Procedures for Handling Foreign Exchange Stabilization Fund Operations

Enacted November 13, 1998, Approved by Director, Int'l Dept 6011-961 Amended October 4, 2000, Approved by Bureau Chief, Int'l Dept 6950-879 Amended March 18, 2002, Approved by Bureau Chief, Int'l Dept 6950-125 Amended June 29, 2005, Approved by Bureau Chief, Int'l Dept 6951-339 Amended March 30, 2006, Approved by Bureau Chief, Int'l Planning Team-409 Amended August 22, 2007, Approved by Bureau Chief, FX Business Team-1328 Amended December 16, 2008, Approved by Bureau Chief, FX Business Team-2605 Amended April 26, 2010, Approved by Bureau Chief, FX Business Team-816 Amended June 23, 2010, Approved by Bureau Chief, FX Business Team-1263 Amended July 28, 2011, Approved by Bureau Chief, Int'l General Affairs Team-942 Amended January 19, 2012, Approved by Bureau Chief, Int'l General Affairs Team-72 Amended January 17, 2013, Approved by Bureau Chief, FX Accounting Team-132 Amended April 2, 2014, Approved by Bureau Chief, FX Accounting Team-618 Amended May 30, 2014, Approved by Bureau Chief, FX Accounting Team-1018 Amended December 30, 2014, Approved by Bureau Chief, FX Accounting Team-2548 Amended August 31, 2017, Approved by Bureau Chief, Int'l General Affairs Team-996 Amended September 15, 2020, Approved by Bureau Chief, FX Accounting Team-2022 Amended September 29, 2020, Approved by Bureau Chief, Int'l General Affairs Team-1387 Amended November 29, 2022, Approved by Bureau Chief, FX Accounting Team-2671 Amended December 20, 2023, Approved by Bureau Chief, FX Accounting Team-3038

Chapter 1 General Provisions

Article 1 (Purpose) The purpose of these Procedures is to define the detailed matters necessary for the implementation of the "Detailed Rules for Handling Foreign Exchange Stabilization Fund Operations" (hereinafter referred to as the "Detailed Rules").

Article 2 (General Principles of Fund Management) ① The balance of the Bank of Korea current deposit account under Article 3, Paragraph 1 of the Detailed Rules shall be maintained at less than USD 1,000 in principle. However, surplus funds related to fund management, funds separately designated for operation as current deposits, and temporary funds awaiting payment shall not be included in the balance of the Bank of Korea current deposit account. ② In foreign exchange transactions under Article 3, Paragraph 1 of the Detailed Rules, the buying and selling exchange rate shall be the benchmark rate and the established benchmark rate under Item 7 of Article 2 of the "Foreign Exchange Transaction Regulations".

Chapter 2 Foreign Currency Fund Management

Section 1 Time Deposits, etc.

Article 3 (Time Deposits with the Bank of Korea) ① USD time deposits with the Bank of Korea under Article 4 of the Detailed Rules shall be deposited in increments of USD 1,000, with a minimum amount of USD 1,000. However, this does not apply to deposits used for foreign exchange stability burden funds, surcharges, and sources for their management, or for purchasing repurchase agreement foreign currency bonds. ② The yield on government bonds under Article 4, Paragraph 2, Item 1 of the Detailed Rules shall be the ask yield (dealer basis) for 3-month maturity government bonds provided by Bloomberg. However, if this is unavailable, Reuters or other available data may be used. ③ Business days under Article 4, Paragraph 2, Item 1 of the Detailed Rules shall be business days of the New York market. ④ The Foreign Exchange Asset Management Return Rate (based on realized return rate) of the Bank of Korea under Article 4, Paragraph 2, Item 2 of the Detailed Rules shall be as provided by the Director of the Bank of Korea Foreign Exchange Asset Management Division. ⑤ The interest rate applied to deposits under Article 4, Paragraph 2, Item 2 of the Detailed Rules shall be changed on March 1 of each year, and this interest rate shall apply to newly deposited funds during the period from the interest rate change date to the end of February of the following year. However, if a certain percentage of the Foreign Exchange Asset Management Return Rate is changed under Article 4, Paragraph 2, Item 2 of the Detailed Rules during this period, the interest rate calculated based on the changed percentage shall apply to newly deposited funds after the change date. ⑥ When calculating the simple average interest rate under Article 4, Paragraph 2, Item 1 of the Detailed Rules, digits below the sixth decimal place shall be discarded. ⑦ When applying a certain percentage of the Foreign Exchange Asset Management Return Rate of the Bank of Korea under Article 4, Paragraph 2, Item 2 of the Detailed Rules, digits below the sixth decimal place shall be discarded. ⑧ The trading interest rate under Article 4, Paragraph 2, Item 3 of the Detailed Rules shall be the trading interest rate specified in the "Procedures for Foreign Currency Liquidity Supply via Competitive Bidding" <Form Attached 15> "Confirmation of Repurchase Agreement Foreign Currency Bond Purchase Transactions via Competitive Bidding". ⑨ When applying a certain percentage of the trading interest rate of foreign currency bonds under Article 4, Paragraph 2, Item 3 of the Detailed Rules, digits below the sixth decimal place shall be discarded.

Article 4 (Time Deposits with Foreign Exchange Banks) Foreign exchange banks wishing to accept time deposits under Article 5 of the Detailed Rules shall submit the Time Deposit Transaction Agreement <Form Attached 1>.

Section 2 Foreign Currency Call

Article 5 (Submission of Agreement) If an institution subject to foreign exchange short-term fund transactions of the Foreign Exchange Stabilization Fund (hereinafter referred to as the "Fund") under Article 6 of the Detailed Rules (hereinafter referred to as "foreign currency call transactions") wishes to conduct foreign currency call transactions, it shall submit the Foreign Currency Call Transaction Agreement <Form Attached 1-2>.

