee may establish and run an advisory team composed of related specialists to give advices on specialized or technical matters relating to the management of public institutions.

Article 12 (Management of Management Committee)

(1) | The chairperson shall convene the meeting of the management committee and shall take the chair in the meeting.

(2) | If the chairperson is unable to perform his/her duties, the member designated by the chairperson shall act on behalf of the chairperson. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

(3) | The management committee may request a public official concerned or an executive or an employee of a public institution to appear before the committee, submit materials, and present his/her opinion, whenever necessary for executing its business.

(4) | Allowances, travel expense, and other necessary expenses may be reimbursed to the committee members, other than public officials within the limit of its budget.

(5) | The chairperson shall send the materials related to the matters on the agenda brought up to the meeting of the management committee, in advance, to the Chairperson of the Board of Audit and Inspection and the heads of related administrative agencies pursuant to Article 10 (3) of the Act.

(6) | Other necessary matters concerning the management of the management committee shall be prescribed by the chairperson after resolution by the management committee.

(7) | The matters under paragraph (6) shall include the matters concerning the preparation and preservation of the minutes of meeting of the management committee and the disclosure of the contents of the minutes of meeting under the Official Information Disclosure Act.

Article 13 (Exclusion, Challenge, Abstention of Members of Management Committee)

(1) | A committee member shall be excluded from deliberation and resolution on any of the following matters:

| 1. | A matter in which the member has direct interests;

| 2. | A matter in which the member’s spouse, relative by blood within the fourth degree, or relative by marriage within the second degree or an institution to which the member belongs has interests;

| 3. | A matter in which a person who acts as an advisor, a consultant, etc. for the member or an institution to which the member belongs has interests.

(2) | A person who has direct interests in a matter subject to deliberation and resolution by the management committee may file an application for challenge against a member, if there is any ground on which it is difficult to expect fairness in deliberation and resolution. In such cases, the chairperson shall decide whether to accept the application for challenge without referring it to the management committee for resolution.

(3) | A committee member may voluntarily abstain from deliberation and resolution on a case, if he/she falls under any of the grounds set forth in paragraph (t) or (2).

Article 14 (Subcommittees)

(1) | The management committee may have subcommittees composed of some of the committee members for carrying out its business in an efficient manner.

(2) | The chairperson and members of a subcommittee shall be appointed by the chairperson of the management committee.

(3) | The subcommittee shall review matters decided by a resolution of the management committee, and shall report the results thereof to the management committee.

(4) | Other necessary matters concerning the composition and management of subcommittees shall be prescribed by the chairperson after resolution by the management committee.

Article 15 (Publication on Management)

The publication on the matters specified in Article 11 (1) of the Act shall be made as follows: <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

| 1. | The publication on management shall be made by posting and furnishing the data for the latest five years concerning the matters subject to publication;

| 2. | The statements on the settlement of accounts under Article 11 (1) 2 of the Act shall be posted and furnished within ninety days after the end of each business year;

| 3. | The information about the matters under Article 11 (1) 1 and 3 through 13 of the Act shall be posted and furnished without delay, whenever such a matter arises.

Article 16 (Consolidated Publication)

(1) | The Minister of Strategy and Finance shall prescribe the items subject to consolidated publication under Article 12 of the Act and the matters concerning the criteria and procedure therefor (hereinafter referred to as “criteria, etc. for consolidated publication”) after deliberation and resolution by the management committee, and shall notify them to the heads of public institutions. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

(2) | Whenever revising the matters concerning the criteria, etc. for consolidated publication prescribed in accordance with paragraph (1), the Minister of Strategy and Finance shall finalize such revision after deliberation and resolution by the management committee, and shall notify it to the heads of public institutions no later than fourteen days before enforcing the criteria, etc. for consolidated publication as revised. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

(3) | The head of a public institution shall publish the management information in accordance with the criteria, etc. for consolidated publication under paragraphs (1) and (2) in the Internet site designated by the Minister of Strategy and Finance. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

Article 17 (Customer Charter, etc.)

