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POPULAR CULTURE AND ARTS INDUSTRY DEVELOPMENT ACT

Act No. 12349, Jan. 28, 2014

Amended by Act No. 14629, Mar. 21, 2017

Act No. 15437, Mar. 13, 2018

Act No. 16053, Dec. 24, 2018

Act No. 16590, Nov. 26, 2019

Act No. 17401, jun. 9, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to firmly establish a healthy popular culture and to contribute to enhancing the quality of Korean cultural life by laying the foundation for the popular culture and arts industry, and by prescribing matters concerning relevant business persons, popular culture artists, etc.
 Article 2 (Definitions)
The terms used in this Act are defined as follows:
1. The term "popular culture and arts industry" means an industry that produces broadcasting products, films, video products, show performances, records, music files, music video products, music video files, etc. (hereinafter referred to as "popular culture products") using popular culture services provided by popular culture artists, or that brokers, plans, manages, etc. the provision of popular culture services provided by popular culture artists in order to produce popular culture products, which is prescribed by Presidential Decree;
2. The term "popular culture services" means acting, dancing, playing musical instruments, singing, and reciting, with regard to the popular culture and arts industry and other services related to artistic talents;
3. The term "popular culture artist" means a person who provides popular culture services or a person who has entered into a contract regarding popular culture services with a popular culture business person with intent to provide popular culture services;
4. The term "popular culture production business" means a business of producing popular culture products using popular culture services. In such case, where a popular culture product is produced through multi-level subcontracting arrangements, this shall include the business of an upper-tier subcontractor (including the prime contractor);
5. The term "popular culture producer" means a person who conducts popular culture production business;
6. The term "popular culture planning business" means a business of providing or brokering popular culture services or a business of training or directing popular culture artists, or giving counsel, etc. thereto;
7. The term "popular culture planner" means a person who registers with the Minister of Culture, Sports, and Tourism as prescribed in Article 26 (1) in order to conduct popular culture planning business;
8. The term "popular culture business person" means a person who conducts popular culture production business or popular culture planning business;
9. The term "popular culture production staff" means a group of persons engaged in the popular culture and arts industry, who provide technical or supportive services in planning, filming, sound, fine arts, etc., related to the production of popular culture products;
10. The term "youth" means a person under 19 years of age: Provided, That this shall exclude any person for whom January 1 arrives in the year in which he/she turns 19 years of age.
 Article 3 (Duty of Good Faith)
(1) Popular culture artists, popular culture business persons, and popular culture production staff members shall perform duties in good faith.
(2) Popular culture business persons and popular culture production staff members shall endeavor so as to protect the private lives of popular culture artists and their honor is not lost.
(3) No popular culture artists, popular culture business person, or popular culture production staff member shall divulge classified information that they have become aware of in the course of performing their duties or appropriate such information for any unjust purpose.
 Article 4 (Relationship to Other Statutes)
Where popular culture artists are protected by the Labor Standards Act, such Act shall apply thereto in preference to this Act.
 Article 5 (Support for International Cooperation and Entry into Overseas Markets)
(1) In order to raise the value of national brand, the State may promote the following projects concerning the popular culture and arts industry’s entry into overseas markets:
1. Support for overseas public relations of the popular culture and arts industry and for overseas marketing activities;
2. Support for international joint production of popular culture products and for overseas distribution;
3. Provision of information on entry into overseas market;
4. Inducement of foreign investment;
5. Protection of intellectual property rights to popular culture products in overseas markets.
(2) The State may give administrative and financial support to persons who promote the projects in the subparagraphs of paragraph (1).
CHAPTER II BUSINESS ORDER IN POPULAR CULTURE AND ARTS INDUSTRY
Section 1 Creation of Fair Business Order
 Article 6 (Creation of Fair Business Order)
(1) The State shall endeavor to create fair and orderly business for the sound development of the popular culture and arts industry.
(2) No popular culture business person or person who enters into a contract for the production and provision of popular culture products with a popular culture business person, shall pressure the other party to enter into an unfair contract or obtain unreasonable gains.
(3) Where a popular culture business person or a person who enters into a contract for the production and provision of popular culture products with a popular culture business person, violates paragraph (2), the Minister of Culture, Sports, and Tourism shall notify the Fair Trade Commission or relevant agencies thereof.
 Article 7 (Contracts Regarding Popular Culture Services)
(1) Parties to a contract regarding popular culture services shall enter into a contract on fair and equal terms, and implement the contract in good faith.
