CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to secure the safety of liquor trade and to facilitate liquor taxation by prescribing matters concerning the standards and procedures for the business license for the manufacture and sales of liquor, verification of liquor, etc.
Unless otherwise provided, the meaning of terms used in this Act shall be as prescribed by the Liquor Tax Act.
CHAPTER 2 MANUFACTURE AND SALES OF LIQUOR
SECTION 1 Liquor Manufacturing License and Liquor Sales License
| Article 3 (Liquor manufacturing license) |
| (1) | Any person who intends to manufacture liquor shall obtain a license from the head of the competent tax office by fulfilling the facility standards and other requirements prescribed by Presidential Decree for each liquor manufacturing plant by type of liquor under Article 5 of the Liquor Tax Act. The same shall also apply where he or she intends to manufacture other liquor other than the types of liquor licensed in the same liquor manufacturing plant. |
| (2) | If a person who has obtained a license for the manufacture of liquor (hereinafter referred to as "liquor manufacturing license") pursuant to paragraph (1) engages in any of the following acts, it shall not be deemed the manufacture of liquor; provided, in the application of subparagraphs 1 and 2, if it is in accordance with subparagraphs 3a5) through 9) of the Appendix of the Liquor Tax Act, it shall be deemed to be the manufacture of liquor: |
| 1. | If alcohol is diluted with water at a liquor manufacturing plant to manufacture licensed liquor; |
| 2. | If ingredients that can be added to licensed liquor is mixed at a liquor manufacturing plant in order to manufacture licensed liquor; |
| 3. | If ingredients that can be added to other types of liquor, or edible food provided in the Food Sanitation Act are added to liquor manufactured with a manufacturing license at a liquor manufacturing plant to be provided free of charge without the purpose of sale to people visiting the liquor manufacturing plant; provided, the cases where the liquor is taken out of the liquor manufacturing plant, such as where a person visiting the liquor manufacturing plant takes the liquor out of the liquor manufacturing plant (excluding the cases falling under subparagraph 1 of Article 15 of the Liquor Tax Act) shall be excluded herefrom. |
| (3) | A person who has obtained a liquor manufacturing license may, with permission from the head of the competent tax office, set up a separate manufacturing plant for putting relevant liquor into containers (hereinafter referred to as "bottling factory"). In this case, the act of putting liquor into containers is regarded as liquor manufacturing, and the bottling factory shall be regarded as a liquor manufacturing plant. |
| (4) | The head of the competent tax office may revoke the liquor manufacturing license and grant a new joint license if it is deemed necessary for the preservation of liquor tax to require 2 or more persons with a liquor manufacturing license prescribed by Presidential Decree to jointly manufacture liquor. |
| (5) | If it is deemed unnecessary to maintain the joint license for the sake of liquor tax preservation, the head of the competent tax office may revoke the joint license as prescribed by Presidential Decree and grant the previous liquor manufacturing license upon application from the person who has held the joint license. |
| (6) | If the liquor manufacturing facility operated by a liquor manufacturing licensee falls short of the facility standards under paragraph (1), the head of the competent tax office may order supplementation as prescribed by Presidential Decree. |
| (7) | Notwithstanding paragraph (1), liquor may be manufactured without obtaining a liquor manufacturing license, in any of the following cases: |
| 1. | Where the State and local governments manufacture liquor for the purpose of testing; |
| 2. | Where a national or public research institute or a school under Article 2 of the Higher Education Act manufactures liquor for the purpose of academic research; |
| 3. | Where a person who, pursuant to Article 5(2), is deemed to have obtained a liquor sales business license under paragraph (1) of the same Article manufactures liquor under subparagraph 1b of Article 2 of the Liquor Tax Act using liquor referred to in item c of same subparagraph. |
| (8) | Notwithstanding paragraph (1), a person who has received a liquor manufacturing license may, by contract, entrust another person with the manufacture of liquor (limited to liquor that can be manufactured under the liquor manufacturing licenses that are obtained by both the liquor manufacturing consignor and the liquor manufacturing contractor). In this case, the liquor manufacturing contractor shall not re-entrust the manufacture of the entrusted liquor to a third party. |
| (9) | When a liquor manufacturing consignor entrusts the manufacture of liquor pursuant to paragraph (8), he or she shall report it to the head of the competent tax office as prescribed by Presidential Decree. |
| Article 4 (Manufacturing license for Sulmit or Suldeot) |
Anyone who wishes to manufacture Sulmit or Suldeot shall meet the facility standards and other requirements prescribed by Presidential Decree by type of manufacturing plant and obtain a license from the head of the competent tax office; provided, this shall not apply if a person who has received a liquor manufacturing license produces the liquor for raw materials at his or her liquor manufacturing plant.