(1) | The Minister of Strategy and Finance shall determine the scope of public institutions that provide direct service to the people, after deliberation and resolution by the management committee, and shall notify it to the heads of public institutions. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

(2) | Every public institution shall, upon establishing the customer charter under Article 13 (1) of the Act, announce it through the Internet, etc. or post it at a certain place to make it known to the people.

(3) | The heads of public institutions may request an independent specialized institution to conduct a survey on customer satisfaction level under Article 13 (2) of the Act.

Article 18 (Adjustment of Functions of Public Institutions, etc.)

(1) | The Minister of Strategy and Finance may carry out adjustment of functions, etc. of public institutions under Article 14 of the Act step by step, considering the nature, peculiarities in business affairs, etc. of public institutions. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

(2) | The Minister of Strategy and Finance may exclude institutions that fall under any of the following subparagraphs among public institutions from those subject to adjustment of functions, etc., after deliberation and resolution by the management committee: <Amended by Presidential Decree No. 2072~ Feb. 29, 2008>

| 1. | An institution for which a relevant Act provides that it is necessary to guarantee independence of the Government and neutrality in executing the functions of the institution;

| 2. | An institution in which case three years have not passed yet since its establishment;

| 3. | An institution for which the management committee determines it is not proper to be subjected to adjustment of function, etc., considering the peculiarities in its business affairs, etc.

(3) | Where the Minister of Strategy and Finance deems necessary for the purpose of smooth development of the plan under Article 14(3) of the Act, it may order the head of the competent agency to consign disposal of property owned by the Nation and public institutions to Korea Asset Management Corporation under the Act on the Efficient Disposal of Non-performing Assets, Etc. of Financial Company and the Establishment of Korea Asset Management Corporation (hereinafter referred to as “Korea Asset Management Corporation”) after deliberation and resolution by the management committee: <Newly inserted by Presidential Decree on July 14, 2011>

(4) | When consigning such property pursuant to paragraph (3), the head of the competent agency or the heads of public institutions shall conclude a consignment agreement containing each of the following subparagraphs with the Korea Asset Management Corporation. <Newly Inserted on July 14, 2011>

| 1. | Purpose of assignment;

| 2. | Consignment fees and expenses; and

| 3. | Other matters necessary for the performance of consignment work.

Article 19 (Non-Standing Senior Director)

(1) | The non-standing senior director under Article 21 of the Act shall be appointed from among the persons who have good knowledge and experience in operation and business administration of public institution and good reputation of impartiality and fall under any subparagraph of Article 11 (2).

(2) | The non-standing senior director may convene and preside over the non-standing directors’ meeting to discuss the matters on the agenda of the directors’ meeting and other matters concerning the management of the institution.

(3) | The head of a public institution or a quasi-governmental institution shall help the non-standing senior director carry out the affairs set forth in paragraph (2) as necessary.

Article 20 (Excuse for Non-standing Senior Director’s Request for Audit, etc.)

(1) | If it is difficult to comply with the non-standing director’s request for audit under Article 22 (2) of the Act due to extraordinary circumstances, the auditor or the audit committee shall explain such circumstances to the non-standing senior director, and shall report it to the board of directors.

(2) | If it is difficult to comply with the non-standing director’s demand for data under Article 22 (3) of the Act due to extraordinary circumstances, the head of a public corporation or a quasi-governmental institution shall explain such circumstances to the non-standing senior director, and shall report it to the board of directors.

Article 21 (Appointment and Removal of Executives of Public Corporations)

The term “public corporation, the size of which is below the criteria prescribed by Presidential Decree” in the provisos to Article 25 (1) and (4) of the Act means a public corporation whose total revenue under Article 2 is less than one hundred billion won or whose prescribed number of personnel is less than five hundred persons.

Article 22 (Appointment and Removal of Executives of Quasi-Governmental Institutions)

(1) | “Criteria prescribed by Presidential Decree” in the provisos to Article 26 (1) and (4) of the Act and “criteria prescribed by Presidential Decree” in the main sentences of the Articles 24 (3) and 26 (3) of the Act means the criteria of each of the following subparagraphs: <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

| 1. | Commissioned-service-based quasi-governmental institutions: Whose total revenue under Article 2 shall be no less than one hundred billion won and whose prescribed number of personnel shall be no less than five hundred persons;

| 2. | Fund-management-based quasi-governmental institutions: Whose asset size (including fund assets in commissioned management) shall be no less than one trillion won and whose prescribed number of personnel shall be no less than five hundred persons.

