MUSIC INDUSTRY PROMOTION ACT
Act No. 8852, Feb. 29, 2008
Amended by Act No. 9493, Mar. 18, 2009
Act No. 7942, Apr. 28, 2009
Act No. 10115, Mar. 17, 2010
Act No. 10219, Mar. 31, 2010
Act No. 10219, Mar. 31, 2010
Act No. 10369, jun. 10, 2010
Act No. 10629, May 19, 2011
Act No. 11998, Aug. 6, 2013
Act No. 13306, May 18, 2015
Act No. 14082, Mar. 22, 2016
Act No. 14476, Dec. 27, 2016
Act No. 15379, Feb. 21, 2018
CHAPTER I GENERAL PROVISIONS
The purposes of this Act are to enhance the quality of cultural life of the nation and to contribute to the growth of the national economy by providing for matters necessary for promoting the music industry and facilitating the growth of related industries.
The terms used in this Act are as follows: <Amended by Act No. 10369, Jun. 10, 2010>
| 1. | The term "music" refers to a form of expression in which thoughts and emotions are expressed through sound, by arranging rhythm, melody, harmony, tone, and other elements in accordance with certain rules and formats; |
| 2. | The term "music industry" refers to the industry for creation, public performance, and education of music; production, distribution, exportation, and importation of music records, music files, music video products, and music video files; production of music instruments and sound equipment; karaoke businesses; and other industries related to the afore-stated industry; |
| 3. | The term "sound signals" refers to certain sound or expression of sound that can be set in a tangible material or contained in electronic format; |
| 4. | The term "music record" refers to sound signals produced by being set in a tangible material that can be replayed for listening; |
| 5. | The term "music file" refers to sound signals produced in an electronic format or recorded in an electronic device so that they can be readily reproduced, transferred, transmitted, or received; |
| 6. | The term "music video product" refers to sound signals produced in combination with images to express the meaning of the sound signals, and includes image products related to performances of music; |
| 7. | The term "music video file" refers to a music video product produced in an electronic format or recorded in an electronic device that can be readily reproduced, transferred, transmitted, or received; |
| 8. | The term "music record and music-video production business" refers to a business that engages in planning and producing or reproducing music records, music files, music video products, or music video files (hereinafter referred to as "music records, etc."); |
| 9. | The term "music record and music-video distribution business" refers to a business that supplies music record and music-video retailers or online music service providers with music records, etc. by importing music records, etc. (including importing original records) or owning or managing copyright of music records, etc.; |
| 10. | The term "music record and music-video retail business" refers to a business that sells music records or music video products directly to consumers; |
| 12. | The term "identification mark" refers to an identification number, code, or any similar mark given by the Minister of Culture, Sports and Tourism to each music record, etc., pursuant to Article 23 of the Content Industry Promotion Act, that can be readily utilized in statistics of distribution, search, and inspection; |
| 13. | The term "karaoke business" refers to a business that provides the general public with the use of accompaniment machines, with or without images, and other facilities, along with which people can sing songs in the accompaniment of pre-recorded music without performers of any instrument; |
| Article 3 (Establishment and Implementation of Comprehensive Plan for Promotion of Music Industry) |
| (1) | The Minister of Culture, Sports and Tourism shall establish and implement a comprehensive plan necessary to promote the music industry (hereinafter referred to as the "comprehensive plan"). In such cases, the Minister may consult with the heads of central administrative agencies concerned, if necessary. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The comprehensive plan shall contain details of the following: |
| 1. | Matters concerning establishment of a medium and long-term basic plan and improvement of statutes, and systems; |
| 2. | Matters concerning stimulation of creative activities; |
| 3. | Matters concerning promotion of exportation and the creation of job opportunities; |
| 4. | Matters concerning development and dissemination of technology; |
| 5. | Matters concerning specialization of distribution and improvement of distribution channels; |
| 6. | Matters concerning development of the industry, including support for start-up businesses; |
| 7. | Matters concerning fostering of specialized human resources; |
| 8. | Matters concerning establishment of infrastructure; |
| 9. | Matters concerning international cooperation; |
| 10. | Matters concerning guidance for and control of music records, etc., illegally produced, sold or distributed (hereinafter referred to as "distributed"), or provided for use; |
| 12. | Other matters concerning sound growth and fostering of related business establishments. |
| (3) | The Minister of Culture, Sports and Tourism shall establish and implement a detailed implementation plan in accordance with the comprehensive plan under paragraphs (1) and (2). Necessary matters for such plans shall be prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008> |
CHAPTER II PROMOTION OF MUSIC INDUSTRY
