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ACT ON SPECIAL CASES CONCERNING REGULATION AND PUNISHMENT OF SPECULATIVE ACTS, ETC.

Wholly Amended by Act No. 4339, Mar. 8, 1991

Amended by Act No. 4407, Nov. 30, 1991

Act No. 4607, Dec. 27, 1993

Act No. 4778, Aug. 3, 1994

Act No. 5454, Dec. 13, 1997

Act No. 5453, Dec. 13, 1997

Act No. 5817, Feb. 5, 1999

Act No. 5943, Mar. 31, 1999

Act No. 6479, May 24, 2001

Act No. 6627, Jan. 26, 2002

Act No. 7428, Mar. 31, 2005

Act No. 7901, Mar. 24, 2006

Act No. 8852, Feb. 29, 2008

Act No. 10149, Mar. 22, 2010

Act No. 10219, Mar. 31, 2010

Act No. 11034, Aug. 4, 2011

Act No. 11048, Sep. 15, 2011

Act No. 11690, Mar. 23, 2013

Act No. 12844, Nov. 19, 2014

Act No. 13398, Jul. 20, 2015

Act No. 14476, Dec. 27, 2016

Act No. 14839, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to prescribe the matters concerning guidance for and regulation of speculation-related businesses, and the special punishment of persons, etc., who perform speculative acts by using slot machines or speculative gaming machines, besides speculation-related businesses, in order to prevent the outbreak of an excessive speculative spirit and to preserve good morals.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 2 (Definitions)
(1) The definitions of terms used in this Act shall be as follows:
1. The term "speculative act" means any act to cause gain or loss of property by collecting goods or benefits from such property (hereinafter referred to as "goods, etc.") from many people and by determining the gain or loss by coincidental means;
2. The term "speculative business" means the business falling under any of the following:
(a) Lottery ticket issuing business: The business of collecting goods, etc. from many people by using particular tickets (including those in electronic form issued by an apparatus with data processing capabilities, such as computer programs), and having the winner enjoy gain of property and the other participants suffer loss using such methods as a lottery system;
(b) Prize competition business: The business of collecting goods, etc. from the subscribers under the condition that benefits will be given to those who provide correct answers to particular survey questions or make a good guess, and having all or some of the people who have provided right answers or made a correct guess enjoy gain of property and the other participants suffer loss;
(c) Other speculative businesses: The businesses prescribed by Presidential Decree, one of which uses equipment or methods deemed likely to attract speculative minds, such as wheel-spinning, lottery, and giveaways, for the purpose of profit-making, in addition to items (a) and (b);
3. The term "manufacturing business of speculative instruments" means the business of manufacturing, remodeling, or repairing machines, machine boards, instruments, or computer programs used in a speculative business (hereinafter referred to as "speculative instruments");
4. The term "sales business of speculative instruments" means the business of selling or importing speculative instruments;
5. The term "slot machines" means the apparatuses which cause gain or loss of property to the users who have inserted coins, bills, or substitutes thereto by generating goods, etc. on a coincidence basis;
6. The term "speculative gaming machines" means the machines and apparatuses, etc. feared to attract speculative minds, such as the mechanical rolling ball machines and speculative electronic gaming machines, in addition to the slot machines under subparagraph 5.
(2) The businesses referred to in subparagraphs 2 through 4 of paragraph (1) may be further classified as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
CHAPTER II SPECULATIVE BUSINESS
SECTION 1 Business Facilities, Permission, etc.
 Article 3 (Standards for Facilities)
Any speculative business entity shall have facilities and speculative instruments prescribed by Ordinance of the Ministry of the Interior and Safety for each type of speculative business and shall maintain and manage them. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 4 (Permission, etc.)
(1) Any person who wishes to operate a speculative business shall prepare facilities, etc. referred to in Article 3, and then obtain a business license from the Commissioner of the Local Police Agency pursuant to Ordinance of the Ministry of the Interior and Safety: Provided, That where the target business area extends over at least two Special Metropolitan Cities, Metropolitan Cities, Dos, or Special Self-Governing Provinces, he/she shall obtain permission from the Commissioner General of the National Police Agency. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(2) If a person who has obtained a license under paragraph (1) intends to change important matters prescribed by Presidential Decree, he/she shall obtain permission from the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency pursuant to Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(3) Where any government agency or local government intends to do a speculative business, it shall obtain approval from the Commissioner General of the National Police Agency.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 5 (Requirements for Permission)