(2) | “Quasi-governmental institution. which is prescribed by Presidential Decree” in the main sentences of Articles 24 (3) and 26 (3) of the Act and “quasi-governmental institution..... which is specified by Presidential Decree” in the proviso to Article 26 (1) of the Act means an institution under any of the following subparagraphs: <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

| 1. | Independence Hall of Korea under the Independence Hall of Korea Act;

| 2. | Korea Workers’ Compensation & Welfare Corporation under the Industrial Accident Compensation

| 3. | Insurance Act;

| 4. | Korea Consumer Agency under the Framework Act on Consumers;

| 5. | Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act;

| 6. | Act on National Research Foundation of Korea;

| 7. | Korea Student Aid Foundation under the Act on the Establishment, etc. of Korea Student Aid Foundation.

Article 23 (Organization and Management of Executive Recommendation Committee)

(1) | Whenever there is a need to appoint a new executive due to expiration of an executive’s term or any other reason, the board of directors of a public corporation or a quasi-governmental institutions shall organize the executive recommendation committee under Article 29 of the Act (hereinafter referred to as the “recommendation committee”) without delay.’

(2) | The number of members of the executive recommendation committee shall be decided by a resolution of the board of directors within the range between five and fifteen persons: Provided, That the number of the members may be two or three persons, if the number of non-standing directors at the time of the organization of the recommendation committee is not more than two persons. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

(3) | The members appointed by the board of directors under Article 29 (2) of the Act shall be chosen among the people with good knowledge and experience from the various areas of law, economy, press, academia, labor, etc.: Provided, That such members shall include one person who can represent the opinions of the members of the public corporation or the quasi-governmental institution.

(4) | The recommendation committee shall adopt a’ resolution by the affirmative vote of a majority of its incumbent members.

(5) | The recommendation committee may commission some of its works including invitation, search, etc. of candidates for executives to a specialized institution.

(6) | Necessary matters concerning the management of the recommendation committee, such as the organization of the recommendation committee, the system for exclusion, challenge, or abstention of a member, etc. and the appointment of executives. in addition to the matters prescribed by the Act or this Decree shall be provided for by the articles of incorporation or the bylaws of the public corporation or the quasi-governmental institution.

(7) | The recommendation committee shall prepare and preserve minutes of meetings containing the details, etc, about deliberations and resolutions by the recommendation committee and shall make them public: Provided, That the minutes of meetings may not be made public in cases falling under any of the subparagraphs of Article 9 (1) of the Official Information Disclosure Act. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

Article 24 (Invitation of Candidates for Executives)

(1) | When inviting candidates for executives publicly in accordance with Article 30 {3} of the Act, such invitation shall be publicly notified through the Internet homepage of the public corporation or the quasi-governmental institution and one or more daily newspapers, and the period of time allowed for application shall be at least one week: Provided, That such period of time may be shortened with an approval of the head of the competent agency if there are unavoidable circumstances for prompt appointment. <Amended by Presidential Decree No. 22088, Mar. 26, 2010>

(2) | When publicly notifying the matters concerning the open invitation of candidates for executives under paragraph (1), a public corporation or a quasi-governmental institution shall request the competent agency, the Ministry of Strategy and Finance and the Ministry of Security and Public Administration to post such invitation on their homepages. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

Article 24-2 (Request for Re-Recommendation of Candidates for Executives)

An appointing authority of or recommending authority for appointment of executives of a public corporation or quasi-government institution under Article 25 or 26 of the Act may make a request for the re-recommendation of candidates for executives to the recommendation committee, if the candidates for executives recommended by the recommendation committee fall under the grounds for disqualifications under Article 34 (1) of the Act or are deemed noticeably inappropriate for the management of public corporations or quasi-government institutions.

[This Article Newly Inserted by Presidential Decree No. 22088, Mar. 26, 2010)

Article 25 (Restriction on Concurrent Offices of Executives and Employees)

The provisions of Article 25 of the State Public Officials Service Regulation shall apply mutatis mutandis to the scope of businesses for profit under Article 37 (3) of the Act.

