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MUSIC INDUSTRY PROMOTION ACT

Act No. 7942, Apr. 28, 2009

Amended by Act No. 8852, Feb. 29, 2008

Act No. 9493, Mar. 18, 2009

Act No. 10115, Mar. 17, 2010

Act No. 10219, Mar. 31, 2010

Act No. 10219, Mar. 31, 2010

Act No. 10369, jun. 10, 2010

Act No. 10629, May 19, 2011

Act No. 11998, Aug. 6, 2013

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purposes)
The purposes of this Act are to enhance the quality of cultural life style of the nation and to contribute to the growth of the national economy by providing for the matters necessary for the promotion of the music industry and facilitating the growth of related industries.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 10369, Jun. 10, 2010>
1. The term "music" means a form of expression in which thoughts and emotions are expressed through sound, by arranging rhythm, melody, harmony, tone, and other elements in accordance with certain rules and formats;
2. The term "music industry" refers to the industry for creation, public performance, and education of music; production, distribution, exportation, and importation of music records, music files, music video products, and music video files; production of music instruments and sound equipment; karaoke businesses; and other industries related to the afore-stated industry;
3. The term "sound signals" refers to a certain sound or expression of sound that can be set in a tangible material or contained in electronic format;
4. The term "music record" refers to a thing produced by setting sound signals in a tangible material that can be replayed for listening;
5. The term "music file" refers to a thing produced in an electronic format or recorded in an electronic device that can be readily reproduced, transferred, transmitted, or received;
6. The term "music video product" refers to a thing produced by combining sound signals with images to express the meaning of the sound signals;
7. The term "music video file" refers to a music video product made in an electronic format or recorded in an electronic device that can be reproduced, transferred, transmitted, or received;
8. The term "music record and music-video production business" refers to a business that engages in planning and producing or reproducing music records, music files, music video products, or music video files (hereinafter referred to as "music records or the like");
9. The term "music record and music-video distribution business" refers to a business that supplies music records or the like imported (including original records imported) or with copyright owned or licensed to music record and music-video retailers or online music service providers;
10. The term "music record and music-video retail business" refers to a business that sells music records or music video products directly to consumers;
11. The term "online music service business" refers to a business that provides music files or music video files to consumers for use by an information and communications network under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;
12. The term "identification mark" refers to an identification number, code, or any similar mark given by the Minister of Culture, Sports and Tourism to each music record, etc., pursuant to Article 23 of the Content Industry Promotion Act, that can be readily utilized in statistics of distribution, search, and inspection;
13. The term "karaoke business" refers to a business that provides the general public with the use of accompaniment machines, with or without images, and other facilities, along with which people can sing songs in the accompaniment of pre-recorded music without performers of any instrument;
14. The term "juvenile" refers to a person of less than 18 years of age (including students enrolled in a high school under Article 2 of the Elementary and Secondary Education Act).
 Article 3 (Establishment and Implementation of Comprehensive Plan for Promotion of Music Industry)
(1) The Minister of Culture, Sports and Tourism shall establish and implement a comprehensive plan necessary for the promotion of the music industry (hereinafter referred to as the "comprehensive plan"). In such cases, the Minister may consult with the heads of central administrative agencies concerned, if necessary. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The comprehensive plan shall contain details of the following matters:
1. Matters concerning the establishment of a medium and long-term basic plan and the improvement of statutes, and systems;
2. Matters concerning the stimulation of creative activities;
3. Matters concerning the promotion of exportation and the creation of job opportunities;
4. Matters concerning the development and dissemination of technology;
5. Matters concerning the specialization of distribution and the improvement of distribution channels;
6. Matters concerning the development of the industry, including support for start-up businesses;
7. Matters concerning fostering specialized human resources;
8. Matters concerning establishment of infrastructure;
9. Matters concerning international cooperation;
10. Matters concerning guidance for and control of music records or the like, illegally produced, sold or distributed (hereinafter referred to as "distributed"), or provided for use;
11. Matters concerning support for voluntary monitoring activities of non-profit, non-governmental organizations under Article 2 of the Assistance for Non-profit, Non-governmental Organizations Act (hereinafter referred to as "non-profit, non-governmental organizations") against music records or the like, illegally produced, distributed, or provided for use;