(1) Upon receipt of an application for permission for a speculative business prescribed in Article 4 (1), the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may grant permission therefor, only in any of the following cases:
1. Where it is deemed particularly necessary to promote public welfare;
2. Where it is deemed particularly necessary to sell and advertize goods;
3. Where it is deemed particularly necessary to promote tourism and to attract tourists.
(2) "Where it is deemed particularly necessary" as referred to in each subparagraph of paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 6 (Restriction on Permission)
The Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency shall not grant a license for a speculative business prescribed in Article 4 (1) (hereinafter referred to as "business license") in any of the following cases: <Amended by Act No. 13398, Jul. 20, 2015>
1. Where a person desires to operate the same kind of business in the same place as before within less than two years from the date on which a business license was revoked pursuant to Article 21 (2) or the place of business was closed pursuant to Article 24 (1);
2. Where a person who desires to operate a speculative business falls under any of the following:
(a) A minor, a person under adult guardianship, or a person under limited guardianship;
(b) A person who was declared bankrupt and has not yet been reinstated;
(c) Mentally ill persons referred to in subparagraph 1 of Article 3 under the Mental Health Act: Provided, That the same shall not apply to a person whom a psychiatrist deems appropriate for conducing such business;
(d) A person who organizes or finances an organization or a group under Article 4 of the Punishment of Violences, etc. Act;
(e) A person who was sentenced to imprisonment without labor or to a heavier punishment and for whom two years have not passed after the termination of, or exemption from its execution;
(f) A person who is under suspension of the execution of his/her imprisonment without labor or a heavier punishment declared by a court;
(g) A person who is under suspension of the sentence of his/her imprisonment without labor or a heavier punishment declared by a court;
(h) A juristic person, one of whose executive officers falls under any of items (a) through (g).
3. Where other Acts and subordinate statutes stipulate the prohibition of any speculation business.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 7 (Period of Validity of Business License)
(1) The period of validity of a business license for each type of speculative business shall be prescribed by Presidential Decree, but it shall not exceed three years.
(2) Any person who intends to continue his/her business after the period of validity referred to in paragraph (1) expires shall obtain a license again as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 8 (Conditional License for Business)
(1) The Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may grant a business license on the condition that a person shall prepare facilities and speculative instruments referred to in Article 3 within the period prescribed by Presidential Decree.
(2) Where a person who obtained a license referred to in paragraph (1) fails to make the facilities and speculative instruments ready within the specified period without any justifiable grounds, the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency shall revoke such license.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 9 (Succession of Business, etc.)
(1) Any of the following persons which falls under any of the following subparagraphs shall succeed to the status of a business entity which has obtained a business license (hereinafter referred to as "business entity"):
1. If a business entity ceases to exist, its successor;
2. If a business entity has transferred its business, the transferee;
3. If a business entity merges into a juristic person, the juristic person surviving the merger or the juristic person newly established by the merger.
(2) A business entity which has taken over all business facilities and speculative instruments (referring to main facilities and speculative instruments prescribed by Presidential Decree) in accordance with any of the following procedures shall succeed to the status of the previous business entity. In such cases, the license granted to the previous speculative business entity shall lose its validity: <Amended by Act No. 14476, Dec. 27, 2016>
1. Auction under the Civil Execution Act;
3. Sale of seized properties under the National Tax Collection Act, the Customs Act, or Local Tax Collection Act;
4. Other procedures similar to those prescribed in subparagraphs 1 through 3.
(3) Any business entity which has succeeded to the status of a business entity under paragraph (1) or (2) shall report the fact to the Commissioner General of the National Police Agency or to the Commissioner of the Local Police Agency within one month from the date of such succession, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(4) Article 6 prescribing restrictions on license shall apply mutatis mutandis to succession referred to in paragraphs (1) and (2).
