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Grain Management Act


Published: 2011-07-25

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Act is to contribute to the national economy by stably obtaining food supplies through the efficient management of the supply and demand of grain and the establishment of the Food Grain Stock Consolidating Fund, etc.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows:
1. The term "grain" means rice, barley, wheat, oats, rye, etc. and other types of cereals and potatoes prescribed by Presidential Decree, and what is produced therefrom, ground grain, powdered grain, starch and other equivalents which are prescribed by Presidential Decree;
2. The term "grain under government management" means grain the Government manages after having obtained by means of purchase from private sectors, importation from overseas, or other ways;
3. The term "government-purchased rice" means rice reserved by the Government after purchasing from private sectors at the market price in order to prepare for unstable supply and demand due to the shortage of rice and for an emergency, such as natural disasters;
4. The term "grain dealer" means a person whose business is to sell or purchase, or broker grain;
5. The term "grain processing operator" means a person whose business is to process grain, which serves as the base material, and who has filed a report under Article 19 (1);
6. The term "grain bonds" means bonds issued at the cost of the Food Grain Stock Consolidating Fund pursuant to the former Grain Bonds Act (referring to the Act before it was repealed by Article 2 of the Addenda to the Food Grain Stock Consolidating Fund Act (Act No. 5662); hereinafter the same shall apply) before December 31, 1999;
7. The term "debt" means each of the following:
(a) Outstanding balance of the principal and interest of grain bonds;
(b) Outstanding balance of the principal and interest of grain loaned at the cost of the Food Grain Stock Consolidating Fund pursuant to the former Grain Bonds Act before December 31, 1999;
(c) Outstanding amount, among the principal and interest of deposits received from the Public Capital Management Fund under Article 25 (2) 2.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
CHAPTER II GRAIN MANAGEMENT
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 Article 3 (Establishment of Plans for Supply and Demand of Grain under Government Management)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries shall establish a plan for supply and demand of grain under government management (hereinafter referred to as "grain supply and demand plan") every year.
(2) Each grain supply and demand plan under paragraph (1) shall contain the following matters:
1. Basic objectives and promotional direction for the control of supply and demand of grain under government management;
2. Supply of and demand for grain under government management;
3. Matters concerning the utilization of government-purchased rice;
4. Other matters deemed necessary by the Minister for Food, Agriculture, Forestry and Fisheries.
(3) The Minister for Food, Agriculture, Forestry and Fisheries shall, when establishing the grain supply and demand plan under paragraph (1), confirm it by obtaining the approval of the President, following the deliberation of the State Council.
(4) The Minister for Food, Agriculture, Forestry and Fisheries shall publicly notify the grain supply and demand plan confirmed under paragraph (3), as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 4 (Purchase of Grain and Advance Payment, etc.)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries may purchase grain necessary for the implementation of a grain supply and demand plan from any producer or owner prescribed by Presidential Decree.
(2) When the Minister for Food, Agriculture, Forestry and Fisheries purchases grain under a purchase agreement entered into with a producer or owner under paragraph (1), the Minister may make an advance payment for some of the agreed amount of purchase (hereinafter referred to as "advance payment") within budgetary limits, notwithstanding Article 26 of the Management of the National Funds Act.
(3) When a producer or owner who receives an advance payment under paragraph (2) does not intend to fulfill all or part of the obligations under the purchase agreement, the producer or owner shall return the advance payment plus the agreed interest.
(4) Advance payment and agreed interest under paragraphs (2) and (3), and other matters necessary for a purchase agreement shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 5 (Determination of Purchase Prices, etc. of Grain)   print
(1) When the Minister for Food, Agriculture, Forestry and Fisheries purchases grain under Article 4 (1), the Minister shall determine the price and volume of purchase by obtaining the approval of the President, following the deliberation of the State Council.
(2) When the Minister for Food, Agriculture, Forestry and Fisheries purchases grain from the owner thereof pursuant to Article 4 (1), the purchase price of the grain shall be the purchase price of the grain paid by the owner, plus incidental expenses determined by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 6 Deleted.<by Act No. 7432, Mar. 31, 2005>   print
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 Article 7 Deleted.<by Act No. 7432, Mar. 31, 2005>   print
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 Article 8 Deleted.<by Act No. 7432, Mar. 31, 2005>   print
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 Article 9 (Sale of Grain under Government Management)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries shall sell grain under government management for the following uses; in such cases, the Minister for Food, Agriculture, Forestry and Fisheries may deliver grain to a vendee before he/she receives the price therefor, for the uses prescribed by Presidential Decree:
1. For governmental use;
2. For processing;
3. For public use;
4. For private use;
5. For other uses prescribed by Presidential Decree.
(2) The sale price of grain under government management pursuant to paragraph (1) shall be determined by the Minister for Food, Agriculture, Forestry and Fisheries.
(3) The Minister for Food, Agriculture, Forestry and Fisheries may, if deemed necessary for ensuring the smooth distribution of grain under government management, sell grain under government management which is being sold for processing or private use by means of public bid, notwithstanding paragraph (2).