12. Other matters concerning sound growth and fostering of related business establishments.
(3) The Minister of Culture, Sports and Tourism shall establish and implement a detailed implementation plan in accordance with the comprehensive plan under paragraphs (1) and (2). Necessary matters for such plans shall be prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
CHAPTER II PROMOTION OF MUSIC INDUSTRY
 Article 4 (Support for Startup Businesses and Production)
(1) The Minister of Culture, Sports and Tourism may provide support necessary for the stimulation for start-up businesses for the music industry and the stable growth and development of new business starters. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Culture, Sports and Tourism may grant a loan for all or part of financial resources required by music composers and producers of music records or music video products or may provide other support thereto to strengthen the competitiveness of the music industry and promote the development of music products of superior quality. <Amended by Act No. 8852, Feb. 29, 2008>
(3) Matters necessary for the procedure for providing support pursuant to paragraphs (1) and (2) and other relevant matters shall be prescribed by Presidential Decree.
 Article 5 (Management of Data of Music Industry)
(1) The Minister of Culture, Sports and Tourism shall collect, survey, preserve, and supply data, information, and statistics concerning the music industry at large, within Korea and overseas, including data relevant to music records or the like, the technical level of the music industry, research trend, market trend, and the current status of business operators for the promotion of music industry. The Minister may take necessary measures for these purposes, such as requesting any institution or organization concerned to submit data, and the institution or organization which is requested to submit data or any other material shall fully cooperate to comply with such request. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Culture, Sports and Tourism may designate or establish and operate an institution responsible for the management of data and information related to the music industry in order to carry out the business affairs under paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008>
(3) Matters necessary for carrying out the matters under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
 Article 6 (Fostering of Specialized Human Resources)
(1) The Minister of Culture, Sports and Tourism shall take the following measures for fostering specialized human resources required for laying the foundation for the music industry: <Amended by Act No. 8852, Feb. 29, 2008>
1. Maintaining the balance of supply of and demand for human resources for the music industry and securing good specialized human resources;
2. Strengthening cooperative functions of the industry, academia, and the Government;
3. Increasing opportunities for training and international exchanges of specialized human resources;
4. Strengthening the foundation and capability of academia for research and education;
5. Increasing opportunities for advancement of specialized human resources to the related industries;
6. Other matters for fostering human resources for the music industry.
(2) Matters necessary for carrying out the matters under paragraph (1) shall be prescribed by Presidential Decree.
 Article 7 (Promotion of Development of Technology)
The Minister of Culture, Sports and Tourism shall establish a medium and a long-term plan necessary for the development of music-related technology and carry out the following matters for the development of technology necessary for laying the foundation for the music industry and the enhancement of technical level: <Amended by Act No. 8852, Feb. 29, 2008>
1. Matters concerning surveys on the trends of and demand for technology and the research, development, evaluation, and utilization of technology;
2. Matters concerning cooperation in, guidance for, and transfer of technology and the smooth distribution of technical information;
3. Matters concerning linkages with institutions related to music technology and the creation of an environment for efficient development of technology;
4. Other matters prescribed by Ordinance of the Ministry of Culture, Sports and Tourism in connection with the development of music technology.
