Detailed Rules on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea

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  Detailed Rules on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea Enacted December 29, 2025. Approved by the Governor. Credit Collateral Planning Team-129

Chapter 1 General Provisions

Article 1 (Purpose) The purpose of these Detailed Rules is to stipulate the detailed matters necessary for the implementation of the "Regulations on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea" (hereinafter referred to as the "Regulations").

Article 2 (Submission of Letter of Commitment) A financial institution wishing to utilize an emergency loan must submit the Letter of Commitment in <Form No. 1> to the Bank of Korea.

Chapter 2 Execution of Emergency Loans

Article 3 (Execution of Loan Agreement, etc.) ① The Bank of Korea shall execute a loan agreement and a pledge of claim agreement (hereinafter referred to as the "Transaction Agreement") with a financial institution applying for an emergency loan. However, the basic matters of the Transaction Agreement, etc., shall be determined by the Financial Supervisory Committee in accordance with Article 3 of the Regulations.
② When a financial institution requests the execution of a Transaction Agreement in accordance with Paragraph 1, the Director of the Monetary Policy Bureau of the Bank of Korea (hereinafter referred to as the "Director of Monetary Policy Bureau") shall execute the loan agreement with the financial institution using <Form No. 2>, and execute the pledge of claim agreement using a form separately determined by the Director of the Monetary Policy Bureau. ③ The Director of the Financial Business Bureau of the Bank of Korea (hereinafter referred to as the "Director of Financial Business Bureau") shall receive and store the executed Transaction Agreement forms and other attached documents.

Article 4 (Application for Execution of Emergency Loan) A financial institution that has executed a Transaction Agreement may apply for the execution of an emergency loan within the total amount of the collateral valuation of the loan claims calculated in accordance with Article 7, in accordance with the manner determined by the Director of the Financial Business Bureau.

Article 5 (Execution of Emergency Loan) ① The Director of the Financial Business Bureau shall execute the emergency loan.
② For the execution of the emergency loan, the financial institution must submit documents, etc., that the Director of the Financial Business Bureau deems necessary.

Chapter 3 Eligible Collateral Loan Claims

Article 6 (Requirements for Target Loan Claims) ① The loan claims under Article 4, Paragraph 1 of the Regulations must meet all of the following conditions:
1. Classified as "Normal" according to the asset quality classification criteria under Article 34, Paragraph 2 of the Banking Act and Article 20, Paragraph 1, Item 2 of the Enforcement Decree of the Banking Act.
2. The debtor of the loan claim is a joint-stock company or limited liability company subject to external audit as prescribed in the "Act on External Audit of Joint-Stock Companies, etc.", and the external auditor's opinion in the audit report of the previous fiscal year is "Fair" (However, if an audit report for the previous fiscal year does not exist, the audit report of the fiscal year prior to the previous one shall be used as the basis).
3. It is a KRW-denominated loan claim expressed in Korean Won.
4. The outstanding balance of the loan claim is 3 billion KRW or more.
5. The remaining maturity is 3 months or more and 10 years or less.
② Notwithstanding Paragraph 1, loan claims falling under any of the following items cannot be acquired as collateral:
1. Subordinated loan claims (meaning loans secured by a subsequent mortgage or pledge if there are other senior mortgagees or pledgees other than the financial institution in question).
2. Overdraft loan claims and revolving loan claims (meaning loans that are repeatedly executed within a specific limit amount, where the borrower borrows as needed at any time and repays part or all, restoring the available amount by the repaid amount within the same limit).
3. Loan claims to major shareholders of financial institutions under Article 2, Paragraph 1, Item 10 of the Banking Act, subsidiaries under Article 37 of the Banking Act, and affiliated companies under Article 2, Paragraph 12 of the Monopoly Regulation and Fair Trade Act.
4. Loan claims classified as special finance according to the "Detailed Rules for the Implementation of Banking Supervision Business".
5. Loan claims to financial companies (excluding non-financial holding companies) engaged in the financial and insurance industry (major category) in the Korea Standard Industry Classification announced by the head of the National Data Administration under Article 22 of the Statistics Act.
6. Supported loan claims of financial intermediary support loans executed in accordance with Article 2, Item 2, Article 9, and Article 11 of the "Bank of Korea's Financial Institution Loan Regulations".
7. Loan claims handled by financial institutions for the operation of trust assets.
8. Loan claims governed by foreign law.
9. Other loan claims that the Bank of Korea deems unsuitable as collateral.
③ The credit rating under Article 4, Paragraph 2 of the Regulations refers to the corporate bond rating or corporate credit rating evaluated within the one year prior to the time of application under Article 8, Paragraph 1 or Paragraph 3 of these Detailed Rules. If credit ratings evaluated by two or more credit rating agencies differ, the lowest rating among them shall apply. ④ The "loan claims recognized by the Bank of Korea as corresponding" under Article 4, Paragraph 2 of the Regulations refers to loan claims among those without or having invalid credit ratings under Paragraph 3, where the probability of default of the debtor's internal credit rating evaluated by the bank according to the "Detailed Rules for the Implementation of Banking Supervision Business" is 1.0% or less. However, if the expected default rate for the relevant year has not been calculated, the expected default rate calculated for the previous year shall be used as the basis. ⑤ If the Director of the Monetary Policy Bureau deems it necessary to verify the expected default rate under Paragraph 4, they may request the financial institution to submit materials regarding internal credit ratings, credit evaluation systems, expected default rate estimation methods, etc.

