ORDINANCE ON ESTABLISHMENT OF BUSAN TOURISM ORGANIZATION
Ordinance No. 4790, Aug. 8, 2012
- Article 1 (Purpose)
- The purpose of this Ordinance is to provide for matters necessary for the establishment and operation of the Busan Tourism Organization pursuant to Article 49 of the Local Public Enterprises Act in order to contribute the growth of the regional economy through the promotion of the tourism industry in the Busan area, the development of tourism resources, etc.
- Article 2 (Business)
- The Busan Tourism Organization (hereinafter referred to as the
"Organization") shall conduct the following business activities:
- 1. Projects for the development and management of tourism resources;
- 2. Projects for the development of tourism products, the promotion of tourism, and marketing for attracting tourists;
- 3. Invitation of and assistance to international conferences, incentive tourism programs, exhibitions, etc.;
- 4. Establishment and operation of various facilities for tourists;
- 5. Operation of Busan Youth Hostel Arpina; ]
- 6. Operation of city-tour buses;
- 7. Cooperation and assistance with domestic and overseas partners in tourism business;
- 8. Research and education on tourism;
- 9. Business activities that the State or a local government authorizes or entrusts to be vicariously executed;
- 10. Other tourism-related projects for public service and for profit, as defined in Article 2 of the Local Public Enterprises Act.
- Article 3 (Capital) (1) The authorized capital of the Organization shall be 80 billion won, which shall be fully invested by the Busan Metropolitan City (hereinafter referred to as the "Metropolitan City") in cash or in kind: Provided, That a person other than the Metropolitan City may be authorized to invest in the Organization not exceeding one half of the capital, if it is necessary for the operation of the Organization.
- (2) The timing for payment of the capital that shall be invested by the Metropolitan City pursuant to paragraph (1) and the method of payment shall be determined by the Mayor of the Busan Metropolitan City (hereinafter referred to as the "Mayor").
- Article 4 (Issuance of Stocks) (1) If any person other than the Metropolitan City invests in the Organization, stocks shall be issued proportionately for the capital of the Organization.
- (2) All stocks of the Organization shall be issued in registered stocks and shall be classified into preferred stocks and common stocks.
- (3) Stock certificates issued by the Organizations shall be in six different denominations: One-stock certificates; five-stock certificates; ten-stock certificates; 50-stock certificates; 100-stock certificates; and 1,000-stock certificates.
- (4) The value of each stock issued by the Organization shall be 5,000 won.
- (5) The timing for issuance of stocks, the total number of outstanding stocks, the timing for payment of stocks, and the method of payment shall be approved by the Mayor, subject to prior resolution by the board of directors of the Organization.
- Article 5 (Officers) (1) The officers of the Corporation shall be comprised of directors, including a president, and auditors, the number of which shall be stipulated by articles of incorporation, but the prescribed number of directors shall not exceed 11 persons.
- The term of office of the president or a director or auditor of the Organization shall be three years, but may be extended consecutively by one year: Provided, That the term of office of an ex officio non-standing director or an auditor appointed from among Grade-III or higher-ranking public officials shall coincide with his/her term of service for his/her position.
- Article 6 (Acting President)
- (1) The officers of the Corporation shall be comprised of directors, including a president, and auditors, the number of which shall be stipulated by articles of incorporation, but the prescribed number of directors shall not exceed 11 persons.
- Article 7 (Composition of Directors)
- Directors shall be classified into standing directors and non-standing directors, and the prescribed number of standing directors, including the president, shall be less than 50/100 of the prescribed number of directors, while the prescribed number of non-standing directors, including Grade-III or higher-ranking public officials in charge of relevant affairs in the Metropolitan City, shall be stipulated by articles of incorporation.
- Article 8 (Restriction on Power of Representation of Officers)
- With regard to a matter in which the Organization's interest conflicts with the interest of the president or of the director who acts on behalf of the president, the president or the director who acts on behalf of the president shall not represent the Organization, but an auditor shall represent the Organization if any other officer is authorized to represent the Organization.
- Article 9 (Restriction on Participation in Board of Directors)
- No officer of the Organization shall be present in a meeting of the board of directors when the board of directors deliberates on a case in which the officer or any of his/her relatives has an interest.