Article 26 (Submission of Statements on Settlement of Accounts)

(1) | <Deleted on October 14, 2011>.

(2) | Every quasi-governmental institution shall submit the final statements on the settlement of accounts to the Minister of Strategy and Finance within ten days after the statements are finalized in accordance with Article 43 (2) of the Act. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

Article 26-2 (Composition and Organization of Appointment Committee of Accounting Auditors)

(1) | Members of an appointment committee for accounting auditors under Article 43-2 (1) of the Act (excluding cases where audit committee is deemed an appointment committee for accounting auditors under the same paragraph) shall be comprised of all auditors and non-standing directors of the relevant public corporation or quasi-government institution.

(2) | The chairperson of the appointment committee for accounting auditors shall be elected from among the members who are non-standing directors of the relevant public corporation or quasi-government institution.

(3) | The chairperson shall convene and preside over the meetings of the appointment committee for accounting auditors.

(4) | Meetings of the appointment committee for accounting auditors shall be held with the attendance of 2/3 of the incumbent members and require the consent of a majority of the members present for resolution.

(5) | In addition to the matters specified in paragraphs (1) through (4), matters necessary for the operations, etc. of the appointment committee for accounting auditors shall be prescribed by the Minister of Strategy and Finance.

[This Article Newly Inserted by Presidential Decree No. 22088, Mar. 26, 2010)

Article 27 (Business Performance Evaluation)

(1) | The Minister of Strategy and Finance may commission the business performance evaluation of public corporations and quasi-governmental institutions to a specialized institution, after resolution by the management committee, if considered necessary. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

(2) | The Minister of Strategy and Finance shall prepare a manual for the business performance evaluation no later than the beginning of each fiscal year in accordance with the criteria and method for the business performance evaluation and with the measures to be taken following such evaluation pursuant to Article 48 of the Act: provided that, with respect to a public corporation or a quasi-governmental institution newly designated under Article 6 of the Act, the manual for the business performance evaluation shall be prepared within four months after such designation. <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Jul 14, 2011>

(3) | The Minister of Strategy and Finance may take further actions, including but not limited to, deciding on the payment rate of bonus or making a suggestion or request for measures relating to personnel or budgetary matters taken pursuant to evaluation results of the review and resolution by the management committee. <Newly Inserted, Jul. 14, 2011>

Article 28 (Composition and Management of Management Evaluation Team for Public Corporations and Quasi-Governmental Institutions)

(1) | The Minister of Strategy and Finance may organize and run the management evaluation team for public corporations and quasi-governmental institutions (hereinafter referred to as the “management evaluation team”) from time to time with the persons commissioned among the following persons under Article 48 (6) of the Act: <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Jul 14, 2011>

| 1. | A professor of a college or a university who has expertise in management and business administration of public institutions;

| 2. | A person working for a government-invested research institute with a doctor’s degree or recognized as having an equivalent qualification;

| 3. | A certified public accountant, a lawyer, or a specialist in management consulting with an experience of practice for at least five years;

| 4. | A person recognized otherwise as having good expertise and experience in management and business administration of public institutions.

(2) | The expenses required for the management evaluation team’s execution of missions may be reimbursed within the limit of the budget.

(3) | The management evaluation team shall be deemed to be dissolved when the missions assigned are completed.

(4) | Necessary matters concerning the composition and management of the management evaluation team in addition to the matters prescribed by this Decree shall be prescribed by the Minister of Strategy and Finance after resolution by the management committee. <Amended by Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22088, Mar. 26, 2010>

Article 29 (Monitoring Adequacy of Supervision)

The Minister of Strategy and Finance and the head of the competent agency may monitor the adequacy of the supervision over public corporations and quasi-governmental institutions under Article 51 (4) of the Act and take measures for improvement step by step, considering the nature, peculiarities in business affairs, etc. of each institution. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>

ADDENDA <No. 23221, Oct. 14, 2011>

Article 1 (Enforcement Date) This Decree shall take effect on October 15, 2011.

Article 2 (Amendment of Other Provisions) The Enforcement Decree of the Act on the Management of Public Institution shall be partially amended as follows: Article 26 (1) shall be deleted.