Regulations Governing The Establishment Criteria and Administration of The Industrial Bank Article 9

The balance of an industrial bank's direct investments in any of productive enterprises cannot exceed 5% of the bank's net worth as of the end of the preceding fiscal year; it also cannot exceed 20% of the total number of shares issued by the productive enterprise or of the total amount of capital of the enterprise. However, to cooperate with the major economic plans of the government, this Paragraph does not apply to an industrial bank whose overall balance of the direct investments in a productive enterprise is approved after the investigation. . When the total number of issued voting shares or the total amount of the capital held by an industrial bank exceeds 50%, or more than a half of the total number of the enterprise's directors are directly or indirectly elected, or appointed by the bank, the balance of the industrial bank's direct investments in any of productive enterprises and the ratio of shareholding shall be incorporated into the computation of the caps mentioned in the preceding Paragraph. The balance of an industrial bank's direct investments in any of venture capital enterprises cannot exceed 5% of the bank's net worth as of the end of the preceding fiscal year. This rule does not apply to a venture capital enterprise that the bank holds 100% shareholding. If the bank's direct investments in the venture capital enterprise exceed 20% of the total number of shares issued by the invested enterprise or 20% of the total amount of the enterprise's capital, they shall be approved by the Commission.