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LOTTERY TICKETS AND LOTTERY FUND ACT

Act No. 7159, Jan. 29, 2004

Amended by Act No. 7486, Mar. 31, 2005

Act No. 7678, Aug. 4, 2005

Act No. 7798, Dec. 29, 2005

Act No. 7796, Dec. 29, 2005

Act No. 7849, Feb. 21, 2006

Act No. 8050, Oct. 4, 2006

Act No. 8343, Apr. 11, 2007

Act No. 8344, Apr. 11, 2007

Act No. 8361, Apr. 11, 2007

Act No. 8367, Apr. 11, 2007

Act No. 8655, Oct. 17, 2007

Act No. 8873, Feb. 29, 2008

Act No. 9685, May 21, 2009

Act No. 9802, Oct. 21, 2009

Act No. 9821, Dec. 29, 2009

Act No. 10361, jun. 8, 2010

Act No. 10487, Mar. 30, 2011

Act No. 11048, Sep. 15, 2011

Act No. 14043, Mar. 2, 2016

Act No. 14097, Mar. 29, 2016

Act No. 14842, Aug. 9, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to promote the healthy development of lottery business by prescribing matters concerning the issuance, management and sale of lottery tickets, and to contribute to the promotion of welfare of citizens through the reasonable distribution and transparent use of the proceeds from lottery tickets.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 14097, Mar. 29, 2016>
1. The term "lottery ticket" means any of the following which are issued to raise money from a large number of people and pay prize to winners determined by methods such as the drawing of lots, etc.:
(a) Printed raffle ticket: Raffle numbers are pre-printed on the raffle ticket, and the winning numbers are determined by drawing;
(b) Printed instant lottery ticket: The method of drawing the winning numbers is pre-determined and printed on the ticket, and the lottery results are ascertainable immediately after an end consumer purchases it;
(c) Electronic raffle ticket: A lottery ticket in electronic form is issued and sold through the information and communications network (hereinafter referred to as "information and communications network") defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc., and raffle numbers are pre-printed on the ticket, or the winning numbers are determined by drawing after an end consumer selects numbers;
(d) Electronic instant lottery ticket: A lottery ticket in electronic form is issued and sold through the information and communications network, and the method of drawing the winning numbers is pre-determined and indicated on the ticket, and the lottery results are ascertainable immediately after an end consumer purchases it;
(e) Lottery tickets the winning number of which is determined by drawing lots among the numbers either directly chosen by end purchasers or automatically generated by data processing algorithms, and which are either lottery tickets printed from a lottery ticket sales terminal connected to the central computer center equipped with lottery ticket issuing systems through the information and communications network, or lottery tickets in an electronic form the issuance and sales of which are conducted through the information and communications network connected to the central computer center equipped with lottery ticket issuing systems;
(f) A lottery ticket in composite form referred to in items (a) and (c) (hereinafter referred to as "printed and electronic mixed raffle ticket"). In such cases, methods of drawing, etc. shall be prescribed by Presidential Decree;
2. The term "prize" means the amount of money paid in a lump sum or in installments, etc. to the winners of prizes in the lottery by drawing, etc. (where it is awarded with a prize, the value thereof shall be included);
3. The term "expenses incurred in distribution of lottery tickets" means all the expenses (excluding the prize) incurred in the issuance, management and sale of lottery tickets, such as fees, advertising expenses, expenses for issuance and taxes, etc.;
4. The term "proceeds from lottery tickets" means the amount of gross sales generated from lottery tickets minus the amount of the prize and expenses of distributing lottery tickets.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 3 (Relationship with Other Acts)
The Act on Special Cases concerning Regulation and Punishment of Speculative Acts, Etc. shall not apply to lottery tickets issued pursuant to this Act.
[This Act Wholly Amended by Act No. 10487, Mar. 30, 2011]
CHAPTER II ISSUANCE, ETC. OF LOTTERY TICKETS
 Article 4 (Issuance, etc. of Lottery Tickets)
(1) No person, other than the Korea Lottery Commission (hereinafter referred to as the "Korea Lottery Commission") under Article 13, a person who has been entrusted to issue lottery tickets (hereinafter referred to as "entrusted business entity") under Article 12 (1) or person who has been re-entrusted to issue lottery tickets (hereinafter referred to as "re-entrusted business entity") under paragraph (2) of the same Article, shall issue lottery tickets under this Act.
(2) The Korea Lottery Commission shall determine the types, face values, and the conditions for issuance, of lottery tickets, and the methods of payment of the prize.
(3) An entrusted business entity and a re-entrusted business entity shall submit a plan on the issuance of lottery tickets in the following year (hereinafter referred to as "yearly plan for the issuance of lottery tickets") to the Korea Lottery Commission, stating matters prescribed by Presidential Decree, such as types and face values of lottery tickets, the total amount of lottery tickets issued, the conditions of issuance and methods of payment of the prize, etc., by not later than March 31 every year.
(4) The Korea Lottery Commission shall deliberate on and adjust a yearly plan for the issuance of lottery tickets and notify an entrusted business entity and a re-entrusted business entity of the result thereof by not later than April 30 of the relevant year.
(5) Where there is a cause prescribed by Presidential Decree such as the occurrence of unexpected change in demand on lottery tickets, an entrusted business entity or re-entrusted business entity may request the Korea Lottery Commission to modify the yearly plan for the issuance of lottery tickets notified to such entity above pursuant to paragraph (4). <Newly Established by Act No. 14097, Mar. 29, 2016>
(6) Where the Korea Lottery Commission receives a request to modify the yearly plan for the issuance of lottery tickets pursuant to paragraph (5), it shall deliberate on whether to modify the yearly plan for the issuance of lottery tickets and shall, if necessary, adjust it accordingly and then notify the results to the entrusted business entity or re-entrusted business entity within 30 days from the date of receipt of the request for modification. <Newly Established by Act No. 14097, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 5 (Restrictions, etc. on Sale)