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
SECTION 2 Operation of Business
 Article 10 Deleted. <by Act No. 5943, Mar 31, 1999>
 Article 11 (Methods of and Restrictions on Business)
(1) Matters pertaining to business methods and prize money shall be prescribed by Presidential Decree.
(2) If the Commissioner General of the National Police Agency deems it necessary for the public interest or to prevent an excessive speculative spirit to preserve good morals, he/she may place necessary restrictions on the business hours of a speculative business, the management and operation of places of business, and other matters concerning the business.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 12 (Obligations of Business Entities)
Any business entity (including those engaged in the business prescribed by Presidential Decree) shall observe the following matters, the matters prescribed by Presidential Decree concerning business methods and prize money, and restrictions on business hours, etc. under Article 11: <Amended by Act No. 11048, Sep. 15, 2011; Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
1. It shall not lend its business name to anyone;
2. It shall not install or use any speculative instrument violating relevant Acts and subordinate statutes;
3. It shall not alter any speculative instrument, in violation of Acts and subordinate statutes;
4. It shall not admit any juvenile (referring to the juveniles under subparagraph 1 of Article 2 under the Juvenile Protection Act; hereinafter the same shall apply) into places of a speculative business specified by Ordinance of the Ministry of the Interior and Safety, or shall not permit any participation of juveniles in the speculative business, which uses information and communications networks including the Internet;
5. It shall not place a commercial or advertisement which might be detrimental to good morals by inducing an excessive speculative spirit.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 12-2 (Inspection of Speculative Instruments of Business Entities)
(1) Where a business entity operates its business using speculative instruments, such instruments shall undergo an inspection conducted by the Commissioner General of the National Police Agency to see whether the relevant instruments satisfy the standards and criteria prescribed in Article 14 (1) or (2) pursuant to Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(2) Article 15 (2) and (4) shall apply mutatis mutandis to the attachment of a certificate of inspection, the procedures and methods for inspection, and so forth.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
CHAPTER III MANUFACTURE, SALE, ETC., OF SPECULATIVE INSTRUMENTS
 Article 13 (Permission, etc., for Business of Manufacturing Speculative Instruments)
(1) Any person who desires to manufacture speculative instruments shall prepare facilities, equipment, personnel, etc. prescribed by Ordinance of the Ministry of the Interior and Safety, and obtain a license from the Commissioner General of the National Police Agency, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(2) Any person who desires to sell speculative instruments shall obtain a license from the Commissioner General of the National Police Agency, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(3) Where a person who has obtained a license for manufacturing speculative instruments referred to in paragraph (1) (hereinafter referred to as "manufacturer of speculative instruments") and a person who has obtained a license for selling speculative instruments referred to in paragraph (2) (hereinafter referred to as "seller of speculative instruments") intends to change any important matters prescribed by Presidential Decree, he/she shall obtain permission therefor from the Commissioner General of the National Police Agency, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(4) Articles 6, 8, and 9 shall apply mutatis mutandis to restrictions on granting a license or a conditional license for a business of manufacturing and selling speculative instruments referred to in paragraphs (1) and (2) and succession of such business.
(5) Any manufacturer of speculative instruments shall be deemed to have obtained a license for selling speculative instruments referred to in paragraph (2).
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 14 (Standards and Criteria for Speculative Instruments)
(1) If the Commissioner General of the National Police Agency deems it necessary, he/she may determine the standards and criteria for the shape, structure, materials, functions, etc., of speculative instruments.
(2) If any speculative instruments, the standards and criteria referred to in paragraph (1) of which have not been established, but which have been examined by an inspecting institution designated by the Minister of the Interior and Safety, as prescribed by Ordinance of the Ministry of the Interior and Safety, the Commissioner General of the National Police Agency may deem that the speculative instruments meet the standards and criteria for speculative instruments. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(3) Speculative instruments to be exported may be manufactured in accordance with the standards and criteria demanded by an importer, notwithstanding paragraphs (1) and (2).
