SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON ESTABLISHMENT AND MANAGEMENT OF THE SOCIAL INVESTMENT FUND

SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON ESTABLISHMENT AND MANAGEMENT OF THE SOCIAL INVESTMENT FUND
Article 1 (Purpose) The purpose of this Ordinance is to prescribe matters necessary for the establishment, administration, and management of the Social Investment Fund of the Seoul Metropolitan Government in order to secure financial resources required to enhance quality of life and welfare of the general public and to create decent jobs. Article 2 (Definitions) The definitions of terms used in this Ordinance are as follows: <Amended by Ordinance No. 5851, Apr. 2, 2015; Ordinance No. 6377, Jan. 5, 2017; Ordinance No. 7044, Mar. 28, 2019> 1. The term "social economic enterprise" means a social enterprise, a preparatory social enterprise, a cooperative or a federation of cooperatives, a village enterprise, a self-supporting enterprise, a self-supporting labor service corp (referring to a self-supporting enterprise recognized by the Minister of Health and Welfare), a production facility for products manufactured by persons with severe disabilities, or an enterprise, nonprofit corporation, or organization, etc. which conducts economic activities with the principal aim of realizing social values, as defined in subparagraph 2 of Article 3 of the Seoul Metropolitan Government Framework Ordinance on Social Economy; 2. The term "social value" means the public value which will enhance the quality of life and welfare of the general public; 3. The term "social financing" means the funding required to resolve social problems and enhance social values; 4. The term "performing agency" means an agency which enters into a financing agreement with the Seoul Metropolitan Government and conducts social financing projects, such as provision of investments or loans for social economic enterprises. Article 3 (Fund-Raising) (1) The Mayor shall establish and operate the social investment fund of the Seoul Metropolitan Government (hereinafter referred to as the "Fund") in order to secure and provide necessary funding to achieve the purposes of this Ordinance. (2) The Fund shall consist of the following financial resources: <Amended by Ordinance No. 7566, May 19, 2020> 1. An amount transferred from the Seoul Metropolitan Government (hereinafter referred as the “Seoul Government”); 2. Interest revenues generated from management of the Fund; 3. Loan payment, borrowed money, and trusted money; 4. An amount donated by corporations, groups, or individuals; 5. Other revenues for financing the Fund. (3) In each fiscal year, the Mayor may reflect the amount transferred by the Seoul Government in the Seoul Government's annual expenditure budget and transfer such amount pursuant to paragraph (2) 1. <Amended by Ordinance No. 7566, May 19, 2020> Article 4 (Use of Fund) The Fund shall be used for the following purposes: 1. Support for social economic enterprises; 2. Support for institutions carrying out social financing; 3. Support for social investment projects designed to resolve the problems associated with social, environmental, and cultural issues, etc.; 4. Support for enterprises and individuals in need of social consideration, such as enterprises employing disabled persons or run by females, multi-cultural families, residents escaping from North Korea, etc.; 5. Expenses incurred in the administration and management of the Fund; 6. The performing agency's subsidization of non-financing project costs for social economic enterprises; 7. Compensation for the difference in interest on loans provided by the performing agency; 8. Financing or subsidization for the construction and supply of social housing under the Seoul Metropolitan Government Ordinance on Support, etc. for Promotion of Social Housing; 9. Support for other fund-raising projects, etc. to solve the social tasks acknowledged by the Mayor. [This Article Wholly Amended by Ordinance No. 7566, May 19, 2020] Article 5 (Public Officials in Charge of Fund Management) (1) The Director-General in charge of the Fund-related affairs shall be appointed as a management officer of the Fund, the head of the division in charge of the Fund-related affairs shall be the sub-divisional management officer of the Fund, and the officer in charge of the Fund-related affairs shall be the accounting officer of the Fund: Provided, That, with respect to any causative acts underlying the expenditure of the Fund (including contract-related affairs) and any affairs concerning payment order, in order to increase transparency of the payment procedures of the Fund-related expenses, the public official concerning the government office accounting who is prescribed in the Seoul Metropolitan Government Rule on Financial Accounting shall handle said affairs within his or her capacity as a public official in charge of management of the Fund. <Amended by Ordinance No. 