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

Wholly Amended by Presidential Decree No. 13516, Dec. 17, 1991

Amended by Presidential Decree No. 13986, Oct. 5, 1993

Presidential Decree No. 14015, Dec. 6, 1993

Presidential Decree No. 14335, Jul. 23, 1994

Presidential Decree No. 14442, Dec. 23, 1994

Presidential Decree No. 14547, Mar. 6, 1995

Presidential Decree No. 15598, Dec. 31, 1997

Presidential Decree No. 16269, Apr. 30, 1999

Presidential Decree No. 20692, Feb. 29, 2008

Presidential Decree No. 21214, Dec. 31, 2008

Presidential Decree No. 23488, Jan. 6, 2012

Presidential Decree No. 24419, Mar. 23, 2013

Presidential Decree No. 25751, Nov. 19, 2014

Presidential Decree No. 28215, Jul. 26, 2017

 Article 1 (Purpose)
The purpose of this Decree is to prescribe the matters delegated by the Act on Special Cases concerning Regulation and Punishment of Speculative Acts, Etc. (hereinafter, referred to as the "Act") and those necessary for the enforcement of the Act. <Amended by Presidential Decree No. 14335, Jul. 23, 1994>
 Article 1-2 (Other Speculative Businesses)
"Business prescribed by Presidential Decree" referred to in Article 2 (1) 1 (d) of the Act means any of the following businesses:
1. Wheel-spinning business: Participants bet money and shoot or throw an arrow or other similar tools while the wheel is spinning, and the business entity gives prize money according to the symbol hit by the arrow or other tools when the wheel has stopped spinning;
2. Lottery business: The business entity gives each participant a ticket with a number on it, chooses a person to draw the lucky numbers by lottery at a fixed time, and gives prize money to any winner of lottery tickets with these numbers on them according to the designated payment criteria;
3. Gift-giving business: The business entity gives each participant a ticket with a grade marked, and then gives prize money according to the grade and to the designated payment criteria.
[This Article Newly Inserted by Presidential Decree No. 14435, Jul. 23, 1994]
 Article 2 (Matters Requiring Permission for Change in Speculative Business)
Matters that require permission for change pursuant to the Article 4 (2) of the Act shall be as follows:
1. Change of the name of the business place or the title of the business;
2. Change of the permitted business place in the same place (referring to the interior of the same building or hedge which belongs to the same owner; hereinafter the same shall apply);
3. Change of the permitted method of business;
4. Change of the permitted prize money (including the items of goods given in lieu of the prize money; hereinafter the same shall apply) or the change of the table for the awarding rate;
5. Replacement of speculative instruments installed with permission or change of the number of the installed instruments.
 Article 3 (Licensing Requirements)
"Where it is deemed particularly necessary" listed as one of the requirements for license provided for in Article 5 (1) of the Act under Article 5 (2) of the same Act means any of the following cases, deemed not to compromise the preservation of public order and good morals: <Amended by Presidential Decree No. 14442, Dec. 23, 1994; Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008>
1. Where it is deemed particularly necessary to promote public welfare (concerning Article 5 (1) 1 of the Act):
(a) Where the head of a relevant central administrative agency deems it necessary for the relief for force majeure events, natural disasters, or other equivalent disasters;
(b) Where it is required to promote any social work subsidized or sponsored by the State or any local government;
(c) Where a public agency intends to fund public works projects;
2. Where it is deemed particularly necessary to advertise goods for sale (concerning Article 5 (1) 2 of the Act): Where the head of the central administrative agency, Metropolitan City Mayor, Special Metropolitan City Mayor, or Do Governor deems it necessary to promote the sales of goods produced by such speculative business or sold in a store owned by such speculative business, in domestic and overseas markets;
3. Deleted; <by Presidential Decree No. 14547, Mar. 6, 1995>
4. Where it is deemed particularly necessary for the promotion of tourism and attraction of tourists (concerning Article 5 (1) 4 of the Act):
(a) Where a person intends to conduct his/her speculative business within the premises of any of first-class tourist hotels or higher-end accommodations among tourist accommodation businesses, and/or within the premises of any of general resort complexes among tourist facilities businesses, which are registered with the Minister of Culture, Sports and Tourism under Article 4 (1) of the Tourism Promotion Act, and such case is deemed necessary for the promotion of tourism and attraction of tourists;
(b) Where a person intends to operate speculative business on an overseas ocean-going liner of at least 5,000 tons.
 Article 4 (Validity of License)
The period of validity of a license for each business under Article 7 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 14335, Jul. 23, 1994>
1. Lottery ticket issuing business, prize competition business, and other speculative business: 90 days;
