Regulations Governing Investments in Real Estate by Commercial Banks Article 3

The term "real estate with substantial portion for self use" as used in Subparagraphs 1 and 3, Paragraph 2, Article 75 of the Act shall mean more than 50% of the usable floor area of the real estate is for self use.For real estate originally purchased for self use where a part of which is subsequently changed to non-self use, the self-use proportion of the real estate shall meet the ratio requirement for real estate with substantial portion for self use as defined in the preceding paragraph, except where the situations under Paragraph 1 or 3 of Article 4, Article 4-1 or Article 5 herein apply.The term "in the near future" as used in Subparagraph 2, Paragraph 2, Article 75 of the Act shall mean a duration less than one year from the date of ownership transfer.The duration of "in the near future" as used in the preceding paragraph may be extended up to two years, provided a bank has special reasons and has obtainedapproval of the Competent Authority after submitting a concrete plan for self use and relevant support documents. However, the duration may be extended up to seven years when a bank purchases land to construct real estate for self-use.The term "rebuiltoriginal real estate" as used in Subparagraph 3, Paragraph 2, Article 75 of the Act shall mean the original real estate is totally demolished and then rebuilt.A bank that plans to invest in real estate not for self use under Subparagraph 4, Paragraph 2,Article 75 of the Act shall first submit a real estate investment plan, a document evidencing that the institution or organization to use the real estate has been established with approval from the competent authority in charge of the industry concerned and other documents designated by the Competent Authority, and obtain approval of the Competent Authority in consultation with the competent authority in charge of the industry concerned before making the investment.Where the Competent Authority finds the plan, the proof document or other documents submitted by a bank according to the preceding paragraph non-conforming, the Competent Authority may ask the bank to make correction within a specified time period, and disapprove the planned investment if the bank fails to make correction or is still found non-conforming after making correction.