7566, May 19, 2020> (2) With respect to the revenue and expenditure of the Fund not provided for in this Ordinance, the provisions concerning cash other than tax revenue/expenditure which is prescribed in the Seoul Metropolitan Government Rule on Financial Accounting shall apply mutatis mutandis thereto. <Amended by Ordinance No. 7566, May 19, 2020> Article 6 (Establishment of Fund Management Deliberative Committee) In order to deliberate on the following matters concerning the administration and management of the Fund, a social investment fund management deliberative committee of the Seoul Metropolitan Government (hereinafter referred to as the "Deliberative Committee") shall be established under the jurisdiction of the Mayor: <Newly Inserted by Ordinance No. 6377, Jan. 5, 2017> 1. Establishment and modification of the Fund management plan; 2. Preparation of a settlement report of the Fund; 3. Analysis of the management results of the Fund; 4. Report on the management status of the Fund; 5. Matters concerning selection of a performing agency; 6. Other matters deemed necessary by the Mayor for the efficient administration and management of the Fund. Article 7 (Composition of Deliberative Committee) (1) The Deliberative Committee shall be comprised of not more than 15 members, including one chairperson. <Amended by Ordinance No. 6377, Jan. 5, 2017> (2) The chairperson shall be elected from among the members of the Deliberative Committee, and the head of the division in charge of the Fund-related affairs and the head of the division in charge of finance shall be ex officio members of the Deliberative Committee. <Amended by Ordinance No. 6377, Jan. 5, 2017> (3) Commissioned members shall be commissioned by the Mayor from among the following persons: 1. Members of the Seoul Metropolitan Council; 2. Professionals employed in private economic groups, financial institutions, etc. who have substantial professional knowledge of fund management or other fund-related areas; 3. Persons who have substantial knowledge of and experience in social financing and social economy. (4) The term of office of the ex officio members of the Deliberative Committee shall be the period during which they are in their office concerned and that of the commissioned members shall be two years from the date of commission, and said terms may be extended only once. [This Article Wholly Amended by Ordinance No. 5851, Apr. 2, 2015] Article 8 (Operation of Deliberative Committee) (1) The chairperson of the Deliberative Committee shall represent the Deliberative Committee and exercise overall control over the affairs of the Deliberative Committee. (2) Where the chairperson is unable to perform his or her duties due to unavoidable reasons, the member who is appointed from among members present at the relevant meeting of the Deliberative Committee shall act on behalf of the chairperson. (3) A meeting of the Deliberative Committee may be convened where deemed necessary by the chairperson or when requested by at least 1/3 of the members of the Deliberative Committee. <Amended by Ordinance No. 6377, Jan. 5, 2017> (4) A majority of the members of the Deliberative Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present: Provided, That deliberation may be made in writing in any of the following cases: <Amended by Ordinance No. 6706, Jan. 4, 2018> 1. Where an agenda item needs to be handled urgently or is an insignificant matter; 2. Where members are unable to attend and deliberate on an agenda item, due to natural disaster or other unavoidable reasons. (5) The Deliberative Committee shall have one executive secretary to handle its affairs, and the officer who is responsible for the administration and management of the Fund at the division in charge of the Fund-related affairs shall serve as executive secretary. <Amended by Ordinance No. 5728, Jul. 17, 2014> (6) The Deliberative Committee shall hold a meeting at least once every six months and receive a report on the management results of the Fund on a regular basis. <Newly Inserted by Ordinance No. 6377, Jan. 5, 2017> (7) Actual expenses, such as allowances and travel expenses, may be paid to members of the Deliberative Committee who are not public officials within the budget according to the Seoul Metropolitan Government Ordinance on the Payment of Committee Allowances and Travel Expenses. <Amended by Ordinance No. 5728, Jul. 17, 2014; Ordinance No. 6377, Jan. 5, 2017> (8) Where a member undermines the reputation of the Seoul Government or his or her act is against purposes of the Fund, the Mayor may dismiss him or her upon a resolution thereon passed by the Deliberative Committee. <Amended by Ordinance No. 5728, Jul. 17, 2014; Ordinance No. 6377, Jan. 5, 2017> (9) No member of the Deliberative Committee shall divulge or misappropriate confidential information which he or she becomes aware of in the course of performing his or her duties. <Amended by Ordinance No. 5728, Jul. 