Article 6 (Limits by Institution) The foreign currency call limits for institutions under Article 7 of the Detailed Rules may be set quarterly, considering the institution's short-term external debt, domestic call money performance, purchased foreign exchange scale, credit rating, etc.

Article 7 (Bidding Method) Competitive bidding for foreign currency call transactions under Article 9 of the Detailed Rules shall be conducted via written bidding or electronic bidding through the Bank of Korea.

Article 8 (Internal Interest Rate) The Director of the International Department of the Bank of Korea shall determine the internal interest rate before conducting the bidding, considering interest rates in the international financial market and the domestic foreign currency fund market.

Article 9 (Winning Bidding Method)
① When determining the winning bidder under Article 7, the winning amount shall be allocated from those who bid at or above the internal interest rate determined under Article 8, in descending order of bid interest rate. However, if the bid amount exceeds the bidding amount and competes at the same interest rate, the winning amount shall be allocated proportionally to the competing bid amounts. ② Notwithstanding Paragraph 1, if there is a policy need, the same interest rate may be arbitrarily allocated to all or some of the bidders. If a bidder encounters difficulties such as a credit downgrade that make it difficult to conclude a foreign currency call transaction, that bidder may be excluded from the winning candidates.

Article 10 (Unit of Fund Amount) The minimum bid and winning amount for foreign currency call competitive bidding shall be USD 1 million, and units of operation above that amount shall be multiples of USD 1 million.

Article 11 (Operation of Surplus Funds)
① Interest on overnight time deposits deposited with the Bank of Korea under Article 11, Paragraph 3 of the Detailed Rules shall be calculated monthly as follows, discarding digits below the third decimal place:
Deposit Interest = Average Balance during Deposit Period × Average Interest Rate during Deposit Period × Number of Deposit Days ÷ 360 ② The deposit interest calculated under Paragraph 1 shall be received on the first business day of the following month.

Article 12 (Submission of Transaction Confirmation) ① The subject institution shall immediately submit the Transaction Confirmation <Form Attached 2> upon receiving the notification of winning the foreign currency call transaction. ② The contract shall be deemed established at the time of receipt of the foreign currency call transaction confirmation under Paragraph 1, and a separate contract with the subject institution shall not be drawn up.

Article 13 (Payment of Funds)
① Payment of funds for concluded foreign currency call transactions shall be performed on the date designated by the Bank of Korea.
② Payment of funds under Paragraph 1 shall be implemented in total or net amount through the overseas transaction banks of the subject institution and the Bank of Korea. However, institutions wishing to make net payments shall submit the Foreign Exchange Stabilization Fund Foreign Currency Call Transaction Fund Transfer Calculation Sheet <Form Attached 3> to the Bank of Korea. ③ Interest on foreign currency call transactions shall be calculated by rounding to the third decimal place and received on the maturity date.

Chapter 3 Won Fund Management

Article 14 (Submission of Agreement) If a subject institution for won short-term fund transactions (hereinafter referred to as "won call transactions") under Article 12 of the Detailed Rules wishes to conduct won call transactions with the Fund via competitive bidding under Article 14, Paragraph 1 of the Detailed Rules, it shall submit the Won Call Transaction Agreement <Form Attached 4>.

Article 15 (Registration of Trader)
① If a won call transaction subject institution that submitted the won call transaction agreement under Article 14 wishes to newly designate or change a trader to act on behalf of the institution's representative to conduct won call transactions with the Fund, it shall submit the Trader Selection (Change) Notice <Form Attached 5>. ② Won call transaction subject institutions that submitted the trader selection (change) notice in writing under Paragraph 1 shall also register or change the trader registration online via the Fund Won Call Transaction Electronic Bidding System (hereinafter referred to as the "Electronic Bidding System") provided by the Bank of Korea Financial Settlement Network, according to the format provided.

Article 16 (Limits by Institution)
① In the case of won call transactions via competitive bidding, the won call limit for each institution shall be calculated each time bidding is conducted according to the following formula, based on the limit allocation ratio for each institution set quarterly considering the institution's required reserve deposits, capital, credit rating, etc. Won Call Limit per Institution = Limit Allocation Ratio per Institution × Bidding Limit (Bid Amount × Multiplier) ② In the case of won call transactions through won fund intermediary companies, the won call limit for each institution shall be set quarterly considering the institution's capital, credit status, etc. ③ Notwithstanding Paragraph 1, in the case of re-bidding for some unsold portions, bidding may be conducted based on the remaining limit among the limits granted in the previous bidding.

Article 17 (Bidding Method) Won call competitive bidding under Article 14, Paragraph 1 of the Detailed Rules shall be conducted via the electronic bidding method under Article 18. However, in unavoidable cases such as computer system failures, it may be conducted via the written bidding method under Article 19.

Article 18 (Electronic Bidding Method)
① Won call electronic bidding participating institutions shall bid according to the visual format provided by the electronic bidding system within the bidding time previously notified by the Fund. However, if bidding via the electronic bidding system is impossible due to unavoidable reasons such as computer system failures, a registered trader may submit the Won Call Transaction Application Form <Form Attached 6> to the Bank of Korea to request input of the bid details. ② If the input time for bid details of financial institutions is insufficient due to temporary failures of the main computer of the electronic bidding system during electronic bidding, the bidding time may be extended. ③ If bid detail input is impossible due to failures of the main computer of the electronic bidding system after the announcement of electronic bidding, the bidding time may be postponed or converted to written bidding under Article 19.