(2) Parties to a contract under paragraph (1) shall specify the following matters in the contract, and provide each other with counter parts of the contract affixing their signatures or seals thereto:
1. Matters concerning the period, renewal, modification, and rescission of a contract;
2. Matters concerning the rights and obligations of the parties to a contract;
3. Matters concerning the scope and media of popular culture services;
4. Matters concerning providing character education to popular culture artists and support for mental health thereof;
5. Matters concerning title to trademark rights, portrait rights, and content;
6. Matters concerning the distribution of profits;
7. Matters concerning the settlement of disputes;
8. Matters concerning the protection of child and youth popular culture artists;
9. Matters concerning annexed agreements.
(3) Where a standard form contract referred to in Article 8 is used, a contract is deemed entered into under paragraphs (1) and (2).
 Article 8 (Formulation and Distribution of Standard Form Contracts)
(1) After consultation with the Fair Trade Commission, the Minister of Culture, Sports, and, Tourism shall prepare a standard form contract on popular culture services between a popular culture artist and a popular culture business person or between popular culture business persons, and distribute it to business persons and the trade association.
(2) Where the Minister of Culture, Sports, and Tourism formulates or amends a standard form contract prescribed by paragraph (1), he/she shall gather consensus from interested parties, such as the trade association, etc., and specialists.
 Article 9 (Contract with Popular Culture Production Staff Members)
With regard to the production of popular culture products, Articles 7 and 8 shall apply mutatis mutandis to a contract to which a popular culture production staff member becomes a party.
 Article 10 (Duty to Give Advance Explanation)
(1) Where a popular culture planner enters into a contract for the provision of popular culture services on behalf of an affiliated popular culture artist, he/she shall provide him/her prior explanation of the details of the contract.
(2) No popular culture planner shall enter into a contract against the explicitly expressed opinion of a relevant popular culture artist in cases of paragraph (1).
 Article 11 (Exceptions to Concurrent Operation of Popular Culture Planning Business and Popular Culture Production Business)
(1) Where a popular culture planner concurrently operating a popular culture production business intends to obtain an affiliated popular culture artist's popular culture services, he/she shall obtain consent from the relevant popular culture artist: Provided, That this shall not apply where the popular culture planner produces music records or music files.
(2) Where a popular culture artist receives unfair treatment, such as where any of the terms of a contract are unilaterally amended, he/she is given discriminatory treatment compared with other affiliated popular culture artists, etc., for reasons that he/she did not give consent pursuant to paragraph (1), he/she may terminate the contract with a popular culture planner.
(3) A popular culture planner shall not charge affiliated popular culture artists expenses appurtenant to a brokerage fee, nor unreasonably reduce remuneration for services to be paid to popular culture artists for such reasons.
 Article 12 (Responsibility for Remuneration for Popular Culture Services in Making Subcontracts)
(1) Where a subcontractor is unable to pay remuneration to a popular culture artists or popular culture production staff members due to a cause imputable to an immediately upper-tier subcontractor (including the prime contractor) when a popular culture product is produced through multi-level subcontracting arrangements, the immediately upper-tier subcontractor and the subcontractor shall be accountable for the remuneration: Provided, That this shall not apply where the immediately upper-tier subcontractor proves that there is no cause imputable to him/her.
(2) A cause imputable to an immediately upper level subcontractor shall mean any of the following:
1. Where the amount of subcontract is not paid by the payment date specified in a subcontractor contract without just grounds;
2. Where equipment, materials, facilities, human resources, etc. specified in a subcontract are not provided or provided late without just grounds;
3. Where conditions for a subcontract are not fulfilled without just grounds, thus the a subcontractor’s work is impeded.
(3) Where an immediately upper subcontractor in paragraph (1) has taken measures to guarantee the payment of the value of subcontract to be paid by a subcontractor to a popular culture artist or a popular culture production staff member, such as deposit in a deposit office, guarantee, etc., the subcontractor shall be exempt from joint and several liability.
 Article 13 (Status of Popular Culture Artists in Succeeding to Business)
(1) A popular culture planner who succeeds to the status of a business person pursuant to Article 30 (5) or (6) shall succeed to the contractual rights and obligations related to planning for popular culture services valid as at the time of succession. <Amended on Dec. 24, 2018>
(2) Notwithstanding paragraph (1), paragraph (1) shall not apply where an affiliated popular culture artist explicitly objects. However, such objection shall not be valid against a third party in good faith.