 Article 8 (Collaborative Development and Research)
(1) The Minister of Culture, Sports and Tourism shall endeavor to facilitate collaborative development and research by sharing human resources, facilities, equipment, materials, funds, information, and other resources for the development and research of music records or the like. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Culture, Sports and Tourism may grant to any person who promotes the collaborative development and research under paragraph (1) a subsidy for all or part of expenses incurred in such promotion. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 9 (Promotion of Standardization)
(1) The Minister of Culture, Sports and Tourism shall promote the standardization of music records or the like for the efficient development of music records or the like, the improvement of quality, and the assurance of universality, and may prescribe matters necessary for the scope of such standardization and other relevant matters by Ordinance of the Ministry of Culture, Sports and Tourism and recommend them. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Culture, Sports and Tourism may, if necessary for promoting projects for the standardization under paragraph (1), designate an institution or organization specializing in the music industry to carry out such standardization projects and may also grant a subsidy for all or part of expenses incurred in the standardization projects. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 10 (Vitalization of Distribution)
The Minister of Culture, Sports and Tourism shall enforce the labeling of music records or the like with identification marks to make the distribution of music records or the like sounder, and shall establish and implement such policy as may be necessary for it. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 11 (Education of Karaoke Machine Business Operators)
(1) The head of any Si/Gun/Gu (Gu means an autonomous Gu; the same shall apply hereinafter) may, when any of the following events occurs, require karaoke machine business operators to attend an educational course on their respective obligations, preventive measures against disasters, amendments to systems, and other relevant matters as specified by Presidential Decree:
1. When a person registers his/her newly established karaoke machine business;
2. When there is any amendment to a system concerning the operation of karaoke machine businesses, the preventive measures against disasters, or any other matters;
3. When the head of any Si/Gun/Gu deems it necessary to conduct an educational course.
(2) Irrespective of paragraph (1), the head of any Si/Gun/Gu shall conduct an education course for karaoke machine business operators falling under paragraph (1) 1. Such educational courses may be conducted collectively once each month or each quarter.
 Article 12 (Assistance in International Cooperation and Advancement into Overseas Markets)
(1) The Minister of Culture, Sports and Tourism shall lay the foundation for boosting international cooperation and exchange of the music industry and raising the international standing of the industry. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Culture, Sports and Tourism may support the activities for establishing cooperative systems in relation to exportation, including joint production with foreign countries, assistance in marketing and advertising activities in overseas markets and for inducing foreign investments and holding international music record fairs. <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Minister of Culture, Sports and Tourism may establish and operate offices in foreign countries in order to efficiently promote the activities under paragraphs (1) and (2). <Amended by Act No. 8852, Feb. 29, 2008>
 Article 13 (Vitalization of Music Performances)
The Minister of Culture, Sports and Tourism may grant a subsidy to any person who intends to install and operate facilities for public performance or who intends to conduct a public performance for part of the expenses incurred in such facilities or performance in order to vitalize music performances. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 14 (Protection of Intellectual Property Rights)
(1) The Minister of Culture, Sports and Tourism shall take measures to protect intellectual property rights to music records or the like in order to protect and foster creative activities for music records or the like. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10629, May 19, 2011>
(2) The Minister of Culture, Sports and Tourism may support the following activities to prevent illegal reproduction or distribution of music records or the like: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10629, May 19, 2011>
1. Technical protective measures for music records or the like, and labeling of information concerning control of rights;
2. Education and public relations activities related to intellectual property rights, such as copyright to music records or the like;
3. Other matters relevant to the protection of intellectual property rights.
(3) The Minister of Culture, Sports and Tourism may designate a specialized institution or organization, and entrust relevant activities under paragraph (2) to the institution or organization so designated, in accordance with Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 15 (Protection of User Rights)
(1) The Minister of Culture, Sports and Tourism shall take measures for the following matters to protect user rights in promoting the music industry: <Amended by Act No. 8852, Feb. 29, 2008>
1. Public relations and educational activities for the use of music records or the like in a sounder manner;
2. Social responsibility of persons engaged in the music industry, for protecting users of music records or the like;
3. Remedial measures for complaints and damage of users of music records or the like;
4. Other matters relevant to the protection of users of music records or the like.
(2) Every person who engages in a business of producing or distributing music records or the like or providing the same for use shall fully cooperate in promoting protective measures for users of music records or the like under paragraph (1).