17, 2014; Ordinance No. 6377, Jan. 5, 2017> (10) Pursuant to Article 10 of the Seoul Metropolitan Government Framework Ordinance on Residents' Participation, the Deliberative Committee shall open its meetings to the public in principle and shall prepare, record, and manage the meeting minutes: Provided, That it may not open a meeting to the public if the agenda of the meeting is likely to harm the stability in management of the Fund or to cause any disorder in the process of implementing the relevant policies. <Amended by Ordinance No. 5728, Jul. 17, 2014; Ordinance No. 6377, Jan. 5, 2017> Disqualification of, Challenge to, or Refrainment by, Members Article 8-2 (Disqualification of, Challenge to, or Refrainment by, Members) (1) For the purpose of fair deliberation, any member falling under any of the following shall be disqualified from the relevant deliberation: 1. Where a member has provided or is providing service or consultation, or has conducted or is conducting research, relating to the matters subject to deliberation; 2. Where a member has a direct interest, relating to the matters subject to deliberation. (2) Where the circumstances indicate that it would be impracticable to expect fairness from a member, an interested party may file a request for a challenge to the member with the Chairperson. (3) Where any member falls under paragraph (1) or (2), he or she may make a request for refrainment, and upon the request, the relevant member shall be disqualified from the deliberation in question. [This Article Newly Inserted by Ordinance No. 5728, Jul. 17, 2014] Article 9 (Management of Fund) (1) The Fund shall be administered and managed by the Mayor and shall be deposited and managed in the treasury of the Seoul Government. <Newly Inserted by Ordinance No. 6377, Jan. 5, 2017> (2) In order to evaluate the implementation and performance of the Fund-related projects, the Mayor may examine the status of fund management of persons who received investments or loans pursuant to Article 4, and request such persons to submit documents related thereto. <Amended by Ordinance No. 6377, Jan. 5, 2017> (3) Where necessary, the Mayor may subsidize expenses for the performing agency's projects to support social economic enterprises. <Newly Inserted by Ordinance No. 6377, Jan. 5, 2017> (4) A person upon receipt of the investment/financial support in accordance with Article 4 shall repay the support fund. Such person may repay the support fund by any of the following methods depending on his or her financial circumstances: <Amended by Ordinance No. 6377, Jan. 5, 2017; Ordinance No. 6964, Jan. 3, 2019> 1. Repayment in equal installments; 2. Early repayment in a lump sum; 3. Repayment in a lump sum when the support period expires; 4. Other methods determined by the Mayor. (5) Where any change has been made to the location, representative, etc. of a person upon receipt of the investment/financial support in accordance with Article 4, the person shall notify the Mayor of such change without delay. <Newly Inserted by Ordinance No. 6377, Jan. 5, 2017> Article 10 (Settlement and Reporting) (1) In each fiscal year, the Mayor shall formulate a plan for the management of the Fund, and prepare a settlement report of the Fund within 80 days after the accounting of the Fund is closed. (2) In each fiscal year, the Mayor shall submit to the Seoul Metropolitan Council the plan for the management of the Fund and the settlement report of the Fund formulated and prepared pursuant to paragraph (1). [Moved from Article 11 <by Ordinance No. 6377, Jan. 5, 2017>] Article 11 (Term of Fund) The term of the Fund shall be until December 31, 2021. <Amended by Ordinance No. 6331, Sep. 29, 2016> [Moved from Article 12; previous Article 11 moved to Article 10 <by Ordinance No. 6377, Jan. 5, 2017>] Article 12 (Enforcement Rules) Matters necessary for the enforcement of this Ordinance shall be prescribed by rule of the Seoul Government. [Moved from Article 13 <by Ordinance No. 6377, Jan. 5, 2017>] ADDENDUM This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 5728, Jul. 17, 2014> This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 5851, Apr. 2, 2015> This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 6377, Jan. 5, 2017> This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 6576, Jul. 13, 2017> This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 6706, Jan. 4, 2018> This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 6964, Jan. 3, 2019> This Ordinance shall enter into force on the date of its promulgation. ADDENDA <Ordinance No. 7044, Mar. 28, 2019> Article 1（Enforcement Date) This Ordinance shall enter into force on the date of its promulgation. Articles 2 through 4 Omitted. ADDENDUM <Ordinance No. 7423, Dec. 31, 2019> This Ordinance shall enter into force on the date of its promulgation. ADDENDUM <Ordinance No. 7566, May 19, 2020> This Ordinance shall enter into force on the date of its promulgation.