Regulations Governing Securities Firms Article 23

A securities firm that underwrites securities on a firm commitment basis by subscribing securities before putting them for resale or specifying in the underwriting contract that a portion of the securities covered in the contract shall be subscribed by the securities firm for its own account in accordance with paragraph 2 of Article 71 of the Act shall meet the conditions listed below; however, if a securities firm does not meet the condition in subparagraph 2, but the period of the suspension of business has expired, and concrete improvement has been made, and the improvement has been recognized by the FSC, it may be exempted therefrom:1. Its financial condition meets the provisions of Articles 13, 14, 16, 18, 18-1 and 19.2. The securities firm has not been sanctioned by any suspension of business imposed by the FSC in accordance with Article 66 of the Act during the most recent half year due to underwriting related business.