CHAPTER III REPORTING OR REGISTRATION OF BUSINESSES AND DISTRIBUTION OF MUSIC RECORDS OR THE LIKE
SECTION 1 Reporting, Registration, and Operation of Businesses
 Article 16 (Reporting of Music Record and Music-Video Production Businesses)
(1) Any person who intends to run a music record and music-video production business or a music record and music-video distribution business shall file a report with the Special Metropolitan City Mayor or the competent Metropolitan City Mayor or Do governor (hereinafter referred to as "competent Mayor/Do governor"): Provided, That such reporting may be waived in cases falling under any of the following subparagraphs: <Amended by Act No. 9493, Mar. 18, 2009>
1. Where the State or a local government produces a music record or the like;
2. Where an educational institution or training institute established pursuant to statutes produces a music record or the like with an intent to use it for its own educational or training program;
3. Where a broadcasting business operator under the Broadcasting Act produces a music record or the like with intent to use it for broadcasting;
4. Where a public institution under the Act on the Management of Public Institutions produces a music record or the like with intent to use it for advertisement of its business;
5. Where a person produces a music record or the like with intent to commemorate rites of passage, such as coming-of-age ceremony, marriage, funeral, ancestral rite, or religious ritual: Provided, That the same shall not apply where it is distributed, played, or provided for use to the general public;
6. Other cases specified by Presidential Decree.
(2) Any person who intends to run an online music service business shall file a report with the competent head of Si/Gun/Gu: Provided, That the same shall not apply to an online music service business specified by Presidential Decree.
(3) Any business operator specializing in the production or distribution of music video products or music video files shall, if he/she completes the reporting under paragraph (1), be deemed to have filed a report on his/her business specializing in the production or distribution of video products under Article 57 of the Promotion of the Motion Pictures and Video Products Act.
(4) Necessary matters concerning the procedure for and method of the reporting and the management thereof under paragraphs (1) and (2) and other relevant matters shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 17 (Rating of Music Video Products)
(1) Any person who produces or distributes (including imports) a music video product or music video file shall have its contents rated by the Korea Media Rating Board under Article 71 of the Promotion of the Motion Pictures and Video Products Act before he/she distributes the music video product or the music video file.
(2) As to the rating and sale (including service provided by an online music service provider) of music video products and music video files, Articles 50 through 56, 65, and 66, subparagraph 5 through 7 of Article 95, Articles 97, 98 (1) 4 through 6, 98 (2) 8, and 99 shall apply mutatis mutandis. In such cases, the term "video product" shall be construed as "music video product or music video file."
 Article 18 (Registration of Karaoke Machine Business)
(1) Any person who intends to run a karaoke machine business shall have facilities suitably equipped for a karaoke machine business as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism and shall file an application for registration thereof with the competent head of Si/Gun/Gu. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Necessary matters concerning the procedure for and method of the registration under paragraph (1) and the management thereof and other relevant matters shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 19 (Restriction on Business Operation)
Any person who intends to file a report or an application for registration in accordance with Article 16 or 18, but who falls under any of the following subparagraphs may not file the report or application for the registration under Article 16 or 18:
1. If a person (in cases of a legal entity, it shall be the representative or executive) whose business has been closed down or the registration of whose business was cancelled by an order or disposition under Article 27 (1) or whose business operation has been suspended by a disposition intends to run the same type of business again before the lapse of one year since the order or disposition was issued or made, or intends to resume operation of his/her business before the end of the business suspension period;
2. If a karaoke machine business operator whose business has been closed down or the registration of whose business was cancelled by an order or disposition under Article 27 (1) or whose business operation was suspended by a disposition intends to run the same type of business again at the same place before the lapse of one year since the order or disposition was issued or made or intends to resume operation of his/her business before the end of the business suspension period.
