PRICE STABILIZATION ACT
Act No. 4861, Jan. 5, 1995
Amended by Act No. 5454, Dec. 13, 1997
Act No. 5982, May 24, 1999
Act No. 8312, Mar. 29, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9713, May 27, 2009
Act No. 9828, Dec. 29, 2009
Act No. 10623, May 2, 2011
Act No. 17007, Feb. 18, 2020
Act No. 17144, Mar. 31, 2020
The purpose of this Act is to protect the rights and interests of consumers and to contribute to the stabilization and improvement of the people's livelihood and the national economy by stabilizing prices.
[This Article Wholly Amended on May 2, 2011]
| Article 2 (Designation of Price Ceilings) |
| (1) | The Government may, when deemed necessary to stabilize the people's livelihood and the national economy, set price ceilings (hereinafter referred to as "price ceilings") on particularly important commodities, rent for real estate, etc., or charges for services. |
| (2) | Price ceilings may be set for each region and for each trading stage, such as the production stage, the wholesale stage and the retail stage. |
| (3) | When the Government deems that the grounds for maintaining price ceilings set under paragraph (1) do not exist, it shall remove such price ceilings without delay. |
| (4) | When the Government sets or removes price ceilings pursuant to paragraph (1) or (3), it shall publicly announce such fact without delay. |
[This Article Wholly Amended on May 2, 2011]
| Article 2-2 (Penalty Surcharges) |
| (1) | The Minister of Economy and Finance shall impose a penalty surcharge on a person who has made profits unfairly by trading in excess of a price ceiling set by the Government under Article 2 (1). |
| (2) | A penalty surcharge under paragraph (1) shall be the amount computed by deducting a price ceiling from an actual trade price, rent or charge. |
| (3) | The Minister of Economy and Finance may delegate affairs concerning the collection of penalty surcharges under paragraphs (1) and (2) to the Commissioner of the National Tax Service. |
| (4) | Procedures for the imposition and collection of penalty surcharges under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
| (5) | When a person who is subject to a disposition of imposition of a penalty surcharge under paragraph (1) fails to pay a penalty surcharge by the deadline of payment, the Minister of Economy and Finance shall collect it in the same manner as dispositions of national taxes in arrears. |
[This Article Wholly Amended on May 2, 2011]
| Article 3 (Price Posting) |
Relevant Minister or Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") (hereinafter referred to as "Mayor/Do Governor") shall be determined by Presidential Decree to provide persons or services, such as persons requiring management or fair business. An order may be issued to indicate the price of the relevant goods or the cost of service. Provided, That where a Mayor/Do Governor determines the kinds of goods and services for which the price of goods or service must be indicated, he/she shall consult with the competent Minister. <Amended on Feb. 18, 2020>
[This Article Wholly Amended on May 2, 2011]
| Article 4 (Determination of Public Utilities Charges and Fees) |
| (1) | When the competent Minister intends to determine or change the projects, prices of commodities or charges (hereinafter referred to as "public utilities charges") which he/she determines, approves, authorizes, or permits, as prescribed by other Acts, he/she shall consult with the Minister of Economy and Finance in advance. |
| (2) | When the State or an agency entrusted by the State intends to determine or change the amount of compensation (hereinafter referred to as "fees") it collects in return for administrative services provided, use of facilities and conferment of specific rights, etc., as prescribed by other Acts, he/she shall consult with the Minister of Economy and Finance in advance. |
| (3) | In order to hold a consultation under paragraph (2), the Minister of Economy and Finance shall publicly announce necessary matters concerning the subject matter, procedure, etc. of consultation. |
| (4) | The Minister of Economy and Finance may, in consultation on public utilities charges and fees under paragraphs (1) and (2), seek advice from experts in regard to the appropriateness of cost estimation, burden on consumers, impact on the national economy, etc. |
| (5) | The principles of estimation of public utilities charges, period and method of estimation thereof, and other matters that shall be consulted with the Minister of Economy and Finance pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on May 2, 2011]
| Article 4-2 Deleted. <May 27, 2009> |
| Article 5 Deleted. <Dec. 31, 1980> |
| Article 6 (Emergency Adjustment Measures for Supply and Demand) |
| (1) | The Government may take any of the following measures (hereinafter referred to as "emergency supply and demand adjustment measures") against an enterpriser of commodities in question or a person engaged in the business of importing and exporting, or shipping, or storing commodities in question for a fixed period of up to five months, as prescribed by Presidential Decree, when the stability of the people's livelihood and smooth operation of the national economy are feared to be endangered considerably due to rapid price increases and commodity shortages: |
| 1. | Instructions on the formulation, implementation, and adjustment of production plans; |
| 2. | Instructions on supply and delivery of goods from a warehouse; |
| 3. | Instructions on the adjustment of exports and imports; |
| 4. | Instructions on shipment, storage, or assignment; |
| 5. | Instructions on the realignment of the distribution system, the simplification of the distribution process, and the improvement of distribution facilities. |
| (2) | When the Government deems that, after taking emergency supply and demand adjustment measures under paragraph (1), the grounds for such measures no longer exist, it shall remove such measures without delay. |
| (3) | Where the Government intends to take emergency supply and demand adjustment measures under paragraph (1), it shall obtain approval from the President after deliberation by the State Council. The same shall also apply in cases of removing such measures as prescribed in paragraph (2). |
[This Article Wholly Amended on May 2, 2011]
| Article 7 (Prohibition of Cornering and Hoarding Practices) |
No enterpriser shall commit any act cornering, or evading the sale of, any commodity with the intention of making any excessive profits, which is designated as a cornering and hoarding practice by the Minister of Economy and Finance who deems that it might be detrimental to the stabilization of price.
