Regulations on Financial Institution Loans of the Bank of Korea

Enacted: February 17, 1994 (4th Monetary Policy Operations Committee) Amended: April 13, 1998 (2nd Monetary Policy Committee) Amended: August 19, 1999 (24th Monetary Policy Committee) Amended: April 20, 2000 (13th Monetary Policy Committee) Amended: June 29, 2000 (19th Monetary Policy Committee) Amended: September 7, 2000 (24th Monetary Policy Committee) Amended: January 4, 2001 (1st Monetary Policy Committee) Amended: June 21, 2001 (17th Monetary Policy Committee) Amended: December 27, 2001 (36th Monetary Policy Committee) Amended: May 25, 2006 (11th Monetary Policy Committee) Amended: October 26, 2006 (22nd Monetary Policy Committee) Amended: January 24, 2008 (3rd Monetary Policy Committee) Amended: October 23, 2008 (21st Monetary Policy Committee) Amended: January 22, 2009 (3rd Monetary Policy Committee) Amended: June 24, 2010 (13th Monetary Policy Committee) Amended: April 25, 2013 (8th Monetary Policy Committee) Amended: December 26, 2013 (24th Monetary Policy Committee) Amended: July 24, 2014 (14th Monetary Policy Committee) Amended: March 26, 2015 (6th Monetary Policy Committee) Amended: November 26, 2015 (22nd Monetary Policy Committee) Amended: February 25, 2016 (4th Monetary Policy Committee) Amended: November 24, 2016 (23rd Monetary Policy Committee) Amended: January 26, 2017 (2nd Monetary Policy Committee) Amended: August 10, 2017 (15th Monetary Policy Committee) Amended: December 7, 2017 (23rd Monetary Policy Committee) Amended: September 20, 2018 (18th Monetary Policy Committee) Amended: August 30, 2019 (16th Monetary Policy Committee) Amended: March 12, 2020 (5th Monetary Policy Committee) Amended: March 26, 2020 (7th Monetary Policy Committee) Amended: April 9, 2020 (8th Monetary Policy Committee) Amended: October 27, 2022 (20th Monetary Policy Committee) Amended: January 13, 2023 (1st Monetary Policy Committee) Amended: April 11, 2023 (7th Monetary Policy Committee) Amended: July 27, 2023 (14th Monetary Policy Committee) Amended: June 13, 2024 (11th Monetary Policy Committee) Amended: July 24, 2025 (14th Monetary Policy Committee) Amended: March 26, 2026 (6th Monetary Policy Committee) Amended: July 23, 2026 (14th Monetary Policy Committee)

Chapter 1 General Provisions

Article 1 (Purpose) The purpose of these Regulations is to stipulate necessary matters regarding loans by the Bank of Korea to financial institutions pursuant to Article 28(3) and Article 64 of the "Bank of Korea Act."

Article 1-2 (Obligations of Borrowing Financial Institutions) Financial institutions applying for loans stipulated in these Regulations shall faithfully fulfill the following obligations:

1. Compliance with all regulations determined by the Monetary Policy Committee in connection with the implementation of monetary and credit policy, and the detailed rules or directives for their implementation.
2. Submission of liquidity assessments, fund raising and utilization status such as loans and deposits, management status such as managerial soundness, and other data required by the Bank of Korea for loan decisions and implementation.
3. Acceptance of inspections or joint inspections conducted by the Bank of Korea on the borrowing financial institution, as requested by the Bank of Korea to the Financial Supervisory Service.

Article 2 (Classification of Loans) Loans by the Bank of Korea to financial institutions shall be operated as follows:

1. Loans supporting funds necessary for financial institutions to adjust fund supply and demand (hereinafter referred to as "Liquidity Adjustment Loans").
2. Loans supporting funds necessary for financial institutions to perform financial intermediary functions for small and medium-sized enterprises, etc. (hereinafter referred to as "Financial Intermediary Support Loans").
3. Loans supporting temporary intraday shortages of funds necessary for financial institutions to make payments or settlements (hereinafter referred to as "Intraday Overdraft Loans").

Article 3 (Form of Loans) The form of Liquidity Adjustment Loans and Intraday Overdraft Loans shall be securities-collateralized loans pursuant to Article 64(1)(2) of the "Bank of Korea Act," and the form of Financial Intermediary Support Loans shall be bill rediscounting or securities-collateralized loans pursuant to Article 64(1)(1) and (2) of the "Bank of Korea Act."