 Article 20 (Issuance of Certificate of Reporting or Registration)
Any Mayor/Do governor or the head of any Si/Gun/Gu shall, upon accepting a report or an application for registration under Article 16 or 18, issue a certification of reporting or registration to the applicant as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 21 (Change in Reported or Registered Facts)
(1) Any person who has completed the reporting or registration under Article 16 or 18 shall, if he/she intends to change any material fact specified by Ordinance of the Ministry of Culture, Sports and Tourism, file a report on the changed fact or an application for registration of the changed fact with the competent Mayor/Do governor or the competent head of Si/Gun/Gu as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Any Mayor/Do governor or the head of any Si/Gun/Gu, upon receiving a report on a changed fact or an application for registration of a changed fact under paragraph (1), shall renew and issue the certificate of reporting or registration as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 22 (Obligations of Karaoke Machine Business Operators)
(1) Every karaoke machine business operator shall comply with the following requirements:
1. He/she shall take measures for preventing fire or accidents in his/her place of business;
2. He/she shall not allow juveniles to enter his/her place of business during any hour other than the hours of access prescribed by Presidential Decree: Provided, That the same shall not apply to the cases where a juvenile is accompanied by his/her parent or custodian or where a juvenile holds a written consent to admission issued by his/her parent or custodian and other cases specified by Presidential Decree;
3. He/she shall not sell or provide any alcoholic beverage;
4. He/she shall not employ or offer any attendant (no matter what his/her gender is) nor shall engage in touting;
5. He/she shall not allow any person to arrange sexual favors or any similar act as defined by Article 2 (1) of the Act on the Prevention of Sexual Traffic and Protection, etc. of Victims Thereof or aid, abet, or provide prostitution;
6. He/she shall observe the rules prescribed by Presidential Decree for maintaining sound order in business operation.
(2) No one may, in exchange for monetary reward, drink any alcoholic beverage together with any patron, serve a patron as an attendant to entertain him/her by singing or dancing, or aid or abet any person to commit such an act.
 Article 23 (Business Succession)
(1) If a business operator who has completed the reporting or registration under Article 16 or 18 transfers his/her business to another person, is deceased, or is merged with another legal entity, the transferee, heir, or the legal entity surviving or newly established after the merger succeeds to the status of the business operator.
(2) Any person who acquires all of the facilities and equipment (referring to the main facilities and equipment specified by Presidential Decree) of a business operator through an auction under the Civil Execution Act, realization under the Debtor Rehabilitation and Bankruptcy Act, a sale of seized property under the National Tax Collection Act, the Customs Act, or the Framework Act on Local Taxes, or any similar procedure succeeds to the status of the business operator. <Amended by Act No. 10219, Mar. 31, 2010>
(3) Where a person succeeds to the status of a business operator in accordance with paragraph (1), the effects of an administrative punishment imposed on the preceding business operator for a violation of any subparagraph of Article 27 (1) are transferred to the person succeeding to the status of the preceding business operator and remain effective against the successor for one year from the day on which the administrative punishment was made, while where proceedings for an administrative punishment are pending, the proceedings may continue against the person who succeeds to the status of the preceding business operator: Provided, That the same shall not apply where the person who succeeded to the status of a business operator was unaware of such disposition or violation as at the time of his/her succession. <Amended by Act No. 9493, Mar. 18, 2009>
(4) Where a business operator discontinued his/her business, but his/her spouse or lineal relative by blood (hereinafter referred to as "spouse or lineal relative by blood") commenced the same type of business at the same place of business, the effects of an administrative punishment imposed on the preceding business operator for a violation of any subparagraph of Article 27 (1) are transferred to the spouse or lineal relative by blood and remain effective against the spouse or lineal relative by blood for one year from the day on which the administrative punishment was made, while in cases where proceedings for an administrative punishment are pending, the proceedings may continue against the spouse or lineal relative by blood: Provided, That the same shall not apply in cases where the spouse or lineal relative by blood was unaware of such disposition or violation at the time of his/her commencement of the business.
 Article 24 (Discontinuance of Business and Ex Officio Cancellation)
(1) Any person who discontinues his/her business reported or registered in accordance with Article 16 or 18 shall file a report on such discontinuance with the competent Mayor/Do governor or the competent head of Si/Gun/Gu within seven days from the date of discontinuance as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Any Mayor/Do governor or the head of any Si/Gun/Gu may, in his/her discretion, delete the record of a business reported or registered after ensuring the discontinuance of the business as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism, if a person fails to file a report on discontinuance of his/her business in accordance with paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008>
SECTION 2 Distribution and Labeling of Music Records or the Like
 Article 25 (Duty of Labeling)
(1) Any person who produces, imports, or reproduces music records or the like for profit shall state the trade name (referring to the trade name of a publisher, in cases where a music record or the like is accompanied by a book) of the person who produces, imports, or reproduces the same on a label of each music record or the like.