 Article 14 (Keeping Accounting Records)
(1) A popular culture planner shall appropriate and manage costs and expenses for popular culture planning duties provided to affiliated popular culture artists separately for each popular culture artist, and prepare and keep a separate book of account for each popular culture artist: Provided, That this shall not apply where the contents and extent of popular culture services provided by popular culture artists are not divisible when at least two popular culture artists provide a piece of popular culture service together.
(2) Where an affiliated popular culture artist makes a request, the popular culture planner shall, without delay, disclose accounting records related to the relevant popular culture artist to him/her, such as books of accounting under paragraph (1), etc.
(3) Where a popular culture planner receives the cost of popular culture services from a third party, he/she shall pay remuneration under a contract to affiliated popular culture artists within 45 days from the date of receipt: Provided, That where there is just cause for delay of payment, the payment deadline may be extended within the scope of 45 days.
 Article 15 (Prohibition of False Advertisements)
(1) No popular culture planner or a person employed by him/her shall provide any false information or make any false promise while recruiting popular culture artists or brokering the provision of popular culture services.
(2) No person who registers with the superintendent of the competent office of education as prescribed in Article 6 of the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons and provides educational services for the purpose of training popular culture artists, shall provide any advertisements related to the provision of popular culture planning duties or false information, or make a false promise while recruiting trainees.
 Article 16 (Prohibited Acts)
(1) No popular culture business person or a popular culture production staff member shall broker any act falling under any of the items of Article 2 (1) 1 of the Act on the Punishment of Acts of Arrangement of Commercial Sex Acts, Etc. for a popular culture artist, suggest him/her such act or entice him/her into such act through providing profits related to popular culture services, promising to offer profits, or threatening with any disadvantage.
(2) No popular culture business person or a popular culture production staff member shall compel a popular culture artist to perform any of the acts under Article 2 (1) 1 of the Act on the Punishment of Acts of Arrangement of Commercial Sex Acts, Etc. through violence or intimidation with regard to business.
 Article 17 (Support Center)
(1) The Minister of Culture, Sports, and Tourism may establish a support center for the protection of the rights and interests of popular culture artists, popular culture production staff members, and employees affiliated with popular culture planning businesses (hereinafter referred to as "Support Center").
(2) The Support Center shall perform the following duties:
1. Research on actual conditions of systems for the protection of rights and interests in Korea and abroad;
2. Consultation on loss, such as unfair transactions, violence, etc., and legal support;
3. Connection to emergency call centers for the prevention of sexual violence, etc. and support;
4. Operation of educational programs for the protection of rights and interests;
5. Development of vocational skill of popular culture production staff members and support for education;
6. Public relations of duties, etc. and other projects necessary to attain the objectives of establishment of the support center.
(3) The Minister of Culture, Sports, and Tourism may establish an advisory committee for the formulation of policies on the popular culture and arts industry under the support center.
(4) Matters necessary for the establishment, operation, etc. of the support center and the advisory committee referred to in paragraphs (1) and (3) shall be prescribed by Presidential Decree.
 Article 18 (Research on Actual Conditions)
(1) For the formulation and implementation of policies to establish fair and orderly trading in the popular culture and arts industry, the Minister of Culture, Sports, and Tourism shall periodically conduct research on actual conditions of the popular culture and arts industry and employees affiliated therewith.
(2) If necessary for conducting research on actual conditions under paragraph (1), the Minister of Culture, Sports, and Tourism may request a popular culture business person to submit data. In such cases, the popular culture business person shall comply therewith except in extenuating circumstances.
(3) Matters necessary for the objects, methods, etc. of research on actual conditions in paragraph (1), shall be prescribed by Presidential Decree.
Section 2 Protection of Youth Popular Culture Artists
 Article 19 (Principles of Protection of Youth)
Where a youth popular culture artist provides popular culture services, the State, a popular culture business person, a person with parental rights or a guardian shall take care to ensure that his/her rights and interests are protected and that he/she may grow up to have a good-natured personality.
 Article 20 (Prohibited Acts with Regard to Youth)
(1) Where a popular culture business person produces a popular culture product, he/she shall not compel any youth popular culture artist to perform any of the acts under subparagraph 4 of Article 2 of the Act on the Protection of Children and Youth against Sexual Abuse.