| Article 5 (Liquor sales license) |
| (1) | A person who intends to engage in a liquor sales business (including a sales brokerage business or a hospitality business; hereinafter the same shall apply) shall meet the facility standards and other requirements prescribed by Presidential Decree for each type of liquor sales business prescribed by Presidential Decree and obtain a license from the head of the competent tax office. |
| (2) | If a person who falls under any of the following subparagraphs reports alcohol sales to the head of the competent tax office as prescribed by Presidential Decree, he or she shall be deemed to have received a liquor sales business license pursuant to paragraph (1) (hereinafter referred to as "liquor sales business license"): |
| 1. | A person who engages in the liquor sales business in a place for which a business license is granted under the Food Sanitation Act; |
| 2. | A person whose main business is not the sale of liquor, as prescribed by Presidential Decree. |
| (3) | Article 3(6) shall apply mutatis mutandis to persons who have received a liquor sales business license. |
| Article 6 (Conditions of liquor manufacturing and sales business license) |
| (1) | If it is deemed necessary for the preservation of liquor tax, the head of the competent tax office may determine the license period, the scope of manufacture or sale, and the matters for compliance in manufacture or sale as the conditions for the license when granting a manufacturing license or liquor sales business license (hereinafter referred to as "license, etc.") of liquor, Sulmit, or Suldeot. |
| (2) | When the head of the competent tax office sets a condition pursuant to paragraph (1), he or she shall specify the grounds in detail, and if he or she recognizes that the condition is no longer necessary to preserve the liquor tax, he or she shall withdraw it. |
| Article 7 (Restrictions on licenses) |
If an application has been filed for a license or a report has been filed on conversion to a corporation pursuant to Articles 3 through 5 and Article 9, the head of the competent tax office may neither grant a license, etc. nor accept the report, in any of the following cases: <Amended on Feb. 13, 2024>
| 1. | If 2 years have not passed for a license applicant since the license is revoked pursuant to Articles 13,14, and 14-2; |
| 1-2. | If a license applicant is a specially related person under subparagraph 20 of Article 2 of the Framework Act on National Taxes (hereinafter referred to as a "specially related person" in this subparagraph) at the time of applying for a license with a person whose license is revoked pursuant to Articles 13,14, and 14-2 (hereinafter referred to as "former licensee" in this subparagraph), and applies for the same license at the same location before 2 years have elapsed since the previous licensee's license was revoked. In this case, if the previous licensee that is a corporation has already been dissolved, the person who was a specially related person at the time of dissolution shall be considered a specially related person at the time of applying for the license; |
| 2. | If an applicant for the license or a person reporting on behalf of the corporation converted in accordance with Article 9 (hereinafter referred to as "converted corporation") is a minor, a person under limited guardianship, or a person under adult guardianship, and the legal representative of the person is a person under subparagraphs 1 or 7 through 10; |
| 3. | In the case of a corporation applying for a license or a converted corporation, if there is a person who falls under subparagraph 1 or any of subparagraphs 7 through 10 among the executive officers prescribed by Presidential Decree; |
| 4. | If a license applicant or converted corporation reporter intends to assign a person who falls under subparagraph 1 or any of subparagraphs 7 through 10 to the manager of the manufacturing place or sales place; |
| 5. | If a license applicant or the converted corporation reporter does not have an address or residence in the country, and the agent or manager falls under any of subparagraphs 1 or 7 through 10; |
| 6. | If the license applicant or converted corporation reporter is delinquent on national or local taxes at the time of application or reporting; |
| 7. | If 5 years have not passed since the license applicant received punishment or disposition for evading the national or local taxes worth 1 million won or more; |
| 8. | If 5 years have not passed since the license applicant was punished pursuant to Article 10(3) or (4) of the Tax Offenders Punishment Act; |
| 9. | If the license applicant was sentenced to imprisonment without prison labor or heavier punishment for violating any of the following statues and 5 years have not passed since the execution was completed (including cases where the execution is deemed to have been completed) or the execution was exempted: |
| a. | The Punishment of Tax Offenses Act; |
| b. | Subparagraph 1 of Article 31-2 of the National Health Promotion Act; |
| c. | The Act on Promotion of Korean Traditional Liquor Industries; |
| d. | The Food Sanitation Act; |
| e. | The Special Act on Imported Food Safety Control; |
| f. | Article 56 of the Youth Protection Act (limited to cases of violations of subparagraph 2 of Article 30 of the same Act), subparagraphs 3 and 6 of Article 58, and subparagraphs 1,2,6,7,7-2, and 7-3 of Article 59; |
| 10. | If the license applicant has violated any of the statues specified in each item of subparagraph 9 and has been sentenced to probation of imprisonment without labor or heavier punishment and is currently within the probation period; |
| 11. | If a license applicant attempts to set up a sales outlet without justifiable grounds in a location designated and publicly notified by the Commissioner of the National Tax Service as inappropriate for tax revenue preservation, and distribution and sales management of liquor, etc.; |
| 12. | When a license applicant is declared bankrupt and is not reinstated; |
| 13. | If a license applicant intends to set up a sales outlet in an area designated and publicly notified by the Commissioner of the National Tax Service as being likely to significantly harm the balance of supply and demand of liquor in consideration of population, liquor consumption, number of outlets, etc. |
| Article 8 (Relocation of manufacturing plant and sales outlet) |
| (1) | If a person who has received a license, etc. intends to relocate the manufacturing plant or sales outlet, he or she shall report it to the head of the competent tax office having jurisdiction over the place of relocation, as prescribed by Presidential Decree; provided, if a person who has received a liquor sales business license prescribed by Presidential Decree intends to relocate his or her sales outlet to a place specified in subparagraph 11 or 13 of Article 7, he or she shall obtain permission from the head of the competent tax office having jurisdiction over the place of relocation. <Amended on Jan. 6, 2022> |
| (2) | When the head of the competent tax office receives a report pursuant to the main clause of paragraph (1), if the report fails to comply with the facility standards under Articles 3(1),4, and 5(1), he or she shall not accept the report. <Added on Jan. 6, 2022> |
| (3) | The head of the competent tax office shall notify the reporter of whether the report has been accepted within 15 days from the date of receipt of the report pursuant to the main clause of paragraph (1). <Added on Jan. 6, 2022> |
| (4) | If the head of the competent tax office fails to notify the reporter of whether the report has been accepted or the processing period has been extended according to the statues and regulations governing civil complaints within the period specified in paragraph (3), the report shall be deemed to have been accepted on the day following the end of the relevant period (if the processing period is extended or re-extended according to the statues or regulations governing civil complaints, it refers to the relevant processing period). <Added on Jan. 6, 2022> |
SECTION 2 Succession to and Inheritance of Licenses
| Article 9 (Succession to licenses following conversion to corporation) |
If a person who has received a license, etc. comprehensively succeeds to all rights and obligations related to the business and converts the business into a corporation, he or she shall report the succession of the licenses, etc. to the head of the competent tax office, complying with the facility standards and other requirements set forth in Articles 3(1),4, and 5(1). In this case, if it does not fall under the restrictions on licenses, etc. under Article 7, the relevant corporation shall be deemed to have received a license, etc.