(2) Necessary matters concerning the matters that must be stated in accordance with paragraph (1) and the labeling method and other relevant matters shall be prescribed by Presidential Decree.
 Article 26 (Subsidization of Development of Sounder Culture in Distribution of Music Records or the Like)
The Minister of Culture, Sports and Tourism may grant a subsidy to a competent institution, organization, or person for necessary expenses incurred in the development of sounder culture in distribution of music records or the like. <Amended by Act No. 8852, Feb. 29, 2008>
SECTION 3 Cancellation of Registration and Other Administrative Measures
 Article 27 (Cancellation of Registration and Other Measures)
(1) Any Mayor/Do governor or the head of any Si/Gun/Gu may, if a person who runs a business under any provision of subparagraphs 8 through 11 and 13 of Article 2 falls under any of the following subparagraphs, issue an order to close down the business, make a disposition to cancel the registration, issue an order to suspend the business for a period of not more than six months, take corrective measures, or give a warning: Provided, That if a person falls under subparagraph 1 or 2, his/her business shall be closed down or the registration of his/her business shall be cancelled without exception:
1. If the person has filed a report or an application for registration by deceit or in any other fraudulent manner;
2. If the person continued his/her business in violation of an order to suspend the operation of his/her business;
3. If the person has violated the guidelines for facilities under Article 18;
4. If the person has failed to file a report on a changed fact or an application for registration of a changed fact in accordance with Article 21;
5. If the person has breached any obligation of a karaoke machine business operator under Article 22;
6. If the person has produced, distributed, or provided for use, any music record or the like falling under Article 29 (3) or displayed, possessed, or exhibited such music record or the like with intent to do so.
(2) Any person against whom an order to close down his/her business has been issued or a disposition to cancel the registration of his/her business has been made pursuant to paragraph (1) shall return the certificate of reporting or registration within seven days from the date on which a notice of the order or disposition was delivered.
(3) Necessary matters concerning the guidelines for administrative dispositions under paragraph (1) and other relevant matters shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 28 (Imposition of Penalty Surcharges)
(1) The head of a Si/Gun/Gu may, when he/she is required to render a disposition of business suspension against a karaoke machine business operator who falls under any of the following subparagraphs, impose a penalty surcharge not exceeding 30 million won in lieu of the disposition of business suspension as prescribed by Presidential Decree. In such cases, the head of the Si/Gun/Gu shall keep and maintain the records containing matters concerning the imposition and collection of penalty surcharges:
1. If the person has failed to meet the facility guidelines under Article 18; or
2. If the person has violated Article 22 (1) 2 or 6.
(2) The head of a Si/Gun/Gu shall expend an amount equivalent to the amount collected as penalty surcharges pursuant to paragraph (1) for the following purposes and shall annually establish, and implement, a plan for the management of penalty surcharges for the following year:
1. Sound operation of karaoke machines;
2. Education of and autonomous guidance for karaoke machine business operators.
(3) If any person who is obligated to pay a penalty surcharge under paragraph (1) fails to pay it by the payment deadline, the head of the competent Si/Gun/Gu shall collect it in accordance with the Act on the Collection, etc. of Local Non-Tax Revenue. <Amended by Act No. 11998, Aug. 6, 2013>
(4) Necessary matters concerning amounts of penalty surcharges based on the type and degree of violations subject to the imposition of penalty surcharges under paragraph (1), the procedure for imposition and other relevant matters shall be prescribed by Presidential Decree.
 Article 29 (Closedown of Business and Collection and Destruction of Music Records or the Like)
(1) The Minister of Culture, Sports and Tourism, any Mayor/Do governor, or the head of any Si/Gun/Gu may assign public officials in charge to take the following measures against any person who runs a business without reporting or registration under Article 16 or 18 or a person who continues his/her business even after he/she has been ordered to close down the business or the registration of his/her business has been cancelled pursuant to Article 27 (1) in order to close down the place of business: <Amended by Act No. 8852, Feb. 29, 2008>
1. Removing and clearing signboards and other business signs of the business or place of business;
2. Posting notices informing that the business or place of business is illegal;
3. Sealing equipment or facilities necessary for the business to prevent them from being used;
4. Stopping the use of the Internet addresses, servers, and other items necessary for the business or seizing them.
(2) The measures under paragraph (1) shall be taken after a notice has been issued to the business operator or his/her agent in writing: Provided, That the same shall not apply in cases where any reason is specified by Presidential Decree to take urgent measures.
