Distribution Industry Development Act


Published: 2012-01-17

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Act is to ensure the efficient promotion and balanced development of the distribution industry and establish sound order in commercial transactions, thereby protecting consumers and contributing to the development of the national economy.
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows: <Amended by Act No. 7100, Jan. 20, 2004; Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008; Act No. 8979, Mar. 21, 2008; Act No. 10398, Nov. 24, 2010>
1. The term "distribution industry" means an industry aimed at the wholesaling and retailing of agricultural products, forest products, livestock products, marine products (including processed or cooked marine products), and industrial products, and the storage, delivery, and packing therefor, and the provision of information and services related thereto;
2. The term "salesroom" means a place directly used for selling commodities and for rendering services involving the sale of commodities. In such cases, the scope of a place where such services are rendered in the salesroom shall be prescribed by Presidential Decree;
3. The term "superstore" means a group of stores with salesrooms which meet the following requirements, which is prescribed by Presidential Decree:
(a) It shall be established in one unit or in group within one building or within at least two interlinked buildings that are prescribed by Presidential Decree;
(b) It shall be continuously run;
(c) It shall have the total area of at least three thousand square meters.
3-2. The term "quasi-superstore" means any of the following stores, which is prescribed by Presidential Decree:
(a) Store directly operated by a company managing a superstore or by its affiliated company (referring to an affiliated company under the Monopoly Regulation and Fair Trade Act);
(b) Store directly operated by an affiliated company of an enterprise group subject to limitations on mutual investment under the Monopoly Regulation and Fair Trade Act;
(c) Store operated by a company or affiliated company under item (a) or (b) in the form of chain business under direct management of the headquarters pursuant to subparagraph 5 (a) and franchise-type chain business as prescribed in subparagraph 5 (b).
4. The term "temporary market" means a fixed place where a large number of buyers and sellers trade commodities or provide services for a certain period of time;
5. The term "chain business" means any of the following businesses, which directly operates multiple retail stores in the same field of business (referring to direct operation of their stores under their responsibilities and according to their calculations in their own stores or rent stores; hereinafter the same shall apply) or supplies commodities, raw materials or services to multiple retail stores in the same field of business, while consistently providing management counseling thereto:
(a) Chain business under direct management of the headquarters: Chain business where the headquarters mainly operate retail stores directly, while continuously providing commodities and management counseling to certain retail stores which have concluded a franchise agreement (hereafter referred to as "franchise" in this subparagraph);
(b) Franchise-type chain business: Chain business where the headquarters, which has developed unique commodities, or sales or management technique, determines a store name, sales system, methods of store operations or advertising and orders franchises to comply with its determination and counseling;
(c) Voluntary franchise-type chain business:
Chain business where a project of standardizing franchise items and operation types, and joint projects, such as group purchase, joint marketing and utilization of common facilities, are conducted through the continuous management counseling from the headquarters and in cooperation between the headquarters and a franchise;
(d) Association-type chain business:
Chain business where retail stores in the same field of business establish the Small and Medium Enterprise Cooperatives under Article 3 of the Small and Medium Enterprise Cooperatives Act to conduct projects, such as group purchase, joint marketing and utilization of common facilities;
6. The term "shopping mall" means a district densely clustered with wholesale, retail or service stores in the street or underground passage of a certain scope of at least the number determined by Presidential Decree;
7. The term "specialized shopping complex" means a shopping complex which multiple wholesalers or retailers in the same trade create by collectively setting up stores and annexed facilities in a certain area;
8. The term "nonstore sale" means a sale of commodities conducted without setting up any store with continuously-run salesrooms, as determined by Ordinance of the Ministry of Knowledge Economy;
9. The term "standard distribution code" means such numerics and bar codes as inscribed on the surface of commodities, their packaging, or their packaging containers, or carrying containers in accordance with the standardized system, which are determined by Ordinance of the Ministry of Knowledge Economy;
10. The term "standard electronic distribution document" means an electronic document as defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions, which are standardized in the distribution sector and determined by Ordinance of the Ministry of Commerce, Industry and Energy;
11. The term "point-of-sale information management system" means a system which serves in the course of selling commodities, containing information related to the sale, purchase, delivery, etc. of commodities by the automatic optical reading technique;
12. The term "logistics equipment" means goods, machinery, installations, etc. which are used for the transportation, packing, loading and unloading, and carriage of commodities and other activities for processing the logistics information related to the management of such transportation, etc.;
13. The term "wholesale delivery service" means a service in which, by means of collection and delivery facilities, a person engages in the wholesaling of commodities he/she purchases on his/her own account or a person, who obtains permission pursuant to Articles 3 and 29 of the Trucking Transport Business Act, engages in the provision of consigned commodities on commission to wholesalers or retailers;
14. The term "collection and delivery facilities" mean machinery, installations, and other related facilities used to support activities related to the collection and delivery of commodities, such as order processing, the management of inventories, transportation, storage, loading and unloading, packing, and processing, and other information processing activities conducted to organically coordinate and back up those activities;
15. The term "joint collection and delivery center" means a certain area and establishments which are equipped with collection and delivery facilities and incidental facilities thereto to be jointly used by multiple distributors and manufacturers.
