PRICE STABILIZATION ACT
Act No. 4861, Jan. 5, 1995
Amended by Act No. 5454, Dec. 13, 1997
Act No. 5982, May 24, 1999
Act No. 8312, Mar. 29, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9713, May 27, 2009
Act No. 9828, Dec. 29, 2009
Act No. 10623, May 2, 2011
Act No. 17007, Feb. 18, 2020
Act No. 17144, Mar. 31, 2020
Act No. 20409, Mar. 26, 2024
The purpose of this Act is to protect the rights and interests of consumers and to contribute to the stabilization and improvement of the livelihood of citizens and the national economy by stabilizing prices.
[This Article Wholly Amended on May 2, 2011]
| Article 2 (Designation of Price Ceilings) |
| (1) | The Government may, when deemed necessary to stabilize the livelihood of citizens and the national economy, set price ceilings (hereinafter referred to as "price ceilings") on particularly important commodities, rent for real estate, etc., or charges for services if there are reasons prescribed by Presidential Decree, such as internal and external emergency, natural disasters, or urgent financial or economic crisis. <Amended on Jan. 5, 2021> |
| (2) | Price ceilings may be set for each region and for each trading stage, such as the production stage, the wholesale stage and the retail stage. |
| (3) | When the Government deems that the grounds for maintaining price ceilings set under paragraph (1) do not exist, it shall remove such price ceilings without delay. |
| (4) | When the Government sets or removes price ceilings pursuant to paragraph (1) or (3), it shall publicly notify such fact without delay. |
[This Article Wholly Amended on May 2, 2011]
| Article 2-2 (Penalty Surcharges) |
| (1) | The Minister of Economy and Finance shall impose a penalty surcharge on a person who has made profits unfairly by trading in excess of a price ceiling set by the Government under Article 2 (1). |
| (2) | A penalty surcharge under paragraph (1) shall be the amount computed by deducting a price ceiling from an actual trade price, rent or charge. |
| (3) | The Minister of Economy and Finance may delegate affairs concerning the collection of penalty surcharges under paragraphs (1) and (2) to the Commissioner of the National Tax Service. |
| (4) | Procedures for the imposition and collection of penalty surcharges under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
| (5) | When a person who is subject to a disposition of imposition of a penalty surcharge under paragraph (1) fails to pay a penalty surcharge by the deadline of payment, the Minister of Economy and Finance shall collect it in the same manner as dispositions of national taxes in arrears. |
[This Article Wholly Amended on May 2, 2011]
| Article 3 (Price Posting) |
The competent Minister, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor"), if he or she deems it necessary for the protection of consumers or fair trade, may order a person who produces or sells commodities or engages in the business of selling commodities or providing services (hereinafter referred to as "business operator") to indicate the price of the relevant goods or services, as prescribed by Presidential Decree: Provided, That when the Mayor/Do Governor determines the types of goods and services for which the price of goods or shall be indicated, he or she shall consult with the competent Minister. <Amended on Feb. 18, 2020>
[This Article Wholly Amended on May 2, 2011]
| Article 4 (Determination of Public Utilities Charges and Fees) |
| (1) | When the competent Minister intends to determine or change the projects, prices of commodities or charges (hereinafter referred to as "public utilities charges") which he or she determines, approves, authorizes, or permits, as prescribed by other Acts, he or she shall have a prior consultation with the Minister of Economy and Finance. |
| (2) | When the State or an agency entrusted by the State intends to determine or change the amount of compensation (hereinafter referred to as "fees") it collects in return for administrative services provided, use of facilities and conferment of specific rights, etc., as prescribed by other Acts, he or she shall have a prior consultation with the Minister of Economy and Finance. |
| (3) | In order to hold a consultation under paragraph (2), the Minister of Economy and Finance shall publicly notify necessary matters concerning the subject matter, procedure, etc. of consultation. |
| (4) | The Minister of Economy and Finance may, in consultation on public utilities charges and fees under paragraphs (1) and (2), seek advice from experts in regard to the appropriateness of cost estimation, burden on consumers, impact on the national economy, etc. |
| (5) | The principles of estimation of public utilities charges, period and method of estimation thereof, and other matters that shall be consulted with the Minister of Economy and Finance pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on May 2, 2011]
| Article 4-2 Deleted. <May 27, 2009> |
| Article 5 Deleted. <Dec. 31, 1980> |
| Article 6 (Emergency Adjustment Measures for Supply and Demand) |