| Article 4 (Support for Startup Businesses and Production) |
| (1) | The Minister of Culture, Sports and Tourism may provide support necessary for stimulation for start-up businesses for the music industry and stable growth and development of new business starters. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The Minister of Culture, Sports and Tourism may grant a loan for all or part of financial resources required by music composers and producers of music records or music video products or may provide other support to strengthen the competitiveness of the music industry and promote the development of music products of superior quality. <Amended by Act No. 8852, Feb. 29, 2008> |
| (3) | Matters necessary for the procedure for providing support pursuant to paragraphs (1) and (2) and other relevant matters shall be prescribed by Presidential Decree. |
| Article 5 (Management, etc. of Data concerning Music Industry) |
| (1) | The Minister of Culture, Sports and Tourism shall collect, survey, preserve, and supply data, information, and statistics concerning the music industry at large, within Korea and overseas, including data relevant to music records, etc., the technical level of the music industry, research trend, market trend, and the current status of business operators for the promotion of music industry. The Minister may take necessary measures for these purposes, such as requesting any institution or organization concerned to submit data, and the institution or organization which is requested to submit data or any other material shall fully cooperate to comply with such request. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The Minister of Culture, Sports and Tourism may designate or establish and operate an institution responsible for the management of data and information related to the music industry in order to carry out the business affairs under paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008> |
| (3) | Matters necessary for implementing the matters referred to in paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
| Article 6 (Fostering of Specialized Human Resources) |
| (1) | The Minister of Culture, Sports and Tourism shall take the following measures to foster specialized human resources required for laying the foundation for the music industry: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. | Maintaining the balance of supply of and demand for human resources for the music industry and securing good specialized human resources; |
| 2. | Strengthening cooperation between the industry, academia, and the Government; |
| 3. | Increasing opportunities for training and international exchanges of specialized human resources; |
| 4. | Strengthening research infrastructure and education capability of academia; |
| 5. | Increasing opportunities for advancement of specialized human resources into the related industries; |
| 6. | Other matters for fostering human resources for the music industry. |
| (2) | Matters necessary for implementing the matters under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 7 (Promotion of Development of Technology) |
The Minister of Culture, Sports and Tourism shall establish a medium and a long-term plan necessary for the development of music-related technology and implement the following matters to develop technology necessary for laying the foundation for the music industry and raise technical level: <Amended by Act No. 8852, Feb. 29, 2008>
| 1. | Matters concerning surveys on the trends of and demand for technology and the research, development, evaluation, and utilization of technology; |
| 2. | Matters concerning cooperation in, guidance for, and transfer of technology and smooth distribution of technical information; |
| 3. | Matters concerning linkages between institutions related to music technology and creation of an environment for efficient development of technology; |
| 4. | Other matters prescribed by Ordinance of the Ministry of Culture, Sports and Tourism in connection with the development of music technology. |
| Article 8 (Collaborative Development and Research) |
| (1) | The Minister of Culture, Sports and Tourism shall endeavor to facilitate collaborative development and research by sharing human resources, facilities, equipment, materials, funds, information, and other resources for the development and research of music records, etc. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The Minister of Culture, Sports and Tourism may subsidize any person who promotes collaborative development and research referred to in paragraph (1) for all or part of the expenses incurred therein. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 9 (Promotion of Standardization) |
| (1) | The Minister of Culture, Sports and Tourism shall promote the standardization of music records or the like for the efficient development of music records, etc., the improvement of quality, and the assurance of universality, and may prescribe matters necessary for the scope of such standardization and other relevant matters by Ordinance of the Ministry of Culture, Sports and Tourism and recommend them. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The Minister of Culture, Sports and Tourism may, if necessary for promoting projects for the standardization referred to in paragraph (1), designate an institution or organization specializing in the music industry to carry out such standardization projects and may also grant a subsidy for all or part of the expenses incurred in the standardization projects. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 10 (Revitalization of Distribution) |
