This Act is enacted to achieve a sound management of pawn business and serves as operation guidance. The regulations of other laws shall apply to those matters not regulated by this Act.

The competent authority hereinafter used in this Act refers to the Ministry of the Interior at the national level, municipal government at the municipal level and the county (city) government at the county (city) level.

The terms hereinafter used in this Act are defined as follows:
1. Pawnshop: the company or business exclusively engaging in pawn business after having obtained a license according to this Act.
2. Pawnbroker: the person in charge of pawnshop according to the Company Act or Business Registration Act.
3. Pledgor: a person pledging his property as security for a loan from a pawnshop.
4. Pawning: the act of a pledgor pledging his property as security for a loan from a pawnshop and paying interest.
5. Pawn transaction: the act of a pawnshop lending money to a pledgor on the security of pledged items.
6. Repawn: the act of a pawnshop pledging the pledged items which has accepted as security for a loan from another pawnshop.
7. Redemption: the process of redeeming pledged items from a pawnshop after having settled a debt.
8. Pledged items: a tangible personal property provided by a pledgor to a pawnshop as security for a loan.
9. Unredeemed pledged items: the pledged items not redeemed or not extended for a continuous pawning within 5 days following the original maturity date.
10. Pawn ticket: the receipt issued to a pledgor for safekeeping after the goods in pawn and with which to redeem the item later.
11. Amount of cash advanced: the amount of money loaned to the pledgor by a pawnshop after pledged items appraised.
12. Maturity date: the last day originally fixed to redeem pledged items.