[1] Judicial effects of a non-real-name financial transaction contract (effective)

[2] Whether a depositor or a deposit claim due to a non-real-name financial transaction is subject to insurance money under the Depositor Protection Act (affirmative)

[1] After the enforcement of the former Emergency Financial and Economic Order (repealed by Article 2 of the Addenda to the Act on Real Name Financial Transactions and Guarantee of Secrecy, Act No. 5493, Dec. 31, 1997) of the Act on Real Name Financial Transactions and Guarantee of Secrecy, a person who intends to make a deposit in a financial institution shall, in principle, participate directly in his/her resident registration certificate and seal impression and make a deposit in his/her own name at the financial institution. Thus, the deposit title holder shall be deemed the deposit owner. However, if there is an explicit or implied agreement between the contributor and the financial institution to transfer his/her claim for return of deposit to a person who is not the deposit title holder due to special circumstances, a financial transaction contract with the deposit owner is established. The above Emergency Financial and Economic Order and the Act on Real Name Financial Transactions and Guarantee of Secrecy prohibit the act of real name transaction and impose an obligation for real name conversion on the non-real-name trader, and even if the person who violated the obligation to impose a penalty

[2] The former Depositor Protection Act (amended by Act No. 5492 of Dec. 31, 1997, effective April 1, 1998) stipulates that the insurance relationship between the Korea Deposit Insurance Corporation and an insured financial institution and depositors shall be established at the time depositors have claims such as deposits against insured financial institutions (Article 29(1)). The Korea Deposit Insurance Corporation shall pay insurance money upon the insured financial institution’s request when an insured financial institution causes an insured event (Article 31(1). The term “depositor” means a person who has claims such as deposits against an insured financial institution, and the term “claims such as deposits” means the principal, principal, interest, profit, insurance money, and other agreed pecuniary claims which depositors have against an insured financial institution through financial transactions such as deposit, etc. (Article 2 subparag. 3 and 4). Since the Korea Deposit Insurance Corporation does not have provisions excluding claims such as depositors or deposits due to non-real financial transactions, it is not exempt from liability for payment of insurance money such as non-deposit financial transactions such as deposit account.

[1] Article 3(1) of the former Act on Real Name Financial Transactions and Confidentiality (repealed by Article 2 of the Addenda to the Act on Real Name Financial Transactions and Guarantee of Secrecy, Act No. 5493 of Dec. 31, 1997) (see current Article 3(1) of the Act on Real Name Financial Transactions and Guarantee of Secrecy), Articles 105 and 702 of the Civil Act / [2] Articles 2 subparag. 3 and 4, 29(1), and 31(1) of the former Depositor Protection Act (amended by Act No. 5556 of Sep. 16, 1998)

[1] Supreme Court Decision 95Da55986 delivered on April 23, 1996 (Gong1996Sang, 1575), Supreme Court Decision 97Da35658 delivered on January 23, 1998 (Gong1998Sang, 594), Supreme Court Decision 97Da18455 delivered on June 12, 1998 (Gong1998Ha, 1942), Supreme Court Decision 97Da53359 delivered on November 13, 1998 (Gong198Ha, 2855), Supreme Court Decision 9Da67031 delivered on March 10, 200 (Gong200Sang, 948)

Plaintiff (Attorney Kim-con et al., Counsel for the plaintiff-appellant)

Korea Deposit Insurance Corporation (Attorney Park Jung-hee et al., Counsel for the plaintiff-appellant)

Daegu High Court Decision 2000Na479 delivered on January 12, 2001

The appeal is dismissed. The costs of appeal are assessed against the defendant.

A person who intends to make a deposit at a financial institution after the enforcement of the Emergency Financial and Economic Order for Real Name Financial Transactions and Confidentiality (repealed by Article 2 of the Addenda to the Act on Real Name Financial Transactions and Guarantee of Secrecy, Act No. 5493 of December 31, 1997) shall, in principle, participate in the resident registration certificate and seal impression, and make a deposit in his/her own name at the financial institution. However, if there is an express or implied agreement between the contributor and the financial institution to vest in the claim for the return of deposit between the contributor and the financial institution due to special circumstances, the financial transaction contract with the contributor is established (see, e.g., Supreme Court Decisions 97Da53359, Nov. 13, 1998; 9Da67031, Mar. 10, 200). The above emergency financial economy order or the Act on Real Name Financial Transactions and Guarantee of Secrecy prohibit the act of de facto trading, and impose an obligation to change the real name on an officer or employee of the financial institution, and there is no influence.

In addition, the former Depositor Protection Act (amended by Act No. 5492 of Dec. 31, 1997, effective April 1, 1998) stipulates that the insurance relationship between the Korea Deposit Insurance Corporation and an insured financial institution and depositors shall be established at the time depositors have claims such as deposits against insured financial institutions (Article 29(1)). The Korea Deposit Insurance Corporation shall pay insurance money upon the insured financial institution’s request when an insured financial institution causes an insured event (Article 31(1). The term “depositor” means a person who has claims such as deposits against an insured financial institution, and the term “deposits such as deposits” means the principal, principal, interest, profits, insurance money, and other agreed pecuniary claims which depositors have against an insured financial institution through financial transactions such as deposits (Article 2 subparag. 3 and 4). Since the Korea Deposit Insurance Corporation does not have provisions excluding claims such as depositors or deposits due to non-real financial transactions from the payment of insurance money due to non-real financial transactions such as deposit account name cannot be exempted from the liability of the Korea Deposit Insurance Corporation.

The judgment of the court below to the same purport is just, and there is no error of law in the misapprehension of legal principles as to the Depositor Protection Act and Real Name Financial Transactions and Guarantee Act.

Therefore, the appeal is dismissed and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Son Ji-yol (Presiding Justice)