The Minister of Culture, Sports and Tourism shall enforce the labeling of music records, etc. with identification marks to for sound distribution of music records, etc., and shall establish and implement necessary policies therefor. <Amended by Act No. 8852, Feb. 29, 2008>
| Article 11 (Education of Karaoke Business Entities) |
| (1) | In any of the following cases, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (Gu means an autonomous Gu; hereinafter the same shall apply) may require karaoke business entities to attend an educational course on their respective obligations, preventive measures against disasters, amendments to systems, and other relevant matters, as specified by Presidential Decree: <Amended by Act No. 15379, Feb. 21, 2018> |
| 1. | Where a person registers his/her newly established karaoke business; |
| 2. | Where there is any amendment to a system concerning the operation of karaoke businesses, the preventive measures against disasters, or any other matter; |
| 3. | Where a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu deems it necessary to conduct an educational course. |
| (2) | Notwithstanding paragraph (1), a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu shall conduct an education course for karaoke business entities falling under paragraph (1) 1. In such cases, educational courses may be conducted collectively once each month or each quarter. <Amended by Act No. 15379, Feb. 21, 2018> |
| Article 12 (Assistance in International Cooperation and Advancement into Overseas Markets) |
| (1) | The Minister of Culture, Sports and Tourism shall lay a foundation for boosting international cooperation and exchange of the music industry and raising the international standing of the industry. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | In order to promote advancement of music records, etc. into overseas markets, the Minister of Culture, Sports and Tourism may provide support for activities to establish cooperative systems in relation to exportation, including joint production with foreign countries, assistance in marketing and advertising activities in overseas markets, inducing of foreign investments, and holding of international music record fairs. <Amended by Act No. 8852, Feb. 29, 2008> |
| (3) | The Minister of Culture, Sports and Tourism may establish and operate offices in foreign countries in order to efficiently promote the activities referred to in paragraphs (1) and (2). <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 13 (Revitalization of Music Performances) |
The Minister of Culture, Sports and Tourism may subsidize any person who intends to install and operate facilities for public performance or who intends to conduct a public performance for part of the expenses incurred therein in order to revitalize music performances. <Amended by Act No. 8852, Feb. 29, 2008>
| Article 14 (Protection of Intellectual Property Rights) |
| (1) | The Minister of Culture, Sports and Tourism shall take measures to protect intellectual property rights to music records, etc. in order to protect and foster creative activities for music records, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10629, May 19, 2011> |
| (2) | The Minister of Culture, Sports and Tourism may support the following activities to prevent illegal reproduction or distribution of music records, etc.: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10629, May 19, 2011> |
| 1. | Technical protective measures for music records, etc., and labeling of information concerning control of rights; |
| 2. | Education and public relations activities related to intellectual property rights, such as copyright to music records, etc.; |
| 3. | Other matters relevant to the protection of intellectual property rights. |
| (3) | The Minister of Culture, Sports and Tourism may designate a specialized institution or organization, and entrust relevant activities referred to in paragraph (2) to the institution or organization so designated, in accordance with Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | If necessary to protect the intellectual property rights of music records, etc., the Minister of Culture, Sports and Tourism may request the heads of the relevant central administrative agencies to render cooperation for the improvement of relevant systems, rationalization of operation, etc. <Newly Inserted by Act No. 15379, Feb. 21, 2018> |
| Article 15 (Protection of Users’ Rights) |
| (1) | The Minister of Culture, Sports and Tourism shall take measures for the following matters to protect users’ rights in promoting the music industry: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. | Public relations and educational activities for the use of music records, etc. in a sounder manner; |
| 2. | Social responsibility of persons engaged in the music industry, for protecting users of music records, etc.; |
| 3. | Remedial measures for complaints of and damages to users of music records, etc.; |
| 4. | Other matters relevant to the protection of users of music records, etc.. |
| (2) | Every person who engages in a business of producing or distributing music records, etc. or providing the same for use shall fully cooperate in promoting protective measures for users of music records, etc. referred to in paragraph (1). |
CHAPTER III REPORTING OR REGISTRATION OF BUSINESSES AND DISTRIBUTION OF MUSIC RECORDS, ETC.