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 15 (Inspections of Speculative Instruments for Manufacturers, etc. of Speculative Instruments)
(1) If any manufacturer or seller of speculative instruments (hereinafter referred to as "manufacturer or seller of speculative instruments") has manufactured (referring to the production, remodeling, or repair; hereinafter the same shall apply) or imported the speculative instruments prescribed by Presidential Decree, each item of the speculative instruments shall undergo inspection by the Commissioner General of the National Police Agency to see whether such item satisfies the standards and criteria referred to in Article 14 (1) or (2), as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(2) A certificate of inspection shall be affixed to the speculative instruments which have passed an inspection referred to in paragraph (1), as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(3) Any manufacturer or seller of speculative instruments shall keep the records of the matters inspected pursuant to paragraph (1) for three years from the date of inspection, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(4) Matters concerning the inspection method, procedure, etc., referred to in paragraph (1) shall be determined by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 16 (Marking Criteria)
Any manufacturer or seller of speculative instruments shall mark the matters determined by Ordinance of the Ministry of the Interior and Safety on the speculative instruments prescribed by Presidential Decree, and shall not make a false mark. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 17 (Obligations of Manufacturers or Sellers of Speculative Instruments)
Any manufacturer or seller of speculative instruments shall observe the matters concerning the business prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
CHAPTER IV GUIDANCE FOR, SUPERVISION, ETC., OF SPECULATIVE BUSINESS ENTITIES
 Article 18 (On-Site Inspection)
(1) If particularly necessary, the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may request a business entity, manufacturer, or seller of speculative instruments (hereinafter referred to as "business entity, etc.") to make a necessary report, or request any relevant public official to enter the place of business to inspect business facilities, speculative instruments, relevant documents, books, etc., and whether the business entity, etc. meet the required obligations. In such cases, the public official may also inspect the speculative business using the information and communications networks, such as the Internet.
(2) The relevant public official who enters the place of business to conduct inspection pursuant to paragraph (1) shall carry with him/her a certificate indicating his/her authority and present it to interested persons.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 19 (Administrative Guidance, Correction Order, etc.)
(1) If the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency deems it necessary for the public interest or for the preservation of good morals, including the prevention of an excessive speculative spirit, he/she may provide necessary guidance and issue orders to a business entity, etc.
(2) The Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may order the repair or improvement of facilities, or order correction thereof immediately or within a designated period in any of the following cases:
1. Where business facilities, etc. fail to satisfy the standards prescribed in Article 3 or 13 (1);
2. Where a business entity, etc. violates this Act or any order issued under this Act.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 20 (Disposal, etc.)
Where any speculative instrument fails to satisfy the standards and criteria provided in Article 14 (1) or (2) or is sold without inspection required under Article 15, the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may order a person who manufactured or imported the speculative instrument to collect and dispose of the instrument, or may assign a relevant public official to do so.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 21 (Administrative Dispositions)
(1) Where a business entity falls under any of subparagraph 2 of Article 6, the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency shall revoke its business license. In such cases, if the business entity is a juristic person and falls under subparagraph 2 (h) of Article 6, he/she shall give a grace period of at least three months for the replacement of such executive officer before the license is revoked.
(2) Where a business entity, etc. violates this Act or any order issued under this Act, the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may revoke its business license or may order the suspension of business, specifying a period of up to six months.