(2) A popular culture business person shall not make a youth popular culture artist provide popular culture services to the production of popular culture products advertising drugs harmful to youths, materials harmful to youths, business establishments harmful to youths, etc. pursuant to subparagraph 4 (a) and (b) of Article 2 of the Youth Protection Act and subparagraph 5 of the same Article.
(3) No popular culture planner shall broker the provision of popular culture services to an occupation or business in or to which youths are prohibited from employment or access pursuant to the Youth Protection Act.
 Article 21 (Provision of Popular Culture Services by Youth)
(1) Where a popular culture business person enters into a contract with a youth popular culture artist, he/she shall include measures guaranteeing basic human rights, such as physical and mental health, right to education, right of publicity, right to sleep, right to rest, right to free choice, etc., of the youth popular culture artist.
(2) A popular culture business person shall not compel youth popular culture artists to perform excessive bodily exposure or immodestly erotic expressions.
 Article 22 (Provision of Popular Culture Services by Youths Under 15 Years of Age)
(1) The hours that a youth popular culture artist under 15 years of age provide services for the production of a popular culture product shall not exceed 35 hours a week.
(2) A popular culture product business person shall not be provided with popular culture services from a youth popular culture artist under 15 years of age from 10 o'clock in the afternoon to 6 o'clock in the morning: Provided, That where the day following the date popular culture services are provided is a holiday of the youth popular culture artist's school, he/she may be provided with popular culture services until midnight of the day on which popular culture services are provided with the consent of the youth popular culture artist and a person with parental custody or a legal guardian.
(3) Paragraph (1) shall not apply where just grounds exist, such as traveling for overseas activities, long distance travel, etc. In such cases, a popular culture business person shall guarantee a youth artist's right to education, right to rest, right to sleep, etc.
 Article 23 (Provision of Popular Culture Services by Youth Popular Culture Artists of At Least 15 Years of Age)
(1) The hours that a youth artist of at least 15 years of age provides services for the production of a popular culture product shall not exceed 40 hours a week: Provided, That where both parties agree, the hours may be extended within the scope of one hour a day and six hours a week.
(2) A popular culture producer shall not obtain popular culture services from a youth popular culture artist of at least 15 years of age from 10 o'clock in the afternoon to 6 o'clock in the morning: Provided, That where the youth popular culture artist and a person with parental custody or a legal guardian give consent, he/she may obtain popular culture services.
(3) Paragraph (1) shall not apply where just grounds exist, such as traveling for overseas activities, long distance travel, etc. In such cases, a popular culture business person shall guarantee a youth artist's right to education, right to rest, right to sleep, etc.
 Article 24 (Corrective Measures Concerning Youth Popular Culture Services)
(1) Where the Minister of Culture, Sports, and Tourism determines that a contract to provide popular culture services by a youth popular culture artist or a contract to perform popular culture planning duties by a youth popular culture artist is markedly unfavorable to the relevant youth popular culture artist, he/she may recommend interested parties to take corrective measures.
(2) Where the physical and mental health, right to education, etc. of a youth popular culture artist is markedly infringed as a business person fails to implement a corrective recommendation pursuant to paragraph (1) without just grounds, he/she may issue a corrective order.
 Article 25 (Claim for Remuneration for Youth Popular Culture Services)
(1) A youth popular culture artist may autonomously claim remuneration for popular culture services to a popular culture producer or a popular culture planner.
(2) Where a claim is made under paragraph (1), a popular culture producer or a popular culture planner shall be deemed to have fulfilled a contractual obligation to pay remuneration when he/she pays the remuneration to the relevant youth popular culture artist, even if a contract specifying that a right to claim remuneration remains with a legal representative, such as a person with parental rights, etc.
Section 3 Registration and Operation of Popular Culture Planning Business
 Article 26 (Registration of Popular Culture Planning Business)
(1) A person who intends to conduct popular culture planning business shall register with the Minister of Culture, Sports and Tourism. In such cases, the same shall apply to the modification of registered matters.
(2) A person who applies for registration pursuant to paragraph (1) shall meet the following requirements: <Amended on Mar. 13, 2018>
1. That he/she shall meet any of the following requirements: Provided, That in the case of a juristic person, at least one executive officer shall correspond thereto:
(a) Work experience of at least two years in the popular culture planning business;
(b) Completion of an educational course relating to the popular culture planning business run by a facility prescribed by Ordinance of the Ministry of Culture, Sports and Tourism;
2. A separate office.
(3) A person who applies for registration or registration of modification pursuant to paragraph (1) shall submit the following documents:
1. An application for registration or registration of modification prescribed by Ordinance of the Ministry of Culture, Sports and Tourism;
2. A certificate of corporate register (limited to a juristic person);
3. A copy of business registration;
4. Documents evidencing matters prescribed in paragraph (2).
(4) Where the Minister of Culture, Sports and Tourism grants registration or registration of modification pursuant to paragraphs (1) through (3), he/she shall issue a certificate of registration to the applicant.