| Article 10 (Inheritance of license) |
| (1) | A person who inherits the business of manufacturing liquor, Sulmit, or Suldeot or the sales business of liquor shall report the fact to the head of the competent tax office without delay. |
| (2) | Where an inheritor who has filed a report under paragraph (1) does not fall under any of subparagraphs 1,2, and 5 through 10 of Article 7, he or she shall be deemed to have obtained a license for the manufacturing or sales business. In such cases, "the license applicant or converted corporation reporter ... at the time of application or reporting" in subparagraph 6 of Article 7 shall be construed as "a reporter of a license ... at the time of reporting". |
SECTION 3 Suspension of Manufacture, Export and Sale of Liquor
| Article 11 (Suspension of manufacture or export of liquor) |
| (1) | If a person who has received a liquor manufacturing license falls under any of the following subparagraphs, the head of the competent tax office shall set a period of not more than 3 months (if the person falls under subparagraph 10 or 12, referring to the period until the cause is eliminated), and render dispositions of suspending the manufacture or shipping-out of liquor: <Amended on Jan. 6, 2022> |
| 1. | If a person has awarded or received a liquor manufacturing contract that is not authorized under his or her liquor manufacturing license, in violation of the former part of Article 3(8); |
| 2. | If the manufacturing of liquor is re-entrusted to a third party in violation of the latter part of Article 3(8); |
| 3. | In case of failure to report in accordance with Article 3(9); |
| 4. | In case of manufacturing liquor in violation of the specifications of liquor under Article 6 (excluding paragraph (3)) of the Liquor Tax Act; |
| 5. | In case of manufacturing liquor in violation of Article 6(3) of the Liquor Tax Act; |
| 6. | If the liquor manufacturing plant is relocated after failing to report in accordance with the main clause of Article 8(1) or making a false report; |
| 7. | In case of violation of designated matters under Article 21; |
| 8. | If a person has intentionally violated the obligation to keep records as stipulated in Article 25 (including the intentional violation of the bookkeeping obligations for a direct outlet as stipulated in Article 16(1)). |
| 9. | In cases specified in any of subparagraphs 1 to 3 of Article 12 of the Punishment of Tax Offenses Act; |
| 10. | If a person has failed to provide the collateral or preserve the tax-guaranteed liquor as ordered by the head of the competent tax office in accordance with Article 21 of the Liquor Tax Act; |
| 11. | In case of evasion of liquor tax; |
| 12. | If it has been more than 3 months since the date on which liquor tax delinquency occurred; |
| 13. | If the amount of violations of the obligation to issue tax invoices under Article 10(1) through (3) of the Punishment of Tax Offenses Act for each taxable period under Article 5(1) of the Value-Added Tax Act is at least 5/1,000 but less than 50/1,000 of the total liquor sales amount (referring to the total liquor purchase amount, if the total liquor purchase amount is greater than the total liquor sales amount). |
| (2) | If the head of the competent tax office suspends the manufacture or shipping-out of liquor pursuant to paragraph (1), in which case if there are semi-finished products, the head of the competent tax office may allow the production of liquor or other necessary activities to continue as prescribed by Presidential Decree. In this case, this Act shall apply to the manufacture of liquor until the liquor tax is paid in full. |
| Article 12 (Suspension of alcohol sales) |
If a person who has obtained a liquor sales business license falls under any of the following subparagraphs, the head of the competent tax office shall suspend sales for a period of not more than 3 months:
| 1. | If the person relocates the sales outlet without filing a report under the main clause of Article 8(1) or after making a false report; |
| 2. | In case of selling or possessing liquor without a tax verification label pursuant to Article 22; |
| 3. | If a person uses a forged, altered, or damaged tax payment certification mark pursuant to Article 22, or has a forged, altered, or damaged tax payment certificate; |
| 4. | If the amount of violation of the obligation to issue tax invoices under Article 10(1) through (3) of the Tax Offenders Punishment Act for each taxable period under Article 5(1) of the Value-Added Tax Act is not less than 10/1000 but less than 100/1000 of the total liquor sales amount (if the total liquor purchase amount is greater than the total liquor sales amount, it refers to the total liquor purchase amount). |