[This Article Wholly Amended on May 2, 2011]
| Article 8 Deleted. <Dec. 31, 1980> |
| Article 9 (Corrective Orders, etc.) |
The competent Minister shall order an enterpriser who has committed a cornering and hoarding practice under Article 7 to correct or suspend such practice. [This Article Wholly Amended on May 2, 2011]
| Article 10 Deleted. <May 27, 2009> |
| Article 11 Deleted. <May 27, 2009> |
| Article 12 Deleted. <May 27, 2009> |
| Article 13 (Hearing Opinions) |
Where price ceilings are designated or removed under Article 2 and emergency supply and demand adjustment measures are taken or removed under Article 6, necessary procedures, such as the hearing of opinions, shall be prescribed by Presidential Decree. [This Article Wholly Amended on May 2, 2011]
| Article 14 Deleted. <May 27, 2009> |
| Article 15 Deleted. <May 27, 2009> |
| Article 16 (Report and Inspection) |
| (1) | Where the Minister of Economy and Finance, the competent Minister, or a Mayor/Do Governor deems it necessary to achieve the objectives of this Act, he/she orders the enterpriser to report on costs and management status or to submit related data, or have his/her subordinate public official inspect books, papers, and other articles at the office or place of business of the enterpriser, as prescribed by Presidential Decree. In such cases, the authority of the Mayor/Do Governor shall be limited to the scope necessary for confirmation of compliance with the order pursuant to Article 3. <Amended on Feb. 18, 2020> |
| (2) | The public official who conducts an inspection under paragraph (1) shall carry with him/her a certificate indicating his/her authority and present it to the persons concerned. |
[This Article Wholly Amended on May 2, 2011]
| Article 17 (Prohibition of Use of Details of Data for Purpose other than That of This Act) |
No public officials who engages in the duties prescribed by this Act shall use the details of data acquired under Article 16 (1) or the matters learned in the course of performing an inspection for any purpose other than that to enforce this Act. [This Article Wholly Amended on May 2, 2011]
| Article 18 (Raising Objections) |
| (1) | When a person to be subject to a disposition under this Act is dissatisfied with such disposition, he/she may file a complaint to the competent Minister or Mayor/Do Governor therefor. <Amended on Feb. 18, 2020> |
| (2) | An application for a complaint under paragraph (1) shall be filed within 15 days from the date on which a person to be subject to a disposition has become aware of such disposition, or within 30 days from the date on which such disposition is made. |
| (3) | When an application for a complaint under paragraph (1) is filed, the competent Minister or Mayor/Do Governor shall notify the process and result within 10 days. <Amended on Feb. 18, 2020> |
[This Article Wholly Amended on May 2, 2011]
| Article 19 (Matters over which Jurisdiction is not Clear) |
Among the powers of the competent Minister prescribed in this Act, matters over which jurisdiction is not clear may be exercised by the Minister of Economy and Finance.
