Article 1 (Purpose) The purpose of this Ordinance is to provide for matters necessary for the establishment and operation of the Seoul Credit Guarantee Foundation (hereinafter referred to as the "Foundation") to guarantee debts of small and medium enterprises, small enterprises, and small commercial and industrial businessmen (hereinafter referred to as "small enterprises, etc.") who have insufficient ability to provide a mortgage under the provisions of Article 9 of the Regional Credit Guarantee Foundation Act (hereinafter referred to as the "Act") and to facilitate financing and contribute to the revitalization of the economy of Seoul.

Article 2 (Definitions) (1) The definitions of terms used in this Ordinance shall be as follows:
1. The term "small and medium enterprises" means small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises which fall under a local small and medium enterprise promotion plan under Article 40 of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act;
2. The term "small enterprises and small commercial and industrial businessmen" means small enterprises under subparagraph 1 of Article 2 of the Act and small commercial and industrial businessmen under subparagraph 2 of Article 2 of the Act;
3. The term "endowments" means assets created by contributions of the Foundation or by other methods as the basic assets for credit guarantee of small enterprises, etc.;
4. The term "operating income" means other income generated from the operation of the Foundation, such as fees for guarantee;
5. The term "funds" means endowments created for the operation of the Foundation and its operating income;
6. The term "credit guarantee" means credit guarantee under subparagraph 4 of Article 2 of the Act.

Article 3 (Incorporation, etc.) (1) The Foundation shall be formed by registration for its incorporation at the seat of its head office.
(2) The Foundation may have its branches in addition to the head office as prescribed by the articles of association.

Article 4 (Creation of Endowments) (1) The endowments of the Foundation shall be created with the following financial resources:
1. Contributions by the Seoul Metropolitan Government (hereinafter referred to as the "Metropolitan Government");
2. Contributions by financial institutions;
3. Contributions by enterprises;
4. Contributions by persons other than those mentioned in subparagraphs 1 through 3;
5. Subsidies granted by the Government under Article 7 (2) of the Act.
(2) Where the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") deems it necessary for the expansion of credit guarantee of the Foundation, he/she may take necessary measures, such as raising contributions by the Metropolitan Government, within budgetary limits.
(3) Where any loss of the Foundation after settlement of accounts exceeds its endowments, the Mayor may take necessary measures, such as making up for the loss, etc. within budgetary limits.

Article 5 (Objects of Credit Guarantee) Those for whom the Foundation may provide credit guarantee shall be small enterprises, etc. located in its jurisdiction: Provided, That in any of the following cases, it may provide credit guarantee for small enterprises, etc. located in an area other than its jurisdiction:
1. Where the Administrator of the Small and Medium Business Administration or the Mayor deems that emergency aid is necessary owing to a disaster;
2. Where the jurisdiction has been changed or the Mayor deems it necessary for revitalizing the regional economy.

Article 6 (Uses of Funds) (1) The funds shall be used as follows:
1. Where the Foundation becomes a debtor in connection with credit guarantee, expenses for repayment of such a debt;
2. Expenses necessary for conducting business of the Foundation under Article 8.
(2) Where the Foundation has used funds, other than uses prescribed in any of the subparagraphs of paragraph (1), the Mayor shall recover the whole amount of the funds used for such other purposes.

Article 7 (Articles of Association) (1) The following shall be mentioned in the articles of association of the Foundation:
1. The objectives;
2. The name;
3. The business area;
4. Matters concerning the head office and branch offices;
5. Matters concerning endowments;
6. Matters concerning executives and employees;
7. Matters concerning the board of directors;
8. Matters concerning duties and the performance thereof;
9. Matters concerning accounting;
10. Matters concerning methods of public announcement;
11. Matters concerning dissolution;
12. Matters concerning amendments to the articles of association;
13. Other matters determined by the Mayor.
(2) Where the Foundation intends to obtain the approval of the competent authority to amend the articles of association, it shall report such to the Mayor in advance.

Article 8 (Duties) (1) The Foundation shall perform the following duties:
1. Management and operation of endowments and operating income;
2. Credit guarantee for small enterprises, etc.;
3. Credit checks on small enterprises, etc. and management of credit information;
4. Management guidance on small enterprises, etc.;
5. Where the Foundation becomes a debtor in connection with credit guarantee and repays such a debt, the exercise of the right to indemnity against the relevant small enterprise, etc.;
6. Business incidental to those referred to in subparagraphs 1 through 5, which have been approved by the Mayor.
(2) The Foundation may entrust a financial institution, organization or related specialized institution with some of the duties prescribed in paragraph (1). In such cases, the Foundation shall report it to the Mayor following the resolution of the board of directors.

Article 9 (Disposition of Profits) Any profit from each business year shall be used for making up for a deficit brought forward and for the increase of endowments.

Article 10 (Fiscal Year) The fiscal year of the Foundation shall coincide with the fiscal year for general accounting of the Metropolitan Government.

Article 11 (Compilation of Budget) (1) The Foundation shall draft its budget for each business year and obtain approval from the Mayor not later than one month prior to the commencement of the fiscal year.
(2) Where the Foundation intends to change a budget submitted pursuant to paragraph (1), it shall obtain approval from the Mayor.

Article 12 (Settlement of Accounts of Budget) The Foundation shall prepare an accounting report, balance sheet, profit and loss statement, and accounting statements of income and expenditure of endowments and operating income, and submit them to the Mayor within two months after the closing of each fiscal year.

Article 13 (Dissolution) (1) Where there are reasons falling under any of the following subparagraphs, the Foundation shall be dissolved:
1. Merger or bankruptcy;
2. Accrual of a reason for dissolution prescribed by the articles of association.
(2) Where the Foundation intends to resolve to merge with another entity or file for bankruptcy by any reason referred to in paragraph (1) 1, it shall report the same to the Mayor in advance.
(3) Where the Foundation is dissolved, assets of the Foundation (where there is a debt, remaining assets after repayment of such a debt) shall become vested in the Metropolitan Government.

Article 14 (Assessment of Management) (1) Where the Mayor deems it necessary for contribution, he/she may assess management of the Foundation.
(2) Where the Mayor conducts assessment of management under paragraph (1), he/she may entrust a related institution, organization or expert with such assessment.

Article 15 (Confirmation on Management of Funds) The Mayor may have a public official under his/her jurisdiction confirm matters concerning management of funds.

Article 16 (Dispatch of Public Officials) In order to accomplish the objectives of the establishment of the Foundation, the Mayor may dispatch public officials under his/her jurisdiction to the Foundation, as prescribed by related Acts and subordinate statutes.

Article 17 (Enforcement Rule) Necessary matters concerning the implementation of this Ordinance shall be prescribed by the Enforcement Rule.