Article 19 (Written Bidding Method)
① The registered trader of a subject institution wishing to participate in written bidding shall submit the Won Call Transaction Application Form to the Bank of Korea within the time notified by the Bank of Korea. ② Upon receipt of the Won Call Transaction Application Form under Paragraph 1, a serial number shall be entered and managed by placing it in a pre-sealed bidding box in the presence of an auditor from the Audit Office of the Bank of Korea. ③ The place for written bidding shall be the Bank of Korea Headquarters.

Article 20 (Minimum Winning Interest Rate) ① To prevent interest rate collusion among bidders, the minimum winning interest rate shall be calculated before the bidding is conducted, considering money market trends, etc., and managed as confidential until the opening. ② In the case of electronic bidding, the minimum winning interest rate shall be opened and input into the computer after the bidding time closes. In the case of written bidding, it shall be opened in the presence of an auditor from the Audit Office before the bidder application forms.

Article 21 (Winning Bidding Method) The winning amount shall be allocated according to the bid amount in descending order of bid interest rate among those who bid at or above the minimum winning interest rate determined by the Bank of Korea. However, if the bid amount exceeds the bidding amount and competes at the same interest rate, the winning amount shall be allocated in won units proportionally to the bid amounts of the competing parties.

Article 22 (Notification of Transaction Conclusion) ① After the winning decision, the won call transaction conclusion result, including the winning interest rate and winning amount, shall be notified online via the format of the Bank of Korea Financial Settlement Network in the case of electronic bidding, and the Won Call Transaction Conclusion Notice <Form Attached 7> shall be sent to the subject institution in the case of written bidding. ② When the subject institution receives the won call transaction conclusion result as an electronic document under Paragraph 1 or receives the notice in writing, the contract shall be deemed established, and this electronic document or written notice shall serve as the contract.

Article 23 (Payment of Funds)
① Payment of funds for concluded won call transactions shall be performed on the bidding date. However, if there is a policy need, it may be performed on a date designated by the Bank of Korea. ② Payment of funds under Paragraph 1 shall be performed through the current deposit account of the subject institution opened at the Bank of Korea. ③ Interest on won call transactions shall be calculated by discarding amounts less than one won and received on the maturity date.

Article 24 (Obligations of Subject Institutions) ① Subject institutions shall faithfully perform the established contract conditions.
② Traders shall not engage in collusive acts such as interest rate manipulation during the competitive bidding process.

Article 25 (Sanctions) Necessary measures, such as suspending bidding participation qualifications for a certain period, may be taken against subject institutions that fail to perform debts or other obligations arising from transaction contracts concluded under these Procedures.

Article 26 (Won Call Transactions via Won Fund Intermediary Companies) Won call transactions via won fund intermediary companies shall follow the methods stipulated in the agreement of the won fund intermediary company, notwithstanding Articles 17 through 25.

Chapter 4 Guarantee Fund

Article 27 (Deposit of Guarantee Fund)
① Institutions wishing to deposit guarantee fund accumulation funds into the Fund under Article 17 of the Detailed Rules shall submit the Guarantee Fund Deposit Transaction Agreement <Form Attached 8>. ② Institutions wishing to accumulate guarantee funds shall submit the Guarantee Fund Deposit Application Form <Form Attached 9> to the Bank of Korea by the guarantee fund deposit date. ③ Institutions wishing to request the return of guarantee fund deposits due to reasons such as repayment of guaranteed debts shall submit the Guarantee Fund Deposit Return Application Form <Form Attached 10> to the Bank of Korea. ④ Deposit of guarantee funds and repayment of principal and interest shall be implemented through the foreign currency deposit account of the relevant financial institution installed at the Bank of Korea.

Chapter 5 Accounting Treatment

Section 1 Accounting

Article 28 (Account Titles)
① The account titles of the Fund are divided into balance sheet accounts and income statement accounts.
② The arrangement of account titles shall be based on liquidity, with balance sheet accounts arranged in the order of assets, liabilities, and capital, and income statement accounts arranged in the order of revenue and expenses. ③ The names and arrangement of account titles are as specified in the Appendix.

Article 29 (Cause of Expenditure) When performing a cause of expenditure, a request for approval or an expenditure resolution form shall be prepared, and it shall be performed within relevant regulations and planned budget limits. However, for accounts other than bond issuance costs and fund management costs, only a voucher may be recorded at the time of transaction occurrence, and an expenditure resolution form may be omitted.

Article 30 (Advances) Advances may be made if necessary due to the nature of travel expenses and other costs. When the content or amount of the advanced business is confirmed, it shall be settled or accounted for immediately.

Article 31 (Prepayment) Prepayment may be made for expense expenditures where failure to pay in advance would hinder business performance. If prepayment is made, settlement shall be made immediately upon completion of the business resulting from the payment.

Article 32 (Receipts)
① Receipts shall be submitted for expense expenditures. However, if receipts cannot be obtained due to unavoidable reasons, a payment certificate may be used instead.
② If a receipt cannot be attached to the expenditure voucher because it was used for another purpose, a substitute certificate recording the reason may be used instead.

Article 33 (Description Requirements and Organization of Vouchers) ① The expenditure voucher shall describe the item, reason for payment, basis for calculation, and payment date.
② Expenditure vouchers shall be organized by year and item, bound with a spine.

Article 34 (Accounting Treatment of Transactions) ① All transactions related to accounting shall be recorded in the daily transaction detail statement by account title, and separate vouchers shall be prepared for cash transactions. ② The daily transaction detail statement shall describe the account title, currency, amount, total debit/credit, and account details for each transaction. ③ Notwithstanding Paragraph 1, if unavoidable reasons such as computer system failures occur or are expected, all transactions may be processed via vouchers.

Article 35 (Vouchers)
① Vouchers prepared under Article 34 are divided into deposit vouchers, withdrawal vouchers, and transfer vouchers, and may be substituted by vouchers or resolutions containing the functions of the vouchers. ② Vouchers under Paragraph 1 shall prepare total debit or credit statements by account and currency, and transfer transactions shall be recorded separately as transfers, purchases, and sales.