- Article 10 (Formulation of Budgets)
- The president shall formulate a business plan and budgets by at least 40 days before the beginning of each business year in accordance with the guidelines established by the Mayor for budgeting.
- Article 11 (Correction of Report on Settlement of Accounts)
- If the Mayor finds that a report submitted pursuant to Article 66 (2) of the Local Public Enterprises Act is incorrect, he/she may issue an order to correct the report.
- Article 12 (Bearing of Expenses for Projects Vicariously Executed)
- (1) The Organization may vicariously execute a project entrusted by the State, a local government, or any other person, with approval from the Mayor, and such vicarious execution shall be based on a mutual entrustment agreement.
- (2) The expenses that the State or a local government shall bear when the
Organization vicariously executes a project of the State or the local
government pursuant to Article 71 (2) of the Local Public Enterprises Act
are as follows:
- 1. Expenses specified in Article 63 (2) of the Enforcement Decree of the Local Public Enterprises Act;
- 1. Expenses specified in Article 63 (2) of the Enforcement Decree of the Local Public Enterprises Act;
- 2. The difference between the average supply price and the actual supply price, when goods or services are supplied free-of-charge or at a price below the average supply price for public service of the State or a local government.
- (3) The Organization shall make a decision on the bearing of expenses under paragraph (2) 2, consulting thereon with the relevant central administrative agency or local government, and shall obtain approval therefor from the Mayor.
- Article 13 (Raising of Funds, etc.) (1) If the president deems it necessary for business management, he/she may create and operate funds in the Organization in accordance with resolutions passed by the board of directors and with approval therefor from the Mayor.
- (2) The Metropolitan City may grant the Organization subsidies for the creation of funds under paragraph (1).
- Article 14 (Issuance of Corporate Bonds and Foreign Loans) (1) The Organization may issue corporate bonds or borrow foreign loans with approval therefor from the Mayor.
- (2) Matters regarding the issuance, sale, and redemption of corporate bonds shall be stipulated by articles of incorporation.
- Article 15 (Short-Term Loans) (1) The Organization may borrow loans for a repayment period of not exceeding two years with approval therefor from the Mayor.
- (2) When the Organization lacks cash for expenditure within the budget, it may borrow a loan temporarily, but the limits on any such loan shall be stipulated in its budget.
- (3) Temporary loans borrowed pursuant to paragraph (2) shall be repaid during the pertinent year.
- Article 16 (Supervision) (1) The Mayor shall supervise business operations of the Organization.
- (2) The Organization shall obtain approval for the following matters from the
Mayor:
- 1. Matters regarding its organs and prescribed number of personnel;
- 2. Matters regarding the establishment, amendment, and repeal of essential regulations, such as regulations on personnel management, regulations on remuneration for officers and employees (including regulations on the annual pay system and regulations on employees' benefits and welfare), and regulations on retirement and severance benefits (including regulations on voluntary early retirement).
- Article 17 (Prohibition of Divulgence of Confidential Information)
- A person who is or was an officer or employee of the Organization shall not divulge confidential information acquired in the scope of his/her duties or use such information for any purpose other than for performance of his/her duties.
- Article 18 (Entrustment of Authority)
- If the Mayor deems it necessary for the objectives of establishment of the Organization, he/she may partially entrust his/her authority to the president.
- Article 18 (Entrustment of Authority)
- If the Mayor deems it necessary for the objectives of establishment of the Organization, he/she may partially entrust his/her authority to the president.
- ADDENDA
- Article 1 (Enforcement Date)
- This Ordinance shall enter into force on the date of its promulgation: Provided, That subparagraph 5 of Article 2 above and Article 4 of the Addenda shall enter into force on January 1, 2013.
- Article 2 (Expenses for Establishment of Organization)
- Expenses incurred in the establishment of the Organization shall be disbursed from general accounts of the Metropolitan City until the Organization is established pursuant to this Ordinance.
- Article 3 (Succession to Assets, Rights, and Obligations)
- When a corporation in which the Metropolitan City has invested in kind or any other related corporation is dissolved and liquidated, the Organization shall succeed to all rights and obligations in or over invested assets, business, human resources, etc.