SECTION 1 Reporting, Registration, and Operation of Businesses
| Article 16 (Reporting of Music Record and Music-Video Production Businesses, etc.) |
| (1) | Any person who intends to run a music record and music-video production business or a music record and music-video distribution business shall file a report with the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as "competent Mayor/Do Governor"): Provided, That such reporting may be omitted in any of the following cases: <Amended by Act No. 9493, Mar. 18, 2009; Act No. 15379, Feb. 21, 2018> |
| 1. | Where the State or a local government produces a music record, etc.; |
| 2. | Where an educational institution or training institute established pursuant to statutes produces a music record, etc. for use in its own educational or training program; |
| 3. | Where a broadcasting business operator under the Broadcasting Act produces a music record, etc. for use in broadcasting; |
| 5. | Where a person produces a music record, etc. for use in the four ceremonial occasions of coming-of-age, marriage, funeral, or ancestral rite, or religious rituals: Provided, That the same shall not apply where it is distributed, played, or provided for use to the general public; |
| 6. | Other cases specified by Presidential Decree. |
| (2) | Any person who intends to run an online music service business shall file a report with the competent Special Self-Governing City Mayor, the competent Special Self-Governing Province Governor, or the head of the competent Si/Gun/Gu: Provided, That the same shall not apply to an online music service business specified by Presidential Decree. <Amended by Act No. 15379, Feb. 21, 2018> |
| (3) | Any business operator specializing in the production or distribution of music video products or music video files shall, if he/she completes the reporting pursuant to paragraph (1), be deemed to have filed a report on his/her business specializing in the production or distribution of video products referred to in Article 57 of the Promotion of the Motion Pictures and Video Products Act. |
| (4) | Necessary matters concerning the procedure for and method of reporting and the management thereof in accordance with paragraphs (1) and (2) and other relevant matters shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 17 (Rating, etc. of Music Video Products) |
| (2) | As to the rating and sale (including service provided by an online music service provider) of music video products and music video files, Articles 50 through 56, 65, and 66, subparagraph 5 through 7 of Article 95, Articles 97, 98 (1) 4 through 6, 98 (2) 8, and 99 shall apply mutatis mutandis. In such cases, the term "video product" shall be construed as "music video product or music video file." |
| Article 18 (Registration of Karaoke Business) |
| (1) | Any person who intends to run a karaoke business shall have facilities suitably equipped for a karaoke business prescribed by Ordinance of the Ministry of Culture, Sports and Tourism and shall file an application for registration thereof with the competent Special Self-Governing City Mayor, the competent Special Self-Governing Province Governor, or the head of the competent Si/Gun/Gu. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 15379, Feb. 21, 2018> |
| (2) | Necessary matters concerning the procedure for and method of registration pursuant to paragraph (1) and the management thereof and other relevant matters shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 19 (Restriction on Business Operation) |
Any person who intends to file a report or an application for registration in accordance with Article 16 or 18, but who falls under any of the following subparagraphs, cannot file a report or application for the registration under Article 16 or 18: | 1. | If a person (in cases of a legal entity, including the representative or executive), whose business has been closed down or the registration of whose business was cancelled by an order or disposition under Article 27 (1) or whose business operation has been suspended by a disposition, intends to run the same type of business again before the lapse of one year since the order or disposition was issued or made, or intends to resume operation of his/her business before the end of the business suspension period; |
| 2. | If a karaoke machine business operator, whose business has been closed down or the registration of whose business was cancelled by an order or disposition under Article 27 (1) or whose business operation was suspended by a disposition, intends to run the same type of business again at the same place before the lapse of one year since the order or disposition was issued or made, or intends to resume operation of his/her business before the end of the business suspension period. |
| Article 20 (Issuance of Certificate of Reporting or Registration) |
A Mayor/Do governor or the head of a Si/Gun/Gu shall, upon receiving a report or an application for registration under Article 16 or 18, issue a certification of reporting or registration to the applicant as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008>
| Article 21 (Changes in Matters Reported or Registered) |