(1) No person shall sell a lottery ticket to an end consumer, for the purpose of profit-making, at a price other than the face value of the lottery ticket determined by the Korea Lottery Commission pursuant to Article 4 (2).
(2) A person who sells lottery tickets shall not sell lottery tickets exceeding the amount prescribed by Presidential Decree within the extent of 200 thousand won at a time to one end consumer of lottery tickets.
(3) A person who sells lottery tickets shall verify the age of an end consumer, and where such an end consumer is a juvenile (hereinafter referred to as "juvenile") defined in subparagraph 1 of Article 2 of the Juvenile Protection Act, he/she shall not sell a lottery ticket to the juvenile. <Amended by Act No. 11048, Sep. 15, 2011>
(4) No person who sells lottery tickets shall sell a lottery ticket by credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act (hereinafter referred to as "credit card"): Provided, That this shall not apply to a lottery ticket difficult to purchase directly with cash as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 5-2 (Prohibition, etc. of Unlawful Provision of Information on Lottery Tickets)
(1) None of the following persons shall provide or divulge information on lottery tickets (referring to information that may have influence on the determination of the winners in the lottery; hereinafter referred to as "information on lottery tickets") he/she becomes aware of during the course of performing his/her duties, for unlawful purposes: <Amended by Act No. 14097, Mar. 29, 2016>
1. A member of the Korea Lottery Commission and an employee of the secretariat thereof;
2. A person engaged in the business related to lottery tickets among executives and employees of an entrusted business entity and a re-entrusted business entity;
3. A person engaged in the operation of lottery ticket sales systems among executives and employees of a person who operates lottery ticket sales systems;
4. A person printing lottery tickets according to a contract with the Korea Lottery Commission, an entrusted business entity and a re-entrusted business entity (hereinafter referred to as “lottery business entity”).
(2) None of the persons falling under the types referred to in paragraph (1) shall purchase or transfer a lottery ticket or use his/her good offices in such act.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 6 (Restrictions, etc. on Sale of Online Lottery Tickets)
(1) No person who has not entered into a contract for sale of online lottery tickets with the lottery business entity shall sell online lottery tickets for the purpose of profit-making. <Amended by Act No. 14097, Mar. 29, 2016>
(2) Where an entrusted business entity or re-entrusted business entity intends to enter into a contract with a person who intends to sell online lottery tickets, he/she shall determine matters delegated by Presidential Decree, such as the requirements, standards, etc. for a contract party, and obtain approval from the Korea Lottery Commission.
(3) No person who sells online lottery tickets (excluding lottery tickets in an electronic form the issuance and sales of which are conducted through the information and communications network; hereafter the same shall apply in Articles 30 and 34 (3) 4) shall sell online lottery tickets in a place other than the place of sale designated by contract. <Amended by Act No. 14097, Mar. 29, 2016>
(4) No person shall purchase an online lottery ticket on behalf of an end consumer for the purpose of profit-making.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 7 (Indication of Warnings concerning Lottery Tickets and Restrictions on Advertisement, etc.)
(1) A lottery business entity and a person who conducts business concerning lottery tickets in accordance with a contract with the lottery business entity shall display a warning that prohibits lottery sales to juveniles on the face of each lottery ticket and in advertisement (including sales promotion activities; hereinafter the same shall apply) specified by Presidential Decree.
(2) Where a person who conducts business regarding the lottery in accordance with a contract with an entrusted business entity, re-entrusted business entity or lottery business entity intends to advertise regarding the lottery, he/she shall prepare a plan for advertising lottery, detailing the advertising media, advertising slogans, advertising expenses, an advertising period and other matters prescribed by Presidential Decree and obtain approval from the Korea Lottery Commission.
(3) Where he/she changes a matter approved pursuant to paragraph (2), he/she shall also obtain approval from the Korea Lottery Commission: Provided, That this shall not apply where he/she changes an insignificant matter prescribed by Presidential Decree, such as an advertising period, etc.
(4) A lottery business entity shall indicate matters prescribed by Presidential Decree, such as uses of the proceeds from lottery tickets, etc., on the face of each lottery ticket.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 8 (Prize, etc.)
(1) When a lottery business entity issues lottery tickets, he/she shall ensure that the total amount of prize paid to all the winners in the lottery is not less than 50/100 of the total amount of the face value of lottery tickets issued for a draw for the lottery: Provided, That where the total amount of the face value of lottery tickets issued cannot be determined beforehand, he/she shall ensure that the total amount of prize paid to all the winners in the lottery is not less than 50/100 of the total amount of the face value of lottery tickets sold for a draw.
(2) In order to curb the excessive speculative activities in relation to the lottery, the Korea Lottery Commission shall take necessary measures regarding the highest prize by types of lottery, the rates of prize by rank and adjustment of a price per ticket, etc.
(3) The Korea Lottery Commission may pay the prize in a lump sum or in installments, as prescribed by Presidential Decree.
(4) Where there is no winner of the first prize in the online lottery, the prize may be rolled over to the next draw to the extent prescribed by Presidential Decree up to five draws.