Article 4 (Securities Eligible for Rediscounting and Securities-Collateralized Loans) ① Securities acquired through rediscounting or as collateral to execute Liquidity Adjustment Loans, Intraday Overdraft Loans, or Financial Intermediary Support Loans shall be any of the following securities. However, securities issued by the financial institution itself under items 5, 6, 9, and 12 cannot be provided as collateral.

1. Credit instruments such as bills acquired by financial institutions through loans. However, this is limited to those maturing within one year from the date of acquisition by the Bank of Korea.
2. Bonds issued by the government or guaranteed by the government for principal and interest repayment.
3. Bank of Korea Currency Stabilization Bonds.
4. Mortgage-backed securities issued by the Korea Housing Finance Corporation.
5. Industrial finance bonds issued by the Korea Industrial Bank.
6. Small and medium-sized enterprise finance bonds issued by the Small and Medium-sized Enterprise Bank.
7. Import-export finance bonds issued by the Korea Eximbank.
8. Special bonds issued by the following legal entities (excluding bonds guaranteed by the government for principal and interest repayment):
   a. Korea National Railway Corporation b. Deposit Insurance Corporation
   c. Small and Medium-sized Business Promotion Corporation
   d. Korea Gas Corporation e. Korea Expressway Corporation f. Korea Water Resources Corporation g. Korea Electric Power Corporation h. Korea Railroad Corporation
   i. Korea Land and Housing Corporation
9. The following bonds:
   a. Agricultural finance bonds pursuant to Article 153 of the "Agricultural Cooperative Act" b. Fishery finance bonds pursuant to Article 156 of the "Fisheries Cooperative Act"
   c. Finance bonds pursuant to Article 33(1)(1) of the "Banking Act"
10. Local bonds issued pursuant to Article 11 of the "Local Finance Act."
11. Bonds issued by public institutions pursuant to Article 4 of the "Act on the Management of Public Institutions" and local public enterprises pursuant to the "Local Public Enterprise Act" (excluding items 5, 6, 7, 8, and bonds guaranteed by the government for principal and interest repayment).
12. Dual-recourse bonds pursuant to the "Act on the Issuance of Dual-Recourse Bonds."
13. Corporate bonds issued pursuant to Article 469 of the "Commercial Act."

② In the cases of items 4 through 9, 11, 12, and 13 of Paragraph 1, the securities are limited to those that have obtained a credit rating of AA or higher from at least one credit rating company pursuant to the "Capital Markets and Financial Investment Services Act" (if credit ratings obtained from two or more credit rating companies differ, the securities with the lowest rating among them being AA- or higher).

③ The Bank of Korea Governor (hereinafter referred to as the "Governor") shall determine the requirements for securities that the Bank of Korea may acquire as collateral for loans, the collateral acceptance value, and other detailed matters.

Chapter 2 Liquidity Adjustment Loans

Article 5 (Eligible Financial Institutions for Liquidity Adjustment Loans) The eligible financial institutions for Liquidity Adjustment Loans are financial institutions that must deposit reserve requirements with the Bank of Korea.

Article 6 (Restrictions on Liquidity Adjustment Loans) ① The Governor may restrict Liquidity Adjustment Loans to financial institutions that are subject to timely corrective measures (limited to requests or orders) pursuant to Article 10 of the "Act on Structural Improvement of the Financial Industry" or measures pursuant to Article 46 of the "Banking Act," or are recognized as having a high possibility of being subject to such measures.

② When restricting Liquidity Adjustment Loans pursuant to Paragraph 1, the Governor shall promptly report the content to the Monetary Policy Committee and inspect the improvement status of the financial institution's capital adequacy, asset soundness, liquidity assessment, etc.

Article 7 (Loan Period for Liquidity Adjustment Loans) The loan period for Liquidity Adjustment Loans shall be one business day.

Article 8 (Extension of Loan Period) The Monetary Policy Committee may extend the loan period for Liquidity Adjustment Loans within a range of three months if it is deemed necessary for the financial market to perform its functions smoothly.

Chapter 3 Financial Intermediary Support Loans

Article 9 (Setting Limits for Financial Intermediary Support Loans) ① The Monetary Policy Committee shall determine the total limit, program-specific limits, and limit reserves for Financial Intermediary Support Loans, considering financial and economic trends and the fund situation of small and medium-sized enterprises.

② Program-specific limits are divided into the Trade Finance Support Program, New Growth and Job Creation Support Program, Small and Medium-sized Enterprise Loan Stabilization Program, Small and Medium-sized Enterprise Credit-Linked Support Program, and Local Small and Medium-sized Enterprise Support Program.