Article 7 (Collateral Valuation of Loan Claims) The collateral valuation of loan claims acquired by the Bank of Korea as collateral for emergency loans shall be as set forth in the <Appendix Table>.

Chapter 4 Examination and Acquisition of Loan Claim Collateral

Article 8 (Examination of Loan Claim Collateral) ① A financial institution must regularly submit information related to loan claims to the Director of the Financial Business Bureau in accordance with Article 6, Paragraph 1 of the Regulations to apply for examination.
② The Director of the Financial Business Bureau shall regularly examine (hereinafter referred to as "Pre-examination") whether the loan claims under Paragraph 1 meet the requirements of Article 4 of the Regulations and Article 6 of these Detailed Rules.
③ A financial institution must update information related to loan claims under Article 6, Paragraph 2 or 3 of the Regulations or submit new information in accordance with the manner determined by the Director of the Financial Business Bureau to apply for examination.
④ After the resolution of the Financial Supervisory Committee under Article 3 of the Regulations, the Director of the Financial Business Bureau shall conduct a main examination (hereinafter referred to as "Main Examination") in the following manner when a financial institution applies for examination of loan claims under Paragraph 3:

1. Compliance with the requirements of Articles 4 and 6 of the Regulations shall be examined every business day (However, Items 4 and 5 of Article 6, Paragraph 1 shall not apply after being registered as eligible collateral in accordance with Article 9, Paragraph 3).
2. Compliance with the requirements of Article 7 of the Regulations shall be examined by confirming counterparty requirements, etc., when a financial institution registers loan claims provided as eligible collateral or changes the registered content.

Article 9 (Provision and Acquisition of Loan Claim Collateral) ① A financial institution applying for an emergency loan must provide loan claims as collateral to the Bank of Korea in accordance with Articles 6, Paragraphs 2 and 3, and Article 7 of the Regulations.
② The Director of the Financial Business Bureau may request documents necessary to acquire the loan claims provided by the financial institution as collateral under Paragraph 1, and the financial institution must submit them in accordance with the manner determined by the Director of the Financial Business Bureau. ③ The Director of the Financial Business Bureau shall register loan claims that have passed the Main Examination under Article 8, Paragraph 4, Item 1 of these Detailed Rules as eligible collateral after confirming compliance with the requirements of Article 7 of the Regulations. ④ The Director of the Financial Business Bureau shall calculate the total amount of collateral valuation in accordance with Article 7 for the loan claims registered as eligible collateral.

Article 10 (Supplement of Loan Claim Collateral) ① After the resolution of the Financial Supervisory Committee under Article 3 of the Regulations, the Director of the Financial Business Bureau shall check the remaining face amount of loan claims every business day. If the total amount of collateral valuation calculated in accordance with Article 9, Paragraph 4 of these Detailed Rules falls short of the emergency loan balance (including loan interest) or is expected to fall short due to value depreciation, etc., the Director may request the financial institution to supplement the collateral.
② If a financial institution that has received a request for collateral supplementation under Paragraph 1 fails to comply with the request, the Director of the Financial Business Bureau may suspend new emergency loans and recall existing emergency loans.

Article 11 (Disposal of Loan Claims) If a financial institution fails to repay the loan on the payment date (including cases where the due date arrives due to loss of time benefit) or if loan recovery is difficult, the Bank of Korea may exercise all rights held as a pledgee, such as disposing of the loan claims provided as collateral by the financial institution.