Article 36 (Settlement Documents) At the time of settlement, settlement documents shall be prepared in accordance with the "National Accounting Act", related laws, or as prescribed by the Minister of Strategy and Finance.

Section 2 Foreign Exchange Account

Article 37 (Applicable Exchange Rate) The conversion rate of foreign currency amounts to won applied in the accounting treatment of the Fund shall be the exchange rate stipulated in Article 2, Paragraph 2.

Article 38 (Foreign Currency Display Vouchers) The following items shall be concurrently stated in foreign currency display vouchers prepared under Article 34:

1. In the amount column, the foreign currency amount and won amount shall be stated; in the description column, the exchange rate and transaction type. However, for transfer vouchers of the same foreign currency, the entry of the applicable exchange rate may be omitted.
2. In the case of buying and selling foreign exchange, "Bought" or "Sold" shall be indicated in the description column.
3. Other matters necessary according to transaction practices.

Article 39 (Ledger Records)
① The general ledger shall be prepared by currency, stating foreign currency amounts and won amounts separately.
② The general ledger debit-credit balance statement shall be prepared daily, stating the total won amount for each account in the general ledger.

Article 40 (Treatment of Won Amounts Less Than One Won) When calculating the won conversion amount of the relevant foreign currency according to the applicable exchange rate, amounts less than one won shall be discarded.

Article 41 (Interest Calculation) In relation to the calculation of interest on foreign currency asset management, if not stipulated in these Procedures, the regulations of the management target institution and international practices shall apply.

Section 3 Supplementary Provisions

Article 42 (Application of Provisions) For accounting treatment of matters not explicitly specified in this Chapter, the "National Accounting Standards", the Bank of Korea's "Accounting Regulations", and "Foreign Exchange Transaction Accounting Treatment Procedures" shall apply mutatis mutandis.

Supplementary Rules <November 13, 1998>

Article 1 (Effective Date) These Procedures shall take effect from November 23, 1998.

Article 2 (Transitional Measures)
① Foreign currency call transactions, won call transactions, and guarantee fund deposit transactions of the Foreign Exchange Stabilization Fund established before the effective date of these Procedures shall be deemed established under these Procedures. ② Notwithstanding Article 25, guarantee fund deposit transaction agreements already concluded according to the Bank of Korea's "Request for Opening Guarantee Fund Deposit Accounts" (Operation 6951-479, April 20, 1998) shall be deemed concluded under these Procedures.

Supplementary Rules <October 4, 2000>

Article 1 (Effective Date) These Procedures shall take effect from October 5, 2000.

Article 2 (Transitional Measures) Acts performed under the previous regulations before the effective date of these Procedures shall be deemed performed under these Procedures.

Supplementary Rules <March 18, 2002>

Article 1 (Effective Date) These Procedures shall take effect from March 19, 2002.

Article 2 (Transitional Measures) The previous procedures shall continue to apply to time deposits deposited before the effective date of these Procedures.

Supplementary Rules <June 29, 2005>

These Procedures shall take effect from June 30, 2005.

Supplementary Rules <March 30, 2006>

These Procedures shall take effect from March 31, 2006.

Supplementary Rules <August 22, 2007>

These Procedures shall take effect from August 23, 2007.

Supplementary Rules <December 16, 2008>

These Procedures shall take effect from December 19, 2008.

Supplementary Rules <April 26, 2010>

These Procedures shall take effect from April 27, 2010.

Supplementary Rules <June 23, 2010>

These Procedures shall take effect from July 1, 2010.

Supplementary Rules <July 28, 2011>

These Procedures shall take effect from August 1, 2011.

Supplementary Rules <January 19, 2012>

These Procedures shall take effect from January 26, 2012.

Supplementary Rules <January 17, 2013>

These Procedures shall take effect from February 1, 2013.

Supplementary Rules <April 2, 2014>

These Procedures shall take effect from May 12, 2014.

Supplementary Rules <May 30, 2014>

These Procedures shall take effect from June 12, 2014.

Supplementary Rules <December 30, 2014>

These Procedures shall take effect from December 30, 2014.

Supplementary Rules <August 31, 2017>

These Procedures shall take effect from September 1, 2017.

Supplementary Rules <September 15, 2020>

These Procedures shall take effect from September 15, 2020.

Supplementary Rules <September 29, 2020>

These Procedures shall take effect from September 29, 2020.

Supplementary Rules <November 29, 2022>

These Procedures shall take effect from November 29, 2022.

Supplementary Rules <December 20, 2023>

These Procedures shall take effect from December 20, 2023.

Supplementary Rules <20 . . .>

These Procedures shall take effect from January 13, 2026.

<Appendix> Foreign Exchange Stabilization Fund Account Titles

Foreign Exchange Stabilization Fund Account Titles

Assets
I. Current Assets
1. Deposits
a. Current Deposits

1. Bank of Korea Deposits
2. Other Deposits
   b. Time Deposits
3. Bank of Korea Deposits (Short-term)
4. Long-term
5. Other Deposits
   2. Loans
   a. Foreign Currency Loans (Current, Loans) b. Loan Subsidy Cost Allowance (Current)
   3. Call Money
   a. Won Call Money b. Foreign Currency Call Money
   c. Foreign Currency Bad Debt Allowance
   4. Securities (Current)
   5. Other Assets
   a. Prepaid Expenses b. Unearned Interest Income
   c. Unearned Burden Income
   d. Advances e. Interest Purchases in Advance f. Receivables g. Derivative Asset Assets II. Non-Current Assets
   1. Investment Assets
   a. Capital Contributions b. Entrusted Foreign Currency Assets
   c. Securities (Non-Current)
   2. Loans
   a. Foreign Currency Loans (Non-Current, Loans) b. Loan Subsidy Cost Allowance (Non-Current)

