A person, who is a minor, who has become subject to the order of the commencement of guardianship or assistantship, or who is announced bankrupt, shall not be a trustee.

A trustee shall administer the trust affairs with the care of a prudent administrator.

A settlor, beneficiary or other trustees may request the trustee to pay pecuniary compensation for damage caused to the trust property or to restore the damaged property to its original condition if the damage is incurred due to the trustee's improper administration of the trust property, or if the trustee disposes of the trust property in violation of the stated purpose of the trust. In addition, reduction of the remuneration payable to the trustee may also be sought.

A trustee shall administer a trust property independently of his own property and other trust properties. If the trust property is money, the money may be entered on the books independently.
In respect of trust properties created by different trusts in the preceding paragraph, if a trust act does not require separate administration among trust properties appertaining to other trusts, such act shall prevail.
If a trustee acquires any benefit in violation of the first paragraph, the settlor or beneficiary shall have the right to request the trustee to disgorge said benefit to the trust property. If the violation causes any damage to the trust property and even if occurrence of the damage is not imputable to the negligence of the trustee, the trustee shall still be liable for the damage unless the trustee can prove that the damage could not be avoided even if the trust property had been administered independently.
The right to claim compensation under the preceding paragraph shall extinguish within two years from the time when the settlor or beneficiary becomes aware of the violation, or after five years from the time of occurrence of the event.

A trustee shall administer trust affairs by himself; provided that a third party may be appointed to administer the trust affairs on behalf of the trustee if the trust act so provides or if there arises an event beyond the control of the trustee.

A trustee who appoints a third party to administer trust affairs on his behalf in accordance with the proviso of the preceding article shall be liable only for the appointment and supervision of the performance of the duties delegated to the third party.
In case of a situation under the proviso of the preceding article, the third party shall have the same responsibility with the trustee in the administration of the trust affairs.

If a trustee causes a third party to administer trust affairs in contravention of Article 25 hereof, the trustee shall assume the same liabilities for the acts of third party and those of his own.
Under the circumstances described in the preceding paragraph, the third party shall be jointly and severally liable with the trustee.

If a trust has multiple trustees, the trust property shall be jointly owned and administered by all the trustees.
Under the circumstances described in the preceding paragraph, trust affairs other than routine affairs or the preservation of trust property shall be managed by all the trustees unless the trust act provides otherwise. In case of disagreement among the trustees, the management shall be subject to the unanimous consent of all the beneficiaries. In case of disagreement among the beneficiaries, a court ruling may be sought to determine how the trust can be administered.
If there is more than one trustee, the intent expressed by any one of the trustees shall be valid against all the trustees.

If there is more than one trustee, all the trustees shall be jointly and severally liable to pay the debts incurred under the trust act. The same shall apply if the debts are assumed on account of the administration of trust affairs.

A trustee's responsibility incurred under the trust act toward the beneficiary shall notextceed the trust property.

A trustee shall prepare and maintain separate books of account for each of the trusts being administered to record the condition of each trust.
In addition to the trust inventory which must be kept upon accepting the administration of a trust, a trustee shall at least once a year prepare a trust property inventory and a statement of receipts and payments, then deliver them to the settlor and the beneficiary.

A settlor or beneficiary shall have the right to ask for permission to inspect, transcribe or make photocopies of those documents provided in the preceding article; in addition, the trustee may be requested to describe how trust affairs are being managed.
Any interested party may, if necessary, seek permission to inspect, transcribe or make photocopies of the documents provided in the preceding article.

In taking possession of a trust property, the trustee shall succeed any defect in the trust property while the property was in the possession of the settlor.
The preceding paragraph shall apply mutatis mutandis to the possession of securities paid in money, kind or securities.

A trustee shall on no account be entitled to any benefits arising out of a trust unless the trustee is a co-beneficiary of the trust.

A trustee shall not convert any of the trust property to his own property or create or acquire any right thereto except:
（1）the written consent of the beneficiary has been duly obtained and the trust property is acquired by the trustee at the market price;
（2）the trust property is acquired by the trustee through bidding process at the centralized market; or
（3）the trust property is acquired due to the existence of any inevitable cause and the approval of the court has been duly obtained therefor.
The preceding paragraph shall not apply if the trustee, by inheritance, merger or otherwise, assumes all the rights in the trust property. In case of such blanket assumption, the provisions of Article 14 hereof shall apply mutatis mutandis.
If the trustee uses or disposes of the trust property in violation of the first paragraph, the provisions of Article 23 hereof shall apply mutatis mutandis; in addition, the settlor, beneficiary or other trustees shall have the right to request the trustee to disgorge the benefit which the latter has acquired for incorporation into the trust property. The interest accrued from the benefit shall also be disgorged and incorporated into the trust property if the trustee is liable mala fide.
The right to claim for disgorgement, as provided in the preceding paragraph, shall extinguish within two years from the time when the settlor or beneficiary becomes aware of the acquisition of the benefit, or after five years from the time of the occurrence of the event.