| (1) | Any person who has completed the reporting or registration under Article 16 or 18 shall, if he/she intends to change any important matters specified by Ordinance of the Ministry of Culture, Sports and Tourism, file a report on the changed matters an application for registration of the changed matters with the competent Mayor/Do governor or the head of the competent Si/Gun/Gu as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | A Mayor/Do governor or the head of a Si/Gun/Gu, upon receiving a report on the changed matters or an application for registration of the changed matters under paragraph (1), shall renew and issue the certificate of reporting or registration as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 22 (Obligations of Karaoke Machine Business Operators) |
| (1) | Every karaoke machine business operator shall comply with the following requirements: |
| 1. | He/she shall take measures to prevent fire or accidents in his/her place of business; |
| 2. | He/she shall not allow juveniles to enter his/her place of business during any hour other than the hours of access prescribed by Presidential Decree: Provided, That the same shall not apply to the cases where a juvenile is accompanied by his/her parent or custodian or where a juvenile holds a written consent to access issued by his/her parent or custodian and other cases specified by Presidential Decree; |
| 3. | He/she shall not sell or provide any alcoholic beverage; |
| 4. | He/she shall not employ or offer any attendant (regardless of gender) nor shall engage in touting; |
| 6. | He/she shall observe the rules prescribed by Presidential Decree to maintain sound business operation. |
| (2) | No one may, for the purpose of profit-making, drink any alcoholic beverage together with any customer, serve a customer as an attendant to entertain him/her by singing or dancing, or aid or abet any person to commit such an act. |
| Article 23 (Business Succession, etc.) |
| (1) | If a business operator who has completed the reporting or registration under Article 16 or 18 transfers his/her business to another person or is deceased, or merges with another legal entity, the transferee, heir, or the legal entity surviving the merger or newly established by the merger shall succeed to the status of the business operator. |
| (3) | Where a person succeeds to the status of a business operator in accordance with paragraph (1), the effects of an administrative disciplinary disposition imposed on the preceding business operator for a violation of any subparagraph of Article 27 (1) are transferred to the person succeeding to the status of the preceding business operator and remain effective against the successor for one year from the day the administrative disciplinary disposition was made, and where proceedings for an administrative disciplinary disposition are pending, the proceedings may continue against the person who succeeds to the status of the preceding business operator: Provided, That the same shall not apply where the person who succeeded to the status of a business operator was unaware of such disposition or violation as at the time of his/her succession. <Amended by Act No. 9493, Mar. 18, 2009> |
| (4) | Where a business operator discontinued his/her business, but his/her spouse or lineal relative by blood (hereinafter referred to as "spouse or lineal relative by blood") has commenced the same type of business at the same place of business, the effects of an administrative disciplinary disposition imposed on the preceding business operator for a violation of any subparagraph of Article 27 (1) are transferred to the spouse or lineal relative by blood and remain effective against the spouse or lineal relative by blood for one year from the day the administrative disciplinary disposition was made, and in cases where proceedings for an administrative disciplinary disposition are pending, the proceedings may continue against the spouse or lineal relative by blood: Provided, That the same shall not apply in cases where the spouse or lineal relative by blood was unaware of such disposition or violation at the time of his/her commencement of the business. |
| Article 24 (Discontinuance of Business and Ex Officio Cancellation) |
| (1) | Any person who discontinues his/her business reported or registered in accordance with Article 16 or 18 shall file a report on such discontinuance with the competent Mayor/Do governor or the head of the competent Si/Gun/Gu within seven days from the date of discontinuance, as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | A Mayor/Do governor or the head of a Si/Gun/Gu may, in his/her discretion, delete the record of a business reported or registered after verifying the discontinuance of the business as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism, if a person fails to file a report on discontinuance of his/her business in accordance with paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008> |
SECTION 2 Distribution and Labeling of Music Records or the Like
| Article 25 (Duty of Labeling) |
| (1) | Any person who produces, imports, or reproduces music records, etc. for profit shall state the trade name (referring to the trade name of a publisher, in cases where a music record, etc. is accompanied by a book) of the person who produces, imports, or reproduces the same on a label of each music record, etc. |
| (2) | Necessary matters concerning the matters to be stated in accordance with paragraph (1) and the labeling method and other relevant matters shall be prescribed by Presidential Decree. |
| Article 26 (Establishment of Order in Distribution of Music Records, etc. and Subsidization therefor) |
| (1) | No person who conducts a business referred to in subparagraphs 8 through 11 of Article 2 or an author or a holder of neighboring right under the Copyright Act of music records, etc. (hereinafter referred to as “business entities related to music records or music video products”) shall do any of the following acts: |
