ENFORCEMENT DECREE OF THE PRICE STABILIZATION ACT
Presidential Decree No. 14555, Mar. 30, 1995
Amended by Presidential Decree No. 15397, jun. 23, 1997
Presidential Decree No. 15626, Feb. 12, 1998
Presidential Decree No. 16090, Jan. 29, 1999
Presidential Decree No. 20084, jun. 11, 2007
Presidential Decree No. 20331, Oct. 23, 2007
Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 21699, Aug. 25, 2009
Presidential Decree No. 22227, jun. 29, 2010
Presidential Decree No. 24496, Apr. 5, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25425, jun. 30, 2014
Presidential Decree No. 27751, Dec. 30, 2016
Presidential Decree No. 33913, Dec. 12, 2023
The purpose of this Decree is to prescribe matters necessary for the enforcement of the Price Stabilization Act (hereinafter referred to as the "Act"), which are necessary for the enforcement thereof. <Amended on Mar. 30, 1995; Jun., 2007>
| Article 2 (Designation and Lifting of Price Ceiling) |
| (1) | The competent Minister shall designate and lift the price ceiling under Article 2 (1) through (3) of the Act: Provided, That the Minister of Economy and Finance shall designate and lift the price ceiling on items for which the jurisdiction is not clear, or where the jurisdiction involves two or more ministries. <Amended on Dec. 23, 1994; Jan. 29, 1999; Feb. 29, 2008> |
| (2) | The price ceiling under paragraph (1) shall be designated in the following cases: <Newly Inserted on Jan. 29, 1999> |
| 1. | In case of major disturbances in supply or sudden surge in prices of certain goods or services essential for the public caused by a financial and economic crisis such as a sudden increase in international prices for raw materials or changes in the exchange rate; |
| 2. | In case of major disturbances in supply or sudden surge in the prices of certain goods or services which are essential for the public caused by natural disasters, terrestrial upheaval, internal crisis, external crisis, or other comparable circumstances; |
| 3. | Where it is necessary to secure stability in the lives of the public who consume goods have undergone sudden changes in supply and demand, or to ensure the sound restructuring of the industries which are manufacturing such goods. |
| Article 3 (Public Notice of Designated Ceiling Price, etc.) |
| (1) | When the competent Minister (in the case of the proviso to Article 2 (1), the Minister of Economy and Finance shall be responsible for, and the same shall apply to this Article and Article 4) has designated or lifted the ceiling price in accordance with the provisions of Article 2, the competent Minister shall give public notice thereof without delay, pursuant to the provisions of Article 2 (4) of the Act. <Amended on Dec. 23, 1994; Jan. 29, 1999; Jun. 11, 2007; Feb. 29, 2008> |
| (2) | When the competent Minister publicly notifies the designation or the lift of the ceiling price in accordance with paragraph (1), the competent Minister shall make clear the commodity involved, its trading stage and area, and other necessary details. |
| Article 4 (Ceiling Price Adjustment) |
| (1) | When the competent Minister deems it necessary to adjust the ceiling price, as designated in accordance with the provisions of Article 2, due to changing of economic conditions, raw material price fluctuations, etc., the competent Minister may make such ceiling price adjustments. |
| (2) | When the competent Minister has adjusted the ceiling price in accordance with the provisions of paragraph (1), the competent Minister shall, without delay, make public the contents of the adjustment. |
| Article 5 (Posting of Prices) |
| (1) | When the competent Minister or the Special Metropolitan City Mayor, a 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 "Mayor/Do Governor") orders to indicate the price of goods or the price of services pursuant to Article 3 of the Act, he or she shall publicly notify those subject to indication, persons obligated to indicate prices, and other matters necessary for such indication. <Amended on Sep. 8, 2020> |
| (2) | Any person in receipt of an order to indicate the price of goods or the price of services pursuant to paragraph (1) shall indicate the price of the relevant goods or the price of the relevant services in a manner easily understandable to the other party to transaction or ordinary consumers. <Amended on Sep. 8, 2020> |
| Article 6 (Calculation Principles, etc. of Public Utilities Charges) |
| (1) | Public utilities charges under Article 4 (1) of the Act shall be determined at the level of compensating the total cost incurred in providing the relevant projects or articles (hereafter referred to as "public services" in this Article): Provided, That where the competent Minister deems that it is reasonable to follow another calculation method, such calculation method may be adopted in consultation with the Minister of Economy and Finance. |
