Article 5-2 of the Act on Special Measures for Loans in Arrears by Financial Institutions and Funds borrowed from international financial institutions under national guarantee.

The Act on Special Measures for Loans in Arrears by Financial Institutions is generally applied to loans in arrears by financial institutions as stipulated in Article 3 of the Banking Act, but in cases of a corporation which subleases funds borrowed from an international financial institution by national guarantee, it shall apply only to the total amount of such loans and funds borrowed directly from or through a financial institution

Article 2 (2) of the Act on Special Measures for Loans in Arrears by Financial Institutions

Attorney Kim Jin-jin, Counsel for special appellant

Daegu District Court Order 80Mo635 Dated July 29, 1980

The special appeal is dismissed.

The grounds for special appeal of the special appellant shall be examined.

Article 5-2 of the Act on Special Measures for Loans in Arrears of Financial Institutions (No. 2570 of March 3, 1973) provides that a person who intends to file an appeal against a ruling of approval of a successful bid in an auction procedure for loans in arrears shall deposit the prescribed funds in the same Article. According to the provision of Article 2 (2) of the same Act, the above overdue loans in the main sentence refers to the principal, interest and debts not paid on the agreed date in credit transactions handled by financial institutions. However, in the proviso of Article 2 (2) of the Act, a person who subleases funds from an international financial institution under a national guarantee of the State to an international financial institution shall be limited to loans borrowed directly or through a financial institution from the government, and a person who borrows funds from an international financial institution under Article 3 of the Banking Act, the Korea Development Bank, the Korea Asset Management Corporation, and the Korea Asset Management Corporation shall be subject to the provisions of Article 3 (1) of the Banking Act, which shall not be applied to loans in arrears of financial institutions from the National Agricultural Cooperative Federation.

In addition, since the original decisions are related to the cases subject to the previous Act on Special Measures for Loans in Arrears before the amendment by Act No. 2570 of March 3, 1973, and the original decisions are not appropriate, it cannot be said that there is an illegality of misapprehension of legal principles or incomplete deliberation in the original decisions. Further, the provisions of Article 5-2 of the above Act on Special Measures are not in violation of the principle of equity in the original decisions, even if they were to be submitted after the decision of the court below, they were not in violation of Article 9 of the Constitution, which was enforced at the time of the appeal, since the provisions of Article 5-2 of the above Act on Special Measures stipulate the conditions for the exercise of right to appeal against the person who intends to file an appeal against the decision of permission in the auction procedure for loans in arrears in order to normalize the operation of financial institutions as soon as possible and secure circulation of financial funds, and they are not in violation of the principle of equity in the execution of auction after the decision of the court below.

Therefore, this special appeal is dismissed. It is so decided as per Disposition by the assent of all participating judges.

Justices Park Tae-hee (Presiding Justice)