Regulations on Provision of Labor Retirement Reserve Fund Data to Financial Institutions

Article 1
These Regulations are enacted in accordance with Paragraph 9 of Article 56 of the Labor Standards Act (hereinafter referred to as the Act).
Article 2
These Regulations shall apply when local competent authorities provide necessary data for financial institutions to inspect appropriation of funds for labor retirement reserve fund in business entities, and when financial institutions apply for, obtain, process and use such data.
Article 3
The necessary data stated in Paragraph 7 of Article 56 of the Act refer to the followings:
1.The number of workers enrolled in Labor Insurance within a business entity;
2.The number of workers to whom the retirement benefits regulations (hereinafter referred to as the old labor retirement system) set forth in the Act apply;
3.The number of workers to whom the retirement pension system (hereinafter referred to as the new labor retirement system) set up in accordance with the Labor Pension Act applies;
4.The estimated amount of 6 months wages;
5.The estimated amount of retirement benefits for workers to whom the old labor retirement system applies;
6.The estimated amount of severance pay for workers to whom the new and old labor retirement systems apply;
7.The appropriation of funds into the labor retirement reserve account and account balance;
8.Other data deemed necessary by the central competent authority.
Article 4
Local competent authorities may request the assistance of the central competent authority to provide the necessary data specified in the preceding Article.
Article 5
A financial institution intending to inspect necessary data for loan application approval shall present a letter of consent from the business entity in concern and the application form, as well as an explanation of purpose to the local competent authority with jurisdiction over the business entity.
The local competent authority shall provide the data within three days after accepting the application from the financial institution. If necessary, the processing time may be extended and the financial institution shall be notified. The extension is limited to one time only and may not be more than seven days.
Article 6
The necessary data local competent authorities and financial institutions applied for, obtained, processed and used may only be for the purpose of loan application approval; they may not be used for any other purposes.
Once the purpose of the necessary data acquired as stated in the preceding Paragraph is achieved, the financial institution shall destroy the data.
Article 7
Local competent authorities shall keep the letter of consent and application form specified in Paragraph 1 of Article 5 for five years.
Local competent authorities shall keep and audit records of data applications from financial institutions and present them to the central competent authority for reference on a regular basis. If necessary, the central competent authority may send personnel to perform random inspections of related documents.
Article 8
Local competent authorities and financial institutions shall fulfill the obligations of prudent administrators to manage necessary data applied for, obtained, processed and used, as well as abide by information security regulations and execute information security procedures to safeguard such necessary data.
Article 9
Local competent authorities and financial institutions shall keep necessary data applied for, obtained, processed and used confidential.
Article 10
Local competent authorities and financial institutions shall establish internal regulations on application for, obtainment, processing and custody of necessary data, as well as define the access authority of personnel of various levels in accordance with the nature of their duties, review the appropriateness and related mechanisms regularly and include such review in internal and audit systems.
Article 11
The competent authority may consult with the Financial Supervisory Commission and delegate inter-bank credit information businesses (hereinafter referred to as credit information businesses) defined in the Banking Act to be in charge of provision of the necessary data specified in these Regulations.
The regulations set forth in Article 8 to the preceding Article shall apply mutatis mutandis to credit information businesses.
Article 12
Local competent authorities, financial institutions and credit information businesses shall be held liable for compensation when violating these Regulations or related laws and causing damage to business entities.
Article 13
The central competent authority shall determine the formats of documents to be applied under these Regulations.
Article 14
These Regulations shall take effect from the day they are promulgated.