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 Article 3 (Basic Direction of Policy Measures for Distribution Industry)   print
For the purposes of achieving the objectives referred to in Article 1, the Government shall devise the following policy measures: <Amended by Act No. 7756, Dec. 23, 2005>
1. Promotion of advancement of distribution structures and the efficiency of distribution functions;
2. Promotion of consumers' benefits and interest in the distribution industry;
3. Promotion of balanced development of the distribution industry by regions;
4. Promotion of balanced development of the distribution industry by sectors;
5. Structural improvement, and strengthening of the competitive edge, of small and medium distribution enterprises (referring to small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises which engage in the distribution industry; hereinafter the same shall apply);
6. Enhancement of international competitiveness of the distribution industry;
7. Establishment of sound order in commercial transactions and creation of an environment for fair competition in the distribution industry;
8. Other matters necessary to promote the development of the distribution industry.
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 Article 4 (Exclusion of Application)   print
This Act shall not apply to the following: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8354, Apr. 11, 2007>
1. Agricultural and fishery product wholesale markets, joint agricultural and fishery products markets, private agricultural and fishery products wholesale markets, and integrated distribution center for agricultural and fishery products as stipulated in subparagraphs 2, 5, 6, and 12 of Article 2 of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products;
2. Livestock markets as stipulated in Article 34 of the Livestock Industry Act.
CHAPTER II PLAN FOR DEVELOPING DISTRIBUTION INDUSTRY, ETC.
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 Article 5 (Formulation and Implementation, etc. of Master Plan)   print
(1) The Minister of Knowledge Economy shall, for the purpose of developing the distribution industry, work out master plans for the development of the distribution industry (hereinafter referred to as "master plan") every five years after consulting with the head of the central administrative agency concerned and implement the master plan. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The master plan shall include matters falling under each of the following subparagraphs: <Amended by Act No. 7756, Dec. 23, 2005>
1. Basic direction of development of the distribution industry;
2. Possible changes in conditions, whether domestic or overseas, of the distribution industry;
3. Current status and appraisal of the distribution industry;
4. Programs for development of the distribution industry by region and sector;
5. Programs for promoting efficiency and advancement of distribution functions by industry and region;
6. Outsight of changes in the demand for and supply of distribution specialists and construction sites and facilities for distribution;
7. Ways to improve the structures of small and medium distribution enterprises and to sharpen their competitiveness;
8. Ways to maintain the sound order of transactions between superstores, and small and medium distribution enterprises, and small and medium manufacturing enterprises;
9. Other matters necessary for promoting development of the distribution industry, such as deregulation and amelioration of institutions of the distribution industry.
(3) The Minister of Knowledge Economy may, if it is deemed necessary to develop a master plan, ask the heads of central administrative agencies concerned to furnish necessary materials. In such cases, the heads of central administrative agencies concerned shall, upon receiving the request, comply therewith unless special circumstances exist that make it impossible for them to do so. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(4) The Minister of Knowledge Economy shall inform 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 the "Mayor/Do Governor") of the master plan. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9585, Apr. 1, 2009>
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 Article 6 (Formulation and Implementation. etc. of Action Program)   print
(1) The Minister of Knowledge Economy shall formulate an action program annually on the development of the distribution industry (hereinafter referred to as "action program") according to the master plan after consulting with the head of the central administrative agency concerned. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy may, if necessary to formulate an action program, request the heads of central administrative agencies concerned to furnish necessary materials. In such cases, the heads of the central administrative agencies concerned shall, upon receiving the request, comply therewith the request unless special circumstances that make it impossible for them to do so exist. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy and the head of the central administrative agency concerned shall strive to carry out such part of the action program as may concern the Ministry and agency and to secure the necessary financial resources. <Amended by Act No. 8852, Feb. 29, 2008>
(4) The Minister of Knowledge Economy shall notify the Mayors/Do Governors of the action program. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 7 (Implementation of Project, etc. by Local Governments)   print
(1) The Mayor/Do Governor shall develop an action program by region, in which matters falling under each of the following subparagraphs are entered, in accordance with the master plan and the action program after hearing opinions of the head of a Si (including a head of an administrative city under Article 17 (1) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply.)/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) and implement such action program: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 9585, Apr. 1, 2009>
1. Basic directions for the development of the regional distribution industry;
2. Prospect for circumstantial changes in the regional distribution industry;
3. The current state and the assessment of the regional distribution industry;
4. Ways to develop the regional distribution industry by category;
5. Ways to raise the efficiency and sophistication of the regional distribution function;
6. Ways to maintain balance in the supply of and demand for the manpower specializing in the distribution and the sites, facilities, etc.;
7. Ways to improve the structures of the regional small and medium distribution enterprises and to sharpen their competitiveness;
8. Other matters needed to facilitate the development of the regional distribution industry, including relaxation of regulations on the regional distribution industry, and the institutional improvements in the regional distribution industry.
(2) The head of the central administrative agency concerned may, where he/she deems it necessary for the development of the distribution industry, request the Mayors/Do Governors or the heads of a Si/Gun/Gu to take measures necessary for implementation of the action program.
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 Articles 7-2 and 7-3 Deleted<by Act No. 9585, Apr. 1, 2009>   print
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 Article 7-4 (Survey of Actual State of Distribution Industry)   print
(1) The Minister of Knowledge Economy may survey the actual state of the distribution industry in order to efficiently develop and implement the master plan, action program, etc. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy may, where it is deemed necessary to survey the actual state of the distribution industry, request the heads of central administrative agencies concerned, the heads of local governments, the heads of public institutions, distribution business operators, organizations concerned, etc. to furnish necessary material. In such cases, the heads of central administrative agencies concerned, etc. shall, upon receiving the request, comply with the request unless special circumstances exist that make it impossible for them to do so. <Amended by Act No. 8852, Feb. 29, 2008>
(3) Necessary matters concerning the scope, etc. of the survey of the actual state of the distribution industry shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 7756, Dec. 23, 2005]
CHAPTER III SUPERSTORES, ETC.
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 Article 8 (Establishment Registration of Superstores and Alteration Registration)   print
(1) A person who intends to open a superstore or a quasi-superstore in any traditional commerce preservation area designated under Article 13-3 shall register with the head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Knowledge and Economy, before commencing his/her business. The same shall apply to alteration to registered matters.