[Wholly Amended on Feb. 13, 2024]
SECTION 4 Revocation of Liquor Manufacturing Licenses and Liquor Sales Licenses
| Article 13 (Revocation of liquor manufacturing license) |
| (1) | If a person who has obtained a liquor manufacturing license falls under any of the following subparagraphs, the head of the competent tax office shall revoke every liquor manufacturing license for the liquor manufacturing plant (if he or she falls under subparagraphs 3,4, or 11, limited to the manufacturing license for the relevant liquor): <Amended on Feb. 13, 2024> |
| 1. | In case of obtaining a liquor manufacturing license through illegal means; |
| 2. | If the amount of violation of the obligations, etc. to issue tax invoices under Article 10(1) through (3) of the Punishment of Tax Offenses Act for each taxable period under Article 5(1) of the Value-Added Tax Act in at least one direct outlet licensed for the liquor manufacturer is not less than 50/1000 of the total liquor sales amount (if the total liquor purchase amount is greater than the total liquor sales amount, it refers to the total liquor purchase amount) of all direct outlets licensed for the liquor manufacturer; |
| 3. | If the person fails to satisfy the license requirements under Article 3(1); provided, in cases where the person fails to meet the facility standards, it shall be limited to cases where the person receives a supplementary order pursuant to paragraph (6) of that Article but fails to comply with the order; |
| 4. | In case of violation of the conditions of license, etc. under Article 6; |
| 5. | If it falls under subparagraphs 2 through 4 or subparagraphs 7 through 10 of Article 7; |
| 6. | If a person who has been subject to dispositions to suspend the manufacture or shipping-out of liquor pursuant to Article 11(1) violates paragraph (1) of that Article again during that period; |
| 7. | If a person uses a forged, altered, or damaged tax payment mark pursuant to Article 22, or has a forged, altered, or damaged tax verification label; |
| 8. | If the amount of violations of the obligation to issue tax invoices under Article 10(1) through (3) of the Punishment of Tax Offenses Act for each taxable period under Article 5(1) of the Value-Added Tax Act is at least 5/1,000 of the total liquor sales amount (if the total liquor purchase amount is greater than the total liquor sales amount, referring to the total liquor purchase amount); |
| 9. | In case of committing an offense under Article 10(4) of the Punishment of Tax Offenses Act; |
| 10. | In case of evasion of liquor tax on liquor according to the following categories: |
| a. | Takju: KRW 5 million or more; |
| b. | Fermented liquor and other liquor, excluding Takju and beer: KRW 5 million or more; |
| c. | Spirits and distilled liquor: KRW 10 million or more; |
| d. | Beer: KRW 20 million or more; |
| 11. | In case of failure to manufacture liquor continuously for more than 2 brewing years; |
| 12. | In case of evasion of liquor tax at least 3 times during one liquor year; |
| 13. | If a person manufactures liquor that are not licensed liquor at the same liquor manufacturing plant; |
| 14. | If the liquor manufacturing license is transferred or leased to another person; |
| 15. | If a person runs a business in partnership with another person; |
| 16. | If a person who has obtained a liquor manufacturing is absent, and has ceased to reside in the Republic of Korea or disappeared without appointing an agent or manager who has been entrusted with all the authority to manufacture liquor by notarization by a notary public; |
| 17. | If a person who has obtained the liquor manufacturing license is an absentee, and is a minor, a person under limited guardianship, or a person under adult guardianship, and there is no legal representative under Article 8 of the Commercial Act; |
| 18. | If a person who received a liquor manufacturing license based on a recommendation for a manufacturing license pursuant to Article 8(1) of the Act on Promotion of Korean Traditional Liquor Industries violates the recommendation requirements pursuant to paragraph (5) of that Article. |
| (2) | If the liquor manufacturing license is revoked pursuant to paragraph (1), Article 11(2) shall apply mutatis mutandis. |
| Article 14 (Revocation of license to manufacture Sulmit or Suldeot) |
The provisions of Articles 11 and 13 shall apply mutatis mutandis to persons who have received a license to manufacture Sulmit or Suldeot.
