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PRICE STABILIZATION ACT

Act No. 4861, Jan. 5, 1995

Amended by Act No. 5454, Dec. 13, 1997

Act No. 5982, May 24, 1999

Act No. 8312, Mar. 29, 2007

Act No. 8852, Feb. 29, 2008

Act No. 9713, May 27, 2009

Act No. 9828, Dec. 29, 2009

Act No. 10623, May 2, 2011

 Article 1 (Purpose)
The purpose of this Act is to protect the rights and interests of consumers and to contribute to the stabilization and improvement of the people's livelihood and the national economy by stabilizing prices.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 2 (Designation, etc. of Price Ceilings)
(1) The Government may, when deemed necessary to stabilize the people's livelihood and the national economy, set price ceilings (hereinafter referred to as "price ceilings") on particularly important commodities, rent for real estate, etc., or charges for services.
(2) Price ceilings may be set for each region and for each trading stage, such as the production stage, the wholesale stage and the retail stage.
(3) When the Government deems that the grounds for maintaining price ceilings set under paragraph (1) do not exist, it shall remove such price ceilings without delay.
(4) When the Government sets or removes price ceilings pursuant to paragraph (1) or (3), it shall publicly announce such fact without delay.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 2-2 (Penalty Surcharges)
(1) The Minister of Strategy and Finance shall impose a penalty surcharge on a person who has made profits unfairly by trading in excess of a price ceiling set by the Government under Article 2 (1).
(2) A penalty surcharge under paragraph (1) shall be the amount computed by deducting a price ceiling from an actual trade price, rent or charge.
(3) The Minister of Strategy and Finance may delegate affairs concerning the collection of penalty surcharges under paragraphs (1) and (2) to the Commissioner of the National Tax Service.
(4) Procedures for the imposition and collection of penalty surcharges under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
(5) When a person who is subject to a disposition of imposition of a penalty surcharge under paragraph (1) fails to pay a penalty surcharge by the deadline of payment, the Minister of Strategy and Finance shall collect it in the same manner as dispositions of national taxes in arrears.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 3 (Price Posting)
When the competent Minister deems it necessary for consumer protection and for fair trade, he/she may order a person engaged in the business of producing and selling commodities, a person engaged in the business of buying and selling commodities, or a person engaged in the business of supplying services (hereinafter referred to as "enterpriser"), to post the prices of the relevant commodities or services, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 4 (Determination of Public Utilities Charges and Fees)
(1) When the competent Minister intends to determine or change the projects, prices of commodities or charges (hereinafter referred to as "public utilities charges") which he/she determines, approves, authorizes, or permits, as prescribed by other Acts, he/she shall consult with the Minister of Strategy and Finance in advance. <Amended by Act No. 8852, Feb. 29, 208>
(2) When the State or an agency entrusted by the State intends to determine or change the amount of compensation (hereinafter referred to as "fees") it collects in return for administrative services provided, use of facilities and conferment of specific rights, etc., as prescribed by other Acts, he/she shall consult with the Minister of Strategy and Finance in advance. <Amended by Act No. 8852, Feb. 29, 2008>
(3) In order to hold a consultation under paragraph (2), the Minister of Strategy and Finance shall publicly announce necessary matters concerning the subject matter, procedure, etc. of consultation. <Amended by Act No. 8852, Feb. 29, 2008>
(4) The Minister of Strategy and Finance may, in consultation on public utilities charges and fees under paragraphs (1) and (2), seek advice from experts in regard to the appropriateness of cost estimation, burden on consumers, impact on the national economy, etc. <Newly Inserted by Act No. 9713, May 27, 2009>
(5) The principles of estimation of public utilities charges, period and method of estimation thereof, and other matters that shall be consulted with the Minister of Strategy and Finance pursuant to paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 9828, Dec. 29, 2009>
 Article 4-2 Deleted.<by Act No. 9713, May 27, 2009>
 Article 5 Deleted.<by Act No. 3320, Dec. 31, 1980>
 Article 6 (Emergency Adjustment Measures for Supply and Demand)
