Bank of Korea Deposit and Loan Handling Rules

Enacted February 17, 1994. Governor Approval Work 5011-173 Amended November 21, 1994. Governor Approval Work 5011-1102 Amended December 15, 1995. Governor Approval Work 5011-899 Amended December 24, 1996. Governor Approval Work 5011-661 Amended December 23, 1998. Governor Approval Work 5011-482 Amended June 21, 1999. Governor Approval Work 5011-246 Amended September 21, 2000. Governor Approval Work 5011-339 Amended June 20, 2006. Governor Approval Payment Operations Team-535 Amended January 25, 2008. Governor Approval Payment Operations Team-132 Amended January 22, 2009. Governor Approval Payment Operations Team-123 Amended April 3, 2009. Governor Approval Payment Operations Team-523 Amended July 18, 2014. Governor Approval Payment Operations Team-1366 Amended September 11, 2020. Governor Approval Payment Operations Team-1790 Amended February 17, 2023. Governor Approval Payment Operations Team-353 Amended July 18, 2024. Governor Approval Payment Operations Team-1498 Amended July 24, 2025. Governor Approval Deposit and Loan Operations Team-1399 Amended August 27, 2026. Governor Approval Deposit and Loan Operations Team-1551

Chapter 1 General Provisions

Article 1 (Purpose) The purpose of these Rules is to stipulate matters necessary for the implementation of the "Bank of Korea Financial Institution Deposit Regulations," the "Bank of Korea Regulations on Transaction Target Institutions for Current Accounts, etc.," and other regulations related to loans by the Bank of Korea to financial institutions.

Article 2 (Scope of Application) Matters concerning the handling of deposits and loans by the Bank of Korea shall be governed by these Rules, except where otherwise specifically provided by laws, decrees, or other regulations.

Chapter 2 Deposits

Article 3 (Types of Deposits)
① Deposits are classified into current accounts, fund adjustment deposits, and special deposits.
② Current accounts are processed separately as general current accounts, payment-specific current accounts, and won international current accounts.

Article 3-2 (Handling Offices for Deposit Transactions) ① The Bank of Korea handling office for deposit transactions (hereinafter referred to as "Bank of Korea Deposit Handling Office") shall be the Bank of Korea Financial Business Bureau (hereinafter referred to as "Financial Business Bureau") or a Bank of Korea regional headquarters. ② Notwithstanding paragraph 1, the handling offices for the deposit transactions listed in each of the following items shall be as specified in each item:

Payment-specific current accounts: The Bank of Korea Financial Settlement Bureau (hereinafter referred to as "Financial Settlement Bureau") or a Bank of Korea regional headquarters shall be the Bank of Korea handling office (hereinafter referred to as "Bank of Korea Large-Value Payment Handling Office").
Won international current accounts: The Financial Settlement Bureau shall be the Bank of Korea handling office (hereinafter referred to as "Bank of Korea Won International Payment Handling Office").

Article 4 (Deposit Transaction Agreements) ① The Bank of Korea shall conclude agreements with transaction target institutions wishing to conduct current account or fund adjustment deposit transactions regarding each transaction.
② The "standards determined by the Governor of the Bank of Korea" in Article 3, Paragraph 1 of the "Bank of Korea Regulations on Transaction Target Institutions for Current Accounts, etc." (hereinafter referred to as "Current Account Transaction Regulations") refers to the Bank of Korea Financial Network membership standards in <Appendix 5> of the "Payment and Settlement System Operation and Management Rules." However, the Bank of Korea Financial Network membership standards may not be applied to the institutions listed in each of the following items:

Institutions corresponding to Item Ba of Article 2, Paragraph 3 of the Current Account Transaction Regulations.
Institutions that the Director of the Financial Settlement Bureau (hereinafter referred to as "Director of the Financial Settlement Bureau") recognizes as requiring a deposit transaction agreement in relation to Bank of Korea operations, payment and settlement system operations, fund intermediation, participation in the banking common network, securities settlement, etc.
③ Deposit transaction agreements shall be concluded according to the jurisdiction of each Bank of Korea Deposit Handling Office, Bank of Korea Large-Value Payment Handling Office, and Bank of Korea Won International Payment Handling Office. However, the Director of the Financial Business Bureau (hereinafter referred to as "Director of the Financial Business Bureau") may conclude agreements for payment-specific current accounts and won international current account transactions upon request from the Director of the Financial Settlement Bureau. ④ Notwithstanding paragraph 3, the Director of the Financial Business Bureau may conclude deposit transaction agreements upon request from the Director of the Financial Settlement Bureau for transaction target institutions that the Director of the Financial Settlement Bureau deems unavoidable in relation to the operation of the Bank of Korea Financial Settlement Network (hereinafter referred to as "Bank of Korea Financial Network"), even if they are not within the responsible jurisdiction. ⑤ Institutions that withdraw from the Bank of Korea Financial Network or have their Bank of Korea Financial Network membership agreement terminated must also terminate their current account transaction agreements. ⑥ Institutions that withdraw from the Bank of Korea Won International Payment Network (hereinafter referred to as "Bank of Korea International Network") or have their Bank of Korea International Network membership agreement terminated must also terminate their won international current account transaction agreements.