Liabilities
I. Current Liabilities
1. Other Liabilities
a. Accounts Payable b. Foreign Currency Bond Payables
c. Accrued Expenses
d. Accrued Costs e. Unearned Revenue f. Surcharges g. Derivative Liability II. Non-Current Liabilities
1. Bond Issuance
Bond Discount Issuance Difference
Bond Premium Issuance Difference
2. Foreign Currency Bond Issuance
Foreign Currency Bond Discount Issuance Difference Foreign Currency Bond Premium Issuance Difference
3. Guarantee Fund Deposits
4. Public Fund Management Fund Deposits

Capital

1. Government Contributions
2. Surplus
   a. Retained Earnings Brought Forward b. Net Income (Loss) for the Period
3. Capital Adjustment
   a. Asset Revaluation Adjustment Fund b. Foreign Currency Translation Adjustment Fund

Expenses

1. Operating Expenses
   a. Bond Interest b. Foreign Currency Bond Interest
   c. Bond Issuance Discount
   d. Foreign Currency Bond Issuance Discount e. Bond Sales Discount f. Foreign Currency Bond Sales Discount g. Bond Issuance Costs h. Foreign Currency Bond Issuance Costs
   i. Guarantee Fund Deposit Interest
   j. Public Fund Management Fund Deposit Interest k. Fund Management Costs
   l. Derivative Transaction Payment Interest
   m. Payment Fees n. Securities Trading Loss o. Entrusted Foreign Currency Asset Management Loss p. Foreign Currency Bad Debt Amortization q. Loan Subsidy Costs r. Unearned Interest Income Reversal s. Unearned Revenue Reversal t. Debt Repayment Loss
2. Non-Operating Expenses
   a. Amortization of Foreign Currency Bond Issuance Costs b. Amortization of Foreign Currency Bond Issuance Difference
   c. Foreign Exchange Evaluation Loss
   d. Securities Evaluation Loss e. Derivative Transaction Evaluation Loss f. Refund of Overpaid Amounts from Previous Years g. Miscellaneous Losses
3. Special Losses
   a. Correction of Prior Period Errors Loss

Revenue

1. Operating Revenue
   a. Current Deposit Interest b. Time Deposit Interest
   c. Other Deposit Interest
   d. Loan Interest e. Loan Interest Income f. Won Call Money Interest g. Foreign Currency Call Money Interest h. Securities Interest
   i. Derivative Transaction Income Interest
   j. Securities Trading Gain k. Entrusted Foreign Currency Asset Management Profit
   l. Prepaid Expenses Reversal
   m. Accrued Expenses Reversal n. Bond Issuance Premium o. Dividend Income p. Loan Subsidy Cost Allowance Reversal q. Other Operating Revenue r. Debt Repayment Profit
2. Non-Operating Revenue
   a. Foreign Exchange Evaluation Gain b. Securities Evaluation Gain
   c. Derivative Transaction Evaluation Gain
   d. Burden Income e. Surcharge Income f. Miscellaneous Gain
3. Special Revenue
   a. Correction of Prior Period Errors Gain

Note: Foreign exchange stability burden funds, surcharges, and sources for their management are accounted for separately from other sources of the Foreign Exchange Stabilization Fund.

<Form Attached 1> Foreign Exchange Stabilization Fund Foreign Currency Fund Deposit Transaction Agreement

Foreign Exchange Stabilization Fund Foreign Currency Fund Deposit Transaction Agreement

To the Governor of the Bank of Korea
Revenue Stamp

I hereby agree to abide by the following provisions in conducting foreign currency fund deposit transactions with your bank for the Foreign Exchange Stabilization Fund.

Year Month Day
Address
Bank Name
Representative

Article 1 (Purpose) Deposited foreign currency funds shall be used only for purposes designated by your bank.

Article 2 (Deposit Limit) The deposit limit shall be the amount separately notified by your bank.

Article 3 (Deposit Currency and Period) The deposit currency shall be US Dollars, and the deposit period shall be within 6 months, but may be extended if necessary.

Article 4 (Deposit Interest Rate) The deposit interest rate shall be determined by your bank, considering the foreign currency fund borrowing rate of financial institutions, based on the overnight SOFR (Secured Overnight Financing Rate) for the period corresponding to the deposit period announced by the Federal Reserve Bank of New York (FRBNY) two business days before the deposit date.

Article 5 (Deposit Application) When wishing to accept foreign currency funds, an application shall be made to your bank according to the deposit application form designated by your bank by the first business day before the expected deposit date.

Article 6 (Repayment)
① Deposits shall be repaid in the deposit currency on the maturity date. However, if investment funds are recovered before the maturity date due to the liquidation of overseas investment funds, etc., the deposit funds shall be repaid in the deposit currency by the next business day of the recovery date. ② If the maturity date or mid-term repayment date is a holiday or a New York holiday, the next business day shall be the maturity date or mid-term repayment date.

Article 7 (Interest Payment) Interest on deposits shall be paid in the deposit currency on the maturity date of the deposit period or the mid-term repayment date of the deposit funds, calculated based on the number of days elapsed from the transaction date to the maturity date or mid-term repayment date, and rounded to the third decimal place.

Article 8 (Payment of Funds) Payment of funds shall be implemented in net amount through your bank's overseas transaction bank and my overseas transaction bank by submitting the fund transfer calculation sheet designated by your bank to your bank in advance.

Article 9 (Collateral) If your bank requests collateral, I shall immediately provide collateral approved by your bank according to the procedure designated by your bank.