(5) Matters necessary for the procedures for registration and registration of modification, requirements and methods thereof, issuance of certificates of registration, etc. pursuant to paragraphs (1) through (3) shall be prescribed by Presidential Decree.
(6) Where a popular culture planning business is registered according to the procedures prescribed by other statutes or regulations, such cases shall be deemed registered under this Act.
 Article 27 (Grounds for Disqualification)
Any of the following persons may not operate or engage in the popular culture planning business: <Amended on Nov. 26, 2019>
1. Any person who is a minor, who is under adult guardianship, or under limited guardianship;
2. A person who was declared bankrupt, but has not yet been reinstated;
3. A person for whom three years have not passed since his/her punishment was fully executed or a decision to waive his/her sentence became final after he/she had been sentenced to a fine or higher for violation of this Act, Articles 287 through 292 and 294 of the Criminal Act, Article 5-2 of the Act on the Aggravated Punishment, etc. of Specific Crimes, the Act on the Punishment of Acts of Arrangement of Commercial Sex Acts, Etc. the Act on the Regulation of Amusement Businesses Affecting Public Morals and the Act on the Protection of Children and Youths against Sexual Abuse or for committing child abuse-related crimes under subparagraph 7-2 of Article 3 of the Child Welfare Act;
4. A person for whom three years have not passed since registration was revoked under Article 33 (1);
5. A juristic person that allows an officer, to whom any of subparagraphs 1 through 4 applies, maintain his/her position even after becoming aware of fact.
 Article 28 (Prohibition on Lending Names)
No popular culture planner shall allow any third person to conduct popular culture planning business after using his/her name or company name, or lend a third person his/her certificate of registration.
 Article 29 (Education of Popular Culture Planners)
(1) The Minister of Culture, Sports, and Tourism may implement education on the details of this Act, matters to be observed, matters concerning the creation of fair trading order in the popular culture and arts industry, other matters prescribed by Presidential Decree, etc. to popular culture planners.
(2) A popular culture planner registered under Article 26 (1) shall receive education pursuant to paragraph (1).
(3) The Minister of Culture, Sports, and Tourism may entrust a specialized institution prescribed by Presidential Decree, the association, etc. with the implementation of education pursuant to paragraph (1). In such cases, the Minister of Culture, Sports, and Tourism may fully or partially subsidize expenses incurred, within budgetary limits.
(4) A popular culture planner shall take necessary measures to ensure that affiliated popular culture artists take courses in sex education or ones intended to prevent sexual violence, commercial sex act, and sexual harassment offered by specialized institutions prescribed by Presidential Decree to promote sound values of sex and to prevent sexual violence, commercial sex act, sexual harassment. <Newly Inserted on Jun. 9, 2020>
(5) The timing, number of hours, details, expenses, etc. of education under paragraphs (1) and (4) shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Amended on Jun. 9, 2020>
[Title Amended on Jun. 9, 2020]
 Article 30 (Succession of Business)
(1) Where a popular culture planner registered under Article 26 (1) intends to transfer his/her business or to merge with another corporation, he/she shall report to the Minister of Culture, Sports and Tourism, as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism.
(2) Where a popular culture planner has died, and if an heir intends to continue to engage in the popular culture planning business, he/she file a report thereon with the Minister of Culture, Sports and Tourism within 30 days from the date the decedent has died, as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism.
(3) The Minister of Culture, Sports and Tourism shall notify a reporting person of whether to accept the report within seven days of receipt of the report prescribed in paragraph (1) or (2).
(4) Where the Minister of Culture, Sports and Tourism fails to notify a reporting person of whether to accept the report or of the extension of a processing period prescribed by statutes or regulations relating to the processing of civil petitions within the period prescribed in paragraph (3), the report shall be deemed accepted on the day immediately after the date such period (where the period of processing civil petitions gets extended or re-extended, referring to the relevant processing period) expires.