| (1) | The Government may take any of the following measures (hereinafter referred to as "emergency supply and demand adjustment measures") against an enterpriser of commodities in question or a person engaged in the business of importing and exporting, or shipping, or storing commodities in question for a fixed period of up to five months, as prescribed by Presidential Decree, when the stability of the livelihood of citizens and smooth operation of the national economy are feared to be endangered considerably due to rapid price increases and commodity shortages for reasons prescribed by Presidential Decree such as internal and external emergency, natural disasters, urgent financial or economic crisis: <Amended on Jan. 5, 2021> |
| 1. | Instructions on the formulation, implementation, and adjustment of production plans; |
| 2. | Instructions on supply and delivery of goods from a warehouse; |
| 3. | Instructions on the adjustment of exports and imports; |
| 4. | Instructions on shipment, storage, or assignment; |
| 5. | Instructions on the realignment of the distribution system, the simplification of the distribution process, and the improvement of distribution facilities. |
| (2) | When the Government deems that, after taking emergency supply and demand adjustment measures under paragraph (1), the grounds for such measures no longer exist, it shall revoke such measures without delay. |
| (3) | Where the Government intends to take emergency supply and demand adjustment measures under paragraph (1), it shall obtain approval from the President after deliberation by the State Council. The same shall also apply in cases of revoking such measures under paragraph (2). |
[This Article Wholly Amended on May 2, 2011]
| Article 7 (Prohibition of Cornering and Hoarding Practices) |
No enterpriser shall commit any act cornering, or evading the sale of, any commodity with the intention of making any excessive profits, which is designated as a cornering and hoarding practice by the Minister of Economy and Finance who deems that it might be detrimental to the stabilization of price.
[This Article Wholly Amended on May 2, 2011]
| Article 8 Deleted. <Dec. 31, 1980> |
| Article 9 (Corrective Orders, etc.) |
The competent Minister shall order an enterpriser who has committed a cornering and hoarding practice under Article 7 to correct or suspend such practice. [This Article Wholly Amended on May 2, 2011]
| Article 10 Deleted. <May 27, 2009> |
| Article 11 Deleted. <May 27, 2009> |
| Article 12 Deleted. <May 27, 2009> |
| Article 13 (Hearing Opinions) |
Where price ceilings are designated or removed under Article 2 and emergency supply and demand adjustment measures are taken or removed under Article 6, necessary procedures, such as the hearing of opinions, shall be prescribed by Presidential Decree. [This Article Wholly Amended on May 2, 2011]
| Article 14 Deleted. <May 27, 2009> |
| Article 15 Deleted. <May 27, 2009> |
| Article 16 (Report and Inspection) |
| (1) | Where the Minister of Economy and Finance, the competent Minister, or a Mayor/Do Governor deems it necessary to achieve the objectives of this Act, he or she orders the enterpriser to report on costs and management status or to submit related data, or have his or her subordinate public official inspect books, papers, and other articles at the office or place of business of the enterpriser, as prescribed by Presidential Decree. In such cases, the authority of the Mayor/Do Governor shall be limited to the scope necessary for confirmation of compliance with the order pursuant to Article 3. <Amended on Feb. 18, 2020> |
| (2) | The public official who conducts an inspection under paragraph (1) shall carry identification verifying his or her authority and present it to relevant persons. |
[This Article Wholly Amended on May 2, 2011]
| Article 17 (Prohibition of Use of Details of Data for Purpose other than That of This Act) |
No public officials who engages in the duties prescribed by this Act shall use the details of data acquired under Article 16 (1) or the matters learned in the course of performing an inspection for any purpose other than that to enforce this Act. [This Article Wholly Amended on May 2, 2011]
| Article 18 (Special Provisions regarding Raising Objections) |
| (1) | A party dissatisfied with a disposition under this Act may file a complaint to the competent Minister or Mayor/Do Governor. <Amended on Feb. 18, 2020; Mar. 26, 2024> |
| (2) | Upon receipt of an objection filed under paragraph (1), the competent Minister or Mayor/Do Governor shall notify the party who filed the objection of the results of the objection within 10 days from the date of receipt of the objection. <Amended on Mar. 26, 2024> |
| (3) | Except as provided in paragraphs (1) and (2), Article 36 of the Framework Act on Administration (excluding the proviso of paragraph (2) of that Article) shall apply to matters regarding raising objections. <Amended on Mar. 26, 2024> |
[This Article Wholly Amended on May 2, 2011]
[Title Amended on Mar. 26, 2024]
| Article 19 (Matters over which Jurisdiction is not Clear) |
Among the powers of the competent Minister prescribed in this Act, matters over which jurisdiction is not clear may be exercised by the Minister of Economy and Finance.