(2) When a person intends to files for an establishment registration or alteration registration (limited to changes in the location of a store) of a superstore or quasi-superstore (hereinafter referred to as "superstore, etc.") located in any traditional commerce preservation area designated under Article 13-3 in accordance with paragraph (1), the head of a Si/Gun/Gu may restrict such registration or attach a condition thereto. (3) Detailed matters necessary for restrictions on registration pursuant to paragraph (2) and conditions attached thereto shall be prescribed by ordinances of the relevant local governments.
[This Article Wholly Amended by Act No. 10398, Nov. 24, 2010]
[Pursuant to Article 2 of the Addenda to Act (No. 10398, Nov. 24, 2010), the portion related to quasi-superstores under the amended provisions of paragraph (1) of this Article and Article 8 (2) and (3) will remain effective until Nov. 23, 2015]
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 Article 9 (Legal Fiction, etc. of Permission, etc.)   print
(1) In registering a superstore under Article 8, the following matters on reporting, designation, registration, or permission (hereafter referred to as "permission, etc." in this Article), on which the head of a Si/Gun/Gu has consulted with the heads of other administrative agencies under paragraph (3), shall be deemed to have obtained relevant permission, etc.: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 7943, Apr. 28, 2006; Act Nos. 8349, 8365 & 8371, Apr. 11, 2007; Act No. 8466, May 17, 2007; Act No. 9432, Feb. 6, 2009; Act No. 10310, May 25, 2010; Act No. 10398, Nov. 24, 2010>
1. Reporting on or registration of a video product manufacturing business and a video product distribution business provided for in the Promotion of the Motion Pictures and Video Products Act, a game software manufacturing business, a game software distribution business, and game software supply business provided for in the Game Industry Promotion Act, or a sound record and music video manufacturing business and a sound record and music video distribution business provided for in the Music Industry Promotion Act;
2. Designation of retailers under Article 16 (1) of the Tobacco Business Act;
3. Permission for or reporting on a food manufacturing business, a food processing business, a food sale business, or a restaurant business, as prescribed by Presidential Decree under Article 37 (1) or (4) of the Food Sanitation Act;
4. Reporting on the establishment and operation of a collective feeding center under Article 88 (1) of the Food Sanitation Act;
5. Reporting on an amusement facility business under Article 5 (4) of the Tourism Promotion Act;
6. Reporting on the establishment of a lifelong educational establishment under Article 23 (2) of the Lifelong Education Act;
7. Reporting on a sports facility business under Article 20 of the Installation and Utilization of Sports Facilities Act;
9. Registration of a public performance place under Article 9 (1) of the Public Performance Act;
10. Permission for or reporting on advertisements or bulletin facilities under Article 3 of the Outdoor Advertisements, etc. Control Act;
11. Registration of the foreign exchange service provided for in Article 8 of the Foreign Exchange Transactions Act;
12. Reporting on the business of selling liquors pursuant to Article 8 (3) of the Liquor Tax Act;
13. Reporting on the business of selling livestock products pursuant to Article 24 of the Processing of Livestock Products Act;
14. Permission for or reporting on the installation of the discharge facilities pursuant to Article 33 of the Water Quality and Ecosystem Conservation Act;
15. Reporting on any waste generator of the workplace pursuant to Article 17 of the Wastes Control Act;
16. Registration of the opening of any pharmacy pursuant to Article 20 of the Pharmaceutical Affairs Act;
17. Registration of the opening of an optician's shop pursuant to Article 12 of the Medical Technicians, etc. Act.
(2) Any person who intends to obtain deemed permission, etc. under each subparagraph of paragraph (1) shall submit necessary documents to obtain the permission, etc. under each subparagraph of paragraph (1) to the head of a Si/Gun/Gu when he/she applies for registration of the opening of his/her superstore. <Amended by Act No. 10398, Nov. 24, 2010>
(3) Upon receipt of application documents for registration of a superstore and other documents submitted pursuant to paragraph (2), the head of a Si/Gun/Gu shall consult with heads of other administrative agencies in advance if matters falling under any subparagraph of paragraph (1) belong to the authority of such other administrative agencies. <Amended by Act No. 10398, Nov. 24, 2010>.
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 Article 10 (Disqualification for Registration)   print
None of the following subparagraphs shall be allowed to register a superstore, etc.: <Amended by Act No. 7428, Mar. 31, 2005; Act No. 10398, Nov. 24, 2010>
1. A person of incompetency, person of quasi-incompetency or minor;
2. A person who was declared bankrupt, and has not yet been reinstated;
3. A person who was sentenced to imprisonment for violating this Act and for whom one year has not yet elapsed since the execution thereof was terminated (including where the execution thereof is deemed to have been terminated) or since the execution thereof was exempted;
4. A person who has been sentenced to the suspension of execution of imprisonment for violating this Act and has been placed under the suspension period;
5. A person whose registration has been revoked pursuant to Article 11 (1) and for whom one year has not yet elapsed since the revocation;
6. A corporation whose representative falls under any of subparagraphs 1 through 5 of this paragraph.
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 Article 11 (Revocation of Registration, etc.)   print
(1) Where a person who has registered the opening of a superstore under Article 8 (hereinafter referred to as "superstore operator") falls under any of the following cases, the head of a Si/Gun/Gu shall revoke the registration. In such cases, the head of a Si/Gun/Gu shall inform the head of an administrative agency related to matters falling under subparagraphs of Article 9 (1) of matters concerning the revocation of registration, without delay: <Amended by Act No. 10398, Nov. 24, 2010>
1. Where a superstore operator has failed to commence business within one year without justifiable reasons. In such cases, the period, which is normally required for construction of superstores, shall not be calculated;
2. Where a superstore operator has continued to suspend business for at least one year without justifiable reasons;
3. Where a superstore operator falls under any subparagraph of Article 10;
4. Where a superstore operator fails to comply with conditions attached under Article 8 (2).
(2) In any of the following cases, paragraph (1) shall not apply before the lapse of six months from the date falling under subparagraph 6 of Article 10 or the date on which succession commences: <Amended by Act No. 10398, Nov. 24, 2010>
1. Where a corporation falls under subparagraph 6 of Article 10;
2. Where a successor, who has inherited the status of a superstore operator, falls under any of subparagraphs 1 through 5-1 of Article 10.
