Article 159-2 (Scope of Derivatives, etc.)

In 「Act」 Article 94, Paragraph 1, Subparagraph 5, "derivatives, derivative-linked securities, and other financial investment products prescribed by Presidential Decree" refers to derivative-linked securities, exchange-traded derivatives under 「Capital Markets and Financial Investment Business Act」 Article 5, Paragraph 2, Subparagraphs 1 through 3, or over-the-counter derivatives under the same Article, Paragraph 3, that fall under any of the following categories (hereinafter referred to as "derivatives, etc."). <Amended on 2025.2.28> 1. Products whose underlying assets are an index (including an index calculated based on the volatility of the index) calculated based on representative items in a securities market or a similar market in a foreign country, which are exchange-traded derivatives under 「Capital Markets and Financial Investment Business Act」 Article 5, Paragraph 2, Subparagraph 1. 2. Derivatives under 「Capital Markets and Financial Investment Business Act」 Article 3, Paragraph 3, which satisfy all of the following requirements (including products with the same economic substance): a. Products where the difference between the agreed price at the time of contract conclusion and the agreed price of the opposing transaction that extinguishes the contract obligations is settled in cash, and the contract is terminated by the declaration of intent of one party without a predetermined termination date. b. Products linked to the price of any of the following underlying assets: 1) Stocks, etc. (including stocks issued by foreign corporations). 2) Exchange-traded securities investment trusts (including exchange-traded securities investment trusts similar to those in foreign countries) that aim to track an index (including an index calculated based on the volatility of the index) calculated based on representative items in a securities market or a similar market in a foreign country, which are collective investment securities of a collective investment scheme under Article 26-2, Paragraph 5, Subparagraph 2. 3) Exchange-traded securities (including exchange-traded securities similar to those in foreign countries) that aim to track an index (including an index calculated based on the volatility of the index) calculated based on representative items in a securities market or a similar market in a foreign country. 3. Securities or certificates that indicate the right to establish transactions of buying or selling equity securities or receiving or paying money in accordance with a predetermined method, linked to the fluctuation of the index under Subparagraph 1, based on the declaration of intent of one party. 4. Derivatives traded in the overseas derivatives market under 「Capital Markets and Financial Investment Business Act」 Article 5, Paragraph 2, Subparagraph 2. 5. Over-the-counter derivatives under 「Capital Markets and Financial Investment Business Act」 Article 5, Paragraph 3, which have the same economic substance as exchange-traded derivatives under Subparagraph 1.