(4) The Minister for Food, Agriculture, Forestry and Fisheries may provide for the qualification requirements, such as facilities of the persons who may purchase grain under government management pursuant to their use, sell such grain by designating their use, and impose restrictions on the use and disposal of such grain for purposes other than the designated purposes.
(5) The qualification requirements of the persons who may purchase grain pursuant to their use under paragraph (4), designation of use, and other necessary matters shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 9-2 (Restrictions on Eligibility for Purchase of Grain under Government Management)   print
When a person who has purchased grain under government management sold under Article 9 (1) falls under any of the following subparagraphs, the Minister for Food, Agriculture, Forestry and Fisheries may impose restrictions on the eligibility for purchase of grain under government management for a prescribed period not exceeding one year, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries: <Amended by Act No. 10885, Jul, 21, 2011>
1. Where the person meets the qualification requirements under Article 9 (4) by fraud or other wrongful means;
2. Where the person uses or disposes of the grain for purposes other than those designated by the Minister for Food, Agriculture, Forestry and Fisheries under Article 9 (4);
3. With regard to the relevant grain, where the person violates the obligation to indicate the production year, quality, etc. under Article 20-2 (1) or makes a false or exaggerated indication or a false or exaggerated advertisement in violation of Article 20-3 (1);
4. With regard to the relevant grain, where the person violates the obligation to indicate the place of origin under Article 5 (1) or (3) of the Act on Origin Labeling of Agricultural and Fishery Products or conducts an act referred to in any subparagraph of Article 6 (1) or (2) of the same Act;
4-2. With regard to the relevant grain, where the person violates the obligation of labeling of genetically modified agricultural and fishery products under Article 56 (1) of the Agricultural and Marine Products Quality Control Act or conducts an act referred to in any subparagraph of Article 57 of the same Act;
5. Where the person fails to observe other matters prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries to establish order in distribution of grain, such as the keeping of a grain management ledger.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 10 (Stockpiling and Utilization of Government-Purchased Rice)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries shall stockpile and utilize government-purchased rice to stably secure food for the nation.
(2) The Minister for Food, Agriculture, Forestry and Fisheries shall comply with the domestic subsidy reduction commitments under the Marrakesh Agreement Establishing the World Trade Organization, in stockpiling and utilizing government-purchased rice.
(3) The purchase and sale price of government-purchased rice shall be the then market price in the place of purchase and sale.
(4) Matters necessary for the stockpiling and utilization of government-purchased rice and the standards, etc. for market prices under paragraphs (1) and (3) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 11 (Exportation and Importation of Grain)   print
The Minister for Food, Agriculture, Forestry and Fisheries may, if deemed necessary for controlling the supply of and demand for grain, import or export grain.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 12 (Permission, etc. for Importation of Rice, etc.)   print
(1) A person who intends to import rice, ground rice, or powdered rice or other kinds of grain equivalent to those prescribed by Presidential Decree (hereinafter referred to as "rice, etc. subject to permission") at the bound rates applied to the market access quota as specified in the Tariff Schedule for the Republic of Korea attached to the Marrakesh Agreement Establishing the World Trade Organization (WTO) (hereinafter referred to as "bound rates") shall obtain permission from the Minister for Food, Agriculture, Forestry and Fisheries stating the uses of rice, etc. subject to permission, as prescribed by Presidential Decree.
(2) A person who intends to import grain other than rice, etc. subject to permission or to export grain prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries at bound rates shall obtain recommendation from the Minister for Food, Agriculture, Forestry and Fisheries.
(3) The Minister for Food, Agriculture, Forestry and Fisheries may require a non-profit corporation designated by himself/herself to vicariously execute the recommendation work concerning the exportation or importation of grain under paragraph (2). In such cases, the recommendation quantity and criteria for each item and other necessary matters shall be determined by the Minister for Food, Agriculture, Forestry and Fisheries.
(4) Where the head of a relevant central administrative agency intends to approve the importation of grain subject to permission or recommendation provided by a foreign aid agency or foreign private aid organization, pursuant to the relevant Acts and subordinate statutes, he/she shall consult with the Minister for Food, Agriculture, Forestry and Fisheries in advance thereon and when he/she approves the importation thereof after having such consultation, the permission or recommendation under paragraph (1) or (2) is deemed to have obtained.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 13 (Management, etc. of Imported Grain)   print
If the Minister for Food, Agriculture, Forestry and Fisheries deems it particularly necessary for adjusting the supply of and demand for grain and for managing imported grain, he/she may issue the following orders to a person who has obtained the permission or recommendation under Article 12 (1) or (2), or a person who has imported grain being subject to the quota tariff under Article 71 of the Customs Act, or a person who sells or processes such imported grain: Provided, That subparagraph 1 shall apply only to a person subject to the imposition and collection of import profits under Article 13-2:
1. The price, method, and time of selling the imported grain;
2. Restrictions on the use of the imported grain;
3. Reports on the consumed volume and total stock of the imported grain.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 13-2 (Collection, etc. of Import Profits)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries may impose and collect import profits on/from a person who imports grain items prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries with permission or recommendation under Article 12 (1) or (2) within the difference between the domestic prices and the importation prices of the said items, as prescribed by Ordinance of the Ministry of Food, Agriculture, Forestry and Fisheries.