(3) Detailed standards for the administrative dispositions issued under paragraph (2) shall be determined by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 22 Deleted. <by Act No. 5456, Dec 13, 1997>
 Article 23 (Succession of Effect of Administrative Dispositions)
Where a succession of business occurs pursuant to Article 9 (1) (including the cases applied mutatis mutandis under Article 13 (4)), the effect of an administrative disposition issued for a previous business entity, etc. shall devolve on a successor business entity, etc. for one year after the expiration of the disposition order issued pursuant to Article 21 (2), while where the procedures for an administrative disposition are in progress, the procedures may continue for the successor business entity, etc.: Provided, That this shall not apply to the cases where a successor business entity, etc. (excluding a person who has succeeded to a business by inheritance) proves that it was not aware of an administrative disposition on or a violation by a previous business entity, etc, as at the time of succession of business.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 24 (Measures, etc. for Closure)
(1) Where a business entity operates its speculative business, or manufactures or sells speculative instruments without a license prescribed in Articles 4 (1) and (2), 7 (2), or 13 (1) through (3), or where a business entity continues to operate such business even after a license therefor has been revoked or it was given a suspension order under Article 21 (1) or (2), the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency may request a relevant public official to take the following measures to close down the place of business concerned:
1. Removal of the signboard of the place of business concerned and other signs indicating the business;
2. Posting notices, etc. to inform people that the place of business concerned is illegal;
3. Sealing for the purposes of disallowing the use of facilities or instruments indispensable to its business activities.
(2) After the seal referred to in paragraph (1) 3 is affixed, the seal may be removed if any of the following grounds arises: Provided, That the same shall apply even in cases where a notice has been posted pursuant to paragraph (1) 2:
1. Where the seal is deemed unnecessary;
2. Where the business entity, etc. or its agent promises to close down the place of business concerned;
3. Where the business entity, etc. or its agent requests the removal for a justifiable reason;
(3) When the measures referred to in paragraph (1) are taken, the business entity, etc. concerned or its agent shall be informed in advance thereof in writing: Provided, That this shall not apply to cases where urgent circumstances exist.
(4) The measures referred to in paragraph (1) shall be permitted to such a minimum extent to disallow the business.
(5) Any relevant public official in charge of closing down the place of business pursuant to paragraph (1) shall carry with him/her a certificate indicating his/her authority and present it to interested persons.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 25 (Matters to be Observed by Users of Places of Speculative Business)
(1) A user of the place of speculative business concerned shall not demand the business entity do acts which might induce an excessive speculative spirit or be detrimental to good morals as determined by Ordinance of the Ministry of the Interior and Safety. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 12844, Nov. 19, 2014; Act No. 14839, Jul. 26, 2017>
(2) Where a business entity requests a person entering the place of speculative business to show his/her resident registration certificate, etc. or inquire him/her about the matters concerning his/her identification in order to confirm whether he/she is a juvenile, the person concerned shall cooperate with the business entity.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
CHAPTER V ORGANIZATION RELATED TO SPECULATIVE BUSINESS
 Article 26 (Establishment of Business Entities’ Association)
(1) Business entities, etc. may establish a nation-wide business entities’ associations for each type of business (hereinafter referred to as "association") in order to promote the sound development of the business.
(2) The association established under paragraph (1) shall be a juristic person.
(3) The association may have its branches or chapters in accordance with its articles of association.
(4) The provisions pertaining to incorporated association under the Civil Act shall apply mutatis mutandis to the matters with respect to an association which are not stipulated in this Act.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
CHAPTER VI SUPPLEMENTARY PROVISIONS
 Article 27 (Hearings)
Where the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency intends to revoke a business license pursuant to Article 21 or revoke permission to establish an association pursuant to the Civil Act, he/she shall hold a hearing.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 27-2 Deleted. <by Act No. 5943, Mar 31, 1999>
 Article 28 (Fees)
In any of the following cases, a fee shall be paid, as prescribed by Presidential Decree:
1. License under Articles 4 (1) and (2), 7 (2), and 13 (1) through (3);
2. Reporting of business succession under Article 9 (3) (including the cases applied mutatis mutandis under Article 13 (4));
3. Inspections of speculative instruments under Articles 12-2 (1) and 15 (1);
4. Examinations of speculative instruments under Article 14 (2).
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 29 (Delegation and Entrustment of Authority)
(1) The Commissioner General of the National Police Agency may delegate some of his/her authority prescribed in this Act to the Commissioner of the Local Police Agency or to the chief of a police station, as prescribed by Presidential Decree.
(2) The Commissioner General of the National Police Agency may entrust the inspection of the speculative instruments prescribed in Articles 12-2 (1) and 15 (1) to a professional inspection institution, as prescribed by Presidential Decree.
(3) The executive officers and employees carrying out an inspection at the inspecting institution referred to in Article 14 (2) or the executive officers and employees performing inspection affairs at the professional inspection institution under paragraph (2) shall be deemed to be public officials in the application of Articles 129 through 132 of the Criminal Act.
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
CHAPTER VII PENALTY PROVISIONS
 Article 30 (Penalty Provisions)
(1) Any of the following persons shall be punished by imprisonment with labor for up to five years or by a fine of up to 50 million won:
1. Any person who operates a speculative business by using slot machines or speculative gaming machines, other than the speculative business;
2. Any person who sells slot machines or speculative gaming machines to any of the persons engaged in the speculative business referred to in subparagraph 1, or who manufactures or imports them for sale.
(2) Any of the following persons shall be punished by imprisonment with labor for up to three years or by a fine of up to 20 million won:
1. Any person who operates his/her business without obtaining a license under Article 4 (1) or 7 (2);
2. Any person who installs, uses, or alters any speculative instruments, in violation of subparagraph 2 or 3 of Article 12;
3. Any person who operates his/her business without obtaining a license under Article 13 (1) or (2).
(3) Any of the following persons shall be punished by imprisonment with labor for up to one year or by a fine of up to 10 million won:
1. Any person engaged in his/her business without permission for change under Article 4 (2) or 13 (3);
2. Any person engaged in his/her business without making a report on succession, in violation of Article 9 (3) (including the cases applied mutatis mutandis under Article 13 (4));
3. Any person engaged in his/her business without observing the matters prescribed by Presidential Decree concerning business methods and prize money under Article 11 or restrictions on business hours, etc., in violation of Article 12, excluding its subparagraph;
4. Any person who has lent his/her business name to others, in violation of subparagraph 1 of Article 12;
5. Any person who has allowed the entry or participation of juveniles, in violation of subparagraph 4 of Article 12;
6. Any person who has placed an advertisement or a commercial, in violation of subparagraph 5 of Article 12;
7. Any person who has run his/her business using speculative instruments which have not undergone inspection under Article 12-2;
8. Any person who has sold any speculative instruments which have not undergone inspection under Article 15 (1);
9. Any person who has damaged or removed a certificate of inspection referred to in Article 15 (2) (including the cases applied mutatis mutandis under Article 12-2 (2));
10. Any person who has failed to keep the inspection records, in violation of Article 15 (3);
11. Any person who has sold speculative instruments without labels or with false labels, in violation of Article 16;
12. Any person who has failed to make a report under Article 18 (1) or has filed a false report, and who has refused, obstructed, or evaded the entry of, inspection by, and other dispositions by a relevant public official;
13. Any person who has failed to comply with an order to repair, to improve, or to correct issued under Article 19 (2);
14. Any person who has performed his/her business during business suspension, in violation of a business suspension order under Article 21 (2).
[This Article Wholly Amended by Act No. 11034, Aug. 4, 2011]
 Article 31 (Joint Penalty Provisions)
If the representative of a juristic person, or an agent, a servant or any other employee of a juristic person or an individual commits an offense specified in Article 30 in connection with the affairs of the juristic person or the individual, not only shall such offender be punished accordingly, but the juristic person or the individual shall also be subject to a fine provided for in the Article: Provided, That the foregoing shall not apply where the juristic person or the individual has not been negligent in giving due attention and supervision concerning the relevant affairs to prevent such offense.
