A SITE meeting the following conditions may apply to establish a branch unit:
1.Has been in operation for at least a full year. Such restriction does not apply, however, to the establishment of a branch unit as a result of merger or transfer.
2.Has net worth per share of not less than par value, as shown in the CPA-audited and certified financial report for the most recent period.
3.Has not, during the last 3 months, been sanctioned under Article 103, subparagraph 1 of the SITC Act or Article 66, subparagraph 1 of the Securities and Exchange Act.
4.Has not, during the last half year, been sanctioned under Article 103, subparagraph 2 or 3 of the SITC Act or Article 66, subparagraph 2 of the Securities and Exchange Act.
5.Has not, during the last year, been sanctioned under Article 103, subparagraph 4 of the SITC Act or Article 66, subparagraph 3 of the Securities and Exchange Act.
6.Has not, during the last 2 years, been sanctioned under Article 103, subparagraph 5 of the SITC Act or Article 66, subparagraph 4 of the Securities and Exchange Act.
A SITE that does not meet the conditions of subparagraphs 3 to 6 of the preceding paragraph but that has made concrete improvement in the circumstances of its non-compliance and has received approval from the FSC is not subject to the provisions of those subparagraphs.

A SITE intending to establish a branch unit shall apply to the FSC for permission by filling out and submitting an application form, together with the following documents:
1.Articles of incorporation.
2.A business plan, specifying, with respect to the branch unit: operational principles; internal organization and segregation of duties; personnel recruitment and training; general description of premises and facilities; and financial forecasts for the coming year.
3.Minutes of the relevant board of directors meetings, showing the resolution to establish the branch unit.
4.The CPA-audited and certified financial report for the most recent period.
5.A description of the internal control system of the branch unit.
6.Written statement(s) that none of the circumstances in Article 68 and Article 78, paragraph 3 of the SITC Act exists with respect to any managerial officer of the branch unit.
7.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.

A SITE permitted to establish a branch unit shall, within 6 months from the day the FSC grants permission, complete all establishment registration procedures for the branch unit and apply to the FSC for issuance of a business license for the branch unit by filling out and submitting an application form, together with the following documents:
1.Documentary proof evidencing the establishment registration of the branch unit.
2.The CPA-audited and certified financial report for the most recent period; the report is not required, however, if it covers the same period as that covered by the financial report submitted in the application for establishment permission.
3.A photocopy of the ownership deed or lease agreement of the place of business of the branch unit, and floor plans and photographs thereof.
4.A written statement that the application form and its attachments contain no misrepresentations or nondisclosures.
The permission granted to the SITE for establishment of a branch unit shall be revoked if it fails to apply for issuance of a business license for that branch unit within the period set out in the preceding paragraph. Notwithstanding the foregoing, if there is legitimate reason, an application may be filed with the FSC before expiration of that period for a maximum extension of 6 months, one time only.