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 Article 12 (Affairs, etc. of Superstore Operators)   print
(1) Any superstore operator shall perform the following: <Amended by Act No. 10398, Nov. 24, 2010>
1. Establishment of commercial transaction order;
2. Maintenance of the safety of consumers and prompt remedy of losses and grievances suffered by consumers and residents in the neighborhood;
3. Other affairs necessary to maintain and manage the superstore.
(2) In a superstore, the shops of which have been sold in lots, or a quasi-superstore registered, the following persons shall perform the affairs provided for in the subparagraphs of paragraph (1): <Amended by Act No. 7756, Dec. 23, 2005; Act No. 10398, Nov. 24, 2010>
1. Where a person directly runs at least half the area of salesrooms, such person;
2. Where no person runs at least half the area of salesrooms, such person falling under any of the following cases:
(a) A corporation established with the agreement by at least 2/3 of salesroom occupants under the Civil Act or the Commercial Act;
(b) A cooperative (hereinafter referred to as "cooperative") under subparagraph 1 of Article 3 of the Small and Medium Enterprise Cooperatives Act, or a business cooperative (hereinafter referred to as "business cooperative") under subparagraph 2 of Article 3 of the said Act, which is established with the agreement by at least 2/3 of salesroom occupants;
(c) An autonomous management organization established with the agreement by at least 2/3 of salesroom occupants. In such cases, the organization shall qualify itself as a corporation, cooperative, or business cooperative prescribed in item (a) or (b) within six months;
(d) Where no person exists who falls under any of items (a) through (c), a person designated with the agreement by at least half of the salesroom occupants. In such cases, such person shall establish a corporation, cooperative, or business cooperative prescribed in item (a) or (b) within six months.
(3) Any person who establishes a superstore, etc. under paragraph (2) shall report to the head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Knowledge and Economy. In such cases, the same shall apply to revision to reported matters. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008; Act No. 10368, Nov. 24, 2010>
(4) With regard to a superstore, the shops of which have been sold in lots, or a registered quasi-superstore, matters concerning divided ownership, among obligations falling under the subparagraphs of paragraph (1), shall be governed by the Act on Ownership and Management of Condominium Buildings. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 10368, Nov. 24, 2010>
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 Article 12-2 (Restrictions, etc. on Business Hours in Superstores)   print
(1) The head of a Si/Gun/Gu may order superstores prescribed by Presidential Decree and quasi-superstores to restrict business hours or suspend business by designating a date for compulsory closedown as prescribed in the following, where deemed necessary for the establishment of sound distribution order, employees' health right and coexistent development of superstores, etc. and the small and medium distribution industry: Provided, That the same shall not apply to superstores prescribed by ordinances of the relevant local governments, in which the sales of agricultural and fishery products under the Act on Distribution and Price Stabilization of Agricultural and Fishery Products account for at least 51 percent of the annual turnover:
Restrictions on business hours;
2. Designation of a date for compulsory closedown.
(2) The head of a Si/Gun/Gu may place restrictions on business hours from 12 am to 8 am pursuant to paragraph (1) 1.
(3) The head of a Si/Gun/Gu may designate a date for compulsory closedown for at least one day each month, not exceeding two days pursuant to paragraph (1) 2.
(4) Matters necessary for restrictions on business hours and designation of a day for compulsory closedown under paragraphs (1) through (3) shall be prescribed by ordinances of relevant local governments.
[This Article Newly Inserted by Act No. 11175, Jan. 17, 2012]
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 Article 13 (Succession to Status of Operator of Superstore, etc.)   print
(1) Where a person who has established a superstore, etc. dies or transfers his/her superstore, etc. to a third party or a corporation which has established a superstore, etc. is merged, an heir, transferee or a corporation surviving a merger or established following a merger shall succeed to the status of the person who has established a superstore, etc. <Amended by Act No. 10368, Nov. 24, 2010>
(2) Article 10 shall apply mutatis mutandis to persons who have succeeded to the status under paragraph (1).
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 Article 13-2 (Reports on Suspension or Closure of Superstore, etc.)   print
When any person who has established a superstore, etc. (including a person who has reported under Article 12 (3)) intends to suspend or close his/her business, he/she shall report to the head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Knowledge and Economy. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10398, Nov. 24, 2010>
[This Article Newly Inserted by Act No. 7756, Dec. 23, 2005]
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 Article 13-3 (Designation of Traditional Commerce Preservation Areas)   print
(1) The head of a Si/Gun/Gu may designate a region prescribed by ordinances of the local government within one km from the boundary of a traditional market or a traditional shopping street prescribed by the Administrator of Small and Medium Business Administration pursuant to the Special Act on Promotion of Traditional Markets and Shopping Districts, as a traditional commerce preservation area, in order to preserve the tradition and history of the regional distribution industries. <Amended Act No. 10813, Jun. 30, 2011>
(2) Matters necessary for scope, designation procedures, designation revocation, etc. of traditional commerce preservation areas under paragraph (1) shall be prescribed by ordinance of the local government.
[This Article Newly Inserted by Act No. 10398, Nov. 24, 2010]
[This Article will remain effective until November 23, 2015 under Article 2 of the Addenda to this Act (No. 10398, November 24, 2010)]
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 Article 14 (Opening, etc. of Temporary Markets)   print
(1) Ways to open temporary markets, standards for facilities thereof, and other matters concerning the operation and management of temporary markets shall be determined by Municipal Ordinance of the Si/Gun/Gu (referring to the autonomous Gu; hereinafter the same shall apply).
