Enforcement Decree Of The Price Stabilization Act


Published: 2010-06-29

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 Article 1 (Purpose)   print
The purpose of this Decree is to prescribe matters necessary for the enforcement of the " Price Stabilization Act" (hereinafter referred to as the "Act"). <Amended by Presidential Decree No. 14555, Mar. 30, 1995; Act No. 20084, Jun. 11, 2007>
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 Article 2 (Designation and Lifting of Price Ceiling)   print
(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 Strategy 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 by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, Feb. 29, 2008>
(2) The price ceiling under paragraph (1) shall be designated in the following cases: <Newly Inserted by Presidential Decree No. 16090, 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 uphe aval, internal crisis, external crisis, or other comparable circumstances; and
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.
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 Article 3 (Public Notice of Designated Ceiling Price, etc.)   print
(1) When the competent Minister (in the case of the proviso to Article 2 (1), the Minister of Strategy 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 by Presidential Decree No. 14438, Dec. 23, 1994; Act No. 16090, Jan. 29, 1999; Act No. 20084, Jun. 11, 2007; Act No. 20720, Feb. 29, 2008>
(2) When the competent Minister makes public the designation or the lift of the ceiling price in accordance with the provisions of paragraph (1), the competent Minister shall make clear the commodity involved, its trading stage and area, and other necessary details.
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 Article 4 (Ceiling Price Adjustment)   print
(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.
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 Article 5 (Posting of Price, etc.)   print
(1) When the competent Minister orders the posting of goods or service prices in accordance with the provisions of Article 3 of the Act, the competent Minister shall make public the object to be posted, the person responsible for the posting, and other details necessary to effect the posting.
(2) Any person, ordered to post the price of goods or service in accordance with the provisions of paragraph (1), shall post such prices in a manner that trading partners or general consumers may understand easily.
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 Article 6 (Calculation Principles, etc. of Public Utilities Charges)   print
(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 Strategy 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 Strategy 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 Strategy and Finance and the foregoing shall also apply where he/she intends to amend the standards.
[This Article Newly Inserted by Presidential Decree No. 22227, Jun. 29. 2010]
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 Articles 7 through 11 Deleted.<by Presidential Decree No. 10267, Apr. 1, 1981>   print
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 Article 12 (Notification and Investigation of Price Ceiling)   print
(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 by Presidential Decree No. 15397, 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 promptly report the result thereof to the Minister of Strategy and Finance and to the competent Minister. <Newly Inserted by Presidential Decree No. 15397, Jun. 23, 1997; Presidential Decree No. 16090, Jan. 29, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
[This Article Wholly Amended by Presidential Decree No. 10267, Apr. 1, 1981]
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 Article 12-2 (Imposition and Payment of Penalty Surcharge)   print
(1) When the Minister of Strategy 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 by Act No. 20720, Feb. 29, 2008>
(2) A person who has been notified under paragraph (1) shall pay, within 60 days from the day of the receipt of such notification, a penalty surcharge to the receiving agency as determined by the Minister of Strategy and Finance: Provided, That if he/she is unable to pay a penalty surcharge within that period due to force majeure or other unavoidable reason, he/ she shall pay it within 30 days from the date when such reason ceases to exist. <Amended by Act No. 20720, Feb. 29, 2008>
(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 Strategy and Finance of such fact. <Amended by Act No. 20720, Feb. 29, 2008>
(5) A penalty surcharge shall not be paid in installments.
[This Article Newly Inserted by Act No. 20084, Jun. 11, 2007]
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 Article 12-3 (Organization of Public Utilities Charges Advisory Committee)   print
(1) The Public Utilities Charges Advisory Committee (hereinafter referred to as the “Advisory Committee”) under Article 4-2 (1) of the Act shall be composed of 15 or fewer members including one chairperson.
(2) The chairperson of the Advisory Committee shall be elected from among its members.