(5) Where a report prescribed in paragraph (1) is accepted (including cases where a report is deemed accepted pursuant to paragraph (4)), the transferee, successor, corporation established by the merger or corporation that continues to exist after the merger shall succeed to the status of the previous popular culture planner from the date of such transfer, succession or merger.
(6) Where a report prescribed in paragraph (2) is accepted (including where a report is deemed accepted under paragraph (4)), the heir shall succeed to the status of the decedent as a popular culture planner, and for a period from the date of the decedent’s death to the date on which the report is accepted (including the date the report is deemed accepted under paragraph (4)), the registration of the decedent's popular culture planning business shall be deemed registration of the heir's popular culture planning business.
(7) Where succession to business is reported under other statutes or regulations, a report shall be deemed made under this Act.
[This Article Wholly Amended on Dec. 24, 2018]
 Article 31 (Report on Temporary Closure, Closure, or Resumption of Business)
(1) Where a popular culture planner intends to temporarily close, close down, or resume business after temporary closure, he/she shall report to the Minister of Culture, Sports, and Tourism, as prescribed by Presidential Decree.
(2) The Minister of Culture, Sports, and Tourism may, ex officio, delete the registration of a person, who fails to report on the closure of business pursuant to paragraph (1) after confirming the fact of closure of business, as prescribed by Presidential Decree.
(3) Where closure of business is reported under paragraph (1), the registration in Article 26 (1) shall lose its effect.
(4) The Minister of Culture, Sports and Tourism shall notify the reporting person of whether to accept the report within seven days after receipt of a report on resumption of business under paragraph (1). <Newly Inserted on Dec. 24, 2018>
(5) If the Minister of Culture, Sports and Tourism fails to notify the reporting person of whether to accept the report or of the extension of a processing period under statutes or regulations relating to the processing of civil petitions within the period provided in paragraph (4), the relevant report shall be deemed accepted on the day immediately after the date said processing period (if the processing period gets extended or re-extended under statutes and regulations relating to the processing of civil petitions, referring to the relevant processing period) expires. <Newly Inserted on Dec. 24, 2018>
(6) Where a report on temporary closure, closure, or resumption of business according to the procedures under other statutes or regulations, a report shall be deemed made under this Act. <Amended on Dec. 24, 2018>
 Article 32 (Construction and Operation of Comprehensive Information System)
(1) In order to comprehensively manage information on popular culture planning businesses and to provide persons aspiring to be a popular culture artist with relevant information, the Minister of Culture, Sports, and Tourism may construct and operate a comprehensive information system.
(2) Matters necessary for the construction and operation of a comprehensive information system, such as the scope, details, etc. of information related to popular culture planning businesses in paragraph (1) shall be prescribed by Presidential Decree.
Section 4 Administrative Measures
 Article 33 (Revocation, etc. of Registration)
(1) Where a person who has registered a popular culture planning business pursuant to Article 26 (1) falls under either of the following, the Minister of Culture, Sports, and Tourism may revoke the registration: <Amended on Nov. 26, 2019>
1. Where he/she obtains registration by deceit or fraudulent methods;
2. Where business has been conducted in violation of an order for suspension and the degree of violation is serious;
3. Where any of subparagraphs 1 through 5 of Article 27 applies to him/her: Provided, That the same shall not apply where subparagraph 5 of Article 27 applies and a replacement executive officer is appointed within three months.
(2) Where a person who has registered a popular culture planning business pursuant to Article 26 (1) falls under any of the following, the Minister of Culture, Sports, and Tourism may issue an order of suspension after specifying a period not exceeding six months:
1. Where he/she fails to register modification pursuant to Article 26 (1);
2. Deleted; <Nov. 26, 2019>;
3. Where Article 16 or 20 is violated;
4. Where he/she continues business, in violation of an order of suspension.
(3) A person who receives disposition of revocation of business pursuant to paragraph (1) shall return the certificate within seven days from the date he/she receives the notification of disposition.
(4) Detailed standards for administrative dispositions issued under paragraphs (1) and (2) shall be prescribed by Presidential Decree, in consideration of the type and degree of a violation, etc.
 Article 34 (Imposition of Penalty Surcharges)
(1) Where any of subparagraphs of Article 33 (2) applies to a popular culture planner and the Minister of Culture, Sports, and Tourism must issue suspension of business, the Minister may impose a penalty surcharge not exceeding 50 million won in lieu of the disposition of suspension of business, as prescribed by Presidential Decree.