Chapter 5 Supplementary Provisions

Article 12 (Request for Submission of Materials) The Bank of Korea may request financial institutions to submit relevant materials, such as loan handling documents and collateral establishment documents, if necessary in connection with emergency loans.

Article 13 (Implementation of Simulation Drills) ① The Director of the Financial Business Bureau may conduct joint simulation drills between the Bank of Korea and financial institutions in connection with emergency loans.
② When conducting simulation drills under Paragraph 1, the Director of the Financial Business Bureau shall notify the financial institutions in advance of matters necessary for the drill, such as the purpose and schedule.
③ Financial institutions must participate in the simulation drills unless there are unavoidable reasons.

Article 14 (Sanctions) The Bank of Korea may take measures such as reducing the emergency loan limit, recalling existing loans, imposing late payment compensation, suspending loan execution for a certain period, or terminating the Transaction Agreement if a financial institution falls under any of the following items:

1. If there is a fact of receiving excessive or unjustified loans due to the submission of incorrectly recorded materials with intent or negligence in connection with emergency loans.
2. If the loan claims provided as collateral to the Bank of Korea are used for other purposes or disposed of.
3. If the financial institution violates the Bank of Korea's regulations, detailed rules (including the Letter of Commitment and Loan Agreement), procedures (including the Pledge of Claim Agreement), handling procedures, or instructions.

Article 15 (Reporting) Matters regarding the reporting of the operation results of emergency loans under Article 11 of the Regulations shall be handled by the Director of the Monetary Policy Bureau, and matters regarding the reporting of sanction results for financial institutions shall be handled by the Director of the Financial Business Bureau.

Article 16 (Delegation) Detailed matters necessary for the implementation of these Detailed Rules shall be determined by the Director of the Monetary Policy Bureau. However, Articles 4, 5, 8, 9, 10, 13, and 14 (excluding the reduction of the emergency loan limit and termination of the Transaction Agreement) shall be determined by the Director of the Financial Business Bureau.

Supplementary Provisions (December 29, 2025)
These Detailed Rules shall take effect from January 2, 2026.

<Appendix Table> Collateral Valuation for Emergency Loans Collateralized by Financial Institutions' Loan Claims

Collateral Valuation for Emergency Loans Collateralized by Financial Institutions' Loan Claims

1. The amount obtained by applying the following ratio to the remaining face amount of the loan claim

Classification	Credit Rating 1)	Remaining Maturity 2)
Credit Rating under Article 6, Paragraph 3 of these Detailed Rules	Expected Default Rate under Article 6, Paragraph 4 of these Detailed Rules	1 year or less	Over 1 year to 3 years or less	Over 3 years to 5 years or less	Over 5 years to 10 years or less
Loan Claims under Article 4, Paragraph 1, Item 1 of the Regulations 3)	A- or higher	0.1% or less	88	85	82	72
	BBB- or higher, less than A-	Over 0.1% to 1.0% or less	81	76	71	55
Loan Claims under Article 4, Paragraph 1, Item 2 of the Regulations	A- or higher	0.1% or less	84	80	75	61
	BBB- or higher, less than A-	Over 0.1% to 1.0% or less	76	70	65	46

Notes:
1) If the credit rating under Article 6, Paragraph 3 of these Detailed Rules does not exist or is invalid, the criteria for the expected default rate under Article 6, Paragraph 4 of these Detailed Rules shall apply.
2) Remaining maturity is based on the date of collateral valuation calculation.
3) For real estate-secured loan claims under Article 4, Paragraph 1, Item 1 of the Regulations, the collateral valuation shall be applied as follows:
a. If the remaining face amount of the loan claim is less than or equal to the valid collateral value reported by the financial institution, apply the collateral valuation ratio for real estate-secured loans to the remaining face amount of the loan claim. b. If the remaining face amount of the loan claim is greater than the valid collateral value reported by the financial institution, apply the collateral valuation ratio for unsecured loans to the remaining face amount exceeding the valid collateral value.

<Form No. 1> Letter of Commitment

Letter of Commitment

I hereby commit to comply with all regulations related to emergency loans temporarily eligible as collateral for the Bank of Korea's financial institution loan claims, including the "Bank of Korea Act," its Enforcement Decree, the "Regulations on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea," and related detailed rules, procedures, and handling procedures as determined by your bank, and to submit information related to loan claims as determined by your bank.