| 1. | Unfairly buying up of music records, etc. manufactured, imported, or distributed by business entities related to music records or music video products or coercion of persons concerned into buying them for the purpose of increasing their sales volumes; |
| 2. | Announcement of the sales volumes of music records, etc., despite being aware that business entities of such music records, etc. have been involved in any act referred to in subparagraph 1; |
| 3. | Other acts of hampering the sound order in distribution of music records, etc. prescribed by the Ordinance of the Ministry of Culture, Sports and Tourism. |
| (2) | The Minister of Culture, Sports and Tourism may grant a subsidy to a competent institution, organization, or person for necessary expenses incurred in the development of sound culture in distribution of music records, etc. |
| (3) | The Minister of Culture, Sports and Tourism or Mayor/Do governor may take any of the following measures against business entities related to music records or music video products, if deemed necessary to establish a sound order in distribution of music records or the like: |
| 1. | Order to report on the operations of such businesses; |
| 2. | Order to submit related data; |
| 3. | Order to exclude sales of music records, etc. from total count; |
| 4. | Other measures necessary to establish a sound order, which are prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 14082, Mar. 22, 2016]
SECTION 3 Cancellation of Registration and Other Administrative Measures
| Article 27 (Cancellation of Registration and Other Measures) |
| (1) | A Mayor/Do governor or the head of a Si/Gun/Gu may, if a person who runs a business pursuant to any provision of subparagraphs 8 through 11 and 13 of Article 2 falls under any of the following subparagraphs, issue an order to close down the business, make a disposition to cancel the registration of the business, issue an order to suspend the business for a period of not more than six months, take corrective measures, or give a warning: Provided, That if a person falls under subparagraph 1 or 2, he/she shall give an order to close down the business or cancel the registration of the business: |
| 1. | If a person has filed a report or an application for registration by deceit or in any other fraudulent manner; |
| 2. | If a person continued his/her business in violation of an order to suspend the operation of his/her business; |
| 3. | If a person has violated the guidelines for facilities under Article 18; |
| 4. | If a person has failed to file a report on changed matters or an application for registration of changed matters in accordance with Article 21; |
| 5. | If a person has breached any obligation of a karaoke machine business operator referred to in Article 22; |
| 6. | If a person has produced, distributed, or provided for use, any music record, etc. falling under Article 29 (3) or displayed, possessed, or exhibited such music record, etc. with an intention to do so. |
| (2) | Any person against whom an order to close down his/her business has been issued or a disposition to cancel the registration of his/her business has been made pursuant to paragraph (1) shall return the certificate of reporting or registration within seven days from the date a notice of the order or disposition was received. |
| (3) | Necessary matters concerning the guidelines for administrative dispositions pursuant to paragraph (1) and other relevant matters shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 28 (Imposition of Penalty Surcharges) |
| (1) | When the competent Special Self-Governing City Mayor, the competent Special Self-Governing Province Governor, the head of the competent Si/Gun/Gu is required to render a disposition of business suspension against any of the following karaoke business entities, he/she may impose a penalty surcharge not exceeding 30 million won, in lieu of the disposition of business suspension, as prescribed by Presidential Decree. In such cases, the competent Special Self-Governing City Mayor, the competent Special Self-Governing Province Governor, or the head of the competent Si/Gun/Gu shall keep and maintain the records concerning the imposition and collection of penalty surcharges: <Amended by Act No. 15379, Feb. 21, 2018> |
| 1. | If a person fails to meet the facility guidelines under Article 18; |
| (2) | A Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu shall expend an equivalent to the amount collected as penalty surcharges pursuant to paragraph (1) for the following purposes, and shall annually formulate and implement a plan for the management of penalty surcharges for the following year: <Amended by Act No. 15379, Feb. 21, 2018> |
| 1. | Sound operation of karaoke business; |
| 2. | Education of and autonomous guidance for karaoke business entities. |
| (3) | If any person obligated to pay a penalty surcharge pursuant to paragraph (1) fails to pay it by the payment deadline, the competent Special Self-Governing City Mayor, the competent Special Self-Governing Province Governor, or the head of the competent Si/Gun/Gu shall collect it in accordance with the Act on the Collection, etc. of Local Non-Tax Revenue. <Amended by Act No. 11998, Aug. 6, 2013; Act No. 15379, Feb. 21, 2018> |