2. Deleted. <by Presidential Decree No. 14547, Mar. 6, 1995>
 Article 5 (Validity of Conditional Business License and Relevant Matters)
(1) The period of validity of a conditional business license under Article 8 (1) of the Act shall not exceed two months from the date on which such license is granted: Provided, That where deemed unavoidable, such period may be extended only once, for a maximum of two months.
(2) When a person who has obtained a conditional license under Article 8 (1) of the Act prepares the facilities and equipment necessary for a license, the person shall file a report with the Commissioner General of National Police Agency, or with the Commissioner of the Local Police Agency (hereinafter referred to as "the granting authorities"), as prescribed by Ordinance of the Ministry of the Interior and Safety within the period prescribed in paragraph (1) of this Article. <Amended by Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008; Presidential Decree No. 24419, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28215, Jul. 26, 2017>
 Article 6 (Main Facilities, etc. Taken Over upon Succession of Business)
The main facilities and speculative instruments to be taken over at the time of the succession of the business pursuant to Articles 9 (2) and 13 (4) of the Act shall be as follows:
1. Speculative business: Facilities and speculative instruments in operation under a license for each type of speculative business pursuant to Article 4 of the Act;
2. Manufacturing business and sales business of speculative instruments: Facilities in operation, and speculative instruments being manufactured and sold, under a license granted pursuant to Article 13 (1) or (2) of the Act.
 Article 7 (Business Methods and Prize Money)
The methods of speculative business and the standards for the prize money under Article 11 (1) of the Act shall be stated in the annexed Table.
 Article 8 (Restriction on Speculative Business)
The restrictions on business hours or the management and operation of places of speculative business under Article 11 (2) of the Act and other restrictions shall be as follows: <Amended by Presidential Decree No. 14335, Jul. 23, 1994; Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008; Presidential Decree No. 24419, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28215, Jul. 26, 2017>
1. Common matters:
(a) No business entity shall operate his/her business any time other than the business hours prescribed by the Ordinance of the Ministry of the Interior and Safety;
(b) No business entity shall operate his/her business outside of its permitted place of business;
2. Lottery ticket issuing business, prize competition business, and other speculative businesses:
(a) Deleted; <by Presidential Decree No. 16269, Apr. 30, 1999>
(b) Where lottery tickets, betting tickets (referring to the tickets issued by entities of prize competition business on which answers, betting methods, amount of money, and so forth are written; hereinafter the same shall apply), lots, gift coupons, etc. (hereinafter referred to as "participation tickets") are not sold directly but in a designated box office, such designated box office shall be managed in accordance with Ordinance of the Ministry of the Interior and Safety;
(c) No business entity shall sell participation tickets to minors, nor have them participate in a speculative business;
(d) No business entity shall force the purchase of participation tickets;
(e) In cases of a wheel-spinning business, the following matters as well as items (b) through (d) shall be observed:
(i) The number of wheel-spinning instruments installed in the place of business shall not exceed the number prescribed by Ordinance of the Ministry of the Interior and Safety;
(ii) and (iii) Deleted; <by Presidential Decree No. 16269, Apr. 30, 1999>
3. Deleted. <by Presidential Decree No. 14335, Jul. 23, 1994>
 Article 9 (Scope of Persons Engaged in Speculative Business)
"Persons engaged in business prescribed by Presidential Decree" referred to in the main sentence of Article 12 of the Act means agents, employees, or other employed persons, regardless of name, who act for a business entity, or operate the business on a regular or temporary basis under the instruction of the business entity.
 Article 10 (Changes by Manufacturers and Sellers of Speculative Instruments Requiring Permission)
Matters that require permission for change pursuant to Article 13 (3) of the Act shall be as follows:
1. Change of the name of the business place or trade name;
2. Change of items for manufacturing or sale.
 Article 11 (Inspection of Manufacturer's and Seller's Speculative Instruments)
When speculative instruments are manufactured (referring to those produced, remodeled or repaired; hereinafter the same shall apply) by its manufacturer or imported by its seller pursuant to Article 15 (1) of the Act, the following shall be inspected: <Amended by Presidential Decree No. 14335, Jul. 23, 1994>
1. Deleted; <by Presidential Decree No. 14547, Mar. 6, 1995>
2. Speculative instruments used for the wheel-spinning business.
 Article 12 (Speculative Instruments subject to Marking)