Year Month Day

By: (Name of Institution)
(Address)
(Corporate Registration Number)
(Representative) (Seal)
To: Bank of Korea

<Form No. 2> Loan Agreement

Loan Agreement

20○○ Year ○ Month ○○ Day

To: Bank of Korea

By: (Name of Corporation)
(Head Office Address)
(Corporate Registration Number)
(Representative) (Seal)

I hereby commit to comply with all provisions of the Bank of Korea (hereinafter referred to as "your bank") related to loans, including the "Bank of Korea Act," its Enforcement Decree, the "Regulations on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea," related detailed rules, procedures, handling procedures, and this Loan Agreement (hereinafter referred to as the "Agreement") in the transaction of emergency loans collateralized by financial institutions' loan claims between me and your bank (hereinafter referred to as the "Loan").

Chapter 1 General Provisions

Article 1 (Scope of Application, etc.) ① This Agreement applies to the loan transaction between your bank and me.
② If there is a prior loan transaction agreement between your bank and me, this Agreement shall not be affected by the prior loan transaction agreement.
③ This Agreement shall take effect from the execution date stated in the preamble (including the same day) and shall terminate on the later of the following dates:
1. The "Loan Period End Date" determined by the resolution of the Financial Supervisory Committee related to this Loan.
2. The date on which I fulfill all obligations under the Financial Agreement (referring to this Agreement, the Pledge of Claim Agreement, and all various agreements and other attached documents executed or written in connection therewith, hereinafter the same) (including the obligation to pay loan principal and interest, late payment compensation, and other costs).
④ The definitions of terms used in this Agreement are as follows:
1. "Individual Loan" refers to several loans executed by the Bank of Korea to the financial institution when the preconditions for loan execution under Article 3 of the Agreement are met, within the limit not exceeding the loan limit [] KRW, and "Loan" refers to the collective term for Individual Loans.
2. "Individual Loan Amount" refers to the unpaid amount of the principal of an Individual Loan, and "Loan Amount" refers to the total amount of Individual Loan Amounts.
3. "Individual Loan Execution Date" refers to the date on which an Individual Loan is executed as determined by your bank, and "Loan Execution Date" refers to the collective term for Individual Loan Execution Dates.
4. "Loan Principal and Interest" refers to the total amount of Individual Loan Amounts and the loan interest generated thereon.
5. "Loan Interest" refers to the interest calculated by applying the interest rate to the Individual Loan Amount.
6. "Repayment Date" refers to the date on which each Individual Loan Amount must be repaid, which is [] months from the Individual Loan Execution Date (if the date is not a business day, the next business day).
7. "Interest Payment Date" refers to the last day of the relevant interest period for the Individual Loan Amount (if the date is not a business day, the next business day).
⑤ Terms defined in the "Regulations on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea," related detailed rules, procedures, and handling procedures shall have the same meaning in this Agreement unless otherwise defined in Paragraph 4 and below.

Chapter 2 Loan Execution

Article 2 (Loan Application) ① Subject to the fulfillment of the preconditions in Article 3, I may apply for multiple loan executions during the system operation period determined by the resolution of the Financial Supervisory Committee, within the limit not exceeding the loan limit [] KRW.
② The minimum application amount for an Individual Loan under Paragraph 1 shall be [] KRW.

Article 3 (Preconditions for Loan Execution) Your bank's execution of each Individual Loan to me is subject to the fulfillment of all of the following items:

1. As of the loan application date, the total amount of my existing loan balance (including loan interest generated or to be generated up to the related repayment date) and the new loan application amount (including loan interest to be generated up to the related repayment date) shall not exceed the collateral valuation of eligible collateral (the amount calculated according to the <Appendix Table> of the "Detailed Rules on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea") as of the previous business day.
2. As of the loan application date, there shall be no unpaid amounts (referring to any amounts payable under the Financial Agreement such as principal or interest, various fees, or under this Agreement, your bank's regulations, or laws and regulations, at each payment date (including early repayment or cases where the due date arrives due to loss of time benefit, and if a specific time is designated, that time)).

Chapter 3 Interest

Article 4 (Interest Rate) ① The interest rate (referring to the annual interest rate, hereinafter the same) applied to each Individual Loan Amount shall be [*]%.
② If your bank determines that it is necessary to change the interest rate considering economic conditions, etc., you may change the interest rate under Paragraph 1 by prior written notice to me.