[This Article Wholly Amended by Act No. 10149, Mar. 22, 2010]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 Omitted.
Article 3 (Transitional Measures concerning Administrative Dispositions)
Permission granted by administrative agencies, including the Minister of Home Affairs, Seoul Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor and other acts performed by the administrative agencies, or various reports and other acts made or done to the administrative agencies pursuant to the previous provisions as at the time this Act enters into force, shall be deemed to be acts performed by, or done to, the administrative agencies corresponding thereto as prescribed in this Act.
Article 4 (Relation to Other Acts and Subordinate Statutes)
Where other Acts and subordinate statutes cite or apply mutatis mutandis the previous Act on the Control of Lottery Ticket Issuance, Prize Competition Offers and Other Speculative Acts effective as at the time this Act enters into force, and this Act includes the provisions corresponding thereto, this Act or the corresponding provisions of this Act shall be deemed to have been cited or applied to in lieu of the previous provisions.
ADDENDA <Act No. 4407, Nov. 30, 1991>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures) Permission, approval, revocation of permission, and suspension of and restriction on business issued by the Minister of Home Affairs or Mayor/Do Governor under the previous provisions as at the time this Act enters into force shall be deemed to be those by the Commissioner General of the National Police Agency or the Commissioner of the Local Police Agency under this Act.
(3) (Transitional Measures) A report made to the Minister of Home Affairs or Mayor/Do Governor under the previous provisions as at the time this Act enters into force shall be deemed to have been made to the Commissioner General of the National Police Agency or to the Commissioner of the Local Police Agency under this Act.
ADDENDA <Act No. 4607, Dec. 27, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Abolition, etc., of Provisions Governing Slot Machine Business)
(1) A person who has obtained a license for a slot machine business or other speculative business operated by mechanical bead throwing under the previous provisions as at the time this Act enters into force may continue his/her business under the previous provisions until such license expires notwithstanding the amended provisions of Articles 2 (1) 1 (c) and (d), 5 (1), and 30 (1) 4.
(2) The amended provisions of Article 12-2, subparagraph 4 of Article 28, and Article 30 (2) 7-2 and 9 shall be applicable to a person who operates his/her business pursuant to paragraph (1) of this Article.
(3) The amended provisions of Article 30 (1) 5 shall not be applicable to a person who has sold the speculative instruments concerned to the person operating his/her business pursuant to paragraph (1) of this Article or who has manufactured or imported them for sale to such person.
ADDENDA <Act No. 4778, Aug. 3, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 5453, Dec. 13, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5817, Feb. 5, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1999. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 5943, Mar. 31, 1999>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 6479, May 24, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6627, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2002.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 7901, Mar. 24, 2006>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Application of Penalty Provisions) The previous provisions shall apply in the application of penalty provisions to acts conducted by persons who operate their business using slot machines, mechanical rolling ball machines, or electronic speculative gaming machines or persons who have manufactured or imported them for sale before this Act enters into force.
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. 10149, Mar. 22, 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.
ADDENDUM <Act No. 11034, Aug. 4, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11048, Sep. 15, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one years after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 13398, Jul. 20, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 (Transitional Measures concerning Grounds for Disqualification of Incompetent Persons, etc.)
Notwithstanding the amended provisions of subparagraph 2 (a) of Article 6, the previous provisions shall apply to persons for whom the declaration of incompetency or quasi-incompetency continues to be valid under Article 2 of the Addenda to the Civil Act (Act No. 10429) as at the time such amended provisions enter into force.
ADDENDA <Act No. 14476, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That any Act amended by Article 5 of this Addenda which was promulgated before this Act enters into force but the enforcement date of which has yet to arrive, shall enter into force on the date of each relevant Act.
Articles 2 through 6 Omitted.