(5) Where it is impractical to verify the winning status of the lottery ticket or its authenticity by reason of damage to a lottery ticket, etc. for which a prize is claimed, the prize shall not be paid.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 9 (Extinctive Prescription of Prize, etc.)
(1) In cases of a printed raffle ticket, electronic raffle ticket, online lottery ticket and printed and electronic composite raffle ticket, if the right to receive the prize payments is not exercised for one year from the start date of payment thereof, the statute of limitations shall expire; in cases of a printed instant lottery ticket and an electronic instant lottery ticket, if the right to receive the prize is not exercised for one year from the closing date of a period of sale, the statute of limitations shall expire.
(2) A lottery business entity shall indicate a period of statute of limitations under paragraph (1) on the face of each lottery ticket.
(3) The prize, upon expiration of the statute of limitations pursuant to paragraph (1), shall become vested in the Lottery Fund (hereinafter referred to as the "Lottery Fund") referred to in Article 21 (1).
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 10 (Protection of Winners of Lottery Prizes)
A lottery business entity and his/her agent, employer and any other employee shall not disclose or provide personal information by which a winner of a lottery prize may be identified without the consent of the winner: Provided, That in any of the following cases, this shall not apply where personal information is provided within the minimum extent necessary for the purpose of such use:
1. Where he/she has an obligation to submit personal information under the tax law defined in subparagraph 2 of Article 2 of the Framework Act on National Taxes, such as submission of a statement of payment, etc. specified in Article 164 of the Income Tax Act;
3. Where he/she is requested to submit materials pursuant to Article 27 (1) 2 of the Board of Audit and Inspection Act;
4. Where he/she provides personal information pursuant to a court order to submit or a writ issued by a judge.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 11 (Announcement of Ceilings on Fees)
The Korea Lottery Commission may determine and announce ceilings on fees for entrustment or re-entrustment of the issuance of lottery tickets under Article 12, fees for the operation of the lottery ticket issuing system (referring to the online lottery ticket issuing system only) and fees for sale of lottery tickets. In such cases, it shall consider the fairness by type of lottery tickets. <Amended by Act No. 14097, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 12 (Entrustment or Re-entrustment of Issuance of Lottery Tickets)
(1) The Korea Lottery Commission may partially entrust an organization, juridical or natural person (hereafter in this Article referred to as "organization, etc.") with affairs regarding issuing, managing and selling lottery tickets (hereinafter referred to as “affairs regarding lottery tickets issuance”), as prescribed by Presidential Decree. <Amended by Act No. 14097, Mar. 29, 2016>
(2) An entrusted business entity may re-entrust an organization, etc, with some of the issuance of lottery tickets with approval of the Korea Lottery Commission, as prescribed by Presidential Decree.
(3) An organization, etc. that may be entrusted or re-entrusted with the issuance of lottery tickets pursuant to paragraphs (1) and (2) shall meet each of the following requirements:
1. An organization, etc. shall have economic and technical ability necessary for conducting lottery ticket issuing business;
2. An organization, etc. shall not have been punished for a breach of this Act;
3. Other matters prescribed by Presidential Decree.
(4) A person who operates the lottery ticket issuing system shall also meet the requirements specified in paragraph (3).
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
CHAPTER III KOREA LOTTERY COMMISSION
 Article 13 (Establishment and Functions of Korea Lottery Commission)
(1) The Korea Lottery Commission shall be established under the control of the Minister of Strategy and Finance in order to conduct business concerning the issuance, management and sale of lottery tickets, and the distribution and appropriation of the proceeds from lottery tickets, etc.
(2) The following matters shall be conducted under the jurisdiction of the Korea Lottery Commission:
1. Matters concerning the formulation of lottery policies;
2. Matters concerning specific details, etc. in relation to types of lottery tickets, face values, the total amount of lottery tickets issued, the conditions of issuance and methods of payment of prize;
3. Matters concerning the deliberation and adjustment, etc. of a yearly plan for issuance of lottery tickets;
4. Matters concerning the entrustment and re-entrustment of lottery ticket issuing business;
5. Matters concerning prize by rank and rates of prize, etc. of lottery tickets;
6. Matters concerning expenses for distribution of lottery tickets;
7. Matters concerning the distribution and appropriation of the proceeds from lottery tickets;
8. Matters concerning the basic policy on the operation and management of the Lottery Fund;
9. Matters concerning the deliberation and adjustment of a plan for appropriation of the proceeds from lottery tickets under Article 24;
10. Matters concerning the formulation and change of a Lottery Fund management plan under Article 27;
11. Matters concerning restrictions on sale and advertisement of lottery tickets;
12. Matters concerning the protection of end consumers and juveniles;
13. Other matters concerning the issuance, management and sale of lottery tickets, etc. prescribed by Presidential Decree.
(3) The Korea Lottery Commission shall execute policies concerning education and publicity in order to restrain the speculative spirit and prevent and cure addiction to speculation. <Amended by Act No. 14097, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 14 (Formation of Korea Lottery Commission)
(1) The Korea Lottery Commission shall be comprised of not more than 25 members including one chairperson.
(2) The chairperson shall be the Vice Minister of Strategy and Finance as designated by the Minister of Strategy and Finance and the members shall be comprised of each of the following persons. In such cases, a majority of the members shall be appointed or commissioned, from among persons referred to in subparagraph 2: <Amended by Act No. 14097, Mar. 29, 2016>