| (2) | The total cost under paragraph (1) shall be the sum of reasonable cost incurred in providing the relevant public services and reasonable investment charges concerning the assets used in providing the relevant public services, on the presumption that a provider of public services operates his/her business conscientiously and efficiently. |
| (3) | The period subject to the calculation of public utilities charges shall be one fiscal year, and the competent Minister may flexibly adjust the period in consideration of the stability of public utilities charges, price fluctuations, other changes in economic situations, etc. |
| (4) | Reasonable cost and reasonable investment charges under paragraph (2) and other detailed standards necessary for the calculation of public utilities charges shall be determined by the Minister of Economy and Finance. |
| (5) | The competent Minister shall determine the standards for calculating individual public utilities charges in accordance with paragraphs (1) through (4). In such cases, the Minister shall consult, in advance, with the Minister of Economy and Finance and the foregoing shall also apply where he/she intends to amend the standards. |
[This Article Newly Inserted on Jun. 29. 2010]
| Article 7 Deleted. <Apr. 1, 1981> |
| Article 8 Deleted. <Apr. 1, 1981> |
| Article 9 Deleted. <Apr. 1, 1981> |
| Article 10 Deleted. <Apr. 1, 1981> |
| Article 11 Deleted. <Apr. 1, 1981> |
| Article 12 (Notification and Investigation of Price Ceiling) |
| (1) | When the competent Minister has designated, adjusted or lifted the price ceiling in accordance with Articles 2 and 4 (1), he/she shall promptly report it to the Commissioner of the National Tax Service. |
| (2) | Where the competent Minister deems it necessary to investigate actual transaction conditions in respect of the price ceiling of paragraph (1), he/she may request the Commissioner of the National Tax Service to conduct such investigation. <Amended Jun. 23, 1997> |
| (3) | Where the Commissioner of the National Tax Service conducts an investigation as requested by the competent Minister under paragraph (2), he/she shall report the result thereof to the Minister of Economy and Finance and to the competent Minister without delay. <Newly Inserted on Jun. 23, 1997; Jan. 29, 1999; Feb. 29, 2008> |
[This Article Wholly Amended on Apr. 1, 1981]
| Article 12-2 (Imposition and Payment of Penalty Surcharge) |
| (1) | When the Minister of Economy and Finance intends to impose a penalty surcharge under Article 2-2 (1) of the Act, he/she shall specify and notify in writing reasons for imposition and the amount of a penalty surcharge, etc. and demand the payment thereof. <Amended on Feb. 29, 2008> |
| (2) | Any person in receipt of notification under paragraph (1) shall pay the penalty surcharge to the receiving agency designated by the Minister of Economy and Finance within 60 days from the date of receipt of such notification. <Amended on Feb. 29, 2008; Dec. 12, 2023> |
| (3) | The receiving agency which has received a penalty surcharge under paragraph (2) shall issue a receipt to the payer. |
| (4) | The receiving agency shall, when it has received a penalty surcharge under paragraph (2), notify, without delay, the Minister of Economy and Finance of such fact. <Amended on Feb. 29, 2008> |
| (5) | Deleted. <Sep. 24, 2021> |
[This Article Newly Inserted on Jun. 11, 2007]
| Article 12-3 Deleted. <Aug. 25, 2009> |
| Article 12-4 Deleted. <Aug. 25, 2009> |
| Article 12-5 Deleted. <Aug. 25, 2009> |
| Article 12-6 Deleted. <Aug. 25, 2009> |
| Article 12-7 Deleted. <Aug. 25, 2009> |
| Article 13 (Emergency Demand and Supply Adjustment Measures) |
| (1) | The competent Minister shall take emergency demand and supply adjustment measures, as prescribed in Article 6 (1) of the Act. |
| (2) | When the competent Minister intends to take an emergency demand and supply adjustment measure in accordance with the provisions of paragraph (1), he shall publicly notify the contents, enforcement period, and reasons for that measure. |
| (3) | The emergency demand and supply adjustment measures under paragraph (1) shall be implemented in the following cases: <Newly Inserted on Jan. 29, 1999> |
| 1. | Where adjustment of demand and supply of a certain good is necessary because the natural adjustment of demand and supply is paralysed and the distribution system is disturbed as a result of a shortage of supply or sudden price hikes of certain goods caused by a financial and economic crisis such as a sudden increase in the international price of raw materials or changes in the exchange rate; |
| 2. | Where adjustment of demand and supply of certain goods is necessary because the natural adjustment of demand and supply is paralysed and the distribution system is disturbed as a result of a shortage of supply or sudden price hikes of certain goods due to an internal crisis, external crisis, natural disasters, terrestrial upheaval, or other comparable circumstances. |