Article 10 (Set-off) If I fail to repay the deposit principal and interest on the maturity date or mid-term repayment date, I shall not raise any objection if your bank, after prior notice, sets off the corresponding amount from all accounts opened in my name at your bank in the manner designated by your bank.

Article 11 (Late Interest) Late interest for my default shall be paid at the rate designated by your bank.

Article 12 (Payment Accounts, etc.) The payment accounts, agents, and users to be used for foreign currency fund deposit transactions by me shall be notified separately.

Article 13 (Submission of Data) I shall submit reports and other necessary data required by your bank regarding the deposited funds.

Article 14 (Others) Matters not stipulated in this agreement regarding deposit transactions shall be governed by what your bank determines.

Article 15 (Litigation) Litigation regarding this agreement shall be under the jurisdiction of the court having jurisdiction over the location of your bank's head office.

Attachments:

1. One copy of the Corporate Registration Certificate
2. One copy of the Representative's Seal Registration Certificate

<Form Attached 1-2> Foreign Exchange Stabilization Fund Foreign Currency Call Transaction Agreement

Foreign Exchange Stabilization Fund Foreign Currency Call Transaction Agreement

To the Governor of the Bank of Korea
Revenue Stamp

I hereby agree to conduct transactions with your bank for the Foreign Exchange Stabilization Fund foreign currency call transactions in accordance with the "Detailed Rules for Handling Foreign Exchange Stabilization Fund Operations" and "Procedures for Handling Foreign Exchange Stabilization Fund Operations" and to abide by the following provisions.

Year Month Day
Address
Bank Name
Representative

Article 1 I shall report in advance the name, representative, address, and seal to be used for foreign currency call transactions in the format designated by your bank, and this also applies if transactions are to be conducted by an agent.

Article 2 If your bank determines that the signature, seal, or nameplate of documents submitted by me, such as transaction confirmations, match those previously reported in accordance with Article 1, and processes them accordingly, your bank shall not be liable for any losses arising from forgery, alteration, theft, loss, or other accidents of the signature/seal.

Article 3 If your bank specifies collateral provision requirements in the foreign currency call bidding announcement, I shall provide collateral according to the procedure designated by your bank.

Article 4 If the collateral provided by me under Article 3 has defects in collateral requirements, I shall immediately replace it with collateral approved by your bank or immediately repay the related debts and interest.

Article 5 If I fail to perform any of all debts owed to your bank in relation to foreign currency call transactions, or if your bank considers that there is a risk of non-performance, I shall not raise any objection if your bank, after prior notice, treats the benefit of time for all my other debts as lost.

Article 6 I shall not raise any objection if your bank refuses to lend funds to me due to exceeding the foreign currency call transaction limit set by your bank.

Article 7 If I engage in collusive acts such as interest rate manipulation during the foreign currency call bidding process or bid in violation of this agreement, the bid shall be invalid.

Article 8
① Winning funds and repayment of principal and interest for foreign currency call transactions shall be settled through your bank's overseas transaction bank and my overseas transaction bank.
② Interest on foreign currency call transactions shall be paid together with the principal on the maturity date.
③ Interest on foreign currency call transactions shall be calculated based on the number of days elapsed from the transaction date to the maturity date, and rounded to the third decimal place. ④ If the maturity date of foreign currency call transactions is a holiday or a New York holiday, the next business day shall be the maturity date.

Article 9 If the payment of principal and interest for foreign currency call transactions is delayed, I shall take necessary measures such as adjusting the payment date at my own expense and bear the losses incurred by your bank. If your bank recognizes that I intentionally delayed repayment, I shall not raise any objection if your bank, after prior notice, sets off the principal and interest and other loss amounts from all accounts opened in my name at your bank and claims against your bank in the manner designated by your bank.

Article 10 If I fail to perform matters agreed with your bank in relation to foreign currency call transactions, I shall not raise any objection if I am subject to sanctions such as suspension of bidding participation for a certain period by your bank.

Article 11 Late interest for my default shall be paid at the rate designated by your bank.

Article 12 I shall not raise any objection if your bank terminates this agreement or changes its content after prior notice due to policy needs.

Article 13 Other matters not stipulated in this agreement regarding foreign currency call transactions shall be governed by the "Detailed Rules for Handling Foreign Exchange Stabilization Fund Operations", "Procedures for Handling Foreign Exchange Stabilization Fund Operations", relevant domestic laws, and domestic and international financial market practices.

Article 14 (Jurisdiction) Litigation regarding this agreement shall be under the jurisdiction of the court having jurisdiction over the location of your bank's head office.

Attachments:

1. One copy of the Corporate Registration Certificate
2. One copy of the Representative's Seal Registration Certificate

<Form Attached 2> Transaction Confirmation (CONFIRMATION)

DEAL DATE:

TO: FOREIGN EXCHANGE BUSINESS DIVISION, INTERNATIONAL DEPARTMENT, THE BANK OF KOREA FROM:

WE CONFIRM HAVING BORROWED FROM YOU AS FOLLOWS

BORROWER:
LENDER: FOREIGN EXCHANGE STABILIZATION FUND VALUE DATE: MATURITY DATE: PRINCIPAL: RATE: INTEREST AMOUNT: TOTAL:

ON VALUE DATE, PLEASE PAY TO:

ON MATURITY DATE, WE WILL REPAY PRINCIPAL PLUS ACCRUED INTEREST TO:

<Form Attached 3> Foreign Exchange Stabilization Fund Foreign Currency Call Transaction Fund Transfer Calculation Sheet

Foreign Exchange Stabilization Fund Foreign Currency Call Transaction Fund Transfer Calculation Sheet

Regarding the foreign currency call transaction of the Foreign Exchange Stabilization Fund on [Date], we notify you of the calculation of transfer funds between our bank (company) and your bank as follows.