1. Public officials in general service belonging to the Senior Executive Service of the related ministries prescribed by Presidential Decree;
2. Persons with any of the following qualifications, appointed or commissioned by the Minister of Strategy and Finance:
(a) A judge, a public prosecutor and a person who has the qualifications as an attorney-at-law;
(b) A person who holds or held a post of associate professor or higher, or post equivalent thereto in a university or authorized research institution;
(c) A person recommended by a civic group;
(d) Other persons who have profound knowledge and broad experience.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 15 (Chairperson, etc.)
(1) The chairperson shall represent the Korea Lottery Commission, convene its meeting, and have general supervision and control of its affairs.
(2) Where a chairperson is unable to perform his/her duties due to extenuating circumstances, a member pre-designated by the chairperson shall perform his/her duties on his/her behalf.
(3) A majority of the members of the Korea Lottery Commission shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 16 (Term of Office of Members)
(1) A term of office of a member referred to in Article 14 (2) 2 among the members of the Korea Lottery Commission shall be two years, and he/she may be reappointed or recommissioned only once.
(2) Where a vacancy occurs in the membership referred to in Article 14 (2) 2, the Minister of Strategy and Finance shall appoint or commission a member filling the vacancy within 30 days from the date such vacancy arises, and the term of office of a member filling the vacancy shall be the remainder of the term of office of his/her predecessor.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 17 (Official Independence and Guarantee of Status of Members)
(1) No member of the Korea Lottery Commission shall receive directions from or be interfered with by the outside in relation to his/her duties.
(2) Except for the following cases, a member referred to in Article 14 (2) 2 shall not be dismissed or decommissioned against his/her will: <Amended by Act No. 14043, Mar. 2, 2016>
1. Where he/she is sentenced to imprisonment without labor or heavier punishment;
2. Where he/she is unable to perform his/her duties due to a physical or mental illness or injury.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 17-2 (Exclusion, Challenge, Recusal of Members)
(1) Where a member of the Korea Lottery Commission falls under any of the following cases, he/she shall be excluded from deliberation or decision of the relevant item on the agenda:
1. Where a member himself/herself or a person who is or was his/her spouse is the person concerned of the relevant item on the agenda (including a person jointly concerned; hereinafter the same shall apply);
2. Where a member is or was a relative of the person concerned of the relevant item on the agenda;
3. Where a member or juridical person to whom he/she belongs testifies or appraises, or provides advice and suggestions as requested in connection with the relevant item on the agenda, or be or become involved in the relevant item on the agenda as an agent of the person concerned thereof.
(2) Where the person concerned of an item on the agenda has any reasons that it is difficult for him/her to expect a fair deliberation or decision from a member, he/she may file an application for challenge with the Korea Lottery Commission.
(3) The Korea Lottery Commission which has received an application for challenge pursuant to paragraph (2) shall decide whether to approve the application for challenge by resolution. In such cases, a member who has been challenged shall not participate in the resolution.
(4) Where the member falls under any of the subparagraphs of paragraph (1) or any reasons under paragraph (2), he/she may recuse him/herself from deliberation or resolution of the relevant item on the agenda.
[This Article Newly Inserted by Act No. 10487, Mar. 30, 2011]
 Article 18 (Request for Submission of Materials and Access and Examination by Relevant Public Official)
(1) Where the Korea Lottery Commission deems it necessary for the conduct of its business, it may request a person who issues, distributes and sells lottery tickets to submit materials, such as documents, books and business reports, etc. related to lottery tickets or to submit the copies thereof, or have the relevant public official have access to facilities and a place where the lottery tickets are issued, managed and sold and examine such facilities, books and other documents.
(2) Where the Korea Lottery Commission deems it necessary for the conduct of its business, it may have persons concerned and experts in lottery tickets attend its meetings and hear their opinions.
(3) The relevant public official who has access and conducts examinations pursuant to paragraph (1) shall carry an identification indicating his/her authority and produce it to the persons concerned.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 19 (Organization, Operation, etc.)
(1) The Korea Lottery Commission shall have the secretariat therein in order to conduct its business.
(2) Except as provided in this Act, any matters concerning the operation and meetings of the Korea Lottery Commission, the organization of its secretariat, and so on shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 20 (Dispatch of Public Officials, etc.)
(1) Where the chairperson of the Korea Lottery Commission deems it necessary for the efficient operation of the secretariat thereof, he/she may request the head of a related administrative agency, juridical person or organization related to lottery tickets to dispatch public officials or executives or employees of the juridical person or organization.
(2) The head of a related administrative agency, juridical person or organization related to lottery tickets requested under paragraph (1) shall comply with such request, in the absence of special circumstances.
(3) A person dispatched pursuant to paragraph (1) shall be under the direction and supervision of the chairperson concerning his/her service.
(4) The period of service of a person dispatched pursuant to paragraph (1) shall be one year in the absence of special circumstances: Provided, That where the chairperson deems it necessary, he/she may extend the period up to one year.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
CHAPTER IV LOTTERY FUND
 Article 21 (Establishment of Lottery Fund)