| Article 14-2 (Revocation of liquor sales license) |
| (1) | If a person who has received a liquor sales business license falls under any of the following subparagraphs, the head of the competent tax office shall cancel the license: |
| 1. | In case of obtaining a liquor sales business license through illegal means; |
| 2. | If the person fails to satisfy the license requirements under Article 5(1); provided, if the person fails to meet the facility standards, it shall be limited to cases where the person receives a supplementary order pursuant to paragraph (3) of that Article but fails to comply with the order; |
| 3. | In case of violation of the conditions of license, etc. under Article 6; |
| 4. | If a person relocates a sales outlet without obtaining permission pursuant to the proviso of Article 8(1) or after obtaining permission by illegal means; |
| 5. | If the amount of violations of the obligations, etc. to issue tax invoices under Article 10(1) through (3) of the Punishment of Tax Offenses Act for each taxable period under Article 5(1) of the Value-Added Tax Act is at least 100/1,000 of the total liquor sales amount (if the total liquor purchase amount is greater than the total liquor sales amount, referring to the total liquor purchase amount); |
| 6. | In case of committing an offense under Article 10(4) of the Punishment of Tax Offenses Act; |
| 7. | In case of failure to sell liquor continuously for more than 2 brewing years; |
| 8. | If liquor have been processed or manipulated; provided, this shall exclude simple processing or manipulation prescribed by Presidential Decree, such as where liquor is divided and sold in empty containers, such as drinking glasses, at a place of food service business for which drinking is permitted pursuant to Article 36(1)3 of the Food Sanitation Act; |
| 9. | In case of selling or possessing liquor manufactured without a liquor manufacturing license or liquor exempted from liquor tax; |
| 10. | If the liquor sales business license is transferred or leased to another person; provided, if it is converted to a corporation pursuant to Article 9, it shall be not considered a transfer; |
| 11. | If a person runs a business in partnership with another person. |
| (2) | If the head of the competent tax office revokes the liquor sales business license pursuant to paragraph (1), and in which case there is inventory, the head of the competent tax office may allow sales or other necessary activities to be continued as prescribed by Presidential Decree. |
[This Article Added on Feb. 13, 2024]
| Article 15 (Application for revocation and suspension of license) |
| (1) | If a person who has obtained a liquor manufacturing license intends to stop manufacturing thereof, he or she shall apply for the revocation of the license to the head of the competent tax office. |
| (2) | If a person who has received a manufacturing license for Sulmit or Suldeot or a liquor sales business license ceases to manufacture or sell it, he or she shall report this to the head of the competent tax office. |
| (3) | If a person who has received a license, etc. intends to temporarily suspend manufacturing or sales, he or she shall report it to the head of the competent tax office. |
| (4) | Notwithstanding paragraph (2), if a person who is deemed to have obtained a liquor sales business license pursuant to Article 5(2) reports a business closure pursuant to Article 8(7) of the Value-Added Tax Act, he or she shall be deemed to have filed a report pursuant to paragraph (2). |
| Article 16 (Permission and revocation of establishment of direct outlets) |
| (1) | In order to facilitate the long-distance supply of liquor, a person who has received a liquor manufacturing license may obtain permission from the head of the competent tax office to establish a direct outlet store (referring to a place equipped with sales facilities to directly sell liquor manufactured or acquired by the liquor manufacturer in connection with his or her business). |
| (2) | Direct outlet stores under paragraph (1) shall comply with the facility standards prescribed by Presidential Decree. |
| (3) | Articles 6 through 8,12,14-2, and 15(2) and (3) shall apply mutatis mutandis to direct sales outlets. In this case, "less than 100/1,000" in subparagraph 4 of Article 12 shall be construed as "less than 50/1,000," and "at least 100/1,000" in Article 14-2(1)5 shall be construed as "at least 50/1,000." <Amended on Feb. 13, 2024> |
CHAPTER 3 PRESERVATION OF LIQUOR TAX
| Article 17 (Liquor tax preservation order) |
| (1) | If it is deemed necessary to preserve liquor tax, the Commissioner of the National Tax Service may issue an order regarding the following matters, as prescribed by Presidential Decree: <Amended on Jan. 6, 2022> |
| 1. | Matters pertaining to the classification of use of liquor and the labeling of classification; |
| 2. | Matters concerning the marking on the vehicles for transporting liquor; |
| 3. | Matters related to the raw materials for manufacturing liquor, Sulmit, or Suldeot, and the quality control of liquor, etc.; |
| 4. | Matters related to modified report on the manufacturing facilities and equipment for liquor, Sulmit, or Suldeot; |
| 5. | Matters related to the use of facilities for the manufacture, storage, and sale of liquor, Sulmit, or Suldeot; |
| 6. | Other matters equivalent to those stipulated in subparagraphs 1 through 5, such as matters related to the manufacture, storage, transfer, acquisition, transportation, facilities, or shipped-out quantity of liquor, Sulmit, or Suldeot. |
| (2) | In the case of issuing an order under paragraph (1), it shall be done to the minimum extent necessary to achieve the purpose, and the manufacturers of liquor, Sulmit, or Suldeot, or the sellers of liquor shall not be discriminate against, or unfairly infringed upon their interests, without reasonable grounds. |
| (3) | The Commissioner of the National Tax Service may delegate part of the business affairs under paragraph (1) to commissioner of the competent regional tax service or the head of the competent tax office. <Added on Jan. 6, 2022> |
| Article 18 (Report on prices of liquor) |
| (1) | When a liquor manufacturer changes the price of liquor, excluding Takju and beer, or newly manufactures liquor and ships them out, he or she shall report the price to the Commissioner of the National Tax Service as prescribed by Presidential Decree. <Amended on Jan. 6, 2022> |
| (2) | If a liquor manufacturer (referring to the liquor manufacturing consignor in the case of contract manufacturing) and a person licensed for the import business of liquor pursuant to Article 5(1) intends to use or change the trademark, he or she shall file a report thereon to the head of the competent tax office at least 2 days prior to the commencement of use as prescribed by Presidential Decree; provided, this shall not apply in cases where the brand of liquor exported abroad is simply changed or where imported liquor is imported in accordance with the Customs Act. <Added on Jan. 6, 2022> |
[Title Amended on Jan. 6, 2022]
| Article 19 (Approval of disposal or shipping-out of Sulmit) |
| (1) | Sulmit or Suldeot may be disposed of or taken out of a liquor manufacturing plant only with an approval by the head of the competent tax office as prescribed by Presidential Decree. |
| (2) | If approved by the head of the competent tax office under paragraph (1), the liquor tax shall be collected from the manufacturer without delay by treating Sulmit or Suldeot as Takju; provided, the same shall not apply where measures are taken to prohibit drinking Sulmit or Suldeot as liquor with the approval of the head of the competent tax office. |
| Article 20 (Restrictions on purchase of alcohol) |
Alcohol shall not be purchased, used, retained, or shipped out of the manufacturing plant except as prescribed by Presidential Decree.