Article 5 (Current Accounts)
① Reserve funds, payment and settlement funds, etc., shall be received as current accounts.
② Transaction target institutions must maintain current account balances so as not to hinder payment and settlement with other transaction target institutions.

Article 6 (Fund Adjustment Deposits)
① Deposits made by financial institutions with the Bank of Korea to adjust fund supply and demand in accordance with Article 2 of the "Bank of Korea Financial Institution Deposit Regulations" shall be received as fund adjustment deposits.
② The cutoff time for depositing and withdrawing fund adjustment deposits shall be 10 minutes after the end time for fund transfers for the repayment of intraday current account loans by the Bank of Korea Financial Network, as specified in Article 13, Paragraph 2 of the "Payment and Settlement System Operation and Management Rules."

Article 7 (Special Deposits) Funds for the issuance of cashier's checks and other deposits specified by law or temporary deposits shall be received as special deposits.

Article 8 (Deposits)
① Current accounts and special deposits shall be deposited via Bank of Korea banknotes, checks payable to the Bank of Korea, or bank transfers.
② Fund adjustment deposits shall be deposited by transferring current accounts held by financial institutions at the Bank of Korea Deposit Handling Office where they opened their accounts, via bank transfer.

Article 9 (Payments)
① Current accounts shall be paid upon presentation of current account checks issued by the Bank of Korea, payment requests through the Bank of Korea Financial Network or Bank of Korea International Network, payment claims by the Korea Payment Network, bank transfer requests, and other agreements. ② Fund adjustment deposits shall be paid to the general current account held by the financial institution at the Bank of Korea Deposit Handling Office where they opened their account, upon receipt of a bank transfer request. However, maturity payments shall be automatically transferred to the general current account of the relevant financial institution at the start of business hours on the maturity date. ③ Special deposits shall be paid upon receipt of cashier's checks or payment requests.

Chapter 3 Loans

Article 10 (Classification of Loans) Loans are classified into bill loans, intraday current account loans, fund adjustment loans, and commercial bill rediscounts.

Article 10-2 (Handling Offices for Loan Transactions) For loan transactions, the Financial Business Bureau or a Bank of Korea regional headquarters shall be the Bank of Korea Loan Handling Office. However, for intraday current account loans against payment-specific current accounts, the Financial Settlement Bureau or a Bank of Korea regional headquarters shall be the Bank of Korea Loan Handling Office.

Article 11 (Loan Transaction Agreements)
① The Bank of Korea shall conclude agreements with transaction target institutions wishing to conduct loan transactions regarding the transactions.
② Loan transaction agreements shall be concluded according to the jurisdiction of each Bank of Korea Loan Handling Office. However, agreements for intraday current account loans against payment-specific current accounts handled by the Director of the Financial Settlement Bureau may be substituted by loan transaction agreements concluded by the Director of the Financial Business Bureau with the same jurisdiction.

Article 12 (Eligibility Recognition)
① The Director of the Financial Business Bureau, the Director of the Financial Settlement Bureau, or the Head of a Bank of Korea regional headquarters (hereinafter collectively referred to as "Head of Bank of Korea Loan Handling Office") shall, when handling loans, receive the collateral securities or commercial bills eligible for rediscount (hereinafter referred to as "Target Securities") for the loans and documents separately specified by the Director of the Financial Business Bureau, and review the following items to recognize eligibility:

Compliance with the "Bank of Korea Act," the "Banking Act," and other relevant laws and regulations.
Consistency with directives from the Financial Supervisory Commission.
Appropriateness of the borrowing limit, amount, ratio, duration, etc.
Acceptance by the drawee if the Target Securities are a bill of exchange.
Whether the Target Securities meet the basic requirements specified in Article 1-2 of the "Bank of Korea Financial Institution Loan Rules" (hereinafter referred to as "Loan Rules").
Other matters specified by the Director of the Financial Business Bureau.
② The Head of the Bank of Korea Loan Handling Office may not receive eligible collateral securities when conducting eligibility recognition reviews for loans. However, for credit securities under Item Ga of Article 64, Paragraph 1, Item 2 of the "Bank of Korea Act," the Head must directly verify the physical collateral securities to ensure there is a named transfer endorsement making the Bank of Korea the endorsee.

