Regulations on Emergency Loans Secured by Financial Institutions' Loan Claims with the Bank of Korea

Adopted: December 11, 2025, at the 23rd Meeting of the Monetary Policy Committee

Article 1 (Purpose) These Regulations are intended to stipulate necessary matters for implementing emergency loans (hereinafter referred to as "emergency loans") in which the Bank of Korea accepts loan claims held by financial institutions as temporary eligible collateral, pursuant to Articles 28(4) and 65 of the Bank of Korea Act.

Article 2 (Obligations of Financial Institutions) Financial institutions applying for emergency loans shall faithfully fulfill the following obligations:

1. Compliance with all regulations set by the Monetary Policy Committee regarding the implementation of monetary and credit policy, including detailed rules or directives for their implementation;
2. Submission of information required by the Bank of Korea for emergency loans, such as liquidity conditions, deposit/loan and other fund-raising/utilization situations, business soundness, and other operational status; and other materials necessary for the execution of emergency loans;
3. Acceptance of inspections or joint inspections conducted by the Bank of Korea upon request to the Financial Supervisory Service regarding the financial institution.

Article 3 (Basic Matters of Emergency Loans) In the case of emergency loans provided by the Bank of Korea, basic matters such as target institutions, loan limits, interest rates, loan periods, loan methods, and late payment compensation shall be determined by a resolution of the Monetary Policy Committee pursuant to Article 65(1) of the Bank of Korea Act.

Article 4 (Target Loan Claims)
① Loan claims acquired as collateral for executing emergency loans shall be any one of the following:

1. Real estate-secured loan claims where the debtor of the loan claim is a corporate entity (excluding residential mortgage loan claims);
2. Unsecured loan claims where the debtor of the loan claim is a corporate entity.
   ② The loan claims specified in each item of Paragraph 1 are limited to loan claims whose debtor's credit rating has been assessed by one or more credit rating agencies under the Capital Markets and Financial Investment Services Act to be BBB- or higher, or loan claims recognized by the Bank of Korea as equivalent thereto. ③ Detailed matters such as the requirements for loan claims that the Bank of Korea may acquire as collateral for emergency loans and the recognized collateral value shall be determined by the Governor of the Bank of Korea (hereinafter referred to as the "Governor").

Article 5 (Risk Management) When acquiring loan claims as collateral for emergency loans pursuant to Article 4, the Governor shall establish and implement measures to ensure that risks associated with the loan claims do not impose an excessive burden on the Bank of Korea.

Article 6 (Review of Loan Claim Collateral) ① Financial institutions wishing to utilize emergency loans shall regularly submit information related to loan claims to the Bank of Korea.
② After the resolution of the Monetary Policy Committee pursuant to Article 3, financial institutions shall update the loan claim-related information submitted pursuant to Paragraph 1 in accordance with procedures determined by the Bank of Korea. ③ Notwithstanding Paragraphs 1 and 2, if recognized by the Bank of Korea, financial institutions may submit information related to loan claims other than those specified in Paragraphs 1 and 2 after the resolution of the Monetary Policy Committee pursuant to Article 3. ④ The Bank of Korea shall review whether the loan claims specified in Paragraph 1 meet the requirements of Article 4, and whether the loan claims specified in Paragraphs 2 and 3 meet the requirements of Article 4 and Article 7.

Article 7 (Provision and Acquisition of Loan Claim Collateral) ① Financial institutions applying for emergency loans shall provide loan claims as collateral to the Bank of Korea through the establishment of a pledge right. ② Financial institutions shall notify the debtor of the loan claim of the fact of the establishment of the pledge right with a document having a fixed date, or obtain the consent of the debtor of the loan claim for the establishment of the pledge right. ③ When providing loan claims secured by a first mortgage as collateral, financial institutions shall register the subordination of the pledge right in the first mortgage registration. ④ Loan claims acquired as collateral by the Bank of Korea must satisfy the requirements specified in Paragraphs 2 and 3.

Article 8 (Request for Submission of Materials, etc.) ① Financial institutions shall submit materials necessary for the implementation of these Regulations in accordance with procedures determined by the Bank of Korea. ② If the Bank of Korea deems it necessary in relation to emergency loans, it may investigate and verify the business and property conditions of the relevant financial institution.

Article 9 (Simulation Training) The Bank of Korea may conduct simulation training related to emergency loans in accordance with procedures determined by the Governor.

Article 10 (Sanctions)
① If a financial institution violates these Regulations or the detailed rules or directives for their implementation, sanctions such as restricting or refusing emergency loans may be imposed.
② Restrictions on emergency loans, such as reducing the emergency loan limit or recovering existing loans, pursuant to Paragraph 1 shall be determined by the Governor.

Article 11 (Report to the Monetary Policy Committee) The Governor shall report the operational results of emergency loans under these Regulations and the results of sanctions against financial institutions to the Monetary Policy Committee in accordance with procedures determined by the Monetary Policy Committee.

Article 12 (Delegation) Detailed matters necessary for the implementation of these Regulations shall be determined by the Governor.

Supplementary Provisions <December 11, 2025> These Regulations shall take effect from January 2, 2026.