(2) The heads of local governments shall systematically nurture and support temporary markets in order to revitalize them.
[This Article Wholly Amended by Act No. 7756, Dec. 23, 2005]
CHAPTER IV STRENGTHENING OF COMPETITIVE EDGE OF DISTRIBUTION INDUSTRY
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 Article 15 (Policy Measures for Development of Distribution Industry by Sectors)   print
(1) The Minister of Knowledge Economy may, for the purpose of strengthening the competitive edge of the distribution industry, devise and implement the following policy measures: <Amended by Act No. 8852, Feb. 29, 2008>
1. Policy measures for the development of chain business;
2. Policy measures for the development of nonstore sale business;
3. Other policy measures necessary for strengthen competitiveness power in different sectors of the distribution industry.
(2) The policy measures referred to in subparagraphs of paragraph (1) shall include the following:
1. Current conditions of domestic and overseas business;
2. Matters relating to development strategies for different sectors and categories of the distribution industry;
3. Matters relating to the enhancement of understanding of the distribution industry;
4. Matters relating to training of specialized manpower;
5. Matters relating to facilitating the distribution of related information;
6. Other matters necessary to develop and strengthen competitive edge of the distribution industry by sector.
(3) The Government shall devise and implement necessary policy measures revitalize conventional markets, and the Government and the heads of local governments may provide administrative and financial support necessary therefor.
(4) The Government and the local governments may develop and implement policy measures, which contain matters falling under each of the following subparagraphs necessary to improve structures of small and medium distribution enterprises, and to sharpen their competitiveness, and provide administrative and financial support necessary therefor: <Newly Inserted by Act No. 7756, Dec. 23, 2005>
1. Matters to support the start-up of small and medium distribution enterprises;
2. Matters concerning assistance in the funds, management, information, technology and manpower of small and medium distribution enterprises;
3. Matters concerning assistance in education and training for small and medium distribution business operators in order to introduce and disseminate advanced distribution techniques;
4. Matters concerning assistance in the joint cooperation projects of small and medium distribution enterprises, including the establishment and operation of the small and medium joint wholesale physical distribution center provided for in Article 17-2 (1);
5. Other matters prescribed by Presidential Decree necessary to facilitate improvements in structures of small and medium distribution enterprises.
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 Article 16 (Duties of Chain Business Operators for Improvement of Management, etc.)   print
(1) Chain business operators shall, for the purpose of improving the managerial conditions in favor of the stores under their direct control or of the stores affiliated with the chain (hereinafter referred to as "chain stores"), carry out the following matters:
1. Modernization of facilities at chain stores;
2. Smooth supply of raw materials, commodities, or services to chain stores;
3. Guidance for chain stores on management activities, such as the management of stores, quality control, and promotion of sales, and on business activities;
4. Implementation of education and training on distribution for the employees of chain stores;
5. Building of a distribution information system between chain business operators and chain stores;
6. Establishment of collection and delivery facilities, and undertaking of joint physical distribution projects;
7. Development and popularization of a joint brand or one's own trademark;
8. Promotion of employment of a certified distribution manager;
9. Other matters determined by the Administrator of the Small and Medium Business Administration necessary to improve the management of chain business.
(2) The Minister of Knowledge Economy, the Administrator of the Small and Medium Business Administration or the head of a local government may, where a chain business operator or chain business operators' association seeks to carry out the business activities stipulated in subparagraphs of paragraph (1), grant the necessary funds, etc. within the scope of budget. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 17 (Designation, etc. of Exemplary Chain Business Operator)   print
(1) The Administrator of the Small and Medium Business Administration may designate as an exemplary chain business operator any chain business operator falling under a small or medium distribution enterprise who satisfies the following requirements. In such cases, the Administrator of the Small and Medium Business Administration shall forthwith inform the Minister of Knowledge Economy and the head of the local government concerned thereof: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
1. That the amount of capital or investment, the number of chain stores, the area of salesrooms, etc. shall meet the standards set by Ordinance of the Ministry of Knowledge Economy;
2. That the results of improvement in the management of the chain business shall be appraised as exemplary under the conditions as prescribed by Ordinance of the Ministry of Knowledge Economy;
3. That he/she shall not fall under the grounds for disqualification provided for in Article 10.
(2) Procedures and methods for designation of exemplary chain business operators and other necessary matters concerning such designation shall be prescribed and publicly notified by the Administrator of the Small and Medium Business Administration.
(3) The Minister of Knowledge Economy, the Administrator of the Small and Medium Business Administration or the head of a local government may, in granting the necessary funds, etc. as stipulated in Article 16 (2), place a high priority on persons designated as exemplary chain business operators. <Amended by Act No. 8852, Feb. 29, 2008>
(4) Where an exemplary chain business operator fails to satisfy requirements for designation, the Administrator of the Small and Medium Business Administration shall revoke his/her designation and forthwith inform the Minister of Knowledge Economy and the head of the local government concerned thereof. <Amended by Act No. 8852, Feb. 29, 2008>
(5) Article 13 shall apply mutatis mutandis to the succession of the status of any exemplary chain business operator. <Newly Inserted by Act No. 7756, Dec. 23, 2005>
>>The amended provisions of this Article shall cease to have effect on and after January 31, 2009 under Article 2 of the Addenda of Act No. 6959 dated July 30, 2003>>
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 Article 17-2 (Support to Joint Wholesale Physical Distribution Center of Small and Medium Distribution Enterprises)   print
(1) Where at least 50 retailers, or at least 10 wholesalers who are prescribed by Presidential Decree (hereafter referred to as "organization of small and medium distribution enterprisers" in this Article) from among small and medium enterprisers provided for in Article 2 of the Framework Act on Small and Medium Enterprises set up or operate a physical distribution center (hereinafter referred to as "small and medium joint wholesale physical distribution center") that performs activities falling under each of the following subparagraphs in order to jointly sharpen the competitiveness of small and medium distribution enterprises, the Minister of Knowledge Economy and the heads of local governments may administratively and financially support the small and medium joint wholesale physical distribution center: <Amended by Act No. 8852, Feb. 29, 2008>
1. Joint physical work performed to store, deliver and package goods, etc.;
2. Work performed to exhibit goods;
3. Work performed to collect, process and furnish information by making use of a distribution and physical distribution information system;
4. Work performed to conduct education and training aimed at improving the capabilities of the service of small and medium distribution enterprises by making use of the small and medium joint wholesale physical distribution center;
5. Other work deemed necessary by the Minister of Knowledge Economy to upgrade the operation of the small and medium joint wholesale physical distribution center after consulting thereabout with the Fair Trade Commission.