Bank (Comprehensive Financial Company)
(Unit: US Dollars)

Maturity Principal and Interest (A)	Amount Borrowed Today (B)	Net Amount (C=A-B)	Remarks

Note: 1) If the net amount is positive (+), our bank (company) shall transfer the amount to your bank's overseas correspondent bank (BTC-NY). If the net amount is negative (-), it means your bank shall transfer the amount to our bank (company)'s overseas correspondent bank.

<Form Attached 4> Foreign Exchange Stabilization Fund Won Call Transaction Agreement

Foreign Exchange Stabilization Fund Won Call Transaction Agreement

To the Governor of the Bank of Korea
Revenue Stamp

I hereby agree to conduct transactions with your bank for the Foreign Exchange Stabilization Fund won call transactions in accordance with the "Detailed Rules for Handling Foreign Exchange Stabilization Fund Operations" and "Procedures for Handling Foreign Exchange Stabilization Fund Operations" and to abide by the following provisions.

Year Month Day
Address
Bank Name
Representative

Article 1
① I shall report in advance the name, representative, address, and seal to be used for won call transactions in the format designated by your bank, and this also applies if transactions are to be conducted by an agent. ② In the case of written registration under Paragraph 1, the trader shall also be registered or changed registered according to the visual format provided by the Won Call Electronic Bidding System of the Bank of Korea Financial Settlement Network.

Article 2 If your bank determines that the signature, seal, or nameplate of documents submitted by me, such as transaction applications, match those previously reported in accordance with Article 1, and processes them accordingly, your bank shall not be liable for any losses arising from forgery, alteration, theft, loss, or other accidents of the signature/seal.

Article 3 If your bank specifies collateral provision requirements in the bidding announcement, I shall provide collateral according to the procedure designated by your bank.

Article 4 If the collateral provided by me under Article 3 has defects in collateral requirements, I shall immediately replace it with collateral approved by your bank or immediately repay the related debts and interest.

Article 5 If I fail to perform any of all debts owed to your bank in relation to won call transactions, or if your bank considers that there is a risk of non-performance, I shall not raise any objection if your bank, after prior notice, treats the benefit of time for all my other debts as lost.

Article 6 I shall not raise any objection if your bank refuses to lend funds to me due to exceeding the won call transaction limit set by your bank.

Article 7 If I engage in collusive acts such as interest rate manipulation during the won call bidding process or bid in violation of this agreement, the bid shall be invalid.

Article 8
① Winning funds and repayment of principal and interest for won call transactions shall be settled through my won current deposit account opened at your bank.
② Interest on won call transactions shall be paid together with the principal on the maturity date.
③ Interest on won call transactions shall be calculated based on the number of days elapsed from the transaction date to the maturity date, and amounts less than one won shall be discarded.
④ If the maturity date of won call transactions is a holiday, the next business day shall be the maturity date.

Article 9 If the payment of principal and interest for won call transactions is delayed, I shall take necessary measures such as adjusting the payment date at my own expense and bear the losses incurred by your bank. If your bank recognizes that I intentionally delayed repayment, I shall not raise any objection if your bank, after prior notice, sets off the principal and interest and other loss amounts from all accounts opened in my name at your bank and claims against your bank in the manner designated by your bank.

Article 10 If I fail to perform matters agreed with your bank in relation to won call transactions, I shall not raise any objection if I am subject to sanctions such as suspension of bidding participation for a certain period by your bank.

Article 11 Late interest for my default shall be paid at the rate designated by your bank.

Article 12 I shall not raise any objection if your bank terminates this agreement or changes its content after prior notice due to policy needs.

Article 13 Other matters not stipulated in this agreement regarding won call transactions shall be governed by general transaction practices.

Article 14 (Jurisdiction) Litigation regarding this agreement shall be under the jurisdiction of the court having jurisdiction over the location of your bank's head office.

Attachments:

1. One copy of the Corporate Registration Certificate
2. One copy of the Representative's Seal Registration Certificate

<Form Attached 5> Trader Selection (Change) Notice

Trader Selection (Change) Notice

To the Governor of the Bank of Korea

We have selected (or changed) the trader to conduct won call transactions with your bank (Foreign Exchange Stabilization Fund) as follows.

At Selection (or Before Change)	After Change
Name
Title
User Seal

Year Month Day
Bank Name:
Representative: (Seal)

<Form Attached 6> Won Call Transaction Application Form

Won Call Transaction Application Form

(Date: Year Month Day)
To the Disbursing Officer of the Foreign Exchange Stabilization Fund Bank (Seal)

We hereby apply to borrow won call funds from your bank (Foreign Exchange Stabilization Fund) as follows.

Application Details
Borrowing Amount: [ ] Hundred Million Won
Borrowing Interest Rate (Annual): [ ] %
Value Date: [ ] Day
Maturity Date: [ ] Day
Borrowing Period: [Month] [Day] to [Month] [Day]

------------------------------------------------------- (Seal) --------------------------------------------------

<Form Attached 7> Won Call Transaction Conclusion Notice (For Supplier's Record)

Won Call Transaction Conclusion Notice (For Supplier's Record)

(Date: Year Month Day)

Conclusion Details
Lending Amount: [ ] Hundred Million Won
Lending Interest Rate (Annual): [ ] %
Value Date: [ ] Day
Maturity Date: [ ] Day
Lending Period: [Month] [Day] to [Month] [Day] Interest Amount: [ ] Won

------------------------------------------------------ (Seal) ----------------------------------------------------

Won Call Transaction Conclusion Notice (For Borrower's Record)

(Date: Year Month Day)
To the Bank

We hereby notify you that the transaction has been concluded as follows regarding your bank's (Foreign Exchange Stabilization Fund) won call fund borrowing application.