(3) The members of the Advisory Committee shall be commissioned by the Minister of Strategy and Finance from among the persons falling under any of the following subparagraphs: <Amended by Act No. 20720, Feb. 29, 2008>
1. An attorney-at-law or a certified public accountant;
2. A person who majored in law, economics, business administration or accounting, and is working or has worked for a college for more than two years as a professor;
3. A person who is engaging or has engaged in the fields of the electric industry, the gas industry and other public utilities for more than two years;
4. A person who is working or has worked for an organization related to consumer protection more than two years as an executive or employee; and
5. A person who has much knowledge and experience in the field related to other public utilities charges under Article 4 (1) of the Act, and fees under Article 4 (2) of the Act.
(4) The term of office of the members of the Advisory Committee shall be two years, and the consecutive commission may be permitted.
(5) The Advisory Committee shall have one secretary, who shall be appointed by the Minister of Strategy and Finance from among the public officials under his/her control. <Amended by Act No. 20720, Feb. 29, 2008>
[This Article Newly Inserted by Act No. 20084, Jun. 11, 2007]
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 Article 13 (Emergency Demand and Supply Adjustment Measures)   print
(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 make public 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 by Presidential Decree No. 16090, 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; and
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 uphe aval, or other comparable circumstances.
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 Article 14 (Designation of Cornering and Hoarding Practices)   print
(1) When the Minister of Strategy 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 by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 14555, Mar. 30, 1995; Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, Feb. 29, 2008>
(2) When the Minister of Strategy and Finance has designated cornering and hoarding practices in accordance with the provisions of paragraph (1), he shall give public notice thereof. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 14555, Mar. 30, 1995; Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, Feb. 29, 2008>
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 Article 15 (Methods of Public Notice)   print
Public notice, as referred to in Articles 3 (1), 4 (2), 5 (1), 13 (2), and 14 (2), shall be printed in the Gazette: Provided, That public notice may, when deemed necessary, be printed in major newspapers in the local area involved, or be given to the person interested, in lieu of the Gazette. <Amended by Presidential Decree No. 10267, Apr. 1, 1981>
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 Article 16 Deleted.<by Presidential Decree No. 10267, Apr. 1, 1981>   print
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 Article 17 Deleted.<by Presidential Decree No. 14555, Mar. 30, 1995>   print
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 Article 18 (Notification of Violation, etc.)   print
(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 by Presidential Decree No. 10267, Apr. 1, 1981; Presidential Decree No. 14555, 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 Strategy and Finance of the results of the measures after confirming whether there is any violation of the Acts and taking any proper measures. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 14555, Mar. 30, 1995; Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, 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).
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 Article 19 (Consultation, Coordination, Hearing of Opinions, etc. of Coordination Council for Economic Policies)   print
(1) The following matters shall, in accordance with Article 13 of the Act, undergo consultation and coordination by the Coordination Council for Economic Policies under the Regulations on Coordination Council for Economic Policies:
1. Designation and abrogation of price ceiling 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 Strategy and Finance may, when deemed necessary for consultation and coordination under paragraph (1), seek advice from experts in regard to the matters under each subparagraph of paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 21699, Aug. 25, 2009]
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 Article 20 Deleted.<by Presidential Decree No. 21699, Aug. 25, 2009>   print
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 Article 21 Deleted.<by Presidential Decree No. 13795, Dec. 31, 1992>   print
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 Article 22 Deleted.<by Presidential Decree No. 21699, Aug. 25, 2009>   print
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 Article 23 (Order for Submission of Data)   print
(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 by Presidential Decree No. 16090, Jan. 29, 1999>
1. Where such report is necessary to verify whether the celling 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; and