Speculative instruments on which matters prescribed by the Ordinance of the Ministry of the Interior and Safety shall be marked pursuant to Article 16 of the Act shall be those subject to inspection under Article 11. <Amended by Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008; Presidential Decree No. 24419, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28215, Jul. 26, 2017>
 Article 13 (Obligations of Manufacturers and Sellers of Speculative Instruments)
Manufacturers and sellers of speculative instruments shall comply with the following pursuant to Article 17 of the Act: <Amended by Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008; Presidential Decree No. 24419, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28215, Jul. 26, 2017>
1. A manufacturer of speculative instruments:
(a) No person shall manufacture any speculative instrument in violation of Acts and subordinate statutes;
(b) Where he/she has discovered that any speculative instrument entrusted for remodeling or repair has been altered in violation of Acts and subordinate statutes, he/she shall report the fact to the granting authorities, as prescribed by Ordinance of the Ministry of the Interior and Safety;
(c) Where he/she has destroyed any speculative instrument at the request of a speculative business entity, he/she shall report the fact to the granting authorities, as prescribed by Ordinance of the Ministry of the Interior and Safety;
(d) He/she shall record the details regarding the manufacture of speculative instruments on a ledger and keep the same for two years;
2. A seller of speculative instruments:
(a) No person shall sell any speculative instrument in violation of Acts and subordinate statutes;
(b) Where he/she has discovered that the speculative instrument sold has been altered in violation of Acts and subordinate statutes, he/she shall report the fact to the granting authorities, as prescribed by Ordinance of the Ministry of the Interior and Safety;
(c) He/she shall record the details regarding the sales of speculative instruments on a ledger and keep the same for two years.
 Article 14 (Fees)
(1) Fees applicable under subparagraphs 1 and 2 of Article 28 of the Act shall be as follows: <Amended by Presidential Decree No. 14335, Jul. 23, 1994; Presidential Decree No. 14547, Mar. 6, 1995>
1. Business license:
(a) Lottery ticket issuing business and prize competition business: 100,000 won;
(b) Other speculative businesses: 50,000 won;
(c) Manufacturing of speculative instruments: 100,000 won;
(d) Sales of speculative instruments: 50,000 won;
2. Permission for change:
(a) Change of lottery ticket issuing business and prize competition business: 50,000 won;
(b) Change of other speculative businesses: 25,000 won;
(c) Change of manufacturing business of speculative instruments: 50,000 won;
(d) Change of sales business of speculative instruments: 25,000 won.
3. Reporting on succession:
(a) Succession of lottery ticket issuing business and prize competition business: 50,000 won;
(b) Succession of other speculative businesses: 25,000 won;
(c) Succession of manufacturing business of speculative instruments: 50,000 won;
(d) Succession of sales business of speculative instruments: 25,000 won.
(2) Fees applicable for inspections and examinations of speculative instruments conducted under subparagraphs 3 and 4 of Article 28 of the Act shall be prescribed by Ordinance of the Ministry of the Interior and Safety for each type of instruments or each item of examination and inspection. <Amended by Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008; Presidential Decree No. 24419, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28215, Jul. 26, 2017>
 Article 15 (Delegation and Entrustment)
(1) The Commissioner General of the National Police Agency shall, pursuant to Article 29 (1) of the Act, delegate to the Commissioner of the Local Police Agency the authority to grant a license for a business of selling speculative instruments or permission for change under Article 13 (2) and (3) of the Act, the authority to revoke a license and suspend business under Article 21 of the Act, and the authority to hold a hearing concerning the authority delegated among those under Article 27 of the Act. <Amended by Presidential Decree No. 15598, Dec. 31, 1997; Presidential Decree No. 16269, Apr. 30, 1999>
(2) The Commissioner General of the National Police Agency shall, pursuant to Article 29 (2) of the Act, designate a relevant professional inspection institution and entrust the designated institution with the inspection of speculative instruments under Articles 12-2 (1) and 15 (1) of the Act. <Amended by Presidential Decree No. 14335, Jul. 23, 1994>
(3) A professional inspection institution designated by the Commissioner General of the National Police Agency under paragraph (2) shall establish its business regulations concerning inspection and obtain the approval therefor from the General Commissioner of the National Police Agency, as prescribed by Ordinance of the Ministry of the Interior and Safety. The foregoing shall also apply where the institution changes such regulations. <Amended by Presidential Decree No. 14335, Jul. 23, 1994; Presidential Decree No. 16269, Apr. 30, 1999; Presidential Decree No. 20692, Feb. 29, 2008; Presidential Decree No. 24419, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28215, Jul. 26, 2017>