(1) The Korea Lottery Commission shall establish the Lottery Fund for a transparent and efficient management and use of financial resources raised by lottery.
(2) The Lottery Fund shall be raised with the following financial resources:
1. Funds raised by the issuance of lottery tickets;
2. The proceeds from the operation of the Lottery Fund;
3. The prizes of which extinctive prescription has been completed pursuant to Article 9;
4. Other income prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 22 (Operation, Management and Assessment of Lottery Fund)
(1) The Korea Lottery Commission shall operate and manage the Lottery Fund.
(2) Notwithstanding other Acts, the Korea Lottery Commission may transfer, contribute or subsidize part of the Fund to any of the following, or deposit part of the Fund therein in order to distribute it to a fund referred to in subparagraphs of Article 23 (1) or to use it in projects referred to in subparagraphs of paragraph (3) of the same Article: <Amended by Act No. 14097, Mar. 29, 2016>
1. General accounts and special accounts referred to in Article 4 (1) of the National Finance Act;
3. An organization, etc. under Article 23 (1) 7 through 11.
(3) The Korea Lottery Commission may assess the result of projects that use the Lottery Fund (referring to projects prescribed in the attached Table pursuant to Article 23 (2) or projects pursuant to subparagraphs of paragraph (3) of the same Article; hereinafter referred to as "Lottery Fund project") and reflect the result of such assessment in a Lottery Fund management plan pursuant to Article 27.
(4) Matters necessary for the operation and management of the Lottery Fund, and objects and methods of and procedures for assessment shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 23 (Distribution and Uses of Lottery Fund)
(1) The Korea Lottery Commission shall distribute 35/100 of the proceeds from lottery tickets to a fund, etc. referred to in the following and the percentage of such distribution shall be as prescribed by Presidential Decree: Provided, That the Korea Lottery Commission may adjust the percentage of distribution of each fund, etc. within the extent of 20/100, as prescribed by Presidential Decree, in consideration of capital requirements of a fund, etc. referred to in the following and the result of assessment, etc. under Article 22 (3): <Amended by Act No. 12989, Jan. 6, 2015; Act No. 13426, Jul. 24, 2015>
1. The Science and Technology Promotion Fund under Article 22 of the Framework Act on Science and Technology;
2. The National Sports Promotion Fund under Article 19 of the National Sports Promotion Act;
3. The Workers' Welfare Promotion Fund under Article 87 of the Framework Act on Labor Welfare;
4. Deleted; <by Act No. 14097, Mar. 29, 2016>
5. The Small and Medium Enterprises Establishment and Promotion Fund under Article 63 of the Small and Medium Enterprises Promotion Act;
6. The Cultural Heritage Protection Fund under Article 3 of the Cultural Heritage Preservation Fund Act;
7. A local government;
8. Special accounts for development projects of Jeju Special Self-governing Province under Article 160 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City;
9. The community chest of Korea under the Community Chest of Korea Act;
10. The Forest Environment Function Promotion Fund under Article 58 (1) of the Creation and Management of Forest Resources Act;
11. The Korea Veterans Welfare and Healthcare Corporation under the Korea Veterans Health Service Act.
(2) A fund, etc. distributed with the proceeds from lottery tickets under paragraph (1) shall be used for purposes prescribed in the attached Table.
(3) The Lottery Fund excluding the proceeds from lottery tickets distributed under paragraph (1) and expenses under paragraph (4) shall be used for any of the following projects: Provided, That the percentage of the Lottery Fund used for a project referred to in subparagraph 5 shall be up to 5/100:
1. A project to assist lower income households in achieving residential stability, such as construction of rental housing, etc.;
2. A welfare project for persons who have rendered distinguished service to the State;
3. A welfare project for the underprivileged, such as lower income households, disabled persons, female victims of sexual violence, domestic violence or sex traffic, disadvantaged juveniles, etc., and a project for supporting multi-cultural families;
4. A project for promoting culture and art;
5. Public service projects prescribed by Presidential Decree.
(4) Expenses necessary for education and publicity for restraining the speculative spirit and preventing and curing addiction to speculation and expenses incurred in the raising, operation and management of the Lottery Fund shall be disbursed from the Lottery Fund. <Amended by Act No. 14097, Mar. 29, 2016>
(5) The proceeds distributed pursuant to paragraph (1) shall not be deemed a subsidy under the Subsidy Management Act. <Newly Inserted by Act No. 14097, Mar. 29, 2016>
(6) Matters necessary for methods, times, procedures, etc. for distributing the Lottery Fund shall be prescribed by Presidential Decree. <Amended by Act No. 14097, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 24 (Submission of Plan for Appropriation of Proceeds from Lottery Tickets)
(1) The head of the management body of a fund, etc. and of an institution referred to in Article 23 (1) (hereafter in this Article referred to as "management body, etc.") shall prepare and submit a plan for appropriation of the proceeds from lottery tickets (hereinafter referred to as "plan for appropriation of the proceeds from lottery tickets") of the following year, stating matters prescribed by Presidential Decree, such as uses of the proceeds from lottery tickets, etc. to the Korea Lottery Commission by not later than March 31 every year. <Amended by Act No. 14097, Mar. 29, 2016>
(2) The Korea Lottery Commission shall deliberate on and adjust a plan for appropriation of the proceeds from lottery tickets and notify a management body, etc. of the result thereof by not later than April 30 of the relevant year. <Amended by Act No. 14097, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 25 (Submission of Settlement of Accounts of Proceeds from Lottery Tickets)