(3) The Minister of Culture, Sports and Tourism, any Mayor/Do governor, or the head of any Si/Gun/Gu may, if he/she discovers a music record or the like has been produced for profit by a person without filing a report under Article 16, assign a public official in charge to collect it to erase or destroy it. <Amended by Act No. 8852, Feb. 29, 2008>
(4) A public official in charge shall, when he/she collects a music record or the like pursuant to paragraph (3), issue a receipt to its owner or person in possession thereof: Provided, That the same shall not apply if the person refuses to accept such receipt.
(5) The Minister of Culture, Sports and Tourism, any Mayor/Do governor, or the head of any Si/Gun/Gu may, whenever necessary, request a competent association or organization to cooperate with a public official in collecting and destroying music records or the like pursuant to paragraph (3). <Amended by Act No. 8852, Feb. 29, 2008>
(6) A public official in charge or an executive or employee of an association or organization shall, whenever he/she performs posting notices, sealing, collecting, destroying pursuant to any provision of paragraphs (1) through (3), carry identification indicating his/her authority with him/her and produce it to the people concerned.
 Article 30 (Hearings)
(1) Any Mayor/Do governor or the head of any Si/Gun/Gu shall, when he/she intends to issue an order to close down a business or cancel registration pursuant to Article 27, hold hearings.
(2) The Minister of Culture, Sorts and Tourism, any Mayor/Do governor, or the head of any Si/Gun/Gu shall, when he/she intends to take measures under Article 29 (1) 4, hold hearings. <Amended by Act No. 8852, Feb. 29, 2008>
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 31 (Fees)
Any person who files a report or an application for registration under any of the following subparagraphs shall pay a certain fee as prescribed by Municipal Ordinance of the competent City/Do or Si/Gun/Gu:
1. A report on a music record/music-video production business or a music record/music-video distribution business under Article 16 (1);
2. A report on an online music service business under Article 16 (2);
3. Registration of a karaoke machine business under Article 18 (1);
4. A report on a changed fact or registration of a changed fact concerning a music record/music-video production business, a music record/music-video distribution business, an online music service business, or a karaoke machine business under Article 21 (1).
 Article 32 (Delegation and Entrustment of Authority)
(1) The Minister of Culture, Sports and Tourism or any Mayor/Do governor may delegate part of his/her authority under the provisions of this Act to the competent Mayor/Do governor or the competent head of Si/Gun/Gu as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The authority of the Minister of Culture, Sports and Tourism, any Mayor/Do governor, or the head of any Si/Gun/Gu under the provisions of this Act may be entrusted to a competent association or organization as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
 Article 33 (Deemed Public Officials for Application of Penalty Provisions)
Executive officers and employees of any association or organization that performs business affairs entrusted by the Minister of Culture, Sports and Tourism or any other authority pursuant to Article 32 (2) shall be deemed public officials for the purpose of penalty provisions under Articles 129 through 132 of the Criminal Act. <Amended by Act No. 8852, Feb. 29, 2008>
CHAPTER V PENALTY PROVISIONS
 Article 34 (Penalty Provisions)
(1) Any person who has engaged in business operations in violation of a measure taken pursuant to any subparagraph of Article 29 (1) shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won.
(2) Any karaoke machine business operator who has violated Article 22 (1) 4 or 5 shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won.