Except where the trust act provides otherwise, a trustee shall not resign without the consent of both the settlor and the beneficiary; provided that the approval of the court may be sought if the resignation can be justified by any factor beyond one's control.
Upon the breach by the trustee of his obligations or upon the occurrence of any material event, the court may, upon application of the settlor or beneficiary, remove the trustee.
Except where the trust act provides otherwise, the settlor may, under any of the circumstances provided in the preceding two paragraphs, appoint a new trustee. In case a new trustee cannot be appointed or in case the appointment is not made, the court may, upon application of interested party or a prosecutor, appoint a new trustee; in addition, necessary official actions may also be taken.
A trustee who has resigned shall still have the rights and obligations of a trustee before the new trustee can render trust services.

If a trust act permits the issuance of securities in respect of beneficiary rights, the securities may be issued by the trustee in accordance with the applicable law.

A trustee shall have the right to claim compensation if the trustee is a trust business or if such compensation is provided in the trust act.
Upon the request of the settlor, the trustee, the beneficiary or other trustees of the same trust, the court may reduce or increase the amount of compensation agreed upon if the amount is apparently unreasonable by taking into the then current situation or because of change in the circumstances.

A trustee may pay out of the trust property any taxes, expenses or debts incurred in connection with the trust property or incurred from administering trust affairs.
With regard to the expenses under the preceding paragraph, the trustee shall have preferred rights to satisfaction of claims for the expenses over the unsecured debtors.
Exercise of the right under the first paragraph shall not be permitted if it does not serve the stated purpose of the trust.

If the trust property is insufficient to pay off all the expenses or debts provided in the first paragraph of the preceding article or if the trustee is under the situation in the third paragraph of the preceding article, then the trustee shall have the right to request the beneficiary to make compensation, pay off the debt or furnish appropriate security, however, such shall not apply where the trust act provides otherwise.
If the trust act provides that the trustee is allowed to first request the beneficiary to make compensation, pay off the debt or furnish security, such provision shall apply.
The preceding two paragraphs shall not apply if the beneficiary waives his rights.
The right to claim under the first paragraph shall extinguish if it is not exercised within two years.

A trustee who has the rights provided in the first paragraph of Article 39 or the preceding article may refuse to convey the trust property to the beneficiary until the trustee's rights have been fully satisfied.

The preceding three articles shall apply mutatis mutandis to the compensation which a trustee is paid with respect to the damage the trustee has suffered in connection with the trust property or from administering trust affairs.

The first and third paragraphs of Article 39 and Articles 40 and 41 hereof shall apply mutatis mutandis if the trustee is entitled to compensation out of the trust property.

Exercise of the trustee's rights under the preceding five articles shall not be permitted unless the trustee has paid off the damages, restored the impaired trust property to its original condition or disgorged the benefit in accordance with Article 23 or the third paragraph of Article 24.

A trustee's service shall be terminated upon the adjudication of the trustee's death, bankruptcy, or becoming a subject to the order of the commencement of guardianship or assistantship. The same shall apply upon the adjudication of dissolution, bankruptcy or the de-registration of the incorporation of the trustee which is a legal entity.
The third paragraph of Article 36 shall apply mutatis mutandis to the situation described in the preceding paragraph.
Until the new trustee takes over trust affairs, the inheritor, legal representative, administrator, receiver, guardian, or liquidator of the former trustee shall hold the trust property in custody and shall also take any measures whatsoever necessary for the trust duties to be transferred to the new trustee. The same shall apply to the legal entity which survives a merger with another legal entity or which is a new entity established upon the completion of the merger.

If the appointed trustee in a will refuses to or cannot accept the trust, the interested party or the prosecutor shall have the right to apply to the court for appointment of a new trustee, unless the will provides otherwise.

In the event of change of a trustee, the trust property shall be deemed to be transferred to the new trustee upon the termination of the former trustee's duties.
The trust property shall devolve upon other trustees upon the termination of one of the trustee's duties.

Upon the change of a trustee, all the debts incurred by the former trustee for the beneficiary in accordance with the trust act shall be assumed by the new trustee.
Upon the occurrence of the event provided in the preceding paragraph, the creditors shall have the right to request the new trustee to pay off the debts incurred by the former trustee in rendering services without exceeding the trust property taken over by the new trustee.
The new trustee may exercise against the former trustee such rights as provided in Article 23 and the third paragraph of Article 24 hereof.
The first paragraph shall apply mutatis mutandis to the situation described in the second paragraph.

With respect to the compulsory execution of trust property, upon the change of a trustee, a creditor shall, by virtue of the prior execution title, have the right to initiate or continue the compulsory execution against the new trustee as the debtor.

Upon the change of a trustee, the former trustee shall render a final financial statement and a report on the trust affairs administered and shall deliver both the statement and the report together with the trust property to the new trustee in concert with the beneficiary or trust supervisor.
Upon the acknowledgement of the beneficiary or trust supervisor of the documents specified in the preceding paragraph, the former trustee shall be deemed to have been relieved from his duties towards the beneficiary in respect of the material facts described in the documents, unless the former trustee is liable for any improprieties committed.

Upon the change of a trustee, the former trustee may, in exercising the rights provided in Articles 39, 42 or 43 hereof, retain the trust property; in addition, the former trustee shall have the right to pursue its claims against the new trustee in respect of the trust property.
Under the circumstances described in the preceding paragraph, the former trustee's right of retention shall become extinguished upon the new trustee's provision of a security equal to the value of the property being retained by the former trustee.