(2) Import profits under paragraph (1) shall be paid into the special account for grain management under subparagraph 3 of Article 3 of the Government Enterprise Budget Act, the Direct Disbursement Fund for Fluctuation of Rice Income Compensation under Article 17 of the Rice Income, etc. Compensation Act, or the Agricultural Products Price Stabilization Fund under Article 54 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products.
(3) When a person liable to pay import profits under paragraph (1) fails to pay such profits by the deadline, the Minister for Food, Agriculture, Forestry and Fisheries may collect them pursuant to practices for disposition of delinquent national taxes.
(4) When any of the following events occurs to a person liable to pay import profits under paragraph (1), the Minister for Food, Agriculture, Forestry and Fisheries may make a disposition of deficits thereon: Provided, That when any property which can be seized is found after the disposition of deficits in the case of subparagraph 1 or 3, the Minister shall cancel the relevant disposition without delay and collect it in the same manner delinquent national taxes are collected:
1. When the allotted amount that has been appropriated for the amount in arrears after the completion of disposition of delinquent taxes under paragraph (3) falls short of the amount in arrears;
2. When extinctive prescription of the right to collect the import profits is complete;
3. When it is deemed that no possibility exists for collection as prescribed by Presidential Decree, such as the death or unknown whereabouts of the defaulter.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 13-2 (Collection, etc. of Import Profits)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries may impose and collect import profits on/from a person who imports grain items prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries with permission or recommendation under Article 12 (1) or (2) within the difference between the domestic prices and the importation prices of the said items, as prescribed by Ordinance of the Ministry of Food, Agriculture, Forestry and Fisheries.
(2) Import profits under paragraph (1) shall be paid into the special account for grain management under subparagraph 3 of Article 3 of the Government Enterprise Budget Act, the Direct Disbursement Fund for Fluctuation of Rice Income Compensation under Article 17 of the Rice Income, etc. Compensation Act, or the Agricultural Products Price Stabilization Fund under Article 54 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products.
(3) When a person liable to pay import profits under paragraph (1) fails to pay such profits by the deadline, the Minister for Food, Agriculture, Forestry and Fisheries may collect them pursuant to practices for disposition of delinquent national taxes.
(4) When any of the following events occurs to a person liable to pay import profits under paragraph (1), the Minister for Food, Agriculture, Forestry and Fisheries may make a disposition of deficits thereon: Provided, That when any property which can be seized is found after the disposition of deficits in the case of subparagraph 1 or 3, the Minister shall cancel the relevant disposition without delay and collect it in the same manner delinquent national taxes are collected:
1. When the allotted amount that has been appropriated for the amount in arrears after the completion of disposition of delinquent taxes under paragraph (3) falls short of the amount in arrears;
2. When extinctive prescription of the right to collect the import profits is complete;
3. When it is deemed that no possibility exists for collection as prescribed by Presidential Decree, such as the death or unknown whereabouts of the defaulter.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 14 Deleted.<by Act No. 5665, Jan. 21, 1999>   print
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 Article 15 Deleted.<by Act No. 5665, Jan. 21, 1999>   print
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 Article 16 (Release, etc. of Grain for Price Stabilization)   print
(1) If the Minister for Food, Agriculture, Forestry and Fisheries deems it necessary for controlling the release of grain and the price thereof, he/she may allow agricultural cooperatives and other persons designated by Presidential Decree (hereinafter referred to as "agricultural cooperatives, etc.") to purchase and sell grain. In such cases, the Minister for Food, Agriculture, Forestry and Fisheries may provide the funds required for the purchase thereof within budgetary limits.
(2) If the Minister for Food, Agriculture, Forestry and Fisheries deems it necessary for adjusting the supply of and demand for grain, he/she may pay the difference between the purchase price of grain paid by the Government and its price in the place of production to a person who purchases it pursuant to paragraph (1), with respect to a given quantity of grain other than the quantity purchased by the Government.
(3) The difference between the purchase price by the Government and the price in the place of production under paragraph (2) shall be determined by the Minister for Food, Agriculture, Forestry and Fisheries.
(4) Where the Minister for Food, Agriculture, Forestry and Fisheries requires agricultural cooperatives, etc. to purchase grain pursuant to paragraphs (1) and (2), the Minister may allow them to enter into a purchase agreement and make an advance payment, etc. in accordance with the examples provided for in Article 4 (2) through (4).