Article 13 (Execution of Loans)
① The Head of the Bank of Korea Loan Handling Office shall execute loans upon receiving loan bills of exchange (limited to bill loans) issued by financial institutions with the Bank of Korea as the payee, loan collateral securities, and documents separately specified by the Director of the Financial Business Bureau. However, such documents may be received through separate methods recognized by the Bank of Korea, such as the Bank of Korea Financial Network. ② When executing loans, the Head of the Bank of Korea Loan Handling Office must verify the loan limit, collateral, and loan restrictions of the relevant financial institution. ③ For collateral securities acquired under paragraph 1, the financial institution providing the securities must make a named transfer endorsement making the Bank of Korea the endorsee, or a certificate of assignment of claims must be attached. However, this may be omitted if the pledge is registered.

Article 14 (Omission of Collection of Loan Collateral Securities) The Head of the Bank of Korea Loan Handling Office may omit receiving the collateral securities specified in Article 13, Paragraph 1 if the loan collateral securities are pledge-registered or if a collateral security custody certificate, etc., is received when executing the loan.

Article 15 (Loans Collateralized by Eligible Securities Recognized by Other Loan Handling Offices) The Head of the Bank of Korea Loan Handling Office may grant loans collateralized by securities eligible recognized by other loan handling offices.

Article 16 (Supplementation of Collateral) ① The Head of the Bank of Korea Loan Handling Office shall check the market price of collateral securities every business day. If the recognized value of collateral according to Article 1-3 of the Loan Rules is less than or expected to be less than the existing loan amount, the Head may receive additional collateral for the existing loan amount from the relevant financial institution or allocate the surplus amount of already acquired collateral to other loan collateral. ② If a financial institution with insufficient collateral under paragraph 1 does not supplement the collateral, the Head of the Bank of Korea Loan Handling Office may recover the loan.

Article 17 (Recognized Value of Collateral Securities) The recognized value of collateral securities shall be the amount specified in Article 1-3 of the Loan Rules.

Article 17-2 (Disposal of Collateral Securities) ① The Bank of Korea may dispose of the collateral securities provided by a financial institution if the financial institution fails to repay the loan by the specified date or if loan recovery under Article 16, Paragraph 2 is difficult. ② The disposal of collateral securities under paragraph 1 shall原则上 be by sale in the market. ③ Notwithstanding paragraph 2, if the relevant collateral securities are difficult to sell in the market, the Bank of Korea may purchase them. In this case, the sales yield rate shall be determined considering the market yield rate during the day for the collateral securities (or, if there is no market yield rate, the yield rate provided by a registered bond rating agency by the supervisory authority), and the calculation of the purchase amount, etc., shall apply the relevant regulations on the Bank of Korea's open market operations.

Article 18 (Entrustment of Collection for Rediscounted Bills) The Head of the Bank of Korea Loan Handling Office may entrust the collection of the relevant rediscounted bills to the financial institution that applied for the rediscount if necessary.

Article 19 (Management of Securities Held by Financial Institutions) ① The Head of the Bank of Korea Loan Handling Office shall have bills or securities not submitted to the Bank of Korea or entrusted for collection by the Bank of Korea under Articles 14 and 18 stored and managed at the payment and settlement offices of financial institutions, or stored and managed by each handling business office under the control of the payment and settlement offices of financial institutions. ② The Head of the Bank of Korea Loan Handling Office shall check whether the Target Securities held by financial institutions have a named transfer endorsement making the Bank of Korea the endorsee, and inspect their storage condition and any abnormalities.

Chapter 4 Calculation of Deposit and Loan Interest and Discount Fees

Article 20 (Calculation of Interest and Discount Fees) ① Interest on deposits and loans shall be calculated by multiplying the balance by type of deposit and loan by the annual interest rate and the number of days, then dividing by 365 (366 in leap years). Discount fees for discounted bills shall be calculated by multiplying the bill amount by the annual interest rate and the number of days, then dividing by 365 (366 in leap years). However, interest on intraday current account loans shall be calculated by multiplying the amount calculated according to the standards specified in Article 7 of the Loan Rules by the annual interest rate, then dividing by 365 (366 in leap years). ② The number of days shall be calculated using the "one-side inclusion" method, excluding the end date. ③ When calculating interest and discount fees, amounts less than one won shall be disregarded.

Article 21 (Timing of Payment of Deposit Interest) ① Interest shall not be paid on current accounts and special deposits.
② Interest on fund adjustment deposits shall be paid every business day for the interest accrued from the previous business day to the current day.

Article 22 (Timing of Receipt of Loan Interest and Discount Fees) ① Interest on bill loans shall be received on the last day of each month for interest accrued during the month. However, if the last day is a holiday, interest up to that day shall be received on the final business day of that month. ② Interest on intraday current account loans shall be received daily for interest accrued during the day. ③ Interest on fund adjustment loans shall be received every business day for interest accrued from the previous business day to the current day. ④ Discount fees for discounted bills shall be received on the discount date for the discount fee up to the maturity date.