Article 10 [Deleted December 26, 2013]

Article 11 (Operation of Financial Intermediary Support Loans) ① The Governor may allocate program-specific limits to each financial institution monthly within the program-specific limit range pursuant to Article 9, considering the handling records of trade finance, loans to startup companies, material/component/equipment companies, and job creation companies, and equipment investment-related loans.

② The Governor may allocate the Local Small and Medium-sized Enterprise Support Program limit to each regional headquarters monthly, considering the loan records for local small and medium-sized enterprises handled by financial institutions located in the responsible area of each Bank of Korea regional headquarters (including loan records for local small and medium-sized enterprises handled by financial institutions located in Seoul Special City) and regional economic conditions.

③ The Governor may operate the limit reserve pursuant to Article 9(1) when necessary.

Article 12 [Deleted December 26, 2013]

Article 13 [Deleted December 26, 2013]

Chapter 4 Intraday Overdraft Loans

Article 14 (Eligible Financial Institutions for Intraday Overdraft Loans) The eligible financial institutions for Intraday Overdraft Loans are financial institutions that have deposited reserve requirements with the Bank of Korea and are members of the Bank of Korea Financial Settlement Network (hereinafter referred to as "BOKNet").

Article 15 (Repayment Deadline for Intraday Overdraft Loans) Financial institutions shall repay the Intraday Overdraft Loans borrowed on that day by the cutoff time for fund transfer for repayment determined by the Governor.

Article 16 (Handling of Unrepaid Amounts for Intraday Overdraft Loans, etc.) ① If a financial institution fails to repay the Intraday Overdraft Loans by the repayment deadline pursuant to Article 15, the unrepaid amount shall be converted into a Liquidity Adjustment Loan.

② The Governor may restrict the use of Intraday Overdraft Loans for financial institutions whose Liquidity Adjustment Loans are restricted pursuant to Article 6(1).

Article 17 (Interest Collection on Intraday Overdraft Loans) ① Interest shall be collected on Intraday Overdraft Loans that exceed a certain percentage of the financial institution's own capital. However, interest shall not be collected for financial institutions that the Governor deems necessary to enhance payment stability.

② The Governor shall determine detailed matters such as the certain percentage of the financial institution's own capital pursuant to Paragraph 1, the scale calculation of Intraday Overdraft Loans subject to interest collection, the calculation standard date and application period for the financial institution's own capital.

Chapter 5 Supplementary Provisions

Article 18 (Submission of Data) Financial institutions shall submit data necessary for the implementation of these Regulations as determined by the Governor.

Article 19 (Sanctions)
① Sanction measures may be taken against financial institutions that violate these Regulations, the detailed rules or directives for their implementation, such as restricting or refusing rediscounting and loans, or applying a penalty interest rate within the range of 1 percentage point higher than the interest rate of the Bank of Korea's Liquidity Adjustment Loans.

② The Governor shall determine restrictions on rediscounting and loans, such as the reduction of loan limits or the recovery of existing loan principal, and the application of penalty interest rates pursuant to Paragraph 1.

Article 20 (Reporting to the Monetary Policy Committee) The Governor shall report the loan operation results and sanction results against financial institutions to the Monetary Policy Committee every quarter pursuant to these Regulations.

Article 21 (Delegation) Detailed matters necessary for the implementation of these Regulations shall be determined by the Governor.

Supplementary Provisions (February 17, 1994)

Article 1 (Effective Date) These Regulations shall take effect from March 15, 1994.

Article 2 (Repealed Regulations) Upon the implementation of these Regulations, the "Regulations on Handling Commercial Bill Rediscounting," "Trade Finance Regulations," "Defense Industry Support Finance Regulations," "Regulations on Handling Other Bills and Securities-Collateralized Loans of the Bank of Korea," and "Regulations on Handling Facility Fund Loans for Export Industries and Import-Substituting Material/Component Industries" are repealed.

Article 3 (Relationship with Other Regulations) Loans handled pursuant to the "Regulations on Handling Agricultural, Forestry, and Fishery Bill-Collateralized Loans of the Bank of Korea" shall not be subject to these Regulations.

Article 4 (Transitional Measures)
① Commercial bill rediscounting handled by the Bank of Korea pursuant to the "Regulations on Handling Commercial Bill Rediscounting," trade bill-collateralized loans handled pursuant to the "Trade Finance Regulations," and working capital and local small and medium-sized enterprise fund-related loans handled pursuant to the "Regulations on Handling Other Bills and Securities-Collateralized Loans of the Bank of Korea" prior to the effective date of these Regulations shall be deemed handled under these Regulations.