Article 5 (Interest Period) ① The interest period refers to the period during which interest accrues on the Individual Loan Amount and is as follows:

1. The interest period shall be the period from the Individual Loan Execution Date to the Repayment Date.
2. Notwithstanding Item 1, if the entire Individual Loan Amount is repaid early under this Agreement, the interest period shall be from the Individual Loan Execution Date to the Early Repayment Date.
3. Notwithstanding Item 1, if part of the Individual Loan Amount is repaid early under this Agreement, the initial interest period shall be from the Individual Loan Execution Date to the first partial early repayment date (hereinafter referred to as the "First Partial Early Repayment Date" in this Item), and the subsequent interest periods shall be from the last day of the previous interest period to the Repayment Date. However, if the entire Individual Loan Amount is repaid early between the First Partial Early Repayment Date and the Repayment Date, Item 2 shall apply to the relevant interest period, and if part is repaid early again, this Item shall apply respectively.
   ② In calculating the actual number of days elapsed in the interest period, the first day of the interest period shall be included, but the last day shall not be included. If an Individual Loan Amount is repaid early on the Individual Loan Execution Date, the interest period shall be 1 day.

Article 6 (Interest Payment) ① I shall pay the interest generated daily according to the interest rate during the interest period on the Individual Loan Amount to your bank in a post-paid manner on the Interest Payment Date.
② The interest for each interest period shall be calculated on a daily basis according to the actual number of days elapsed in the relevant interest period, and any amount less than 1 KRW in the calculated interest amount shall be disregarded.
Interest Amount for Any Interest Period = [Daily Interest Amount in Non-Leap Years (= Daily Loan Balance × Interest Rate under Article 4 applicable to the Relevant Interest Period ÷ 365, rounded to the fourth decimal place) × Actual Number of Days Elapsed] + [Daily Interest Amount in Leap Years (= Daily Loan Balance × Interest Rate under Article 4 applicable to the Relevant Interest Period ÷ 366, rounded to the fourth decimal place) × Actual Number of Days Elapsed]

Chapter 4 Repayment

Article 7 (Repayment) ① Except in cases otherwise specified in this Agreement, if I wish to repay an Individual Loan Amount, I must repay the full amount in a lump sum on each relevant Repayment Date as determined by your bank.
② I may repay all or part of the Loan Amount on any business day, and in this case, no early repayment fee shall be charged.

Article 8 (Application of Repayment Amount) ① In the case of applying for repayment or early repayment under Article 7, I must pay to your bank all amounts generated in connection with the Individual Loan Amount subject to repayment or early repayment, including interest and any fees payable under this Agreement, your bank's regulations, or laws and regulations.
② If the amount deducted and recovered by your bank from the Current Deposit Account is insufficient to cover all amounts due under this Agreement, your bank's regulations, or laws and regulations, your bank shall apply the received amounts in the following order:

1. Amounts such as fees and other costs payable to your bank under the Financial Agreement.
2. Late payment compensation generated on all amounts payable under the Financial Agreement.
3. Interest on Individual Loan Amounts.
4. Individual Loan Amounts.

Chapter 5 Late Payment Compensation

Article 9 (Late Payment Compensation) ① If I fail to pay amounts payable to your bank under the Financial Agreement by the payment date (including early repayment or cases where the due date arrives due to loss of time benefit, but not limited thereto) or if the recovery of loan amounts is delayed due to insufficient collateral, sanctions, etc., I shall pay late payment compensation to your bank for the delinquency period from the payment date (including the same day) to the actual payment date (excluding the same day).
② The late payment compensation under Paragraph 1 shall be calculated on a daily basis according to the actual number of days elapsed in the relevant delinquency period, and any amount less than 1 KRW in the calculated late payment compensation shall be disregarded.
Late Payment Compensation = {Daily Late Payment Compensation in Non-Leap Years (= Amounts not repaid or recovery of which is delayed by the payment date × Interest Rate under Article 4 plus [] percentage points ÷ 365, rounded to the fourth decimal place) × Actual Number of Days Elapsed} + {Daily Late Payment Compensation in Leap Years (= Amounts not repaid or recovery of which is delayed by the payment date × Interest Rate under Article 4 plus [] percentage points ÷ 366, rounded to the fourth decimal place) × Actual Number of Delinquency Days × Actual Number of Days Elapsed} ③ I commit that the late payment compensation under this Agreement shall not affect your bank's separate claim for damages against me as a penalty.