(2) The head of every local government may set up the small and medium joint wholesale physical distribution center and commission its operation to the organization or the corporation falling under any of the following subparagraphs:
1. The organization of small and medium distribution enterprisers;
2. The corporation invested and incorporated by any local government and any organization of small and medium distribution enterprisers in order to operate the small and medium joint wholesale physical distribution center.
(3) Where any local government sets up the small and medium joint wholesale physical distribution center and commissions its operation pursuant to paragraph (2), it may collect usage charges of facilities and equipment after consultation with the central operation body within not more than 5/1,000 of the sales amount of the small and medium joint wholesale physical distribution center in order to appropriate such usage charges to the payment of expenses necessary to maintain and manage facilities and equipment, etc.
[This Article Newly Inserted by Act No. 7756, Dec. 23, 2005]
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 Article 18 (Shopping Mall Promotion Association)   print
(1) Persons who run a wholesale business, retail business, service business, or any other business in a shopping mall are entitled to organize a shopping mall promotion association to develop the shopping mall.
(2) Persons eligible for members of a shopping mall promotion association shall be persons provided for in paragraph (1) who fall under small and medium enterprise owners under Article 2 of the Framework Act on Small and Medium Enterprises. <Amended by Act No. 7756, Dec. 23, 2005>
(3) A shopping mall promotion association shall be established with the consent 2/3 or more persons eligible for membership referred to in paragraph (2): Provided, That where persons engaged in the same trade among the persons eligible for membership account for 1/2 or more, it may be established with the consent of 3/5 or more persons engaged in the same trade.
(4) A shopping mall promotion association shall be established as a cooperative or business cooperative.
(5) The zone of a shopping mall promotion association shall not overlap with that of another shopping mall promotion association.
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 Article 19 (Support to Shopping Mall Promotion Association)   print
The head of any local government may, within the scope of budget, grant necessary funds to a shopping mall promotion association which carries out the following activities:
1. Standardization and modernization of store facilities;
2. Establishment of joint facilities for the sale, storage, transportation, inspection, etc. of commodities;
3. Establishment of public facilities such as parking facilities, resting places, etc.;
4. Joint business for promoting the sale of commodities by individual members;
5. Establishment of commercial transaction order through the introduction of a price-tag system, etc.;
6. Training and provision of information for the enhancement of qualities of members and the employees thereof;
7. Such other business activities as the head of a local government deems necessary to promote shopping malls.
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 Article 20 (Support, etc. for Construction of Specialized Shopping Complex)   print
(1) The Minister of Knowledge Economy, or the head of the central administrative agency or the head of the local government concerned may provide necessary administrative and financial support to the person falling under any of the following subparagraphs who seeks to construct a specialized shopping complex: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8635, Aug. 3, 2007; Act No. 8852, Feb. 29, 2008>
1. A cooperative, a business cooperative, a federation of cooperatives, or the Korea Federation of Small and Medium Business under subparagraphs 1 through 4 of Article 3 of the Small and Medium Enterprise Cooperatives Act, which is comprised of wholesalers or retailers and satisfies the standards stipulated by Ordinance of the Ministry of Knowledge Economy;
2. A trust business entity under the Financial Investment Services and Capital Markets Act which has entered into a trust contract with a person falling under subparagraph 1, the capital or annual turnover of which is at least the amount stipulated by Ordinance of the Ministry of Knowledge Economy.
(2) Persons who intend to be granted support referred to in paragraph (1) shall draw up a business plan on the creation of a specialized shopping complex and submit it to the Minister of Knowledge Economy, the head of the central administrative agency, or the head of the local government concerned. <Amended by Act No. 8852, Feb. 29, 2008>
CHAPTER V CREATION OF INFRASTRUCTURE FOR DEVELOPMENT OF DISTRIBUTION INDUSTRY
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 Article 21 (Policy Measures for Distribution Informatization, etc.)   print
(1) The Minister of Knowledge Economy shall, for the purpose of promoting the informatization of distribution and expanding the electronic transaction infrastructure for the distribution sector, adopt and implement policy measures for the informatization of distribution, which contain the matters falling under each of the following subparagraphs: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
1. Dissemination of standard distribution code;
2. Dissemination of standard electronic distribution documents;
3. Proliferation of a point-of-sale information management system;
4. Proliferation of the inventory management system and the store management system, etc. to efficiently manage stores;
5. Development and dissemination of the electronic marketplace, etc. to facilitate electronic transactions of goods;
6. Development and proliferation of a system to link the enterprise information system to and among a large number of distribution and physical distribution enterprises;
7. Facilitation of the application and practical use of the radio frequency cognition system to efficiently manage distribution and logistics;
8. Promotion of the standardization of distribution information or distribution information system;
9. Other matters deemed necessary for the promotion of distribution informatization.
(2) The Minister of Knowledge Economy may, where he/she deems it necessary for taking policy measures for the informatization of distribution, request the Korea Communications Commission to provides materials relating to telecommunications service providers who furnish distribution informatization service. <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy may provide necessary funds to distributors, manufacturers and distribution-related organizations within the scope of the budget when they carry out the activities referred to in paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 22 (Security, etc. for Standard Electronic Distribution Document and for Distribution Information)   print
(1) No person shall forge or alter a standard electronic distribution document, or use or distribute a forged or altered electronic document.