(1) The Government may take any of the following measures (hereinafter referred to as "emergency supply and demand adjustment measures") against an enterpriser of commodities in question or a person engaged in the business of importing and exporting, or shipping, or storing commodities in question for a fixed period of up to five months, as prescribed by Presidential Decree, when the stability of the people's livelihood and smooth operation of the national economy are feared to be endangered considerably due to rapid price increases and commodity shortages:
1. Instructions on the formulation, implementation, and adjustment of production plans;
2. Instructions on supply and delivery of goods from a warehouse;
3. Instructions on the adjustment of exports and imports;
4. Instructions on shipment, storage, or assignment;
5. Instructions on the realignment of the distribution system, the simplification of the distribution process, and the improvement of distribution facilities.
(2) When the Government deems that, after taking emergency supply and demand adjustment measures under paragraph (1), the grounds for such measures no longer exist, it shall remove such measures without delay.
(3) Where the Government intends to take emergency supply and demand adjustment measures under paragraph (1), it shall obtain approval from the President after deliberation by the State Council. The same shall also apply in cases of removing such measures as prescribed in paragraph (2).
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 7 (Prohibition of Cornering and Hoarding Practices)
No enterpriser shall commit any act cornering, or evading the sale of, any commodity with the intention of making any excessive profits, which is designated as a cornering and hoarding practice by the Minister of Strategy and Finance who deems that it might be detrimental to the stabilization of price.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 8 Deleted.<by Act No. 3320, Dec. 31, 1980>
 Article 9 (Corrective Orders, etc.)
The competent Minister shall order an enterpriser who has committed a cornering and hoarding practice under Article 7 to correct or suspend such practice.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Articles 10 through 12 Deleted.<by Act No. 9713, May 27, 2009>
 Article 13 (Hearing of Opinions, etc.)
Where price ceilings are designated or removed under Article 2 and emergency supply and demand adjustment measures are taken or removed under Article 6, necessary procedures, such as the hearing of opinions, etc., shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Articles 14 and 15 Deleted.<by Act No. 9713, May 27, 2009>
 Article 16 (Report and Inspection, etc.)
(1) The Minister of Strategy and Finance or the competent Minister may, when he/she deems necessary to achieve the purpose of this Act, order an enterpriser to submit a report on production costs and management status, or related data, as prescribed by Presidential Decree, and may have his/her subordinate public official inspect books, papers, and other articles at the office or place of business of the enterpriser.
(2) The public official who conducts an inspection under paragraph (1) shall carry with him/her a certificate indicating his/her authority and present it to the persons concerned.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 17 (Prohibition of Use of Details of Data for Purpose other than That of This Act)
No public officials who engages in the duties prescribed by this Act shall use the details of data acquired under Article 16 (1) or the matters learned in the course of performing an inspection for any purpose other than that to enforce this Act.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 18 (Application for Complaint)
(1) When a person to be subject to a disposition under this Act is dissatisfied with such disposition, he/she may file a complaint to the competent Minister therefor.
(2) An application for a complaint under paragraph (1) shall be filed within 15 days from the date on which a person to be subject to a disposition has become aware of such disposition, or within 30 days from the date on which such disposition is made.
(3) When an application for a complaint under paragraph (1) is filed, the competent Minister shall notify the process and result within 10 days.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 19 (Matters over which Jurisdiction is not Clear)
Among the powers of the competent Minister prescribed in this Act, matters over which jurisdiction is not clear may be exercised by the Minister of Strategy and Finance.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 20 (Delegation of Authority)
The authority of the competent Minister under this Act may be delegated partially to the head of an agency under his/her control, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 21 Deleted.<by Act No. 3320, Dec. 31, 1980>
 Article 22 Deleted.<by Act No. 9713, May 27, 2009>
 Article 23 Deleted.<by Act No. 8312, Mar. 29, 2007>
 Article 24 Deleted.<by Act No. 3320, Dec. 31, 1980>
 Article 25 (Penal Provisions)
(1) Any person who violates an emergency supply and demand adjustment measure under Article 6 (1), shall be punished by imprisonment for not more than two years, or by a fine not exceeding 50 million won.