Article 23 (Late Payment Damages) If a financial institution fails to repay the loan by the specified date or if loan recovery under Article 16, Paragraph 2 is delayed, the Bank of Korea shall impose late payment damages calculated by applying an interest rate 1 percentage point higher than the interest rate for Bank of Korea fund adjustment loans.

Chapter 5 Supplementary Provisions

Article 24 (Request for Data) The Bank of Korea may request financial institutions to submit relevant data, such as information on enterprises benefiting from loans and loan handling documents, when necessary in connection with the handling of deposit and loan business.

Article 25 (Collection of Fees) The Bank of Korea may collect fees determined by the Director of the Financial Business Bureau in connection with deposit and loan business.

Article 26 (Sanctions)
① The Head of the Bank of Korea Deposit and Loan Handling Office may impose sanctions such as recovery of existing loans, reduction of loan limits, imposition of late payment damages, suspension of transactions for a certain period, or termination of transaction agreements, according to the standards separately specified by the Director of the Financial Business Bureau, if a financial institution falls under any of the following items:

If it is found that the institution received excessive or unjustified loans due to incorrect entry of eligibility recognition application documents or loan application documents, whether intentional or negligent.
If the collateral securities provided to the Bank of Korea or the rediscounted bills entrusted for collection by the Bank of Korea are used for other purposes or disposed of.
If the institution fails to comply with measures taken according to regulations related to deposit and loan transactions.
If the institution's management deterioration causes obstacles to the safety of the entire financial system.
If the institution violates relevant regulations and directives, disturbing the financial order.
② The Head of the Bank of Korea Loan Handling Office shall execute the penalty interest rate applied and notified by the Director of the Monetary Policy Bureau in accordance with Article 10, Paragraph 2 of the "Bank of Korea Financial Institution Loan Rules."

Article 27 (Delegation) Detailed matters necessary for the implementation of these Rules shall be determined by the Director of the Financial Business Bureau.

Supplementary Provisions <February 17, 1994> ① (Effective Date) These Rules shall take effect from March 15, 1994.
② (Repeal) Simultaneously with the implementation of these Rules, the "Bank of Korea Credit Business Handling Regulations" (Work 501-1222, December 31, 1984) and the "Regulations on Calculation of Deposit and Loan Interest and Discount Fees, etc." (Work 501-663, September 7, 1982) are repealed. ③ (Transitional Measures) For loans already handled before the effective date of these Rules, the previous regulations shall continue to apply until recovery.

Supplementary Provisions <November 21, 1994> These Rules shall take effect from January 1, 1995.

Supplementary Provisions <December 15, 1995> These Rules shall take effect from January 1, 1996.

Supplementary Provisions <December 24, 1996> These Rules shall take effect from December 31, 1996.

Supplementary Provisions <December 23, 1998> These Rules shall take effect from January 2, 1999.

Supplementary Provisions <June 21, 1999>
These Rules shall take effect from July 2, 1999.

Supplementary Provisions <September 21, 2000> These Rules shall take effect from September 30, 2000.

Supplementary Provisions <June 20, 2006>
These Rules shall take effect from September 1, 2006.

Supplementary Provisions <January 25, 2008> ① (Effective Date) These Rules shall take effect from March 7, 2008.
② (Transitional Measures) For loans handled before the implementation of these Rules, the previous Rules shall apply.

Supplementary Provisions <January 22, 2009> These Rules shall take effect from February 9, 2009.

Supplementary Provisions <April 3, 2009>
These Rules shall take effect from the date determined separately by the Governor.
<Implemented from April 27, 2009, by Payment Operations Team-601 (Governor Approval, April 20, 2009)>

Supplementary Provisions <July 18, 2014>
These Rules shall take effect from August 7, 2014.

Supplementary Provisions <September 11, 2020>
Article 1 (Effective Date) These Rules shall take effect from the date determined separately by the Governor.
Article 2 (Transitional Measures) Notwithstanding the amendment of the <Appendix> and Article 4, Paragraph 2, for institutions that have concluded current account transaction agreements at the time of implementation of these Rules, the previous regulations shall apply.

Supplementary Provisions <February 17, 2023> These Rules shall take effect from February 27, 2023.

Supplementary Provisions <July 18, 2024>
These Rules shall take effect from July 29, 2024.

Supplementary Provisions <July 24, 2025>
These Rules shall take effect from July 24, 2025. However, the amendments related to the application and execution of penalty interest rates in Article 26, Paragraph 2 shall take effect from January 1, 2026.

Supplementary Provisions <August 27, 2026> These Rules shall take effect from the date determined separately by the Governor.
<Implemented from September 21, 2026, by Payment and Settlement Innovation Team-218 (Governor Approval, September 17, 2026)>