| Article 14 (Designation of Cornering and Hoarding Practices) |
| (1) | When the Minister of Economy and Finance designates cornering and hoarding practices in accordance with the provisions of Article 7 of the Act, he may classify and designate cornering and hoarding practices applicable commonly to all business fields, as well as cornering and hoarding practices applicable to specific business fields. <Amended on Dec. 23, 1994; Mar. 30, 1995; Jan. 29, 1999; Feb. 29, 2008> |
| (2) | When the Minister of Economy and Finance has designated cornering and hoarding practices in accordance with the provisions of paragraph (1), he shall give public notice thereof. <Amended on Dec. 23, 1994; Mar. 30, 1995; Jan. 29, 1999; Feb. 29, 2008> |
[Title Amended on Mar. 30, 1995]
| Article 15 (Methods of Public Notice) |
Public notices under Articles 3 (1), 4 (2), 5 (1), 13 (2) and 14 (2) shall be published in the Official Gazette or Gazette; provided, if it is deemed necessary, such public notification may be substituted by posting in the daily newspaper or the website of the relevant area or notifying the relevant persons. <Amended on Apr. 1, 1981; Sep. 8, 2020; Nov. 24, 2020>
| Article 16 Deleted. <Apr. 1, 1981> |
| Article 17 Deleted. <Mar. 30, 1995> |
| Article 18 (Notification of Violation) |
| (1) | Any person, having perceived an enterpriser who violates the provisions of Article 7 of the Act, or who commits a cornering and hoarding practice in violation of an order, issued under Article 9 of the Act, may notify clarified details of such violations to the competent Minister. <Amended on Apr. 1, 1981; Mar. 30, 1995> |
| (2) | When the competent Minister receives a notification in accordance with the provisions of paragraph (1), he shall notify the Minister of Economy and Finance of the results of the measures after confirming whether there is any violation of the Acts and taking any proper measures. <Amended on Dec. 23, 1994; Mar. 30, 1995; Jan. 29, 1999; Feb. 29, 2008> |
| (3) | The provisions of paragraph (2) shall also apply when the competent Minister perceives an enterpriser to be in violation of paragraph (1). |
| Article 19 (Consultation, Coordination, Hearing of Opinions, etc. of Coordination Council for Economic Policies) |
| (1) | The following matters shall, in accordance with Article 13 of the Act, undergo consultation and coordination by the Ministerial Meeting on the Economy under the Regulations on the Ministerial Meeting on the Economy: <Amended on Apr. 5, 2013> |
| 1. | Designation and abrogation of the price ceilings under Article 2 of the Act; |
| 2. | Emergency demand and supply adjustment measures and cancellation thereof under Article 6 of the Act. |
| (2) | The chairperson of the Coordination Council for Economic Policies may, when deemed necessary in performing consultation and coordination under paragraph (1), have interested persons attend the Coordination Council for Economic Policies, or consider their opinions in writing. |
| (3) | The Minister of Economy and Finance may, when deemed necessary for consultation and coordination under paragraph (1), seek advice from experts in regard to the matters under the subparagraphs of paragraph (1). |
[This Article Wholly Amended on Aug. 25, 2009]
| Article 20 Deleted. <Aug. 25, 2009> |
| Article 21 Deleted. <Dec. 31, 1992> |
| Article 22 Deleted. <Aug. 25, 2009> |
| Article 23 (Order for Submission of Data) |
| (1) | In the following cases, the order to submit a report or relevant data with regard to production costs and management conditions under Article 16 (1) of the Act shall be made by a document, clearly stating the details to be included and a time limit for submission: <Amended on Jan. 29, 1999> |
| 1. | Where such report is necessary to verify whether the ceiling price as designated under Article 2 of the Act is respected; |
| 2. | Where such report is necessary to verify whether the order to label the price under Article 3 of the Act is observed; |
| 3. | Where such report is necessary for the enforcement of the emergency demand and supply adjustment measures under Article 6 of the Act; |
| 4. | Where such report is necessary to prevent cornering and hoarding practice under Article 7 of the Act. |
| (2) | The Minister of Economy and Finance, the competent Minister, or a Mayor/Do Governor may order an enterpriser to submit relevant data on cost and management status on a regular or occasional basis pursuant to Article 16 (1) of the Act. <Amended on Dec. 23, 1994; Jan. 29, 1999; Feb. 29, 2008; Sep. 8, 2020> |
| (3) | An inspection under Article 16 (1) of the Act may be conducted in cases falling under the subparagraphs of paragraph (1), and the competent Minister or Mayor/Do Governor shall notify the Minister of Economy and Finance of the results thereof after conducting an inspection. <Amended on Sep. 8, 2020> |