(2) Imprisonment and fines as referred to in paragraph (1) may be imposed concurrently.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 26 (Penal Provisions)
Any person who commits a cornering and hoarding practice in contravention of Article 7 shall be punished by imprisonment for not more than two years, or by a fine not exceeding 50 million won.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 27 (Penal Provisions)
Any person who refuses, obstructs, or evades an inspection under Article 16 (1) shall be punished by imprisonment for not more than six months, or by a fine not exceeding 10 million won.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 28 (Penal Provisions)
Any person who violates Article 17 shall be punished by imprisonment for not more than two years, or by a fine not exceeding 10 million won.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 29 (Fines for Negligence)
(1) Any person falling under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 10 million won:
1. Any person who violates an order issued pursuant to Article 3;
2. Any person who fails to submit a report under Article 16 (1) or submits a false report;
3. Any person who fails to submit data under Article 16 (1) or submits false data.
(2) Fines for negligence under paragraph (1) shall be, as prescribed by Presidential Decree, imposed and collected by the competent Minister, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province, depending on their jurisdiction.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 30 (Joint Penal Provisions)
Where a representative of a juristic person, or an agent, employee or any other servant of a juristic person or individual commits any violation under Articles 25 through 27 in connection with the business of the juristic person or individual, not only shall such violator be punished, but also the juristic person or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where the juristic person or individual has not neglected to pay due attention and supervision concerning the relevant business in order to prevent such violation.
 Article 31 (Charge)
Any offense under Articles 25 and 26 may be prosecuted when the competent Minister brings a charge.
[This Article Wholly Amended by Act No. 10623, May 2, 2011]
 Article 32 Deleted.<by Act No. 9713, May 27, 2009>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force as of the date to be set by Presidential Decree: Provided, That the provisions of Articles 7 and 8 shall become effective thirty days after this Act enters into force.
Article 2 (Repealed Acts)
The Act concerning the Establishment of the Public Utility Rate Deliberation Committee and the Price Stabilization Act shall be repealed: Provided, That the Public Utility Rate Deliberation Committee under the Act concerning the Establishment of the Public Utility Rate Deliberation Committee shall exist until the Committee, as prescribed in this Act, shall be established.
Article 3 (Relation with Other Acts)
The Price Stabilization Act, as quoted in other Acts and subordinate statutes at the time when this Act enters into force, shall be deemed as the Price Stabilization and Fair Trade Act, and the Public Utility Rate Deliberation Committee shall be deemed as the Price Stabilization Committee under this Act.
Article 4 (Transitional Measures)
(1) The ceiling price under the Price Stabilization Act at the time this Act enters into force, shall be deemed as the ceiling price under this Act.
(2) In respect to the application of penal provisions to violations of the Price Stabilization Act, which were committed before this Act enters into force, the provisions of the Price Stabilization Act shall apply.
ADDENDA<Act No. 3320, Dec. 31, 1980>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA<Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA<Act No. 4861, Jan. 5, 1995>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions)
The application of the penal provisions to any act committed before this Act enters into force, shall be subject to the former provisions.
Article 3 (Transitional Measures concerning Fine for Negligence)
The imposition and collection of a fine for negligence against any act committed before this Act enters into force, shall be subject to the former provisions.
Article 4 Omitted.
Article 5 (Relation with Other Acts and Subordinate Statutes)
ADDENDUM<Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA<Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM<Act No. 8312, Mar. 29, 2007>
This Act shall enter into force on July 1, 2007.
ADDENDA<Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM<Act No. 9713, May 27, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM<Act No. 9828, Dec. 29, 2009>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM<Act No. 10623, May 2, 2011>
This Act shall enter into force on the date of its promulgation.