| Article 21 (Designation of type of raw materials for manufacturing liquor) |
The Commissioner of the National Tax Service may designate the type and quantity of raw materials necessary for the manufacture of liquor by a person who has obtained a liquor manufacturing license, as prescribed by Presidential Decree, in any of the following cases:
| 1. | When the Minister of Agriculture, Food and Rural Affairs deems it necessary to control the supply and demand of grain and requests it; |
| 2. | When it is deemed necessary for quality control of liquor or control of supply and demand of liquor. |
| Article 22 (Tax verification label) |
| (1) | If deemed necessary for the preservation of liquor taxes, the Commissioner of the National Tax Service may require a mark certifying the fact of tax payment under Articles 10 and 13 of the Liquor Tax Act or tax exemption under Article 20 of the Liquor Tax Act (referred to as "tax verification label") to be placed on the containers of liquor shipped out as prescribed by Presidential Decree. |
| (2) | The Commissioner of the National Tax Service may issue necessary orders to the manufacturers with respect to the specifications, methods of use, procedures, etc. of tax verification label. |
| Article 23 (Restrictions on possession of liquor) |
| (1) | Liquor without a tax verification label, liquor manufactured without a license, or liquor exempted from taxation under Article 20 of the Liquor Tax Act shall not be possessed for the purpose of sale. |
| (2) | If a person who has received a liquor sales business license possesses liquor pursuant to paragraph (1), he or she shall be deemed to possess it for the purpose of sale. |
| Article 24 (Report on manufacturing and sale) |
The manufacturers of liquor, Sulmit, or Suldeot or liquor dealers shall report matters related to the manufacture, storage or sale to the head of the competent tax office, as prescribed by Presidential Decree.
| Article 25 (Obligation to record books) |
The manufacturers of liquor, Sulmit, or Suldeot or liquor dealers shall record matters related to manufacturing, storage, or sales in a ledger, as prescribed by Presidential Decree.
| Article 26 (Request for business suspension) |
| (1) | If a person who conducts a sales business of liquor at a place for which a business license is granted under the Food Sanitation Act possesses or sells liquor without a tax verification label, liquor manufactured without a license, or liquor exempted from tax under Article 20 of the Liquor Tax Act, the head of the competent tax office may request the relevant competent authority to suspend its business or revoke its permission. |
| (2) | The competent authority that has received a request pursuant to paragraph (1) shall suspend business or revoke the license unless there are special reasons not to do so. |
CHAPTER 4 VERIFICATION, INSPECTION AND APPROVAL OF LIQUOR
| Article 27 (Verification of liquor) |
If a person with a liquor manufacturing license manufactures liquor, the head of the competent tax office shall examine the quantity and alcohol content as prescribed by Presidential Decree.
| Article 28 (Verification of devices) |
The manufacturers of liquor, Sulmit, or Suldeot, or the liquor dealers shall undergo the verification of the machines, apparatus, and containers used for the manufacture, storage, or sales, as prescribed by Presidential Decree.
| Article 29 (Inspection and approval) |
The manufacturers of liquor, Sulmit, or Suldeot, or the liquor dealers shall undergo an inspection or obtain an approval from the head of the competent tax office with respect to matters related to manufacture, storage, or sales, as prescribed by Presidential Decree.
CHAPTER V SUPPLEMENTARY PROVISIONS
| Article 30 (Application of Framework Act on National Taxes) |
| (1) | Except as otherwise provided for in this Act, Articles 2,4,5,5-2,6,8 through 12, and 18,18-2,19,20,76,81-16,81-17,84,85-4,85-6, and 86 through 90 of the Framework Act on National Taxes shall apply mutatis mutandis. <Amended on Jan. 6, 2022> |
| (2) | Any person whose rights or interests have been infringed upon as a result of receiving illegal or unfair dispositions under this Act or not receiving necessary dispositions may request the revocation or modification of such dispositions or request necessary dispositions pursuant to the provisions of Chapter 7 of the Framework Act on National Taxes. |
| Article 31 (Application in Relation to Consignment manufacturing of Liquor) When applying Chapter 3 in relation to alcoholic beverages manufactured on consignment basis in accordance with Article 3(8), it shall be as follows: |
| 1. | In Article 17, "quantity" refers to the quantity taken out from the manufacturing plant of the liquor manufacturing contractor; |
| 2. | In Article 18, "price" refers to the price at which a liquor manufacturing consignor sells the product to a third party; |
| 3. | In Article 18 or 19, "liquor manufacturer" or "manufacturer" refers to the liquor manufacturing consignor; |
| 4. | In Article 19 or 20, "liquor manufacturing plant" or "manufacturing plant" refers to the manufacturing place where the liquor manufacturing contractor entrusted with the manufacture of relevant liquor produces the liquor. |
| Article 32 (Questions, inspection and disposition by tax officials) |
| (1) | Tax officials may take necessary measures for crackdown, such as questioning the manufacturers of liquor, Sulmit, or Suldeot, or the liquor dealers, or inspecting the following items: |
| 1. | Liquor, Sulmit, or Suldeot possessed by the manufacturer of liquor, Sulmit, or Suldeot, or liquor possessed by a liquor dealer; |
| 2. | All ledgers and other documents related to the manufacture, storage or sale of liquor, Sulmit, or Suldeot; |
| 3. | Buildings, machines, apparatus, containers, raw materials or other objects necessary for the manufacture, storage or sale of liquor, Sulmit, or Suldeot. |
| (2) | Tax officials may inspect liquor, Sulmit, or Suldeot that are being transported, or inquire about their source or destination. |
| (3) | When taking necessary measures for crackdown, such as questioning or inspection pursuant to paragraph (1) or (2), tax officials shall not abuse their authority for any other purposes except as otherwise necessary for their duties. |
| Article 33 (Request for submission of samples) |
If a tax official deems it necessary, he or she may require the manufacturers of liquor, Sulmit, or Suldeot or the liquor sellers to submit a sample of the liquor, Sulmit, or Suldeot that they possess.