Conclusion Details
Lending Amount: [ ] Hundred Million Won
Lending Interest Rate (Annual): [ ] %
Value Date: [ ] Day
Maturity Date: [ ] Day
Lending Period: [Month] [Day] to [Month] [Day] Interest Amount: [ ] Won

Disbursing Officer of the Foreign Exchange Stabilization Fund (Seal)

<Form Attached 8> Foreign Exchange Stabilization Fund Guarantee Fund Deposit Account Transaction Agreement

Foreign Exchange Stabilization Fund Guarantee Fund Deposit Account Transaction Agreement

To the Governor of the Bank of Korea
Revenue Stamp

I hereby apply to open a guarantee fund deposit account in my name with your bank (Foreign Exchange Stabilization Fund) pursuant to the Ministry of Finance and Economy's "Notice on the Method of Accumulating Guarantee Funds for Foreign Currency Debt Payment Guarantees" (Foreign Capital 11275-22, April 17, 1998), and agree to abide by the following provisions in conducting transactions with this account.

Year Month Day
Address
Foreign Exchange Bank Name
Representative (Handwritten by Self) (Seal)

Seal Verification Account Seal Inspection Seal

Article 1 Deposits into this account shall be applied for according to the Foreign Exchange Stabilization Fund Guarantee Fund Deposit Application Form <Form Attached 1>, and requests for return of deposit funds shall be applied for according to the Foreign Exchange Stabilization Fund Guarantee Fund Deposit Return Application Form <Form Attached 2>.

Article 2 The real name, seal, handwriting, nameplate, etc. (hereinafter referred to as "signature/seal") to be used for deposit applications and return requests stipulated in Article 1 shall be the signature/seal already reported when conducting transactions with the Bank of Korea's foreign currency point deposit account transaction agreement. However, if a different signature/seal is to be used or a separate agent is to be appointed for transactions, this shall be reported to your bank in advance.

Article 3 If the reported signature/seal is renewed or changed, or if the address or name is changed, or if the seal or nameplate is lost, destroyed, stolen, or otherwise damaged, this fact shall be reported to your bank immediately.

Article 4 If your bank determines that the seal used on all evidence and report documents for transactions with this account matches the signature/seal under Article 2 with ordinary care, and processes them accordingly, I shall bear responsibility for losses arising from forgery, alteration, theft, or other accidents of the seal.

Article 5 I shall bear responsibility for all damages caused by delayed reporting under Article 3 and all damages arising from failure to comply with this agreement.

Article 6 I shall not raise any objection if your bank terminates or renews this agreement after prior notice due to policy needs.

Article 7 Matters not stipulated in this agreement shall be governed by what your bank determines.

Article 8 Litigation arising from the performance of this agreement shall be under the jurisdiction of the court having jurisdiction over the location of your bank.

<Form Attached 9> Foreign Exchange Stabilization Fund Guarantee Fund Deposit Application Form

Foreign Exchange Stabilization Fund Guarantee Fund Deposit Application Form

(Date: Year Month Day)
To the Disbursing Officer of the Foreign Exchange Stabilization Fund

Our bank (company) wishes to deposit the following amount into the guarantee fund deposit account opened in our name at your fund (Foreign Exchange Stabilization Fund) as a guarantee fund accumulation fund for the government's foreign currency debt payment guarantee. Please deduct the corresponding amount from our foreign currency point deposit account opened at the Bank of Korea and deposit it.

1. Deposit Application Details
   Deposit Round: [ ]
   Deposit Date: [ ]
   Amount (U$): [ ]

2. Accumulation of Deposit Funds
   (Unit: US Dollars)
   Guaranteed Debt Balance (A): [ ]
   Accumulated Deposit Funds (B): [ ]
   Ratio (B/A, %): [ ]

Applicant Signature:

Seal Verification Account Seal Inspection Seal:

Foreign Exchange Stabilization Fund Guarantee Fund Receipt Notice

(Date: Year Month Day)
To the International Department Director of the Bank (Comprehensive Financial Company)

We hereby notify you that we have received the guarantee fund deposit of your bank (company) for the Foreign Exchange Stabilization Fund as follows.

Deposit Date: [ ]
Deposit Amount (U$): [ ]
Deposit Balance (U$): [ ]

Disbursing Officer of the Foreign Exchange Stabilization Fund (Seal)

<Form Attached 10> Foreign Exchange Stabilization Fund Guarantee Fund Deposit Return Application Form

Foreign Exchange Stabilization Fund Guarantee Fund Deposit Return Application Form

(Date: Year Month Day)
To the Disbursing Officer of the Foreign Exchange Stabilization Fund

Our bank (company) requests the return of the funds deposited in your bank (Foreign Exchange Stabilization Fund) as a guarantee fund accumulation fund for the government's foreign currency debt payment guarantee as follows. Please deposit the corresponding amount into our foreign currency point deposit account opened at the Bank of Korea.

Amount (U$): [ ]
Reason for Return Request: [ ]

Applicant Name:

Seal Verification Account Seal Inspection Seal:

Attachment: Basis and Evidence Documents for Calculating the Return Amount of Deposit Funds

Foreign Exchange Stabilization Fund Guarantee Fund Deposit Return Notice

(Date: Year Month Day)
To the International Department Director of the Bank (Comprehensive Financial Company)

We hereby notify you that we have deposited the amount requested for the return of the guarantee fund deposit of your bank (company) for the Foreign Exchange Stabilization Fund into the foreign currency point deposit account opened in your bank (company)'s name at the Bank of Korea as follows.

Deposit Date: [ ]
Deposit Amount (U$): [ ]
Remarks: [ ]

Disbursing Officer of the Foreign Exchange Stabilization Fund (Seal)