[This Article Wholly Amended on May 2, 2011]
| Article 20 (Delegation of Authority) |
| (1) | Part of the authority of the competent Minister bestowed under this Act may be delegated to the head of an affiliated agency or a Mayor/Do Governor, as prescribed by Presidential Decree. <Amended on Feb. 18, 2020; Mar. 31, 2020> |
[This Article Wholly Amended on May 2, 2011]
| Article 21 Deleted. <Dec. 31, 1980> |
| Article 22 Deleted. <May 27, 2009> |
| Article 23 Deleted. <Mar. 29, 2007> |
| Article 24 Deleted. <Dec. 31, 1980> |
| Article 25 (Penalty Provisions) |
| (1) | Any person who violates an emergency supply and demand adjustment measure under Article 6 (1) shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 100 million won. <Amended on Jan. 5, 2021> |
| (2) | The punishment of imprisonment with labor and the fine under paragraph (1) may be imposed concurrently. |
[This Article Wholly Amended on May 2, 2011]
| Article 26 (Penalty Provisions) |
| (1) | Any person who engages in cornering and hoarding practices in violation of Article 7 shall be punished by imprisonment with labor for not more than 3 years or by a fine not exceeding 100 million won. <Amended on Jan. 5, 2021> |
[This Article Wholly Amended on May 2, 2011]
| Article 27 Deleted. <Mar. 26, 2024> |
| Article 28 (Penalty Provisions) |
Any person who violates Article 17 shall be punished by imprisonment with labor for not more than 2 years or by a fine not exceeding 20 million won. <Amended on Mar. 31, 2020> [This Article Wholly Amended on May 2, 2011]
| Article 29 (Administrative Fine) |
| (1) | A person who refuses, interferes with, or evades an inspection under Article 16 (1) shall be subject to an administrative fine not exceeding 20 million won. <Newly Inserted on Mar. 26, 2024> |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended on Mar. 26, 2024> |
| 1. | A person who violates an order issued under Article 3; |
| 2. | A person who fails to files a report under Article 16 (1) or who makes a false representation in such report; |
| 3. | A person who fails to submit the data under Article 16 (1), or who submits false data. |
| (3) | Administrative Fines under paragraphs (1) and (2) shall be imposed and collected by the competent Minister or Mayor/Do Governor, as prescribed by Presidential Decree. <Amended on Feb. 18, 2020; Mar. 31, 2020; Mar. 26, 2024> |
[This Article Wholly Amended on May 2, 2011]
| Article 29-2 (Confiscation and Punitive Collection) |
| Articles related to crimes under Article 26 shall be confiscated: Provided, That where it is impossible to confiscate the relevant articles, an amount equivalent to the value thereof shall be collected as a penalty. |
[This Article Newly Inserted on Jan 5, 2021]
| Article 30 (Joint Penalty Provisions) |
If a representative of a corporation, or an agent, servant or any other employee of a corporation or individual commits any offense under Article 25 or 26 in connection with the affairs of the corporation or the individual, not only shall the offender be punished accordingly, but the corporation or the individual shall also be punished by a fine as prescribed in the corresponding provisions: Provided, That the same shall not apply where such corporation or individual has not neglected to supervise the relevant business with due care to prevent such offense. <Amended on Mar. 26, 2024> [This Article Wholly Amended on May 27, 2009]
| Article 31 (Criminal Charge) |
Any offense under Articles 25 and 26 may be prosecuted when the competent Minister brings a charge. [This Article Wholly Amended on May 2, 2011]
| Article 32 Deleted. <May 27, 2009> |
ADDENDA <Act No. 2798, Dec. 31, 1975>
Article 1 (Enforcement Date)
This Act shall enter into force as of the date to be set by Presidential Decree: Provided, That the provisions of Articles 7 and 8 shall become effective 30 days after this Act enters into force. Article 2 (Repealed Acts)
The Act concerning the Establishment of the Public Utility Rate Deliberation Committee and the Price Stabilization Act shall be repealed: Provided, That the Public Utility Rate Deliberation Committee under the Act concerning the Establishment of the Public Utility Rate Deliberation Committee shall exist until the Committee, as prescribed in this Act, shall be established. Article 3 (Relation with Other Acts)
The Price Stabilization Act, as quoted in other Acts and subordinate statutes at the time when this Act enters into force, shall be deemed as the Price Stabilization and Fair Trade Act, and the Public Utility Rate Deliberation Committee shall be deemed as the Price Stabilization Committee under this Act. Article 4 (Transitional Measures)
| (1) | The ceiling price under the Price Stabilization Act at the time this Act enters into force, shall be deemed as the ceiling price under this Act. |
ADDENDA <Act No. 3320, Dec. 31, 1980>
Article 1 (Enforcement Date)
This Act shall enter into force 3 months after the date of its promulgation.