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 17 Deleted.<by Act No. 5665, Jan. 21, 1999>   print
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 Article 18 Deleted.<by Act No. 5665, Jan. 21, 1999>   print
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 Article 19 (Reporting on Grain Processing Business)   print
(1) A person who intends to run a grain processing business prescribed by Presidential Decree shall report to the Governor of a Special Self-Governing Province or head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) after having facilities prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. This shall also apply to any change of reported matters prescribed by Presidential Decree.
(2) Notwithstanding paragraph (1), when a person who has obtained a manufacturing license under the Liquor Tax Act or license for business under the Food Sanitation Act runs a grain processing business prescribed by Presidential Decree, a report under paragraph (1) shall be deemed made.
(3) When a person who has made a report under paragraph (1) intends to suspend or discontinue his/her business, the person shall report to the Governor of a Special Self-Governing Province or head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
(4) Necessary matters for the method, procedures, etc. of reporting under paragraphs (1) and (3) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 19-2 (Succession of Grain Processing Business)   print
(1) Any of the following persons may succeed to the status of a person who has reported the former grain processing business:
1. When a person who has reported a grain processing business transfers his/her business to a third person: The person''s transferee;
2. When a person who has reported a grain processing business deceases: The person''s inheritor;
3. When a corporation merges with another corporation: A corporation surviving the merger or newly established after the merger.
(2) A person who acquires all business establishments and facilities according to any of the following procedures may succeed to the status of a person who has reported the former grain processing business:
1. Auction under the Civil Execution Act;
3. Sale of seized property under the National Tax Collection Act, the Customs Act, or the Local Tax Act;
4. Other procedures equivalent to those provided for in subparagraphs 1 through 3.
(3) A person who has succeeded to the status of a person who has reported the former grain processing business under paragraph (1) or (2) shall report the succession to the Governor of a Special Self-Governing Province or head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 20 (Orders Issued to Grain Processing Operators)   print
If the Minister for Food, Agriculture, Forestry and Fisheries deems it necessary for improvement in the processing methods of grain, for guaranteeing the quality of processed products, and for the smooth distribution thereof, he/she may issue the following orders to a grain processing operator fixing a period and area through consultation with a competent minister, as prescribed by Presidential Decree:
1. Improving grain processing facilities;
2. Imposing restrictions on the processing efficiency, processing methods, and standards of the processed products;
3. Placing restrictions on the packaging sizes, materials and methods;
4. Attaching processing marks for processed products.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 20-2 (Indication of Production Year, Quality, etc.)   print
(1) Where a grain processing operator or grain dealer intends to sell grain, he/she shall indicate matters prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries, such as the year of production and quality of the relevant grain, on the package, container, etc.
(2) Matters necessary for the method, etc. of marking matters to be indicated under paragraph (1) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 20-3 (Prohibition of False Indication, etc.)   print
(1) No grain processing operator or grain dealer may make any of the following indications or advertisements concerning the production year, quality, etc. of grain:
1. Indication or advertisement exaggerated or different from facts;
2. Indication or advertisement likely to deceive, mislead or confuse consumers.
(2) Matters necessary for the indication, scope, etc. of false or exaggerated advertisements under paragraph (1) shall be provided for by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 21 (Suspension of Business, etc.)   print
(1) When a grain processing operator who has reported under Article 19 (1) falls under any of the following subparagraphs, the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu may suspend his/her business for up to six months or order him/her to close his/her place of business, as prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries: Provided, That in cases under subparagraph 3 or 12, the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu shall issue an order to close the place of business: <Amended by Act No. 10885, Jul. 21, 2011>
1. Where the grain processing operator imports rice, etc. subject to permission without obtaining permission or recommendation, in violation of Article 12;
2. Where the grain processing operator violates an order under Article 13;
3. Where the grain processing operator reports under the former part of Article 19 (1) by fraud or other wrongful means;
4. Where the grain processing operator files a report on change under the latter part of Article 19 (1) by fraud or other wrongful means;
5. Where the grain processing operator violates an order under Article 20;
6. Where the grain processing operator fails to indicate the production year, quality, etc. of grain, in violation of Article 20-2 (1);
7. Where the grain processing operator makes a false or exaggerated indication or a false or exaggerated advertisement, in violation of Article 20-3 (1);
8. Where the grain processing operator violates an order to report or present data under Article 27 (1) or refuses, interferes with or evades an inspection by a relevant public official;
9. Where the grain processing operator violates the obligation to indicate the place of origin under Article 5 (1) of the Act on Origin Labeling of Agricultural and Fishery Products;
9-2. Where the grain processing operator violates the obligation of prohibition of false labeling, etc. under each subparagraph of Article 6 (1) of the Act on Origin Labeling of Agricultural and Fishery Products;
10. Where the grain processing operator violates the obligation of labeling of genetically modified agricultural products under Article 56 (1) of the Agricultural and Marine Products Quality Control Act;
11. Where the grain processing operator violates the obligation of prohibition of false labeling, etc. under each subparagraph of Article 57 of the Agricultural and Marine Products Quality Control Act;
12. Where the grain processing operator continues his/her business, in violation of an order to suspend business;
13. Where the grain processing operator fails to report under Article 19 (3) and suspends his/her business for at least six consecutive months without justifiable causes.