(2) The Minister of Culture, Sports, and Tourism shall use an amount equivalent to the amount collected as penalty surcharges pursuant to paragraph (1) for the purpose of promoting the popular culture and arts industry and the enforcement of this Act, and formulate and implement an annual plan for the operation of penalty surcharges for the following year.
(3) Where a person liable to pay a penalty surcharge pursuant to paragraph (1) fails to pay by the deadline, the Minister of Culture, Sports, and Tourism shall collect it in the same manner as national taxes or local taxes in arrears are collected.
(4) Matters necessary for the amount of a penalty surcharge according to the type, degree, etc. of a violation, for which a penalty surcharge is imposed, procedures for imposition, etc. shall be prescribed by Presidential Decree.
 Article 35 (Succession to Effect of Administrative Sanctions)
(1) Where the status of a business person is succeeded to under Article 30 (5) or (6), the effect of administrative sanction imposed on the previous business person (hereafter in this Article referred to as "transferor, etc.") for violating the subparagraphs of Article 33 (1) shall pass to the transferee or successor who succeeds to the status of the previous business person, or a juristic person surviving merger or newly incorporated in the course of merger (hereafter in this Article referred to as "transferee, etc.") for one year from the date of administrative sanction, and where procedures of administrative sanction are underway, the procedures of administrative sanction may remain in force in relation to a person who succeeds to the status of the previous business person: Provided, That this shall not apply where the transferee, etc. was not aware of the fact of said disposition or violation at the time of transfer or merger. <Amended on Dec. 24, 2018; Nov. 26, 2019>
(2) A transferee, etc. shall verify whether the transferor, etc. is undergoing procedures of an administrative sanction for violations under the subparagraphs of Article 33 (1) and whether he/she has ever been subjected to an administrative sanction, and where the transferee, etc. requests the verification, the Minister of Culture, Sports and Tourism may issue documents verifying such information, as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism. <Newly Inserted on Nov. 26, 2019>
CHAPTER III SUPPLEMENTARY PROVISIONS
 Article 36 (Hearings)
Before the Minister of Culture, Sports, and Tourism revokes registration pursuant to Article 33 (1), he/she shall hold a hearing.
 Article 37 (Fees)
A person who applies for registration of a popular culture planning business or registration of modification thereof pursuant to Article 26 (1) shall pay a fee, as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism.
 Article 38 (Delegation and Entrustment of Authority)
(1) The Minister of Culture, Sports, and Tourism may delegate part of the authority bestowed under this Act to the Special Metropolitan City Mayor, Metropolitan City Mayors, Special Self-Governing City Mayor, Do Governors, and the Governor of a Special Self-Governing Province, as prescribed by Presidential Decree.
(2) The Minister of Culture, Sports and Tourism may entrust the authority bestowed under this Act to relevant public institutions, the association, etc., as prescribed by Presidential Decree.
CHAPTER IV PENALTY PROVISIONS
 Article 39 (Penalty Provisions)
(1) Any person who, in violation of Article 20 (1), compels a youth popular culture artist to perform any acts under subparagraph 4 of Article 2 of the Act on the Protection of Children and Youths against Sexual Abuse shall be punished by imprisonment for a fixed term of at least five years.
(2) A person who, in violation of Article 16 (2), compels any acts under Article 2 (1) 1 of the Act on the Punishment of Arrangement of Commercial Sex Acts, Etc. shall be punished by imprisonment for not exceeding 10 years, or by a fine not exceeding 100 million won.
(3) A person who, in violation of Article 16 (1), brokers any of the acts under Article 2 (1) 1 (a) of the Act on the Punishment of Arrangement of Commercial Sex Acts, Etc. a popular culture artist, suggests him/her to do such act or entice him/her into such act, shall be punished by imprisonment with labor for not exceeding three years, or by a fine not exceeding 30 million won.
 Article 40 (Penalty Provisions)
(1) Any of the following persons 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. 21, 2017>
1. A person who, in violation of Article 20 (2), makes a youth popular culture artist provide popular culture services for the production of a popular culture product advertising drugs harmful to youths, materials harmful to youths, business establishments harmful to youths, etc.;
2. A person who, in violation of Article 20 (3), brokers the provision of popular culture services to an occupation or business, in or to which youth popular culture artists are prohibited from employment or access;
3. A person who, in violation of Article 26 (1), conducts business without registration.
(2) Any person who, in violation of Article 33 (2), conducts business during the period of suspension shall be punished by a fine not exceeding 10 million won.