Chapter 6 Costs

Article 10 (Cost Burden) ① I shall bear the fees necessary for your bank's loan execution, stamp tax, and costs necessary for your bank's collateral preservation and management.
② If I fail to pay the costs under Paragraph 1, your bank may pay them on my behalf, and I shall pay your bank interest calculated on a daily basis for the period from the date your bank pays on my behalf to the date I repay, based on the commercial legal interest rate, assuming 1 year as 365 days (366 days in leap years), adding the interest to the costs. The number of days shall include the first day but exclude the last day.

Chapter 7 Payment and Recovery

Article 11 (Payment) ① All amounts payable by me to your bank under this Agreement must be deposited into my General Current Deposit Account (hereinafter referred to as the "Current Deposit Account") opened with your bank by 4:00 PM (16:00) on each payment date.
② If your bank deducts and recovers amounts in accordance with Paragraph 1, such amounts shall be deemed as paid by me to your bank.
③ If a payment date is not a business day, payment shall be made on the next business day.
④ I shall not assert any right to set off, counterclaim, or otherwise reduce the payment amounts with respect to my payment obligation to your bank.

Article 12 (Recovery of Claims) ① Your bank may immediately set off and recover all or part of the amounts of my debts due at maturity, over-borrowed amounts, or burdens related to my debts from my claims such as the Current Deposit Account without my expression of intent.
② If your bank deems it necessary to preserve your claims, such as when events under Article 17 occur causing loss of time benefit, your bank may set off regardless of the maturity of my claims and debts, and shall notify me in writing of such fact thereafter.

Chapter 8 Provision and Supplement of Collateral

Article 13 (Provision of Collateral) ① To secure the performance of obligations under the Financial Agreement, I shall execute a Pledge of Claim Agreement as required by your bank.
② If a Pledge of Claim Agreement is executed in accordance with Paragraph 1, I shall fulfill all procedures and other obligations necessary to maintain the pledge right and secure its effectiveness as the first-priority secured creditor of your bank (including notification or consent to the debtor of the eligible collateral with a fixed date, and registration of notes on related real estate, but not limited thereto).

Article 14 (Supplement of Collateral) ① I must ensure that the total amount of collateral valuation calculated in accordance with Article 9, Paragraph 4 of the "Detailed Rules on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea" does not fall short of the Loan Principal and Interest (including loan interest generated or to be generated up to the repayment date) from after the loan execution until repayment is completed.
② If your bank recognizes that the total amount of collateral valuation under Paragraph 1 falls short of the Loan Principal and Interest (including loan interest generated or to be generated up to the repayment date) or is expected to fall short due to value depreciation, etc., your bank may request me to provide additional eligible collateral. ③ If I am requested to provide additional collateral under Paragraph 2, I shall fulfill all procedures and other obligations necessary to maintain the pledge right and secure its effectiveness as the first-priority secured creditor of your bank in connection with the relevant eligible collateral (including notification or consent to the debtor of the relevant eligible collateral with a fixed date, and registration of notes on related real estate, but not limited thereto). ④ If I fail to fulfill the obligations under this Article, your bank may suspend additional loans and immediately recover all or part of the existing loan amounts by deducting from the Current Deposit Account.