(2) When the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu issues an order to suspend business or close a place of business under paragraph (1), he/she may ask a competent administrative agency, if any, to take the relevant disposition. In such cases, the competent administrative agency so requested shall comply therewith, unless any exceptional cause exists to the contrary.
(3) The detailed standards of administrative measures under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries, in view of the type, severity, etc. of the violation.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 21-2 (Succession of Effect of Administrative Disciplinary Measures)   print
(1) The effect of an administrative disciplinary measure taken to a former grain processing operator by reason of a violation under any subparagraph of Article 21 (1) shall be succeeded to any of the following grain processing operators for one year from the date on which the period of such a measure expires:
1. A person who reports on a grain processing business again after filing a report on business closure under Article 19 (3);
2. A person who falls under any subparagraph of Article 19-2 (1).
(2) The procedure of an administrative measure in process under Article 21 (1) may be continued for a person under any subparagraph of paragraph (1).
(3) Paragraphs (1) and (2) shall not apply to a grain processing operator who proves that he/she is not aware of an administrative disciplinary measure taken against the former grain processing operator or the violation of the former grain processing operator.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 21-3 (Measures for Closure of Place of Business)   print
(1) When a grain processing operator carries on his/her business without reporting in violation of Article 19 (1) (excluding a report on change), or continues his/her business after receiving an order to close his/her place of business under Article 21 (1), the Governor of a Special Self-Governing Province or head of a Si/Gun/Gu may require a relevant public official to take each of the following measures to close the relevant place of business:
1. Removing or eliminating signboards or other business marks of the relevant place of business;
2. Posting notices, etc. announcing that the relevant place of business is not a legitimate place of business;
3. Sealing facilities of the relevant place of business or other fixtures, etc. used for business operation to make them unavailable.
(2) The Governor of a Special Self-Governing Province or head of a Si/Gun/Gu may break a seal if he/she deems it unnecessary to remain sealed after placing a seal thereon under paragraph (1) 3, or if the relevant business operator or his/her agent promises to close the relevant place of business, or requests the breaking of the seal stating other reasonable grounds. This shall also apply to notices, etc. under paragraph (1) 2.
(3) When the Governor of a Special Self-Governing Province or head of a Si/Gun/Gu intends to take a measure under paragraph (1), he/she shall inform, in writing, the relevant business operator or his/her agent thereof in advance: Provided, That this shall not apply when an emergency arises.
(4) A measure under paragraph (1) shall be limited to the minimum possible extent necessary not to carry on the operation of business.
(5) In the case of paragraph (1), a relevant public official shall carry a certificate indicating his/her authority and produce it to related persons.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 22 (Nurturing of Rice Distribution Business)   print
(1) For the purpose of improving the rice distribution structure, enhancing the quality of rice, and stabilizing the price thereof, the Minister for Food, Agriculture, Forestry and Fisheries shall nurture a rice distribution business which serves as a comprehensive channel for distributing rice, from the purchase of rice from its producers to the drying, selection, storage, processing, sale, etc. of the purchased rice.
(2) The Minister for Food, Agriculture, Forestry and Fisheries may partially finance or provide funds required for establishing facilities to dry, store, process, distribute and sell rice, such as a comprehensive rice processing plant, etc. and for purchasing rice to an agricultural cooperative or any other person recognized as capable of efficiently carrying out the function of distributing rice under paragraph (1) within budgetary limits.
(3) Necessary matters for financing and subsidization under paragraph (2) shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries. In this regard, the Minister of Agriculture and Forestry shall consult with the Minister of Strategy and Finance regarding financing conditions, such as interest, etc. on such loans.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 23 Deleted.<by Act No. 9622, Apr. 1, 2009>   print
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 Article 24 (Vicarious Execution of Business)   print
If deemed necessary to efficiently carry out the business of exporting, importing, buying and selling, storing, receiving and releasing, transporting and processing grain under government management, and conclusion of a purchase agreement of grain, advance payment, etc., the Minister for Food, Agriculture, Forestry and Fisheries may cause an agency designated by himself/herself to vicariously execute the relevant business.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
CHAPTER II-2 FOOD GRAIN STOCK CONSOLIDATING FUND
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 Article 25 (Establishment of Food Grain Stock Consolidating Fund)   print
(1) The Food Grain Stock Consolidating Fund (hereinafter referred to as the "Fund") shall be established to carry on business concerning the clearing-out of debts, management of grain bonds, etc.
(2) The Fund shall be created with the following financial resources:
1. Money raised for the Fund under the former Grain Bonds Act;
2. Deposits from the Public Capital Management Fund under the Public Capital Management Fund Act;
3. Money received from the Government accounts under Article 25-4;
4. Contributions;
5. Surplus remaining after the settlement of accounts.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 25-2 (Management of Redemption of Debt)   print
The method and period of redemption of debt and other matters necessary for managing the redemption of debt shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 25-3 (Operation and Management of Fund)   print
(1) The Fund shall be operated and managed by the Minister for Food, Agriculture, Forestry and Fisheries.