| (4) | Necessary matters concerning amounts of penalty surcharges based on the type and degree of violations subject to the imposition of penalty surcharges under paragraph (1), the procedure for imposition, and other relevant matters shall be prescribed by Presidential Decree. |
| Article 29 (Closedown of Business and Collection and Destruction of Music Records, etc.) |
| (1) | The Minister of Culture, Sports and Tourism, a Mayor/Do governor, or the head of a Si/Gun/Gu may assign public officials in charge to take the following measures against any person who runs a business without reporting or registration under Article 16 or 18 or a person who continues his/her business even after he/she has been ordered to close down the business or the registration of his/her business has been cancelled pursuant to Article 27 (1), in order to close down the relevant place of business: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. | Removing and clearing signboards and other business signs of the business or place of business; |
| 2. | Posting notices informing that the business or place of business is illegal; |
| 3. | Sealing equipment or facilities necessary for the business to prevent them from being used; |
| 4. | Stopping the use of or seizing the Internet addresses, servers, and other items necessary for the business. |
| (2) | The measures under paragraph (1) shall be taken after a notice has been issued to the business operator or his/her agent in writing: Provided, That the same shall not apply in cases where there exists any urgent reason prescribed by Presidential Decree. |
| (3) | The Minister of Culture, Sports and Tourism, a Mayor/Do governor, or the head of a Si/Gun/Gu may, if he/she discovers a music record, etc. has been produced for profit by a person without filing a report under Article 16, assign a public official in charge to collect it to erase or destroy it. <Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | A public official in charge shall, when he/she collects a music record, etc. pursuant to paragraph (3), issue a receipt to its owner or person in possession thereof: Provided, That the same shall not apply if the relevant person refuses to accept such receipt. |
| (5) | The Minister of Culture, Sports and Tourism, a Mayor/Do governor, or the head of a Si/Gun/Gu may, whenever necessary, request a competent association or organization to cooperate with a public official in charge in collecting and destroying music records, etc. pursuant to paragraph (3). <Amended by Act No. 8852, Feb. 29, 2008> |
| (6) | A public official in charge or an executive or employee of an association or organization shall, whenever he/she implements dispositions, including posting of notices, sealing, collecting, destroying, pursuant to any provision of paragraphs (1) through (3), carry identification indicating his/her authority with him/her and produce it to the persons concerned. |
| (1) | A Mayor/Do governor or the head of a Si/Gun/Gu shall, when he/she intends to issue an order to close down a business or cancel registration pursuant to Article 27, hold hearings. |
| (2) | The Minister of Culture, Sorts and Tourism, a Mayor/Do governor, or the head of a Si/Gun/Gu shall, when he/she intends to take measures under Article 29 (1) 4, hold hearings. <Amended by Act No. 8852, Feb. 29, 2008> |
CHAPTER IV SUPPLEMENTARY PROVISIONS
Any person who files a report or an application for registration under any of the following subparagraphs shall pay a certain fee as prescribed by Municipal Ordinance of the competent City/Do or Si/Gun/Gu:
| 1. | A report on a music record/music-video production business or a music record/music-video distribution business under Article 16 (1); |
| 2. | A report on an online music service business under Article 16 (2); |
| 3. | Registration of a karaoke machine business under Article 18 (1); |
| 4. | A report on changed matters or registration of changed matters concerning a music record/music-video production business, a music record/music-video distribution business, an online music service business, or a karaoke machine business under Article 21 (1). |
| Article 32 (Delegation and Entrustment of Authority) |
| (1) | The Minister of Culture, Sports and Tourism or a Mayor/Do governor may delegate part of his/her authority under the provisions of this Act to the competent Mayor/Do governor or the head of the competent Si/Gun/Gu, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) | The authority of the Minister of Culture, Sports and Tourism, a Mayor/Do governor, or the head of a Si/Gun/Gu under the provisions of this Act may be entrusted to a competent association or organization, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008> |
| Article 33 (Legal Fiction as Public Officials for Application of Penalty Provisions) |
Executive officers and employees of any association or organization that performs business affairs entrusted by the Minister of Culture, Sports and Tourism or any other authority pursuant to Article 32 (2) shall be deemed public officials for the purpose of applying penalty provisions under Articles 129 through 132 of the Criminal Act. <Amended by Act No. 8852, Feb. 29, 2008>
CHAPTER V PENALTY PROVISIONS
| Article 34 (Penalty Provisions) |
| (1) | Any person who has engaged in business operations in violation of any measure taken pursuant to any subparagraph of Article 29 (1) shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won. |
| (2) | Any karaoke machine business operator who has violated Article 22 (1) 4 or 5 shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won. |