(3) Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won:
1. Any person who has run a karaoke machine business without registration in violation of Article 18 (1);
2. Any karaoke machine business operator who has allowed a juvenile to enter his/her place of business or sold or supplied any alcoholic beverage in violation of Article 22 (1) 2 or 3;
3. Any person (limited to persons who have completed the registration of business in accordance with Article 18 (1)) who has continued his/her business in violation of an order issued pursuant to Article 27 (1) to suspend such business;
4. Any person who has produced, distributed, or provided for use any music record or the like falling under Article 29 (3) or displayed, possessed, or exhibited such music record or the like for such purpose.
(4) Any person who has violated Article 22 (2) shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding three million won.
(5) Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding ten million won:
1. Any person who has run a business without filing a report in violation of Article 16;
2. Any person (limited to persons who have filed a report on his/her business in accordance with Article 16) who has continued his/her business in violation of an order issued pursuant to Article 27 (1) to suspend such business;
3. Any person who has refused, interfered with, or avoided any measure taken by a public official in charge pursuant to Article 29 (1) or (3).
 Article 35 (Joint Penalty Provisions)
Where the representative of a corporation, or an agent or employee of, or other person employed by, a corporation or an individual violates Article 34 in connection with the business affairs of the corporation or individual, not only shall such violator be punished, but also the corporation or the individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where the corporation or the individual has not neglected to pay due attention and supervision concerning the relevant business affairs in order to prevent such violation.
[This Article Wholly Amended by Act No. 10115, Mar. 17, 2010]
 Article 36 (Administrative Fines)
(1) Any person who falls under any of the following subparagraphs shall be punished by an administrative fine not exceeding ten million won:
1. Any karaoke machine business operator who has failed to receive education in violation of Article 11;
2. Any person who has failed to file a report on a changed fact or an application for registration of a changed fact in violation of Article 21 (1);
3. Any person who has failed to state his/her trade name on a label in violation of Article 25 (1).
(2) The administrative fines under paragraph (1) shall be imposed and collected by the competent Mayor/Do governor or the head of a competent Si/Gun/Gu (hereinafter referred to as "imposing authority") as prescribed by Presidential Decree.
(3) Any person who has objection to a disposition of administrative fines under paragraph (2) may file an objection with the imposing authority within 30 days from the date on which a notice of the disposition is received.
(4) The imposing authority shall, upon receiving an objection filed in accordance with paragraph (3) by a person on whom the administrative fine has been imposed pursuant to paragraph (2), notify the competent court of such fact without delay, and the court shall, upon receiving such notice, place the case on trial for the administrative fine under the Non-Contentious Case Procedure Act.
(5) If neither an objection is filed nor is the administrative fine paid within the period prescribed in paragraph (3), the administrative fine shall be collected in the same manner as delinquent local taxes are collected.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures Concerning Reported or Registered Businesses)
(1) Sound record production business operators and sound record distribution business operators who filed a report pursuant to Article 26 of the former Sound Records, Video Products, and Game Software Act as at the enforcement date of this Act shall be deemed to have reported as music record/music-video production business operators and music record/music-video distribution business operators under Article 16 (1) of this Act respectively.
(2) Karaoke machine business operators who have completed registration in accordance with Article 27 of the former Sound Records, Video Products, and Game Software Act as at the enforcement date of this Act shall be deemed to have completed registration under Article 18 (1) of this Act.
Article 3 (Transitional Measures Concerning Penalty Provisions)
In applying penalty provisions or provisions concerning administrative fines, acts committed before this Act enters into force shall be governed by the provisions of the former Sound Records, Video Products, and Game Software Act.
Article 4 (Transitional Measures Concerning Reporting of Online Music Service Businesses)
Any person who runs an online music service business as at the enforcement date of this Act shall file a report with the competent head of Si/Gun/Gu within three months from the enforcement date of this Act in accordance with Article 16 (2).
Article 5 (Relations to other Statutes)
Any citation of the former Sound Records, Video Products, and Game Software Act or any provisions thereof by any other statute in force at the time this Act enters into force shall be deemed to be a citation of this Act or the corresponding provisions of this Act in lieu of the former provisions, if any such corresponding provisions exist in this Act.
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. 9493, Mar. 18, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 10115, Mar. 17, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10219, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10369, Jun. 10, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 10629, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 11998, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 and 3 Omitted.