(2) The Fund shall be used for the following purposes:
1. Redemption of debt;
2. Expenses incurred in operating the Fund, which are prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 25-4 (Reflection in Budgets)   print
The Government shall reflect the following expenses and financial resources in its budgets every fiscal year:
1. Expenses under Article 25-3 (2) 2;
2. Financial resources necessary for reducing the scale of debt.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 25-5 (Temporary Borrowing of Money)   print
(1) When money required for the operation of the Fund is temporarily insufficient, the Minister for Food, Agriculture, Forestry and Fisheries may temporarily borrow money required for the operation of the Fund from the Government accounts, any other fund or the Bank of Korea.
(2) Temporary borrowings under paragraph (1) shall be repaid within the relevant fiscal year.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
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 Article 25-6 (Accounting Agency of Fund)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries may appoint a Fund revenue collection officer, Fund financial officer, Fund disbursing officer, and Fund accounting public official, among public officials under the Minister''s control, to perform affairs concerning the revenues and expenditures of the Fund.
(2) The Fund revenue collection officer, Fund financial officer, Fund disbursing officer, and Fund accounting public official under paragraph (1) may be appointed and dismissed by designating a position set in a department in charge of the accounting of the Fund.
[This Article Newly Inserted by Act No. 9622, Apr. 1, 2009]
CHAPTER III SUPPLEMENTARY PROVISIONS
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 Article 26 (Loans and Subsidies)   print
If deemed necessary for controlling the supply of and demand for grain, improving dietary habits, and improving the processing, storage and distribution of grain, the Minister for Food, Agriculture, Forestry and Fisheries may provide loans or grant subsidies to a person who carries out a project prescribed by Presidential Decree within budgetary limits.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 27 (Supervision)   print
(1) If deemed necessary for controlling the supply of and demand for grain, or establishing order in the distribution of grain, the Minister for Food, Agriculture, Forestry and Fisheries may order each of the following persons to report necessary matters or present data, or require a relevant public official to enter the place of business in question to inspect accounting books and other related documents, facilities, quantities of grain held, and others:
1. An owner of grain;
2. A grain dealer;
3. A grain processing operator;
4. A person who imports, exports, stores or transports grain.
(2) When conducting an inspection under paragraph (1), a person subject to the inspection shall be notified of the inspection schedule including date, reason, content, etc. of the inspection by no later than seven days prior to the inspection: Provided, That this shall not apply to cases requiring an urgent inspection, or those deemed impossible to achieve the objectives of an inspection since a prior notification may result in destruction of evidence.
(3) A public official who conducts an inspection under paragraph (1) shall carry a certificate indicating his/her authority and produce it to related persons.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 27-2 (Honorary Inspectors)   print
(1) The Minister for Food, Agriculture, Forestry and Fisheries, the Special Metropolitan City Mayor, Metropolitan City Mayors, Do Governors, Governor of a Special Self-Governing Province, or head of a Si/Gun/Gu may employ honorary inspectors who carry out the supervision, guidance, publicity, education, etc. for the establishment of fair distribution order of grain.
(2) The Minister for Food, Agriculture, Forestry and Fisheries may wholly or partially subsidize expenses incurred by local governments in managing honorary inspectors within budgetary limits.
(3) Matters necessary for the eligibility requirements of honorary inspectors under paragraph (1), method of commissioning them, scope of their duties and the payment of allowances, etc. shall be prescribed by Ordinance of the Ministry for Food, Agriculture, Forestry and Fisheries.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 27-3 (Payment of Bounties)   print
The Minister for Food, Agriculture, Forestry and Fisheries may pay a bounty to a person who reports or denounces any of the following persons to a related administrative agency or investigation agency, as prescribed by Presidential Decree:
1. A person who uses or disposes of grain for purposes other than those designated by the Minister for Food, Agriculture, Forestry and Fisheries under Article 9 (4);
2. A person who violates the duty to indicate the year of production, quality, etc. under Article 20-2 (1);
3. A person who makes a false or exaggerated indication or advertisement, in violation of Article 20-3 (1).
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 28 (Hearings)   print
The Governor of a Special Self-Governing Province or head of a Si/Gun/Gu shall hold a hearing when intending to issue an order to close the place of business to a grain processing operator under Article 21.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 29 (Delegation and Entrustment of Authority)   print
(1) The authority of the Minister for Food, Agriculture, Forestry and Fisheries under this Act may be partially delegated to the head of an agency under his/her control, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun/Gu, as prescribed by Presidential Decree.