(2) No distribution informatization service provider shall make public any distribution information recorded on a standard electronic distribution document or on a file of the electronic data processing system, including computers: Provided, That this shall not apply to distribution information designated by Presidential Decree as posing no danger and threat to the national security and as unlikely to infringe on secrets of any other person.
(3) The distribution informatization service provider shall keep standard electronic distribution documents for such period prescribed by Presidential Decree.
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 Article 23 (Fostering of Specialized Distribution Personnel)   print
(1) The Minister of Knowledge Economy or the Administrator of the Small and Medium Business Administration may, for the purpose of fostering specialized distribution personnel, carry out the following activities: <Amended by Act No. 8852, Feb. 29, 2008>
1. Education and training for enhancement of qualities of the persons engaged in the distribution industry;
2. Education and training for promotion of employment, re-employment, or business start-up of persons who intend to engage in the distribution industry;
3. Development and dissemination of advanced distribution techniques;
4. Other activities deemed necessary for the fostering of specialized distribution personnel.
(2) Where Government-invested research institutions provided for in the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutions, or the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutions, universities and colleges, and graduate schools provided for in the Higher Education Act, and distribution training institutions provided for in paragraph (3) carry out activities referred to in each subparagraph of paragraph (1), the Minister of Knowledge Economy or the Administrator of the Small and Medium Business Administration may subsidize all or part of expenses necessary to carry out such activities within the limits of budget. <Amended by Act No. 7219, Sep. 23, 2004; Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(3) The term "distribution training institutions" in paragraph (2) means institutions falling under any of the following subparagraphs: <Newly Inserted by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008; Act No. 9584, Apr. 1, 2009>
1. The Korea Chamber of Commerce and Industry provided for in Article 34 of the Chambers of Commerce and Industry Act;
2. The Korea Productivity Center provided for in Article 32 of the Industrial Development Act;
3. Other institutions designated by the Minister of Knowledge Economy, which are compatible with the standards for facilities, manpower and training records prescribed by Presidential Decree for training manpower engaging in the distribution sector.
(4) Necessary matters concerning procedures for designating distribution training institutions (hereinafter referred to as "designated distribution training institutions") provided for in paragraph (3) 3 shall be prescribed by Ordinance of the Ministry of Knowledge Economy. <Newly Inserted by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(5) Where any designated distribution training institution falls under subparagraph 1, the Minister of Knowledge Economy shall revoke his/her designation thereof and where any designated distribution training institution falls under subparagraph 2, the Minister of Knowledge Economy may revoke his/her designation or suspend the effect of his/her designation thereof for a period of not more than 3 months: <Newly Inserted by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
1. Where it has been designated by fraudulent or other illegal means;
2. Where it is found to be incompatible with the designation standards provided for in paragraph (3) 3.
(6) Where any designated distribution training institution is dissolved, the head of such designated distribution training institution shall notify the Minister of Knowledge Economy thereof under the conditions as prescribed by Ordinance of the Ministry of Knowledge Economy. <Newly Inserted by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
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 Article 24 (Certified Distribution Manager)   print
(1) A certified distribution manager shall perform the following functions:
1. Advancement of distribution management and administration techniques;
2. Planning, survey, and research relating to distribution management and administration;
3. Diagnosis and appraisal relating to distribution management and administration;
4. Consultation and advice relating to distribution management and administration;
5. Other necessary matters relating to distribution management and administration.
(2) Any person who desires to become a certified distribution manager shall pass the qualifying examination for certified distribution managers administered by the Minister of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(3) Matters necessary for grades of certified distribution managers, the method of conducting the qualifying examination, qualifications for application, subjects for the examination, the scope of exemption of certain subjects or the scope of points added to the examination scores, the issuance of the certificates of qualifications, etc. shall be prescribed by Presidential Decree.
(4) The Minister of Knowledge Economy or the head of a local government may, in respect of distributors and their organizations employing certified distribution managers and their organization, grant funds, etc. in preference to other distributors and their organizations. <Amended by Act No. 8852, Feb. 29, 2008>
(5) When a certified distribution manager is found to have obtained his/her certificate by fraud or other unjustifiable means, the Minister of Knowledge Economy shall revoke such certificate. <Amended by Act No. 8852, Feb. 29, 2008>
(6) Anyone whose qualification of the certified distribution manager is revoked pursuant to paragraph (5) shall be prohibited from applying for the qualifying examination of certified distribution managers for 3 years from the date on which his/her qualification of the certified distribution manager is revoked. <Newly Inserted by Act No. 7756, Dec. 23, 2005>
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 Article 25 (Facilitation of Globalization of Distribution Industry)   print
The Minister of Knowledge Economy may provide all or part of necessary expenses to distributors or their organizations within the scope of budget when they conduct the following activities: <Amended by Act No. 8852, Feb. 29, 2008>
1. International exchange of distribution-related information, technology and manpower;
2. International standardization of distribution, joint survey and research of distribution, and technical cooperation in distribution;
3. Hosting international academic symposia and international exhibitions related to distribution;
4. Survey and analysis of overseas distribution markets and systematic circulation of collected information;
5. Joint cooperation projects, such as the establishment of joint purchase and sales networks for joint advance into overseas distribution markets;