The head of a management body of a fund, etc. and the head of an institution (hereinafter referred to as "head of an institution, etc.") distributed with the proceeds from lottery tickets and the Lottery Fund under Article 23 (1) and (3) (hereinafter referred to as "head of an institution, etc.") shall submit a settlement of accounts, such as details of the execution of the proceeds from lottery tickets, etc., to the Korea Lottery Commission by not later than January 31 of the following year.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 26 (Application, etc. for Use of Lottery Fund)
(1) The head of a central administrative agency who intends to apply for funds necessary for a project specified in Article 23 (3) from the Lottery Fund shall submit an application for use of the Lottery Fund (hereinafter referred to as "application for use of the Lottery Fund") for the following year, stating matters prescribed by Presidential Decree, such as a use of the Lottery Fund, an amount requested, etc. to the Korea Lottery Commission by not later than March 31 every year. <Amended by Act No. 14097, Mar. 29, 2016>
(2) Where the head of a central administrative agency fails to submit an application for use of the Lottery Fund by the deadline specified in paragraph (1) due to extenuating circumstances, he/she may adjust the deadline for application in consultation with the Korea Lottery Commission.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 27 (Preparation and Submission of Lottery Fund Management Plan)
The Korea Lottery Commission shall prepare and submit a Lottery Fund management plan for the following year on the appropriation of the Lottery Fund referred to in Article 23 (1) and (3) to the Minister of Strategy and Finance by not later than May 31 every year. <Amended by Act No. 14097, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 28 (Management of Idle Money)
Where there is idle money in the Lottery Fund, the Korea Lottery Commission may manage the same by the following methods:
1. Purchase of state bonds and public bonds;
3. Other methods prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 29 (Separate Accounting, etc.)
The head of an institution, etc. shall conduct accounting of or manage the proceeds from lottery tickets or the Lottery Fund distributed separately from revenue and expenditures of other proceeds.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 29-2 (Return of Remaining Amount to Lottery Fund)
(1) Where a portion of funds remains unspent due to the cancellation, reduction or suspension of the relevant project by the Lottery Fund, the head of an institution, etc. shall notify the Korea Lottery Commission of the reasons and the amount thereof without delay and return the relevant amount to the Lottery Fund.
(2) The remaining amount returned shall be included in a revenue plan of the Lottery Fund management plan for the second following year at the latest.
[This Article Newly Inserted by Act No. 10487, Mar. 30, 2011]
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 30 (Preferential Contract with Disabled Persons)
Where any of the following persons intends to sell lottery tickets online, a lottery business entity shall endeavor to enter into a contract with him/her preferentially:
1. A disabled person registered pursuant to Article 32 of the Act on Welfare of Persons with Disabilities;
2. A qualified recipient defined in subparagraph 2 of Article 2 of the National Basic Living Security Act;
3. The householder of a single-parent family who is a recipient of livelihood program under Article 5 of the Single-Parent Family Support Act;
4. A person who have rendered distinguished service to independence, registered and determined pursuant to Article 6 of the Act on the Honorable Treatment of Persons of Distinguished Service to Independence and his/her bereaved family or his/her family;
5. A person who have rendered distinguished service to the State registered and determined pursuant to Article 6 of the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State and his/her bereaved family or his/her family;
6. Other persons prescribed by Presidential Decree, such as those in the lower income households, those who sacrificed for and contributed to the State, etc.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 31 (Guidelines on Issuance, Management and Sale of Lottery Tickets)
The Korea Lottery Commission may prepare guidelines on the issuance, management and sale of lottery tickets for the efficient conduct of lottery ticket issuing business and the control and supervision of an entrusted business entity and a re-entrusted business entity.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 32 (Disclosure and Reporting of Information Related to Lottery Tickets and Lottery Fund)
(1) The head of an institution, etc. shall submit a detailed statement of its revenue and expenditure, and an entrusted business entity and a re-entrusted business entity shall submit the current status of the number of lottery tickets sold, the value thereof, payment of fees and the proceeds from lottery tickets and other matters prescribed by Presidential Decree to the Korea Lottery Commission every six months by not later than the 20th day of the following month in which the relevant period ends.
(2) The Korea Lottery Commission shall disclose materials that it has been submitted (hereafter in this Article referred to as "information related to lottery tickets") pursuant to paragraph (1) and the actual conditions of operation, such as a detailed statement of revenue and expenditure, etc., of the Lottery Fund at least once every six months.
(3) Necessary matters concerning methods, timing and procedures for disclosure of information related to lottery tickets and the actual conditions of operation of the Lottery Fund shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 33 (Obligation to Preserve Materials on Lottery Tickets)
A lottery business entity shall preserve the documents, books, etc. (including those in electronic form) on the issuance, management and sale of lottery tickets for five years from the date they are prepared or kept.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 33-2 (Delegation of Authority)
The Korea Lottery Commission may delegate part of its authority under this Act to the chairperson of the Korea Lottery Commission, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 33-3 (Investigation of Offenses of Head of Si/Gun/Gu Related to Sale of Lottery Tickets)
(1) The Special Self-Governing Province Governor or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter referred to as "head of a Si/Gun/Gu) may investigate offenses referred to in Articles 5 and 6 (1), (3) and (4).