(2) The Minister for Food, Agriculture, Forestry and Fisheries may entrust some of his/her affairs under this Act to the Korea Agro-Fisheries and Food Trade Corporation under the Korea Agro-Fisheries and Food Trade Corporation Act, or an institution or organization related to agriculture, as prescribed by Presidential Decree. <Amended by Act No. 10932, Jul. 25, 2011>
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
CHAPTER IV PENAL PROVISIONS
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 Article 30 Deleted.<by Act No. 5665, Jan. 21, 1999>   print
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 Article 31 (Penal Provisions)   print
(1) Any of the following persons shall be punished by imprisonment for not more than ten years, or by a fine not exceeding three times the amount converted into the market price of the exported or imported grain. In this case, the imprisonment and fine may be concurrently imposed:
1. A person who imports rice, etc. subject to permission without having obtained permission under Article 12 (1);
2. A person who exports or imports grain without having obtained recommendation under Article 12 (2).
(2) In the case of paragraph (1), exported or imported grain shall be forfeited, and if such forfeiture is not possible, the amount converted into the market price of the exported or imported grain shall be additionally collected.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 32 (Penal Provisions)   print
Any of the following persons shall be punished by imprisonment for not more than three years, or by a fine not exceeding five times the amount converted into the market price of the grain used or disposed of:
1. A person who uses or disposes of grain for purposes other than those designated by the Minister for Food, Agriculture, Forestry and Fisheries under Article 9 (4);
2. A person who uses or disposes of imported grain, in violation of an order issued under subparagraph 1 or 2 of Article 13.
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 Article 33 Deleted.<by Act No. 9622, Apr. 1, 2009>   print
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 Article 34 (Penal Provisions)   print
A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year, or by a fine not exceeding ten million won:
1. A person who violates an order issued under subparagraph 3 of Article 13;
2. A person who runs a grain processing business without reporting under the former part of Article 19 (1);
3. A person who runs a grain processing business after reporting under the former part of Article 19 (1) by fraudulent or other illegal means;
4. A person who makes a false or exaggerated indication or advertisement, in violation of Article 20-3 (1);
5. A person who carries on business operations, in violation of an order to suspend business under Article 21 (1);
6. A person who carries on business operations, in violation of an order to close the place of business under Article 21 (1);
7. A person who eliminates without permission, or damages a seal, notice, etc. attached by a relevant public official under Article 21-3;
8. A person who violates an order to submit a report or to present data, or who refuses, interferes with or evades an inspection by a relevant public official under Article 27 (1).
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 35 (Joint Penal Provisions)   print
Where a representative of a corporation, or an agent, employee or other servant of a corporation or individual commits a violation under Article 31, 32 or 34 in connection with the business of the corporation or individual, in addition to the punishment of such violator, the corporation or individual shall be punished by a fine under each relevant provision: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
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 Article 36 (Fines for Negligence)   print
(1) Any of the following persons shall be punished by a fine for negligence not exceeding two million won:
1. A person who runs a grain processing business without filing a report on change under the latter part of Article 19 (1);
2. A person who runs a grain processing business after filing a report on change under the latter part of Article 19 (1) by fraudulent or other illegal means;
3. A person who suspends or discontinues his/her business without reporting under Article 19 (3);
4. A person who runs a grain processing business without reporting on the succession of the grain processing business under Article 19-2 (3);
5. A person who violates an order issued under Article 20;
6. A person who fails to make an indication, in violation of Article 20-2 (1), or who violates the method of indication under paragraph (2) of the same Article.
(2) Fines for negligence under paragraph (1) shall be imposed and collected by the Minister for Food, Agriculture, Forestry and Fisheries, the Governor of a Special Self-Governing Province or head of a Si/Gun/Gu, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9622, Apr. 1, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That Article 19 and the provisions related thereto pertaining to the grain processing business shall enter into force one year after the date of its promulgation.
Article 2 (Repealed Act)
(1) The Grain Management Fund Act (Act No. 2237) is hereby repealed.
(2) Matters pertaining to the method of clearing out assets and debts of the Grain Management Fund created by the Act which is to be repealed in accordance with paragraph (1) at the time this Act enters into force shall be prescribed by a separate Act.
Article 3 (Transitional Measures concerning Grain Dealers, etc.)
(1) A grain dealer having obtained permission to undertake business in accordance with the previous provisions at the time this Act enters into force shall be regarded as having reported on his/her business in accordance with this Act.
(2) A grain processing operator having obtained permission to undertake business under the previous provisions at the time this Act enters into force shall be deemed registered a grain processing business in accordance with this Act.
Article 4 (Amendments to Other Acts and Subordinate Statutes)
(1) through (3) Omitted.
(4) At the time this Act enters into force, if provisions of the former Grain Management Act are cited in other Acts or subordinate statutes and there exist the equivalent provisions in this Act, this Act or the relevant provisions of this Act shall be deemed cited in lieu of the former provisions.
ADDENDUM<Act No. 4842, Dec. 31, 1994>
This Act shall enter into force on the date the Marrakesh Agreement Establishing the World Trade Organization (WTO) enters into force in the Republic of Korea.