 Article 41 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended on Dec. 24, 2018>
1. A person who divulges classified information that he/she become aware of in the course of performing their duties or misappropriates it, in violation of the duty of confidentiality in Article 3 (3);
2. A person who violates the duty to provide prior explanation in Article 10 (1);
3. A person who charge an affiliated popular culture artist expenses incidental to a brokerage fee, in violation of Article 11 (3), or unreasonably reduces remuneration to be paid to popular culture artists for such reasons;
4. A person who fails to pay remuneration under a contract without just grounds, in violation of Article 14 (3);
5. A person who provides false information or makes a false promise, in violation of Article 15;
6. A person who fails to obey a corrective order in Article 24 (2);
7. A person who fails to meet requirements for registration in Article 26 (2);
8. A person who lends a name, in violation of Article 28;
9. A person who fails to submit a report, in violation of Article 30 (1) or (2).
(2) Any of the following persons shall be punished by an administrative fine not exceeding five million won:
1. A popular culture business person, who violates Article 7 (2);
2. A person who fails to prepare, and be equipped with, an accounting book, in violation of Article 14 (1);
3. A person who fails to provide accounting books, in violation of Article 14 (2);
4. A person who fails to register modification of matters registered with the Minister of Culture, Sports, and Tourism, in violation of Article 26 (1);
5. A person who fails to receive education without just grounds, in violation of Article 29 (2);
6. A person who fails to report on temporary closure, closure, or resumption of business, in violation of Article 31 (1).
(3) A person who fails to take necessary measures to ensure that affiliated popular culture artists take courses in sex education and ones intended to prevent sexual violence, commercial sex act, and sexual harassment prevention, in violation of Article 29 (4), shall be subject to an administrative fine not exceeding three million won. <Newly Inserted on Jun. 9, 2020>
(4) An administrative fine under paragraphs (1) and (2) shall be imposed and collected by the Minister of Culture, Sports and Tourism, as prescribed by Presidential Decree. <Amended on Jun. 9, 2020>
 Article 42 (Joint Penalty Provisions)
If the representative of a juristic person or the agent, servant, or employee of a juristic person or individual commits a violation in Article 39 or 40 concerning the duties of the juristic person or individual, not only shall such violator be punished, but the juristic person or individual also shall be punished by a fine under the relevant provisions: Provided, That where the juristic person or individual has not neglected to exercise due care and supervision in order to prevent such violation, this shall not apply.
ADDENDA <Act No. 12349, Jan. 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Registration of Popular Culture Planning Business)
A person operating a popular culture planning business as at the time this Act enters into force shall be deemed registered with the Minister of Culture, Sports and Tourism pursuant to this Act: Provided, That after meeting the requirements prescribed in this Act within one year from the date this Act enters into force, he/she shall register with the Minister of Culture, Sports and Tourism.
Article 3 Omitted.
ADDENDUM <Act No. 14629, Mar. 21, 2017>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 15437, Mar. 13, 2018>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16053, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Article 2 (Applicability to Report on Succession of Status of Popular Culture Planners)
(1) The amended provisions of Article 30 shall begin to apply from the first report on succession to the status of a popular culture planner after this Act enters into force.
(2) The amended provisions of Article 31 (4) and (5) shall begin to apply from the first report made by a popular culture planner to resume operations after this Act enters into force.
ADDENDA <Act No. 16590, Nov. 26, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Verification of Administrative Sanctions)
The amended provisions of Article 35 (1) and (2) shall begin to apply from the first person who succeeds to the status of a popular culture planner under Article 30 (5) or (6) after this Act enter into force.
Article 3 (Transitional Measures concerning Grounds for Disqualification of Popular Culture Planning Business)
Where grounds for disqualification under the amended provisions of subparagraph 3 of Article apply to a person who operates or engages in the popular culture planning business as at the time this Act enters into force, the previous provisions shall apply, notwithstanding the amended provisions of subparagraph 3 of Article 27.
Article 4 (Transitional Measures concerning Revocation of Registration of Popular Culture Planning Business)
Where grounds for disqualification under Article 27 apply to a person who registered his/her popular culture planning business before this Act enters into force, the previous provisions shall apply, notwithstanding the amended provisions of Article 33.
ADDENDUM <Act No. 17401, Jun. 9, 2020>
This Act shall enter into force six months after the date of its promulgation.