Commencement of extinguishment of claims
Request for announcement for the commencement of the procedure for extinguishment- Where a finance company has taken measures to suspend payments, it should, without delay, request the Financial Supervisory Service to make a public announcement for the commencement of the procedure for extinguishment of claims (hereinafter referred to as “procedure for extinguishment of claims”) of the account holder. Provided, that this should not apply where all or some of the claims held by the account holder fall under any of the following cases (Article 5(1) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
· Where a lawsuit such as a lawsuit claiming damages or reinstitution of unjust enrichment has been filed and pending in court before suspending payment
· Where an attachment, provisional attachment or provisional disposition order under the “Civil Execution Act” has been executed before suspending payment
· Where a procedure to collect delinquent taxes under the “National Tax Collection Act” has been commenced before suspending payment
· Where a right of pledge has been established before suspending payments
· Where a lawsuit, such as a lawsuit to affirm non-existent debt or to request a return of unfair profits, between an account holder and victim has been filed after suspending payment and pending in court
· Where the balance of the account exploited for fraud does not exceed 10,000 won
Documents submitted for request for announcement for the commencement of the procedure for extinguishment- Where a finance company requests for a public announcement on the commencement of a procedure for extinguishment of claims, the company should submit the form of request for commencement of a procedure for extinguishment of claims (Form 3 of Annex of “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”), attached with the following documents, to the Financial Supervisory Service (main text of Article 5(1) of “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss” and Article 6(1) of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
· A copy of an application for a remedy for loss (Form 1 of Annex of “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”)
· A copy of an application for suspension of payment (Form 2 of Annex of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”)
· A copy of documents related to the notification or public announcement following the request for commencement of the procedure for extinguishment (Article 5(2) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”)
Notification or public announcement of commencement of the procedure for extinguishment- Where the Financial Supervisory Service is requested to publicly announce the commencement of the procedure for extinguishment of claims, it should publicly announce the effect that the procedure for extinguishment of claims has been commenced in connection with telecommunications-based financial fraud; a finance company, its branch and the classification and the account number of a deposit, etc. related to the account exploited for fraud, etc. for two (2) months (Article 5(2) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss” and Article 6(3) of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
- Where the Financial Supervisory Service has publicly announced commencement of the procedure for extinguishment of claims. it should notify the account holder of the commencement of such procedure. However, if the whereabouts of the account holder are unknown, such public announcement should be deemed notice given to the account holder (Article 5(3) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).