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Types of Contract Bonds (Guarantee Insurance)
Credit Bond Credit Sales Bond
Education/Training Expense Bond Personal Guarantor Bond
Bail Bond Taxation Bond License & Permit Bond
Court Bond Overseas Return Bond E-Commerce Bond
 
Details of Other Bonds
Credit Bond
Principal (Contractor) The person having to provide payment as stipulated in the underlying contract.
Beneficiary (Obligee) The Creditor
Loss Coverable Any loss occurring in case the Principal fails to uphold the payment obligation(s) stipulated in the underlying contract (i.e.: contract for work, sales, rent, mandate, etc)
Bond Period Contract Period
Bond Amount The amount required by the contract.

Credit Sales Bond
Principal (Contractor) The person having to provide a deposit for credit sales.
Beneficiary (Obligee) The recipient of the credit sales deposit.
Loss Coverable Any loss occurring in case the Principal, who is obliged to pay for the credit sales stipulated in the credit sales contract, fails to make payment.
Bond Period Contract Period
Bond Amount The amount required by the contract.

Education/Training Expense Bond
Principal (Contractor) Employee.
Beneficiary (Obligee) The Employer
Loss Coverable Any loss in the event the Beneficiary provides education/training to the Principal and the Principal fails to pass the requirements for certification or quits before the required date of employment.
Bond Period According to the requirement by the Principal, the bond period for the short term is 6 months but can last up to 5 years for the long term.
Bond Amount The bond amount shall not exceed 300 million KRW (domestic) and 300,000 USD (foreign).

Personal Guarantor Bond
Principal (Contractor) Financial Guarantor for Employee
Beneficiary (Obligee) Financial Guarantor
Debtor Employee
Loss Coverable Any Losses the Guarantor pays due to the Employee¡¯s failure to uphold its obligations as stated in the employment contract to the Employer.
Bond Period Minimum: 6 months Maximum: 5 y-ears (The period as required by the Principal).
Bond Amount The amount as required by the Principal (Maximum KRW 300,000,000 per debtor/USD 3,000,000)

Bail Bond
Principal (Contractor)

The person having to provide a bail deposit to the Government for a defendant¡¯s bail.
Beneficiary (Obligee) The Government
Loss Coverable The penalty that the Principal has to pay to the Government in case there is a decision by a court to confiscate the bail deposit or an order to pay the deposit relating to the bail of the defendant.
Bond Period The bond period shall begin from the date the bond is issued by the Company and shall expire on the date any of the following occurs:
- In the event the charges against the defendant(s) is dismissed.
- The defendant(s) bail bond is cancelled or the guarantee is not accepted.
- In the event the defendant(s) receives a final judgment of execution.
- In the event the Beneficiary requests a claim.
- All bail bonds will become void at the end of each fiscal year by the order of the General Manager of the Information System Department.
Bond Amount The bond amount will be in accordance with the monetary sum that the Principal is entitled to the Beneficiary.

Taxation Bond

A Taxation Bond is a bond used to protect the National Government/Local Government against due taxes that are not received.

Principal (Contractor)

The taxpayer
Beneficiary (Obligee) The tax authority, customs office or local government.
Loss Coverable Any loss occurring in case the Principal fails to pay his/her tax duties or customs.
Bond Period - Under guarantee for national tax or local tax; 30 days must be added to the original period which the Tax Office or city requires
- Under guarantee for customs; 30 days are not necessarily added to the period, which the Customs Office requires
Bond Amount - Guarantee for National tax or local tax: The bond amount shall be more than 110% of the amount which the Tax Office or city requires.
- Guarantee for Customs: The bond amount shall be more than the amount, which the Customs Office requires.
- If tax is not decided: Bond amount the ¡°Obligee¡± requires.

License & Permit Bonds

A License & Permit Bond is a bond used in substitution for various guarantee monies regarding license, permit, patent, approval, registration and etc.

Principal (Licensee)

The person filing for a license and/or permit to the relevant authority.
Obligee (Licenser) The authority giving the license and/or permit.
Loss Coverable Any loss caused by the failure of the Principal to perform the conditions which grant a special privilege, a restricted business, or other right for a special facility or act, regardless of the name of the license, permit, patent, approval, registration, or other designations to the Obligee and/or 3rd parties of property.
Bond Period - License & Permit Period
- In case an article for an extension period exists in the related law, it shall be added to 1).
Bond Amount The monetary amount that is deposited to the Obligee.

Court Bond
Principal (Contractor)

The person having to provide a court deposit to obtain a temporary attachment, an injunction or a provisional deposition.

Beneficiary (Obligee) The person to be attached or required to refrain from doing a specified act.
Loss Coverable The loss that the Principal should compensate to the Obligee when the Obligee receives a title of debt relating to the right of claim for damages due to the case as stipulated in the bond.
Bond Period There is no set bond period. In the case the counter-guarantor submits the guarantee to the court, the obligations stated under the bond shall commence and when the following occurs the bond will be void.
- The cancellation of the collateral due to the Principal is confirmed.
- The principal¡¯s obligations and court costs are exempted and repaid.
- The court¡¯s decision to modify the collateral and/or the collateral between the Principal and Beneficiary is changed for the collateral modification contract.
- The company pays the claim.
- The beneficiary, 2 years from the date of receiving the title of debt does not request a claim.
Bond Amount The amount requested by the beneficiary.

Overseas Return Bond 

In the event the Principal does not return from overseas travel within a specified time period for national military service, the guarantor shall be held liable.


Principal The individual who has national military service obligations but is an overseas traveler.
Beneficiary Office of Military Manpower Administration
Loss Coverable In the event the principal fails to return by the specified time period, the Surety shall be liable to pay the fine for negligence.
Bond Period The bond period shall be classified as either short/long term and after issuance the (Bond Period) shall be as follows:
- Short term: Less than 1 year from the date of approval
- Long term: 1 to 5 years from the date of approval
Bond Amount The amount requested by the beneficiary according to the law specifying the fine for negligence (Maximum: 50 Million Won).

E-Commerce Bond (Shopping Mall)

The E-Commerce Bond provides insured protection in the event the Principal fails to refund monetary funds to the Beneficiary when the Beneficiary does not receive the product or cancels the order.

Principal

The party who utilizes E-Commerce to sell products
Beneficiary The party that purchases products from E-Commerce.
Loss Coverable The loss in the event the Principal fails to refund monetary funds to the Beneficiary when the Beneficiary does not receive the product or cancels the order.
Bond Period The period as stated in the sales contract.
Bond Amount The bond amount shall be the purchase price of the product by the beneficiary.

E-Commerce Bond (Payment Gateway) 

The E-Commerce Bond provides insured protection in the event the Principal fails to pay due monetary funds to the Beneficiary.

Principal

Payment Gateway

Beneficiary Seller or Buyer.
Loss Coverable The loss in the event the Principal fails to pay due monetary funds to the Beneficiary.
Bond Period The period as stated in the sales contract.
Bond Amount The bond amount shall be the purchase price of the product by the beneficiary.