| (1) | The commissioner of the competent regional tax service or the head of the competent tax office may confiscate goods possessed by the manufacturers or sellers, which fall under any of the following subparagraphs: <Amended on Jan. 6, 2022> |
| 1. | Goods manufactured without a license pursuant to Articles 3 and 4; |
| 2. | Machines, instruments or containers used in manufacturing goods under subparagraph 1; |
| 3. | Goods without the tax verification label in accordance with Article 22. |
| (2) | The commissioner of the competent regional tax service or the head of the competent tax office shall sell the goods, machines, instruments and containers confiscated pursuant to paragraph (1) in accordance with the provisions of the National Tax Collection Act concerning the sale of seized property; provided, if there are unavoidable reasons, such as an imminent expiration date, confiscated items may be discarded. <Added on Jan. 6, 2022> |
| Article 35 (Fees for licenses) |
| (1) | Any person who applies for a license specified in any of the following subparagraphs shall pay fees, as prescribed by Decree of the Ministry of Economy and Finance: <Amended on Oct. 1, 2025> |
| 1. | Liquor manufacturing license under Article 3(1); |
| 2. | Manufacturing license for Sulmit or Suldeot under Article 4; |
| 3. | liquor sales business license under Article 5(1). |
| (2) | The fees under paragraph (1) may be paid by means of revenue stamps or electronic money, electronic payment, etc. using the information and communications network pursuant to Article 14 of the Electronic Government Act. |
The Commissioner of the National Tax Service or the head of the competent tax office shall hold a hearing to render any of the following dispositions: <Amended on Feb. 13, 2024>
| 1. | Suspension of the manufacture or shipping-out of liquor pursuant to Article 11; |
| 2. | Suspension of the sales of liquor pursuant to Article 12; |
| 3. | Revocation of a liquor manufacturing license under Article 13; |
| 4. | Suspension of the manufacture or shipping-out of Sulmit and Suldeot and the revocation of manufacturing license of Sulmit and Suldeot under Article 14; |
| 4-2. | Revocation of liquor sales business license under Article 14-2; |
| 5. | Revocation of permission to establish a direct outlet store under Article 16; |
| Article 37 (Liquor business association) |
| (1) | A person who has received a liquor manufacturing license or a liquor sales business license may establish a liquor business association to cooperate in preserving liquor taxes and promoting mutual welfare. |
| (2) | The liquor business association under paragraph (1) shall be a corporation, and matters necessary for its establishment and operation shall be prescribed by Presidential Decree. |
| (3) | Except as otherwise provided for in this Act, the provisions concerning incorporated associations in the Civil Act shall apply mutatis mutandis to the liquor business associations. |
| Article 37-2 (Prohibition of providing money or valuables to establish liquor trade order) |
In order to establish a sound liquor trade order, a person who has obtained a liquor manufacturing license or a liquor sales business license prescribed by Presidential Decree shall neither provide money or valuables in connection with the transaction of liquor nor engage in any other similar acts prescribed by Presidential Decree, except in the following cases:
| 1. | Where small-scale prizes, etc. worth not more than a specified amount of money prescribed by Presidential Decree are provided for the purpose of sales and publicity, etc.; |
| 2. | Where goods prescribed by presidential decree, such as refrigerated display cases for the storage of liquor, are provided as durable consumer goods provided to maintain the quality of liquor; |
| 3. | Where the provider is clearly identified by displaying the company name, logo, or product name, and consumables used directly for the sale of liquor is provided to a person designated by the Commissioner of the National Tax Service. |
[This Article Added on Jan. 6, 2022]
CHAPTER VI PENALTY PROVISIONS
| Article 38 (Administrative fines) |
| (1) | Any person who falls under any of the following subparagraphs shall be punished by an administrative fine not exceeding 20 million won: <Amended on Jan. 6, 2022; Feb. 13, 2024> |
| 1. | A person who violates any of the following orders: |
| a. | Order to preserve liquor tax under Article 17; |
| b. | Order regarding tax verification label pursuant to Article 22; |
| 2. | A person who possesses or sells any of the following liquor for the purpose of sale: |
| a. | Liquor manufactured without a license under Article 3; |
| b. | Liquor without a tax verification label labeled on it pursuant to Article 22; |
| 3. | A person who uses a machine, instrument, or container that has not received verification in accordance with Article 28; |
| 4. | A person who violates an obligation to prohibit the provision of money or valuables under article 37-2. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the head of the competent tax office as prescribed by Presidential Decree. <Added on Jan. 6, 2022> |
ADDENDA <Act No. 17761, Dec. 29, 2020>
Article 1 (Enforcement date)
This Act shall enter into force on January 1, 2021.