(2) Where the head of a Si/Gun/Gu deems it necessary for an investigation under paragraph (1), he/she may request a person who sells lottery tickets to submit materials, such as documents, books and business reports, and so on related to lottery tickets, or the copies thereof, or require the relevant public official to enter the facilities and places where lottery tickets are sold and investigate such facilities, books and other documents.
(3) The relevant public official who gains entry and conducts investigations pursuant to paragraph (2) shall carry an identification card indicating his/her authority and produce it to the persons concerned.
[This Article Newly Inserted by Act No. 10487, Mar. 30, 2011]
CHAPTER VI PENALTY PROVISIONS
 Article 34 (Penalty Provisions)
(1) Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 20 million won:
1. A person who issues lottery tickets, in violation of Article 4 (1);
2. A person who provides or divulges information on lottery tickets he/she has become aware of during the course of his/her duties for unjust purposes, in violation of Article 5-2 (1);
3. A person who purchases and transfers lottery tickets, or uses his/her good offices in such act, in violation of Article 5-2 (2).
(2) A person who discloses or provides personal information by which a winner is identifiable, in violation of Article 10, shall be subject to imprisonment with labor for not more than one year or a fine not exceeding 10 million won. <Newly Inserted by Act No. 14043, Mar. 2, 2016>
(3) Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding five million won: <Amended by Act No. 14043, Mar. 2, 2016>
1. A person who sells lottery tickets, in violation of Article 5 (1);
2. A person who sells online lottery tickets for the purpose of profit-making without entering into a contract, in violation of Article 6 (1);
3. An entrusted business entity or re-entrusted business entity who enters into a contract, in violation of Article 6 (2);
4. A person who sells online lottery tickets in a place other than a designated place of sales in violation of Article 6 (3);
5. A person who purchases an online lottery ticket for another person, in violation of Article 6 (4);
6. Deleted; <by Act No. 14043, Mar. 2, 2016>
7. An entrusted business entity who re-entrusts, in violation of Article 12 (2).
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
 Article 35 (Joint Penalty Provisions)
If the representative of a juristic person or an agent, employee or any other servant of the juristic person or an individual commits a violation under Article 34 with respect to the business of the juristic person or the individual, not only shall such offender be punished but also the juristic person or the individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or individual has not neglected to pay due attention to and supervise the relevant business to prevent the violation.
[This Article Wholly Amended by Act No. 9821, Dec. 29, 2009]
 Article 36 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding ten million won:
1. A person who sells a lottery ticket to a juvenile, in violation of Article 5 (3);
2. A person who fails to display a warning on a lottery ticket, in violation of Article 7 (1);
3. An entrusted business entity or re-entrusted business entity who advertises, in violation of Article 7 (2) or (3);
4. An entrusted business entity or re-entrusted business entity who fails to indicate uses of the proceeds from lottery tickets on the face of each lottery ticket, in violation of Article 7 (4);
5. A person who fails to submit materials or their copies, or refuses, interferes with or evades the access and investigation of the relevant public official, in violation of Article 18 (1);
6. An entrusted business entity or re-entrusted business entity who fails to preserve documents, books, etc., in violation of Article 33;
7. A person who fails to submit materials or their copies, or refuses, interferes with or evades the access and investigation of the relevant public official, in violation of Article 33-3 (2).
(2) Any of the following persons shall be subject to an administrative fine not exceeding five million won:
1. A person who sells lottery tickets exceeding the limit for sale to one person, in violation of Article 5 (2);
2. A person who sells lottery tickets by credit card, in violation of Article 5 (4).
(3) A person referred to in the following classifications shall impose and collect administrative fines specified in paragraphs (1) and (2), as prescribed by Presidential Decree:
1. Administrative fines referred to in paragraph (1) 1 and 7 and paragraph (2): The head of a Si/Gun/Gu;
2. Administrative fines referred to in paragraph (1) 2 through 6: The Korea Lottery Commission.
[This Article Wholly Amended by Act No. 10487, Mar. 30, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2004: Provided, That Articles 6 (1) and (3), 8 (1) and 34 (2) 2 and 4 shall enter into force on July 1, 2004, and Articles 5 (1), 6 (4), 7, 34 (2) 1 and 5, and 36 (1) 2 through 4 on January 1, 2005.
Article 2 (Special Cases on 2004 Fund Management Plan)
When the Lottery Fund is established, the Korean Government shall, without delay, submit a 2004 Lottery Fund management plan and a plan for an amendment thereto in regard of funds falling under Article 23 (1) 1 through 5 (hereinafter in this Article referred to as "Lottery Fund management plan, etc.") to the National Assembly of the Republic of Korea through deliberation and resolution of the relevant fund operation deliberative council (in cases of a Lottery Fund management plan, referring to the Korea Lottery Commission) and deliberation of the Cabinet meeting and with approval of the President of the Republic of Korea. In such cases, a Lottery Fund management plan, etc. shall be deemed to have been deliberated on and determined.
Article 3 (Special Cases on Submission of Plan for Issuance of Lottery Tickets in 2005)
(1) Notwithstanding Article 4 (3), an entrusted business entity or re-entrusted business entity shall submit a yearly plan for issuance of lottery tickets for 2005 to the Korea Lottery Commission within ten days from the date this Act enters into force.
(2) Notwithstanding the provisions of Article 24 (1), a management body, etc. shall submit a plan for appropriation of the proceeds from lottery tickets in 2005 to the Korea Lottery Commission within 10 days from the date this Act enters into force.
(3) Notwithstanding Article 26 (1), the head of a central administrative agency shall submit an application for appropriation of the Lottery Fund in 2005 to the Korea Lottery Commission within ten days from the date this Act enters into force.