Article 2 (Amendment to Relevant Statutes)
The provisions of Article 5, subparagraphs 1 through 5 and 7 of Article 7, Article 8, subparagraphs 3, 4, and 6 through 8 of Article 12, Articles 21, 24, 25 (1) 1, subparagraph 2 of Article 26, and subparagraph 2 of Article 29 shall be deleted, respectively. Articles 3 through 8 Omitted.
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 4861, Jan. 5, 1995>
Article 1 (Enforcement Date)
This Act shall enter into force 3 months after the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions)
The application of the penal provisions to any act committed before this Act enters into force, shall be subject to the former provisions.
Article 3 (Transitional Measures concerning Fine for Negligence)
The imposition and collection of administrative fines against any act committed before this Act enters into force, shall be subject to the previous provisions.
Article 4 Omitted.
Article 5 (Relationship to Statutes or Regulations)
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
Article 3 Omitted.
Articles 4 and 5 Omitted.
ADDENDUM <Act No. 8312, Mar. 29, 2007>
This Act shall enter into force on July 1, 2007.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That ... the amendments to Acts promulgated before the enforcement date of this Act but for which the effective date has not arrived, among Acts amended pursuant to Article 6 of the Addenda, shall enter into force on the enforcement date of the relevant Act. Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9713, May 27, 2009>
This Act shall enter into force 3 months after the date of its promulgation.
ADDENDUM <Act No. 9828, Dec. 29, 2009>
This Act shall enter into force 6 months after the date of its promulgation.
ADDENDA <Act No. 17007, Feb. 18, 2020>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 17007, Feb. 18, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Article 2 (Preliminary Measures to Transfer Affairs)
| (1) | The head of a relevant central administrative agency shall formulate necessary measures to provide required personnel and financial resources necessary for a full-scale transfer of the central administrative authority and affairs under this Act and shall report said measures to a standing committee of the National Assembly not later than 3 months before the date of entry into force of this Act. |
Article 3 (General Transitional Measures concerning Administrative Dispositions)
Any disposition or other acts taken or conducted by an administrative agency under the previous provisions as at the time this Act enters into force shall be deemed a disposition or acts taken or conducted by an administrative agency under the provisions of this Act; and any application, report, or other acts filed with or conducted toward an administrative agency under the previous provisions shall be deemed an application, report, or acts filed with or conducted toward an administrative agency under the provisions of this Act.
Article 4 Omitted.
ADDENDA <Act No. 17144, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force 3 months after the date of its promulgation: Provided, That Article 2 of the Addenda shall enter into force on January 1, 2021. Article 2 Omitted.
ADDENDA <Act No. 17817, Jan. 5, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force 3 months after the date of its promulgation: Provided, That the amended provisions of Articles 2 (1) and 6 (1) shall enter into force on the date of its promulgation. Article 2 (Applicability)
The amended provisions of Articles 25 (1), 26, and 29-2 shall begin to apply to persons who violate emergency supply and demand adjustment measures under Article 6 (1) or prohibition against cornering and hoarding under Article 7 after this Act enters into force.
ADDENDA <Act No. 20404, Mar. 26, 2024>
Article 1 (Enforcement Date)
This Act shall enter into force 6 months after the date of its promulgation.
Article 2 (Transitional Measures concerning Penal Provisions)
Notwithstanding the amended provisions of Article 27 and the main clause of Article 30, the previous provisions shall apply to the application of penalty provisions to violations committed before this Act enters into force.
ADDENDA <Act No. 20409, Mar. 26, 2024>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (General Applicability to Raising Objections)
The amended provisions regarding raising objections shall begin to apply to dispositions made after this Act enters into force.