[This Article Wholly Amended on May 2, 2011]
| Article 20 (Delegation of Authority) |
| (1) | Part of the authority of the competent Minister bestowed under this Act may be delegated to the head of an affiliated agency or a Mayor/Do Governor, as prescribed by Presidential Decree. <Amended on Feb. 18, 2020; Mar. 31, 2020> |
[This Article Wholly Amended on May 2, 2011]
| Article 21 Deleted. <Dec. 31, 1980> |
| Article 22 Deleted. <May 27, 2009> |
| Article 23 Deleted. <Mar. 29, 2007> |
| Article 24 Deleted. <Dec. 31, 1980> |
| Article 25 (Penalty Provisions) |
| (1) | Any person who violates an emergency supply and demand adjustment measure under Article 6 (1) shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 50 million won. |
| (2) | The punishment of imprisonment with labor and the fine under paragraph (1) may be imposed concurrently. |
[This Article Wholly Amended on May 2, 2011]
| Article 26 (Penalty Provisions) |
Any person who commits a cornering and hoarding practice in violation of Article 7 shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 50 million won. [This Article Wholly Amended on May 2, 2011]
| Article 27 (Penalty Provisions) |
Any person who refuses, obstructs, or evades an inspection under Article 16 (1) shall be punished by imprisonment with labor for not more than six months or by a fine not exceeding 10 million won. [This Article Wholly Amended on May 2, 2011]
| Article 28 (Penalty Provisions) |
Any person who violates Article 17 shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won. <Amended on Mar. 31, 2020> [This Article Wholly Amended on May 2, 2011]
| Article 29 (Administrative Fine) |
| (1) | Any of the following persons shall be punished by an administrative fine not exceeding 50 million won: |
| 1. | A person who violates an order issued under Article 3; |
| 2. | A person who fails to files a report under Article 16 (1) or who makes a false representation in such report; |
| 3. | A person who fails to submit the data under Article 16 (1), or who submits false data. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Oceans and Fisheries or a Mayor/Do Governor, as prescribed by Presidential Decree. <Amended on Feb. 18, 2020; Mar. 31, 2020> |
[This Article Wholly Amended on May 2, 2011]
| Article 30 (Joint Penalty Provisions) |
Where the representative of a corporation, or an agent, or employee of or other persons employed by a corporation or an individual commits an offense falling under any of Articles 25 through 27 in relation to affairs of such corporation or individual, not only shall the person who commits such offense be punished but such corporation or individual also shall be punished by a fine under the relevant provisions: Provided, That the foregoing shall not apply where the corporation or the individual has not neglected to pay due attention to or exercise reasonable supervision over the relevant affairs to prevent such offense. [This Article Wholly Amended on May 27, 2009]
| Article 31 (Criminal Charge) |
Any offense under Articles 25 and 26 may be prosecuted when the competent Minister brings a charge. [This Article Wholly Amended on May 2, 2011]
| Article 32 Deleted. <May 27, 2009> |
ADDENDA <Act No. 2798, Dec. 31, 1975>
Article 1 (Enforcement Date)
This Act shall enter into force as of the date to be set by Presidential Decree: Provided, That the provisions of Articles 7 and 8 shall become effective thirty days after this Act enters into force. Article 2 (Repealed Acts)
The Act concerning the Establishment of the Public Utility Rate Deliberation Committee and the Price Stabilization Act shall be repealed: Provided, That the Public Utility Rate Deliberation Committee under the Act concerning the Establishment of the Public Utility Rate Deliberation Committee shall exist until the Committee, as prescribed in this Act, shall be established. Article 3 (Relation with Other Acts)
The Price Stabilization Act, as quoted in other Acts and subordinate statutes at the time when this Act enters into force, shall be deemed as the Price Stabilization and Fair Trade Act, and the Public Utility Rate Deliberation Committee shall be deemed as the Price Stabilization Committee under this Act. Article 4 (Transitional Measures)
| (1) | The ceiling price under the Price Stabilization Act at the time this Act enters into force, shall be deemed as the ceiling price under this Act. |
ADDENDA <Act No. 3320, Dec. 31, 1980>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 4861, Jan. 5, 1995>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions)
The application of the penal provisions to any act committed before this Act enters into force, shall be subject to the former provisions.
Article 3 (Transitional Measures concerning Fine for Negligence)
The imposition and collection of a fine for negligence against any act committed before this Act enters into force, shall be subject to the former provisions.
Article 4 Omitted.
Article 5 (Relation with Other Acts and Subordinate Statutes)
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 8312, Mar. 29, 2007>
This Act shall enter into force on July 1, 2007.
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. 9713, May 27, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 9828, Dec. 29, 2009>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 10623, May 2, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 17007, Feb. 18, 2010>
Article 1 (Provisions Concerning Delegation)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Article 2 (Preliminary Measures to Transfer Affairs)
| (1) | The head of a relevant central administrative agency shall formulate necessary measures to provide required personnel and financial resources necessary for a full-scale transfer of the central administrative authority and affairs under this Act and shall report said measures to a standing committee of the National Assembly not later than three months before the date of entry into force of this Act. |
Article 3 (General Transitional Measures concerning Administrative Dispositions, etc.)
Any disposition or other acts taken or conducted by an administrative agency under the previous provisions as at the time this Act enters into force shall be deemed a disposition or acts taken or conducted by an administrative agency under the provisions of this Act; and any application, report, or other acts filed with or conducted toward an administrative agency under the previous provisions shall be deemed an application, report, or acts filed with or conducted toward an administrative agency under the provisions of this Act.
Article 4 Omitted.
ADDENDA <Act No. 17144, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That Article 2 of the Addenda shall enter into force on January 1, 2021. Article 2 Omitted.