Chapter 9 Compliance Obligations and Representations and Warranties

Article 15 (Compliance Obligations) ① I shall promptly comply if your bank requests materials or investigates/confirms my business and financial status in connection with the "Regulations on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea," related detailed rules, procedures, handling procedures, and Financial Agreement, and shall respond to inspections and joint inspections under Article 88 of the "Bank of Korea Act."
② I shall immediately notify your bank and comply with your bank's instructions if any of the following circumstances occur or are likely to occur:
1. Violation of laws, the "Regulations on Emergency Loans Collateralized by Financial Institutions' Loan Claims to the Bank of Korea," related detailed rules, procedures, handling procedures, your bank's instructions, or Financial Agreement.
2. Loss of time benefit under the Financial Agreement.
3. Any legal measures such as lawsuits, preservation measures, compulsory execution, tax collection measures, or administrative dispositions related to me, the debtor of the loan claim, or the collateral object.
4. Repayment of debts related to the Financial Agreement or termination of collateral by me or the debtor of the loan claim.
5. Changes in my or the debtor of the loan claim's corporate status, address, name, representative, articles of incorporation, seal, business/financial status, corporate governance structure, and reorganization, liquidation, bankruptcy, dissolution, closure, sale of assets, or other organizational changes.
6. Change or disposal (including exemption from performance and waiver) of the collateral object (including underlying contracts).
7. Change or disposal of rights and obligations generated under the Financial Agreement.
8. Occurrence of damages that your bank may bear in connection with me, the debtor of the loan claim, or the collateral object.
9. Incurrence of debts to third parties by me or the debtor of the loan claim (including provision of collateral).
10. Change in the legal status or condition of me, the debtor of the loan claim, or the collateral object.
11. Other matters that your bank determines require notification.
③ After the application date for eligibility examination for collateral provision, I shall not perform any of the following acts related to the target loan claims without your bank's prior written approval until your bank notifies otherwise:
1. Acts to change the loan transaction agreement or collateral contract on which the target loan claims are based.
2. Acts to waive or exempt performance of the target loan claims.
3. Acts to assign, dispose of, or provide as collateral for other debts of the target loan claims to a third party.
④ I shall comply with the following matters after loan execution:
1. For real estate-secured loan claims among eligible collateral, I must maintain the actual value of the portion secured by the real estate at or above the Valid Collateral Value (calculated by me according to the Bank of Korea's Standard for Loan Examination, internal standards, etc., as the value obtained by multiplying the 'Real Estate Collateral Standard Value' (based on objective value evaluation materials such as the real estate's appraisal value, public price, transaction case value, etc.) by the 'Collateral Valuation Ratio' and subtracting the 'Senior Claim Amount', provided that the Valid Collateral Value cannot exceed the total maximum amount of the relevant pledge rights). If I receive money by exercising the collateral right on the relevant real estate, I shall repay the loan amount in priority to the extent permitted.
2. I shall make the best efforts to receive repayment in priority for eligible collateral among loan claims and other credit-related claims held by me against the same person.
3. Regardless of whether the Financial Agreement is terminated, I shall not use or disseminate any information obtained in connection with the Financial Agreement for purposes other than achieving the purpose of the Financial Agreement.
4. I shall store all documents related to the collateral object in a separate location and respond immediately if your bank requests submission of such documents.

Article 16 (Representations and Warranties) I represent and warrant the following matters from the date of execution of the Financial Agreement until its termination:

1. I have the valid and legal capacity and authority to execute and deliver the Financial Agreement and fulfill my obligations to your bank, and have taken all necessary legal measures for this purpose.
2. Except for matters already notified to your bank, there are no circumstances under Article 15, Paragraph 2, Items 1 to 11 that have occurred or are likely to occur.
3. I consent to your bank assigning or disposing of all rights and obligations under the Financial Agreement, providing collateral for the collateral object, etc., and cooperate with all necessary measures for this purpose.
4. All information and materials provided by me to your bank are accurate and true at the time of provision, and if any changes or errors occur in the content of such information and materials thereafter, I shall immediately notify your bank of such fact and provide corrected materials.

Chapter 10 Loss of Time Benefit and Damages

Article 17 (Loss of Time Benefit) ① If any of the following events occurs and your bank recognizes that I have failed to perform any of my debts to your bank or there is a concern that I will fail to perform, your bank shall notify me in writing of such fact, and the time benefit for such debt as well as other debts shall be lost, and I shall immediately repay the debt without your bank's separate claim. In this case, your bank may take other measures permitted by this Agreement and laws and regulations, such as executing the collateral right, or exercise rights.

1. If any of my debts to your bank is not repaid by the payment date and repayment is not made even after the payment date has passed.
2. If I disturb the financial order due to violation of the Financial Agreement.
3. If there is a fact of receiving excessive or unjustified loans due to the submission of incorrectly recorded materials with intent or negligence in connection with emergency loans.
4. If an application for the opening of bankruptcy or reorganization procedures against me is made, or procedures equivalent thereto (including corporate restructuring procedures, but not limited thereto) are opened against me, or if the Bank of Korea Financial Clearing Institute imposes a transaction suspension measure on bills issued by me.
5. If there is a seizure, tax collection measure, or opening of auction for the execution of collateral rights under the Civil Execution Act on my property.
6. If my credit is recognized as significantly deteriorated due to merger with a loss-making company, work stoppage due to labor-management disputes, occurrence of legal disputes affecting company management, etc.
7. If the establishment of the collateral right under the Pledge of Claim Agreement or its effectiveness is invalidated or denied by me or a third party.
   ② In the case of Paragraph 1, your bank may take necessary measures such as recovery of claims and preservation of claims, and in this case, I shall actively cooperate with your bank's measures.
   ③ Even if I lose the time benefit for my debts to your bank under Paragraph 1, if your bank has an explicit expression of intent, the time benefit for such debt or debts designated by your bank shall be restored from that time.