| Article 24 Deleted. <Dec. 30, 2016> |
| Article 25 (Delegation of Authority) |
The competent Minister shall delegate the following authority to the Minister of the Korea Forest Service or the Mayor/Do Governor pursuant to Article 20 of the Act: <Amended on Apr. 1, 1981; Dec. 31, 1992; Mar. 30, 1995; Jun. 23, 1997; Dec. 12, 1998; Jun. 12, 2007; Jun. 11, 2007; Oct. 23, 2007; Aug. 25, 2009; Sep. 8, 2020> | 1. | Among the authority to designate, lift, or adjust a price ceiling in accordance with Articles 2 (1) and (3) and 4 of the Act, and the authority concerning orders and inspections related thereto under Article 16 (1) of the Act, the authority governing forest products and the authority governing imposition, collection of administrative fines related thereto under Article 29 (2) of the Act shall be delegated to the Minister of Korea Forest Service; |
| 2. | The authority to designate a person obligated to indicate prices (limited to the authority to designate an enterpriser separately determined and publicly notified by the competent Minister) out of the authority to issue orders to label prices under Article 3 of the Act (excluding the authority exercised by the Mayor/Do Governor on his or her own; hereafter the same shall apply in this Article) shall be delegated to the Mayor/Do Governor; |
| 3. | The authority to issue orders and to conduct inspections under Article 16 (1) of the Act (limited to the authority to issue orders to, or to conduct inspections on, enterprisers separately determined and publicly notified by the competent Minister) in relation to the authority to issue orders to label prices under Article 3 of the Act and the authority to impose and collect administrative fines under Article 29 (2) of the Act in relation thereto shall be delegated to Mayors/Do Governors; |
| 4. | Out of the authority to impose and collect administrative fines under Article 29 (2) of the Act in relation to Article 29 (1) 1 of the Act, the authority to impose and collect administrative fines on enterprisers separately determined and publicly notified by the competent Minister shall be delegated to the Mayor/Do Governor; |
| 5. | The following authority shall be delegated to the Mayor/Do Governor; in such cases, classifications of the type of business shall be based on the standard classification publicly notified by the Commissioner of the National Statistical Office under Article 22 of the Statistics Act: |
| (a) | Authority regarding lodging and restaurant business, storage and warehousing business, real estate leasing business, and real estate-related service business, among the authority to issue orders and conduct inspections under Article 16 (1) of the Act; |
| (b) | Authority concerning wholesale and retail trade among those concerning orders and inspections under Article 16 (1) of the Act related to practices of cornering and hoarding under Article 7 of the Act; |
| (c) | Authority to impose and collect administrative fines under Article 29 (2) of the Act related to that referred to in items (a) and (b). |
| Article 25-2 (Standards for Imposition of Administrative Fines) |
| (1) | The standards for imposing administrative fines in accordance with Article 29 (1) of the Act shall be as stated in the attached Table. |
| (2) | The competent Minister or a Mayor/Do Governor may aggravate or reduce the amount of administrative fines within the scope of 1/2 of the amount stated in the attached Table in consideration of the level and frequency of violations, motives for violation, the consequences thereof, etc.: Provided, That where the aggravated amount shall not exceed the amount of ceiling on administrative fines under Article 29 (1) of the Act. |
[This Article Wholly Amended on Aug. 25, 2009]
| Article 26 (Detailed Matters) |
Detailed matters necessary for the implementation of this Decree shall be prescribed by the Minister of Economy and Finance. <Amended on Dec. 23, 1994; Jan. 29, 1999; Feb. 29, 2008>
ADDENDA <Presidential Decree No. 8021, Mar. 13, 1976>
| (3) | (Transitional Measures) Regardless of the provisions of Article 8 (2), monopolistic or oligopolistic enterprisers, as publicly notified by the Minister of the Economic Planning Board, in accordance with the provisions of Article 7 (2), for the first time, after the effective date of this Decree, shall report the price on the date of public notice and January 31, 1976 to the competent Minister within five days from the date of public notice. In this case, the price reported on the date of January 31, 1976 shall be deemed as the price prevailing thirty days before the date of public notice prescribed in Article 8 (3) and (4). |
ADDENDA <Presidential Decree No. 10267, Apr. 1, 1981>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Amendment and Repeal of Relevant Statutes or Regulations)
Articles 7 through 11 and 16 shall be deleted, respectively.