② For loans handled by financial institutions prior to the effective date of these Regulations (including previously approved facility fund loans), except for the loans specified in Paragraph 1, the previous regulations shall apply.

Supplementary Provisions (April 13, 1998)

Article 1 (Effective Date) These Regulations shall take effect from April 15, 1998.

Article 2 (Repealed Regulations) Upon the implementation of these Regulations, the "Decision on Bank of Korea Credit Targets among Loans for Construction and Other Services by Financial Institutions" (adopted by the 4th Monetary Policy Operations Committee on February 17, 1994) is repealed.

Article 3 (Transitional Measures) Article 7 shall apply to loans executed prior to the implementation of these Regulations pursuant to Item 2 of Article 69 of the previous Bank of Korea Act, except for loans under these Regulations and the "Regulations on Handling Agricultural, Forestry, and Fishery Bill-Collateralized Loans of the Bank of Korea."

Supplementary Provisions (August 19, 1999)

Article 1 (Effective Date) These Regulations shall take effect from September 1, 1999.

Article 2 (Repealed Regulations) Upon the implementation of these Regulations, the "Regulations on Handling Agricultural, Forestry, and Fishery Bill-Collateralized Loans of the Bank of Korea" (enacted by the 18th Monetary Policy Operations Committee on July 10, 1986) is repealed.

Supplementary Provisions (April 20, 2000)

These Regulations shall take effect from May 22, 2000.

Supplementary Provisions (June 29, 2000)

① These Regulations shall take effect from June 29, 2000.
② Notwithstanding Article 5, the limit operation period for the first liquidity loan initiated after the amendment of these Regulations shall be two months.

Supplementary Provisions (September 7, 2000)

These Regulations shall take effect from September 30, 2000.

Supplementary Provisions (January 4, 2001)

These Regulations shall take effect from February 12, 2001.

Supplementary Provisions (June 21, 2001)

These Regulations shall take effect from July 1, 2001.

Supplementary Provisions (December 27, 2001)

These Regulations shall take effect from January 1, 2002.

Supplementary Provisions (May 25, 2006)

These Regulations shall take effect from September 1, 2006.

Supplementary Provisions (October 26, 2006)

These Regulations shall take effect from January 1, 2007.

Supplementary Provisions (January 24, 2008)

① (Effective Date) These Regulations shall take effect from March 7, 2008.
② (Transitional Measures) The previous regulations shall apply to loans handled prior to the implementation of these Regulations.

Supplementary Provisions (October 23, 2008)

These Regulations shall take effect from November 3, 2008.

Supplementary Provisions (January 22, 2009)

These Regulations shall take effect from February 9, 2009.

Supplementary Provisions (June 24, 2010)

These Regulations shall take effect from July 1, 2010.

Supplementary Provisions (April 25, 2013)

① (Effective Date) These Detailed Rules shall take effect from May 1, 2013.
② (Transitional Measures) The previous regulations shall apply to loans already handled prior to the effective date of these Regulations.

Supplementary Provisions (December 26, 2013)

Article 1 (Effective Date) These Regulations shall take effect from December 26, 2013.

Article 2 (Transitional Measures)
① The previous regulations shall apply to loans already handled prior to the effective date of these Regulations.
② The "Limit of Total Amount Loans for the 4th Quarter of 2013" decided by the Monetary Policy Committee shall be deemed the "Total Limit of Financial Intermediary Support Loans" pursuant to the amended Article 9(1) until a separate decision is made by the Monetary Policy Committee. ③ The "Trade Finance Support Limit," "Credit Loan Support Limit," "Small Business Owner Loan Support Limit," "Technology-based Startup Support Limit," "Total Amount Limit by Regional Headquarters," and "Reserve Limit" allocated by the Governor in December 2013 pursuant to the previous Article 10 (2013.11.27, Financial Planning Team-971) shall be deemed the "Trade Finance Support Program Limit," "Credit Loan Support Program Limit," "Small Business Owner Support Program Limit," "Technology-based Startup Support Program Limit," "Local Small and Medium-sized Enterprise Support Program Limit" pursuant to the amended Article 9(2), and the "Limit Reserve" pursuant to the amended Article 9(1), respectively, until a separate decision is made by the Monetary Policy Committee.

