(1) In order to facilitate foreign exchange transactions, a foreign exchange equalization fund shall be established as a fund under Article 5 of the National Finance Act.
(2) The foreign exchange equalization fund shall be funded with the following financial resources: <Amended on Apr. 30,, 2011>
1. Contributions and withholdings from the Government;
2. Money raised by issuing foreign exchange equalization fund bonds;
3. Withholdings or temporary loans from any foreign government, any foreign central bank, or other residents or non-residents;
4. Withholdings under Article 6 (1) 2 and (2);
5. Macro-prudential stability levies under Article 11-2 and surcharges under Article 11-3 (3);
6. Other funds prescribed by Presidential Decree including those necessary to facilitate foreign exchange transactions.
(3) The foreign exchange equalization fund shall be operated by the methods listed in the following subparagraphs: Provided, That the foreign exchange equalization fund raised with the macro-prudential stability levies and surcharges under paragraph (2) 5 shall be managed only in the method referred to in subparagraph 2 or for transactions to provide a financial company, etc. with foreign currency liquidity, from among the methods referred to in subparagraph 4: <Amended on Apr. 30, 2011>
1. Foreign exchange dealing;
2. Deposit in or lending to the Bank of Korea, any foreign government, any foreign central bank, or any domestic or foreign financial company, etc.;
3. Payment temporarily made on behalf of the State before the State makes payment with reserve funds or revised supplementary budgets for the purpose of the redemption of foreign currency debts of a foreign exchange agency guaranteed by the State;
4. Other methods deemed necessary for facilitation of foreign exchange transactions and which are prescribed by Presidential Decree.
(4) If debts are paid by the foreign exchange equalization fund on behalf of the State pursuant to paragraph (3) 3, the Government shall take measures to replenish for such payment.
(5) Financing and operation of the foreign exchange equalization fund as provided for in paragraphs (2) and (3), may be made with either the means of domestic payment or the means of international payment.
(6) The foreign exchange equalization fund shall be operated and managed by the Minister of Economy and Finance.
(7) The Minister of Economy and Finance may issue foreign exchange equalization fund bonds.
(8) Matters concerning for the operation and management of the foreign exchange equalization fund, interest payable on withholdings, issuance of foreign exchange equalization fund bonds, etc., shall be prescribed by Presidential Decree.
(9) The Minister of Economy and Finance may, as prescribed by Presidential Decree, issue a certificate of deposit for the funds deposited in the foreign exchange equalization fund under paragraph (2). In such cases, the Minister of Economy and Finance may determine the purpose of use of such certificates of deposit.
(10) Where foreign exchange equalization fund bonds are issued as prescribed in paragraph (2) 2, Article 4 of the State Bond Act shall not be applicable.
(11) Where any change in the issuance amount of foreign exchange equalization fund bonds denominated in a foreign currency exceeds 2/10 of the issuance amount of a foreign exchange equalization fund bonds denominated in a foreign currency according to the operation plan of the foreign exchange equalization fund for the corresponding fiscal year, the Minister of Economy and Finance shall submit details of such change to the competent Standing Committee and the Special Committee on Budget and Accounts of the National Assembly. In such cases, such details of change shall contain the detail of issuance and redemption of foreign exchange equalization fund bonds, reasons for the change, etc.
(12) The Minister of Economy and Finance shall keep a separate account of the macro-prudential stability levies and surcharges under paragraph (2) 5 from other financial resources for the foreign exchange equalization fund, as prescribed by Presidential Decree. <Newly Inserted on Apr. 30, 2011>[This Article Wholly Amended on Jan. 30, 2009]