Article 12 shall be as follows:
Article 12 (Notification and Investigation of Price Ceiling) (1) When the competent Minister has designated, changed, or abolished the price ceiling pursuant to Articles 2 and 4 (1), he or she shall notify the Commissioner of the National Tax Service thereof without delay.
| (2) | The Commissioner of the National Tax Service shall investigate the actual status of transactions based on the price ceiling under paragraph (1) once a month and report it to the Minister of Economic Planning Board and the competent Minister. |
Article 15
“Article 7 (2)” shall be deleted from the main clause. Article 18 (1) shall be as follows:
| (1) | A person who learns that an enterpriser has violated Article 7 of the Act or is engaged in unfair trade practices in violation of an order issued under Article 9 of the Act may report such violation to the competent Minister, specifying the details thereof. |
| 1. | Among the authority to designate, lift, or adjust a price ceiling in accordance with Articles 2 (1) and (3) and 4 of the Act and the authority concerning orders and inspections related thereto under Article 16 (1) of the Act, the authority governing forest products shall be delegated to the Minister of Korea Forest Service. |
Articles 3 and 4 Omitted.
ADDENDUM <Presidential Decree No. 13795, Dec. 31, 1992>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14555, Mar. 30, 1995>
| (1) | (Enforcement Date) This Decree shall enter into force on April 6, 1995. |
ADDENDA <Presidential Decree No. 15397, Jun. 23, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation; the amended provisions of Article 25-2 shall enter into force on January 1, 1998. Article 2 (Transitional Measures concerning Administrative Fines)
Imposition and collection of administrative fines concerning any act before this Decree enters into force shall be governed by the previous provisions: Provided, That if any offense subjected to imposition and collection of administrative fines by the previous provisions has continued to exist even after this Decree enters into force, the offense shall be governed by the provisions of this Decree.
Article 3 Omitted.
ADDENDUM <Presidential Decree No. 15626, Feb. 12, 1998>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 16090, Jan. 29, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 20084, Jun. 11, 2007>
This Decree shall enter into force on July 1, 2007.
ADDENDA <Presidential Decree No. 20331, Oct. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 28, 2007. (Proviso Omitted.)
Article 2 Omitted.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall come into effect from the date of its promulgation; provided, among the Presidential Decree revised pursuant to Article 8 of the Supplementary Provisions, the revised portion of the Presidential Decree that was promulgated before the enforcement of this Decree but whose enforcement date has not yet arrived shall enter into force on the enforcement date of the relevant Presidential Decree. Articles 2 through 8 Omitted.
ADDENDUM <Presidential Decree No. 21699, Aug. 25, 2009>
This Decree shall enter into force on August 28, 2009.
ADDENDUM <Presidential Decree No. 22227, Jun. 29, 2010>
This Decree shall enter into force on June 30, 2010.
ADDENDA <Presidential Decree No. 24496, Apr. 5, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
Article 3 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 25425, Jun. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Presidential Decree No. 30993, Sep. 8, 2020>
This Decree shall enter into force on January 1, 2021
ADDENDA <Presidential Decree No. 31176, Nov. 24, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability to Methods Such as Public Announcement)
This Decree shall begin to apply to public announcement, publication, or public notice made or given after this Decree enters into force.
ADDENDA <Presidential Decree No. 32014, Sep. 24, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 33913, Dec. 12, 2023>
This Decree shall enter into force on the date of its promulgation.