Article 3 (Relationship with Other Regulations) When "Total Amount Loans" are cited in other regulations at the time of implementation of these Regulations, they shall be deemed to cite "Financial Intermediary Support Loans" under these Regulations.

Supplementary Provisions (July 24, 2014)

These Regulations shall take effect from September 1, 2014.

Supplementary Provisions (March 26, 2015)

Article 1 (Effective Date) These Regulations shall take effect from April 1, 2015. However, the amended provisions of Article 9(2) and Article 11(1) shall take effect from May 1, 2015.

Article 2 (Transitional Measures) The previous regulations shall apply to loans already handled prior to the effective date of these Regulations.

Supplementary Provisions (November 26, 2015)

Article 1 (Effective Date) These Regulations shall take effect from January 1, 2016.

Article 2 (Validity Period) Item 4 of Article 4(1) shall remain in effect until December 31, 2018.

Supplementary Provisions (February 25, 2016)

Article 1 (Effective Date) These Regulations shall take effect from March 1, 2016.

Article 2 (Transitional Measures) The previous regulations shall apply to loans already handled prior to the effective date of these Regulations.

Supplementary Provisions (November 24, 2016)

These Regulations shall take effect from November 24, 2016.

Supplementary Provisions (January 26, 2017)

These Regulations shall take effect from January 26, 2017.

Supplementary Provisions (August 10, 2017)

Article 1 (Effective Date) These Regulations shall take effect from September 1, 2017.

Article 2 (Transitional Measures)
① The previous regulations shall apply to loans already handled prior to the effective date of these Regulations.
② For loan handling records of financial institutions related to the Equipment Investment Support Program and Trade Finance Support Program already handled prior to the effective date of these Regulations, the Governor may reflect them in the Small and Medium-sized Enterprise Loan Stabilization Program limit and allocate them as determined.

Supplementary Provisions (December 7, 2017)

These Regulations shall take effect from December 7, 2017.

Supplementary Provisions (September 20, 2018)

Article 1 (Effective Date) These Regulations shall take effect from November 1, 2018.

Article 2 (Transitional Measures) The previous regulations shall apply to loans already handled prior to the effective date of these Regulations.

Supplementary Provisions (August 30, 2019)

Article 1 (Effective Date) These Regulations shall take effect from October 1, 2019. However, the amended provisions of Article 9(2) and Article 11(1) (excluding the part regarding loans to material/component/equipment companies) shall take effect from November 13, 2019.

Article 2 (Transitional Measures)
① The previous regulations shall apply to loans already handled pursuant to the previous regulations prior to the implementation of these Regulations.
② For loan handling records of financial institutions related to the Small Business Owner Support Program already handled pursuant to the previous regulations prior to the implementation of these Regulations, the Governor may reflect them in the Small and Medium-sized Enterprise Loan Stabilization Program limit and allocate them as determined.

Supplementary Provisions (March 12, 2020)

These Regulations shall take effect from April 1, 2020.

Supplementary Provisions (March 26, 2020)

Article 1 (Effective Date) These Regulations shall take effect from April 1, 2020.

Article 2 (Validity Period) The amended provisions of Items 8 through 18 of Article 4(1) shall remain in effect until March 31, 2021.

Supplementary Provisions (April 9, 2020)

Article 1 (Effective Date) These Regulations shall take effect from April 14, 2020.

Article 2 (Validity Period) Items 8 and 9 of Article 4(1) shall remain in effect until March 31, 2021.

Supplementary Provisions (October 27, 2022)

Article 1 (Effective Date) These Regulations shall take effect from November 1, 2022.

Article 2 (Validity Period) [Deleted July 27, 2023]

Supplementary Provisions (January 13, 2023)

These Regulations shall take effect from January 31, 2023.

Supplementary Provisions (April 11, 2023)

These Regulations shall take effect from April 30, 2023.

Supplementary Provisions (July 27, 2023)

These Regulations shall take effect from July 31, 2023. However, the amended provisions of Items 10 through 12 of Article 4(1) shall take effect from August 31, 2023.

Supplementary Provisions (June 13, 2024)

These Regulations shall take effect from September 2, 2024.

Supplementary Provisions (July 24, 2025)

These Regulations shall take effect from January 1, 2026.

Supplementary Provisions (March 26, 2026)

Article 1 (Effective Date) These Regulations shall take effect from March 26, 2026.

Article 2 (Validity Period) The provision of Article 17(1) proviso shall remain in effect until September 30, 2026.

Supplementary Provisions (July 23, 2026)

The amended provision of Article 9(2) shall take effect from July 1, 2027.