Article 18 (Damages) I shall compensate your bank for damages incurred by your bank due to my non-performance of obligations or violation of obligations under this Agreement.

Chapter 11 Sanctions

Article 19 (Sanctions) Your bank may impose one or more sanction measures for each sanction cause as determined by your bank on me. In addition, your bank may request correction or issue a warning to me.

Chapter 12 Termination of Agreement

Article 20 (Termination of Agreement) ① If I wish to terminate this Agreement, I shall request termination in advance as determined by your bank.
② The termination under Paragraph 1 shall take effect on the date your bank notifies approval, and your bank may withhold or refuse approval if there are outstanding unpaid debts, disputes, legal restrictions, etc.
③ Your bank may terminate the Agreement by prior written notice to me if your bank determines that I have not conducted transactions under this Agreement for a considerable period or do not intend to continue transactions.

Chapter 13 Miscellaneous

Article 21 (Implementation of Procedures via Electronic Recording Media) ① "Electronic Recording Media" refers to media recognized by your bank that can store, process, and transmit data in an electronic manner, including the Bank of Korea Financial Network (hereinafter referred to as "BOKNet") under Article 4 of the "Payment and Settlement System Operation and Management Regulations" and e-mail.
② All procedures under this Agreement, such as provision of collateral, loan application, and repayment, shall be conducted via electronic recording media unless your bank determines otherwise, and expressions of intent via electronic recording media shall have the same effect as written expressions of intent. ③ Transmission by e-mail shall be deemed valid only if sent from an e-mail address stated in Article 22 or with which your bank has a transmission/reception history, or if the sender's identity and authority can be objectively confirmed (your bank shall judge based on the official domain, signature, title, etc., of the affiliated organization). ④ I agree to comply with relevant security procedures when notifying/submitting via electronic recording media and to bear responsibility for violations. ⑤ I agree that if there are changes to the content transmitted, notified, submitted, delivered, received, and acknowledged via electronic recording media, such changes shall also be transmitted, notified, submitted, delivered, received, and acknowledged via electronic recording media, and that the list of eligible collateral registered by your bank via electronic recording media and its changes under this Article shall be confirmed as the collateral object under the Pledge of Claim Agreement. ⑥ Records of collateral and loans made via electronic recording media can be used as evidence in the event of a dispute.

Article 22 (Notification) Except in cases otherwise specified in Article 21 and this Agreement, all notifications, requests, and claims to me or your bank shall be in writing, including fax and e-mail. Notifications shall be sent to the following address or another address notified in writing in advance by the other party, and if the address changes, I shall notify your bank in writing without delay.

To: [My Financial Institution]
[Address]
Recipient: [My Financial Institution] President Phone:
Fax:
E-mail:

To: Bank of Korea
[Address] Seoul Jung-gu ○○○
Recipient: Bank of Korea
Phone:
Fax:
E-mail:

Article 23 (Deemed Delivery) ① Notifications by your bank to me under this Agreement shall be deemed delivered if any of the following items apply. However, if the day deemed as delivered is not a business day at the destination, it shall be deemed delivered on the next business day.

1. If sent by mail, when actually delivered (However, if sent by registered mail, when three (3) business days have elapsed from the date of dispatch).
2. If sent by fax, when transmission confirmation is received.
3. If sent by e-mail, when reception confirmation is received (However, if normally sent to an e-mail address stated in Article 22 or with which your bank has a transmission/reception history, even if reception confirmation is not received, when three (3) business days have elapsed from the date of dispatch).

To: [My Financial Institution]
[Address]
Recipient: [My Financial Institution] President Phone:
Fax:
E-mail:

To: Bank of Korea
[Address] Seoul Jung-gu ○○○
Recipient: Bank of Korea
Phone:
Fax:
E-mail:

② Notwithstanding Paragraph 1, if I fail to notify your bank in writing of the change of my address or e-mail address, notifications sent by your bank to the previously recorded address or e-mail address in accordance with the items of Paragraph 1 shall be deemed normally delivered at the time of dispatch, regardless of whether the conditions of the items of Paragraph 1 are met.

Article 24 (Miscellaneous) Matters not specified in this Agreement shall be handled as determined by your bank.

Article 25 (Jurisdiction) In the event of a lawsuit between your bank and me regarding the loan transaction under this Agreement, the court having jurisdiction over the location of your bank's head office shall be the exclusive jurisdiction court.