ADDENDA<Act No. 5153, Aug. 8, 1996>
Article 1 (Enforcement Date)
This Act shall enter into force, within 30 days from the date of its promulgation, on the date when the Presidential Decree concerning the organization of the Ministry of Maritime Affairs and Fisheries and that of the Korea Coast Guard pursuant to the amended provisions of Article 41 of the Government Organization Act enters into force.
Articles 2 through 4 Omitted.
ADDENDUM<Act No. 5280, Jan. 13, 1997>
This Act shall enter into force on February 1, 1997.
ADDENDA<Act No. 5453, Dec. 13, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA<Act No. 5665, Jan. 21, 1999>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Transitional Measures for Persons Who Registered Grain Processing Business) Persons who have registered a grain processing business under the former provisions at the time this Act enters into force shall be deemed registered or reported such under the amended provisions of Article 19.
ADDENDA<Act No. 6305, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2001.
Articles 2 through 8 Omitted.
ADDENDA<Act No. 6594, Jan. 14, 2002>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Transitional Measures for Registration, etc. of Grain Processing Business) A person who has filed a registration or report of a grain processing business with the Special Metropolitan City Mayor, any Metropolitan City Mayor, or Do Governor under the former provisions at the time this Act enters into force shall be deemed to have filed a registration or report of the grain processing business to the head of a Si/Gun/Gu under the amended provisions of Article 19 (1).
ADDENDA<Act No. 6836, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.
Articles 2 through 7 Omitted.
ADDENDA<Act No. 7275, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2005.
Articles 2 through 5 Omitted.
ADDENDA<Act No. 7432, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability concerning Restrictions on Eligibility to Purchase Grain under Government Management)
The amended provisions of Article 9-2 shall apply to persons who purchase grain under government management on or after the date this Act enters into force.
Article 3 (Transitional Measures concerning Plans for Supply and Demand of Grain under Government Management)
Any plan for the supply and demand of grain under government management formulated under the former provisions at the time this Act enters into force shall be deemed to have been formulated under the amended provisions of Article 3.
Article 4 (Transitional Measures concerning Exchanges or Loans of Grain under Government Management)
The former provisions of Article 8 shall govern persons who have failed to deliver grain or repay the loans thereof after exchanging or getting loans of grain under government management at the time this Act enters into force.
Article 5 (Transitional Measures concerning Indication of Sizes on Packed Grain)
Indication of sizes on packed grains under the former provisions of Article 20 (1) 3 at the time this Act enters into force shall be deemed indicated under the amended provisions of Article 20-2.
Article 6 (Transitional Measures concerning Title Change)
The Grain Distribution Committee at the time this Act enters into force shall be deemed the Grain Policy Deliberative Council under this Act.
ADDENDA<Act No. 7433, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDUM<Act No. 8105, Dec. 28, 2006>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM<Act No. 8595, Aug. 3, 2007>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA<Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA<Act No. 9280, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2009.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 9622, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 3, 5, 20 and 23 shall enter into force on the date of its promulgation.
Article 2 (Repeal of other Acts)
The Food Grain Stock Consolidating Fund Act is hereby repealed.
Article 3 (Applicability concerning Report on Change of Grain Processing Business)
The amended provisions of the latter part of Article 19 (1) shall apply to any change made on or after the date this Act enters into force.
Article 4 (Applicability concerning Suspension or Discontinuation of Business)
The amended provisions of Article 19 (3) shall apply to any suspension or discontinuation of business made on or after the date this Act enters into force.
Article 5 (Applicability concerning Succession of Grain Processing Business)
The amended provisions of Article 19-2 shall apply to the accrual of a ground for succession on or after the date this Act enters into force.
Article 6 (Applicability concerning Succession of Effect of Administrative Disciplinary Measures)
The amended provisions of Article 21-2 shall apply to any administrative disciplinary measure taken on or after the date this Act enters into force.
Article 7 (Transitional Measures concerning Registration of Grain Processing Business)
A person who has registered a grain processing business under the former provisions at the time this Act enters into force shall be deemed to have reported on the grain processing business under Article 19.
Article 8 (Transitional Measures concerning Food Grain Stock Consolidating Fund)
(1) The Food Grain Stock Consolidating Fund established under the former Food Grain Stock Consolidating Fund Act at the time this Act enters into force shall be deemed the Food Grain Stock Consolidating Fund established under this Act.
(2) Any fund operated and managed under the former Food Grain Stock Consolidating Fund Act as at the time this Act enters into force shall be deemed operated and managed under this Act.
(3) The accounting agency of the Fund established under the former Food Grain Stock Consolidating Fund Act at the time this Act enters into force shall be deemed appointed under this Act.
Article 9 (Transitional Measures concerning Penal Provisions and Fines for Negligence)
The application of penal provisions and fines for negligence to acts committed before this Act enters into force shall be governed by the former provisions.
Article 10 Omitted.
ADDENDA<Act No. 10885, Jul. 21, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 20 Omitted.
ADDENDA<Act No. 10932, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.