4. Where such report is necessary to prevent cornering and hoarding practice under Article 7 of the Act.
(2) The Minister of Strategy and Finance or the competent Minister may order an enterpriser to submit, regularly or upon request, data concerning production costs and management conditions in accordance with the provisions of Article 16 (1) of the Act. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, Feb. 29, 2008>
(3) The inspection under Article 16 (1) of the Act may be conducted in each of the cases under paragraph (1) and the competent Minister shall notify the Minister of Strategy and Finance of the result of the inspection. <Amended by Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, Feb. 29, 2008>
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 Article 24 Deleted.<by Presidential Decree No. 14555, Mar. 30, 1995>   print
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 Article 25 (Delegation of Authority)   print
The competent Minister shall delegate his/her authority in accordance with Article 20 of the Act, as classified by each of the following subparagraphs: <Amended by Presidential Decree No. 10267, Apr. 1, 1981; Presidential Decree No. 13795, Dec. 31, 1992; Presidential Decree No. 14555, Mar. 30, 1995; Presidential Decree No. 15397, Jun. 23, 1997; Presidential Decree No. 15626, Feb. 12, 1998; Presidential Decree No. 20084, Jun. 11, 2007; Presidential Decree No. 20331, Oct. 23, 2007; Presidential Decree No. 21699, Aug. 25, 2009>
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 fines for negligence related thereto under Article 29 (2) of the Act shall be delegated to the Minister of Korea Forest Service;
2. Among the authority concerning orders for posting price labels under Article 3 of the Act, the authority governing the designation of the person obligated to post price labels (limited to enterprisers separately designated by the competent Minister, from among those obligated to post price labels designated by notification in accordance with Article 5 (1)) shall be delegated to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/ Do Governor");
3. Among the authority concerning orders and inspections under Article 16 (1) of the Act in connection with the authority concerning orders for posting price labels under Article 3 of the Act, the authority concerning orders and inspections for enterprisers separately determined and announced publicly by the competent Minister and the authority to impose and collect fines for negligence under Article 29 (2) of the Act related thereto shall be delegated to a Mayor/ Do Governor;
4. Among the authority to impose and collect fines for negligence under Article 29 (2) of the Act in connection with Article 29 (1) 1 of the Act, the authority to impose and collect fines for negligence for enterprisers separately determined and announced publicly by the competent Minister shall be delegated to a Mayor/ Do Governor;
5. The following authority shall be delegated to a Mayor/ Do Governor. In such cases, classification by industry shall be based on the standard classification table announced publicly by the Commissioner of the National Statistical Office under Article 22 of the Statistics Act:
(a) Authority concerning accommodation and restaurant business, custody and warehouse business, real estate leasing service or other service business among those concerning orders and 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 fines for negligence under Article 29 (2) of the Act related to that referred to in items (a) and (b).
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 Article 25-2 (Standards for Imposing Fines for Negligence)   print
(1) The standards for imposing fines for negligence 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 a fine for negligence 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 fines for negligence under Article 29 (1) of the Act.
[This Article Wholly Amended by Presidential Decree No. 21699, Aug. 25, 2009]
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 Article 26 (Detailed Matters)   print
Detailed matters necessary for the implementation of this Decree shall be prescribed by the Minister of Strategy and Finance. <Amended by PresIdential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 16090, Jan. 29, 1999; Act No. 20720, Feb. 29, 2008>
ADDENDA
(1) (Enforcement Date) This Decree shall enter into force as of the date of enforcement of the Price Stabilization and Fair Trade Act.
(2) (Repealed Decrees) The Enforcement Decree of the Price Stabilization Act, as promulgated by Presidential Decree No. 6669, and the Enforcement Decree of the Act concerning the Establishment of Public Utility Rate Deliberation Committee, as promulgated by Presidential Decree No. 4185, shall be repealed respectively.
(3) (Transitional Measures) Regardless of the provisions of Article 8 (2), monopolistic or oligopolistic enterprisers, as made public 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.
Articles 2 through 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.
(2) (Relation with Other Acts and Subordinate Statutes) If other Acts and Subordinate Statutes cite the Enforcement Decree of the Price Stabilization and Fair Trade Act at the time this Decree enters into force, it shall be considered to have been cited the Enforcement Decree of the Price Stabilization Act.
ADDENDA<Presidential Decree No. 15397, Jun. 23, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures on Fine for Negligence)
Imposition and collection of a fine for negligence 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 a fine for negligence 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.)
Articles 2 and 3 Omitted.
ADDENDA<Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
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.