Article 2 (General transitional measures)
With regard to the manufacturing license or sales license that is granted or to be granted pursuant to the previous provisions before this Act enters into force, the previous provisions shall apply.
Article 3 (Transitional measures concerning licensed liquor manufacturing managers)
A person who acquires a liquor manufacturing manager's license before the enforcement of this Act shall be subject to the previous provisions, notwithstanding the amended provisions of Articles 19 and 54-4 of the previous Liquor Tax Act (referring to the one before amendment by Act No. 16847).
Article 4 (Transitional measures concerning restrictions on licenses for incompetent persons)
With respect to a person who is declared incompetent or quasi-incompetent before the enforcement of this Act, if the sentence remains effective pursuant to Article 2 of the Addenda of the Civil Act partially amended by Act No. 10429 for a person who is already declared incompetent or quasi-incompetent at the time of enforcement of the Liquor Tax Act partially amended by Act No. 14051, previous provisions before amendment by the same Act shall apply, notwithstanding the amended provisions of subparagraph 2 of Article 10 of the previous Liquor Tax Act (referring to the one before amendment by Act No. 14051).
Article 5 (Transitional measures concerning liquor manufacturing license)
A person who has obtained a liquor manufacturing license pursuant to the previous provisions at the time of enforcement of the previous Liquor Tax Act (referring to the one before amendment by Act No. 11718) shall be deemed to have obtained a manufacturing license for the relevant liquor among the type of liquor under this Act.
Article 6 (Transitional measures concerning direct sales outlet)
Direct sales outlets at the time of enforcement of the previous Liquor Tax Act (referring to the one before amendment by Act No. 11718) shall be deemed to have obtained permission in accordance with the amended provisions of Article 16(1).
Article 7 (Transitional measures concerning liquor business associations)
Liquor business associations established in accordance with the previous provisions at the time of enforcement of the previous Liquor Tax Act (referring to the one before amendment by Act No. 11718) shall be deemed to have been established in accordance with the amended provisions of Article 37.
Article 8 (Transitional measures concerning liquor considered released)
Liquor used as raw materials for manufacturing other liquor within the same manufacturing plant pursuant to Article 22 before the enforcement of the previous Liquor Tax Act (referring to the one before amendment by Act No. 6055) shall be subject to the provisions prior to amendment by the same Act.
Article 9 (Transitional measures concerning administrative fines)
The application of administrative fines for any acts committed before the enforcement of this Act shall be governed by Article 56 of the previous Liquor Tax Act (referring to the one before amendment by Act No. 17762).
Article 10 Omitted.
Article 11 (Relationship with other statutes and regulations)
In cases where provisions of the previous Liquor Tax Act are cited in other statues or regulations at the time of enforcement of this Act, if there are corresponding provisions in this Act, the corresponding provisions of this Act shall be deemed to have been cited in lieu of the previous provisions.
ADDENDUM <Act No. 18723, Jan. 6, 2022>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to sale and disposal of confiscated goods)
The amended provisions of Article 34(2) shall also apply to goods, etc. confiscated before this Act enters into force.
ADDENDA <Act No. 20249, Feb. 13, 2024>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to restrictions on licenses)
The amended provisions of subparagraph 1-2 of Article 7 shall begin to apply to applications filed for licenses under Articles 3 through 5 after the enforcement of this Act.
Article 3 (Transitional measures concerning revocation of liquor manufacturing license)
With respect to the revocation of a liquor manufacturing license due to liquor tax evasion before the enforcement of this Act, the previous provisions shall apply, notwithstanding the amended provisions of Article 13(1)10.
ADDENDA <Act No. 21065, Oct. 1, 2025>
Article 1 (Enforcement date)
This Act shall enter into force on the date of its promulgation; provided, among the Acts amended pursuant to Article 7 of the Addenda, the amended parts of Acts that were promulgated before this Act enters into force but the enforcement dates of which have not yet arrived shall enter into force on the enforcement dates of the relevant Acts, respectively; and the following amended provisions shall enter into force on the dates specified in each subparagraph:
| 1. | The following amended provisions shall enter into force on January 2, 2026; provided, among the Acts amended pursuant to Article 7 of the Addenda (limited to the portions related to the amended provisions of items a and b), the amended provisions of the Acts that were promulgated before the enforcement date under the main clause but the enforcement dates of which have not yet arrived shall enter into force on the enforcement dates of the relevant Acts, respectively: |
| a. | The amended provisions of Article 19(4), 23, and 29(1)1, and Article 30; |
| b. | The amended provisions of Articles 12(2),19(3),22, and the proviso of Article 29(2) (limited to the provisions concerning the Minister of Economy and Finance and the Ministry of Economy and Finance); |
| c. | The Acts amended pursuant to Article 7 of the Addenda (limited to the portions related to the amended provisions of items a and b). |
Articles 2 through 6 Omitted.
Article 7 Omitted.
Article 8 Omitted.