 Article 16 (Management of Sensitive Information and Personally Identifiable Information)
In order to perform any of the following business duties, the Commissioner General of the National Police Agency (including persons to whom the authority of the Commissioner General of the National Police Agency has been delegated or entrusted pursuant to Article 15) or the Commissioner of the Local Police Agency may, where unavoidable, deal with information on health under Article 23 of the Personal Information Protection Act, criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the said Act, or information containing resident registration numbers under subparagraph 1 of Article 19 of the said Enforcement Decree:
1. Business duties concerning a business license, etc. under Articles 4, 6 through 8 or 13 of the Act;
2. Business duties concerning succession of the status of a business entity under Article 9 or 13 of the Act;
3. Business duties concerning inspection of speculative instruments under Article 15 of the Act;
4. Business duties concerning guidance for and supervision of business entities under the Act or this Decree;
5. Business duties required to perform the duties referred to in subparagraphs 1 through 4.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning License for Casino Business and Slot Machines Business)
(1) A person who has obtained a license to operate a casino business under the previous provisions as at the time this Decree enters into force may be granted a license again under the previous provisions, notwithstanding the amended provisions of subparagraph 3 of Article 3 concerning the licensing requirements.
(2) Notwithstanding the amended provisions of subparagraphs 3 and 4 of Article 3, a person who has obtained a license to operate a slot machine business under the previous provisions as at the time this Decree enters into force may be granted a license again only once under the previous provisions after this Decree enters into force.
Article 3 (Transitional Measures concerning Awarding Rate of Slot Machines)
The awarding rate of the prize money from a slot machine installed in the place of a slot machine business under the previous provisions as at the time this Decree enters into force shall be adjusted to comply with the amended provisions in the annexed Table within the period determined by the Ordinance of the Ministry of Home Affairs.
Article 4 (Transitional Measures concerning Administrative Dispositions)
Permission granted by the administrative agencies, including the Minister of Home Affairs, Seoul Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor, other acts performed by other administrative agencies, or various reports and other acts made or done to other administrative agencies pursuant to the previous provisions as at the time when this Decree enters into force shall be deemed to be the acts conducted by, or acts done to, the administrative agencies corresponding thereto under this Decree.
Article 5 (Relations with Other Acts and Subordinate Statutes)
If other Acts and subordinate statutes cite or apply mutatis mutandis the previous Enforcement Decree of the Act on the Control of Lottery Ticket Issuance, Prize Competition Offers and Other Speculative Acts, Etc. and this Decree includes the provisions corresponding thereto, this Decree or the corresponding provisions of this Decree shall be deemed to have been cited or applied mutatis mutandis in lieu of them.
ADDENDA <Presidential Decree No. 13986, Oct. 5, 1993>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Methods of Operating Slot Machine Business) Notwithstanding the amended provisions in the annexed Table, a person who has obtained a license for a slot machine business under the previous provisions and operates the business as at the time this Decree enters into force, may operate it under the previous provisions until the end of the period specified by the Ordinance of the Ministry of Home Affairs needed to repair slot machines.
ADDENDA <Presidential Decree No. 14015, Dec. 6, 1993>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 14335, Jul. 23, 1994>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Repeal, etc. of Provisions Governing Slot Machine Business) The previous provisions shall apply to a person operating a slot machine business under the provisions of Article 2 (1) of Addenda of the Act, notwithstanding the amended provisions of subparagraph 2 of Article 4, subparagraph 2 (e) of Article 8, subparagraph 3 of Article 8, Articles 11 and 14 (1), and the annexed Table.
ADDENDA <Presidential Decree No. 14442, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 14547, Mar. 6, 1995>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 15598, Dec. 31, 1997>
This Decree shall enter into force on January 1, 1998.
ADDENDUM <Presidential Decree No. 16269, Apr. 30, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20692, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 21214, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24419, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 28215, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.