Article 4 (Transitional Measures concerning Existing Lottery Tickets)
(1) Lottery tickets issued in accordance with the following Acts as at the time this Act enters into force and online lottery tickets issued by and jointly with institutions issuing lottery tickets in accordance with the following Acts shall be deemed lottery tickets issued by the Korea Lottery Commission in accordance with this Act:
6. The Forestry Act;
9. The Housing Act;
(2) An institution that issues lottery tickets in accordance with Acts referred to in paragraph (1) 1 through 7 as at the time this Act enters into force shall be deemed an entrusted business entity entrusted with the issuance of lottery tickets by the Korea Lottery Commission for five years from the date this Act enters into force in accordance with this Act. In such cases, it shall enter into a contract for entrustment with the Korea Lottery Commission within 60 days from the date this Act enters into force.
(3) A person entrusted with the business issuing online lottery tickets issued by and jointly with institutions issuing lottery tickets in accordance with Acts referred to in the subparagraphs of paragraph (1) as at the time this Act enters into force shall be deemed an entrusted business entity entrusted with the issuance of online lottery tickets by the Korea Lottery Commission in accordance with this Act.
(4) A person who issues lottery tickets according to entrustment by an institution that issues lottery tickets in accordance with Acts referred to in paragraph (1) 8 through (10) as at the time this Act enters into force shall be deemed an entrusted business entity entrusted with the issuance of lottery tickets by the Korea Lottery Commission for five years from the date this Act enters into force in accordance with this Act.
(5) A person who issues lottery tickets according to entrustment or re-entrustment by a person who is deemed an entrusted business entity in accordance with the provisions of paragraphs (2) through (4) as at the time this Act enters into force shall be deemed a re-entrusted business entity in accordance with this Act.
Article 5 Omitted.
ADDENDA <Act No. 7486, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 7678, Aug. 4, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 7798, Dec. 29, 2005>
(1) (Enforcement Date) This Act shall enter into force one month after the date of its promulgation.
(2) (Transitional Measures concerning Period of Extinctive Prescription of Prize) The amended provisions of Article 9 (1) shall also apply to a right to receive prize, the extinctive prescription of which is not completed as at the time this Act enters into force.
ADDENDA <Act No. 7849, Feb. 21, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 41 Omitted.
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8343, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8344, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8361, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8367, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8655, Oct. 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8873, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures for Members)
A member appointed or commissioned in accordance with the previous provisions as at the time this Act enters into force shall be deemed to have been appointed or commissioned in accordance with this Act. In such cases, a term of office of such member shall be the remaining period of his/her term of office.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9802, Oct. 21, 2009>
(1) (Enforcement Date) This Act shall enter into force on December 10, 2009.
(2) (Applicability) The amended provisions of Article 23 (1) and (3) concerning the distribution and appropriation of the proceeds from lottery tickets shall begin to apply from the proceeds from lottery tickets in 2010.
ADDENDUM <Act No. 9821, Dec. 29, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10361, Jun. 8, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10487, Mar. 30, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability concerning Period of Extinctive Prescription of Prize)
The amended provisions of Article 9 (1) shall also apply to a right to receive prize, the extinctive prescription of which is not completed as at the time this Act enters into force.
Article 3 (Applicability concerning Distribution of Proceeds from Lottery Tickets)
The amended provisions of the proviso to Article 23 (1) shall begin to apply from the proceeds from lottery tickets in 2012.
Article 4 (Applicability concerning Return of Remaining Amount to Lottery Fund)
The amended provisions of Article 29-2 shall begin to apply from the first unused amount after this Act enters into force.
ADDENDA <Act No. 11048, Sep. 15, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 12989, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2015.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13426, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 39 Omitted.
ADDENDUM <Act No. 14043, Mar. 2, 2016>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 14097, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability Concerning Submission, etc. of Plan for Appropriation of Proceeds from Lottery Tickets)
The amended provisions of Article 24 shall begin to apply from the first case where a plan for appropriation of the proceeds from lottery tickets is submitted to the Korea Lottery Commission after this Act enters into force.
Article 3 (Applicability Concerning Submission of Application for Use of Lottery Fund)
The amended provisions of Article 26 (1) shall begin to apply from the first case where an application for use of the Lottery Fund is submitted to the Korea Lottery Commission after this Act enters into force.
Article 4 (Applicability Concerning Submission of Plan for Operation of Lottery Fund)
The amended provisions of Article 27 shall begin to apply from the first case where a plan for operation of the Lottery Fund is submitted to the Minister of Strategy and Finance after this Act enters into force.
Article 5 (Transitional Measures Concerning Restrictions on Sale of Online Lottery Tickets)
The phrase “Article 34 (3) 4” referred to in the amended provisions of Article 6 (3) shall be deemed “Article 34 (2) 4” until June 2, 2016.
ADDENDUM <Act No. 14842, Aug. 9, 2017>
This Act shall enter into force on the date of its promulgation.