| (3) | Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Amended by Act No. 14082, Mar. 22, 2016> |
| 1. | Any person who has run a karaoke machine business without registration, in violation of Article 18 (1); |
| 2. | Any karaoke machine business operator who has allowed a juvenile to enter his/her place of business or sold or supplied any alcoholic beverage, in violation of Article 22 (1) 2 or 3; |
| 2-2. | Any person who has committed a prohibited act, in violation of Article 26 (1), or failed to comply with an order under 26 (3); |
| 3. | Any person (limited to persons who have completed the registration of business in accordance with Article 18 (1)) who has continued his/her business, in violation of an order issued pursuant to Article 27 (1) to suspend such business; |
| 4. | Any person who has produced, distributed, or provided for use any music record, etc. falling under Article 29 (3) or displayed, possessed, or exhibited such music record or the like for such purpose. |
| (4) | Any person who has violated Article 22 (2) shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding three million won. |
| (5) | Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding ten million won: |
| 1. | Any person who has run a business without filing a report, in violation of Article 16; |
| 2. | Any person (limited to persons who have filed a report on his/her business in accordance with Article 16) who has continued his/her business, in violation of an order issued pursuant to Article 27 (1) to suspend such business; |
| 3. | Any person who has refused, interfered with, or avoided any measure taken by a public official in charge pursuant to Article 29 (1) or (3). |
| Article 35 (Joint Penalty Provisions) |
Where the representative of a corporation, or an agent or employee of, or other person employed by, a corporation or an individual violates Article 34 in connection with the business affairs of the corporation or individual, not only shall such violator be punished, but also the corporation or the individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where the corporation or the individual has not neglected to pay due attention and supervision concerning the relevant business affairs in order to prevent such violation. [This Article Wholly Amended by Act No. 10115, Mar. 17, 2010]
| Article 36 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding ten million won: |
| 1. | Any karaoke business entity who fails to receive education, in violation of Article 11; |
| 2. | Any person who fails to file a report on changed matters or an application for registration of changed matters, in violation of Article 21 (1); |
| 3. | Any person who fails to state his/her trade name on a label, in violation of Article 25 (1). |
| (2) | Administrative fines referred to in paragraph (1) shall be imposed and collected by the competent Mayor/Do Governor or the head of the competent Si/Gun/Gu (hereinafter referred to as "imposing authority"), as prescribed by Presidential Decree. |
| (3) | through (5) Deleted. <by Act No. 15379, Feb. 21, 2018> |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Reported or Registered Businesses)
| (1) | Sound record production business operators and sound record distribution business operators who filed a report pursuant to Article 26 of the former Sound Records, Video Products, and Game Software Act as at the time this Act enters into force shall be deemed to have reported as music record/music-video production business operators and music record/music-video distribution business operators under Article 16 (1) of this Act, respectively. |
| (2) | Karaoke machine business operators who have completed registration in accordance with Article 27 of the former Sound Records, Video Products, and Game Software Act as at the time this Act enters into force shall be deemed to have completed registration under Article 18 (1) of this Act. |
Article 3 (Transitional Measures concerning Penalty Provisions, etc.)
Article 4 (Transitional Measures concerning Reporting of Online Music Service Businesses)
Any person who runs an online music service business as at the time this Act enters into force shall file a report with the head of the competent Si/Gun/Gu within three months from the enforcement date of this Act in accordance with Article 16 (2).
Article 5 (Relations to other Statutes)
Any citation of the former Sound Records, Video Products, and Game Software Act or any provisions thereof by any other statute in force as at the time this Act enters into force shall be deemed to be a citation of this Act or the corresponding provisions of this Act in lieu of the former provisions, if any such corresponding provisions exist in this Act.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9493, Mar. 18, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 10115, Mar. 17, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10219, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 10369, Jun. 10, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 10629, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 11998, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 13306, May 18, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Article 2 through 9 Omitted.
ADDENDUM <Act No. 14082, Mar. 22, 2016>
This Act shall enter into force six months after the date of its promulgation.
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.)
Article 2 through 5 Omitted.
ADDENDUM <Act No. 15379, Feb. 21, 2018>
This Act shall enter into force six months after the date of its promulgation.