6. Other activities as may be deemed necessary for globalization of the distribution industry.
CHAPTER VI PROMOTION OF EFFICIENCY IN DISTRIBUTION FUNCTIONS
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 Article 26 (Policy Measures for Efficiency in Distribution Functions)   print
(1) The Minister of Knowledge Economy shall, for the promotion of efficiency in distribution functions, devise the following policy measures: <Amended by Act No. 8852, Feb. 29, 2008>
1. Promotion of standardization of physical distribution;
2. Expansion of infrastructure for informatization of physical distribution;
3. Promotion of joint physical distribution;
4. Promotion of physical distribution on external commission;
5. Sophistication and advancement of physical distribution technology and techniques;
6. Expansion and efficient arrangement of collection and delivery facilities and joint collection and delivery center;
7. Such other matters as may be deemed necessary for promoting the efficiency of distribution functions.
(2) The Minister of Knowledge Economy may, for the purpose of achieving the sophistication and advancement of physical distribution technology and techniques as stipulated in paragraph (1) 5, carry out the following activities: <Amended by Act No. 8852, Feb. 29, 2008>
1. Survey of domestic and levels of overseas physical distribution technology;
2. Research and development of physical distribution technology and techniques, and utilization of developed physical distribution technology and techniques;
3. Cooperation in and guidance on physical distribution technology, and transfer of such technology;
4. Other activities as may be deemed necessary for developing physical distribution technology and techniques and improving their levels.
(3) The Minister of Knowledge Economy may provide necessary funds to distributers, manufacturers, physical distributors, or other related organizations within the scope of the budget, as prescribed by Ordinance of the Ministry of Knowledge Economy, when they carry out activities referred to in subparagraphs of paragraphs (1) and (2). <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 27 (Certification of Physical Distribution Equipment)   print
(1) The Minister of Knowledge Economy may determine and publish certification specifications and certification standards (hereinafter referred to as "certification specifications, etc.") for measuring the physical distribution equipment by types, and perform the certification work of physical distribution equipment for the purpose of promoting the use and proliferation of the physical distribution equipment which meets the relevant certification specifications, etc. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(2) Where the Minister of Knowledge Economy intends to determine and notify the certification specifications, etc. referred to in paragraph (1), he/she shall consult, in advance, with the Minister of Construction and Transportation and the head of the central administrative agency concerned. In such cases, the Minister of Land, Transport and Maritime Affairs shall, where necessary, undergo deliberation by the Subcommittee on Logistics Facilities under Article 19 (1) 2 of the Framework Act on Logistics Policies. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8617, Aug. 3, 2007; Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy may, for the purpose of promoting the use and proliferation of equipment certified under paragraph (1) (hereinafter referred to as "certified physical distribution equipment"), provide necessary funds to distributors, manufacturers, physical distributers, etc. within the scope of the budget when they conduct the following activities: <Amended by Act No. 8852, Feb. 29, 2008>
1. Investment in research and development related to certified physical distribution equipment;
2. Investment in the installation and expansion of the existing equipment, and activities for its change, to facilitate the manufacture, supply, or use of certified physical distribution equipment;
3. Such other activities as may be necessary for supplying and proliferating certified physical distribution equipment, as prescribed by Ordinance of the Ministry of Knowledge Economy.
(4) The Minister of Knowledge Economy may, for the purpose of promoting the standardization of physical distribution in public sector, recommend the heads of the central administrative agency, the local government, and the Government-invested institution concerned, and other persons designated by Presidential Decree to purchase certified physical distribution equipment in preference to any other equipment. <Amended by Act No. 8852, Feb. 29, 2008>
(5) The Minister of Knowledge Economy may, where he/she performs the certification work of the physical distribution equipment under paragraph (1), designate an institution for physical distribution equipment performance testing (hereinafter referred to as "performance testing institution") charged with testing and examining performance related to certification specifications, etc. of physical distribution equipment and a physical distribution equipment certification institution (hereinafter referred to as "certification institution") charged with certifying that any physical distribution equipment is in conformity with the certification specifications, etc. (hereinafter referred to as "physical distribution equipment certification") based on the test records, etc. issued by the performance testing institutions. <Newly Inserted by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(6) Necessary matters concerning procedures and methods for certification of physical distribution equipment, the follow-up management of certified physical distribution equipment, standards for designating performance testing institutions and certification institutions, procedures for designating them, ways to designate them, the follow-up management of them, etc. shall be prescribed by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
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 Article 27-2 (Revocation of Physical Distribution Equipment Certifications, etc.)   print
(1) The Minister of Knowledge Economy shall, where anyone who has obtained the physical distribution equipment certification pursuant to Article 27 (1) falls under subparagraph 1, revoke the certification, and where he/she falls under subparagraph 2, may revoke the certification or suspend the effect of the certification for a fixed period of not more than 3 months: <Amended by Act No. 8852, Feb. 29, 2008>
1. Where he/she has obtained the certification by fraud or other unjustifiable means;
2. Where he/she is found to be in breach of the certification specifications, etc. as a result of the follow-up management provided for Article 27 (6).
(2) The Minister of Knowledge Economy may, where any performance testing institution and any certification institution designated pursuant to Article 27 (5) fall under any of the following subparagraphs, revoke his/her designation of them, or suspend their work of physical distribution equipment certification for a period of not exceeding one year: Provided, That where they fall under subparagraph 1, the designation thereof shall be revoked: <Amended by Act No. 8852, Feb. 29, 2008>
1. Where they have been designated by fraud or other unjustifiable means;
2. Where they fail to perform the performance testing work or the certification work without any justifiable grounds therefor;
3. Where they are found to be in breach of the standards for designating as performance testing institutions or certification institutions as a result of the follow-up management provided for in Article 27 (6).
(3) Anyone whose physical distribution equipment certification is revoked pursuant to paragraph (1) shall be prohibited from obtaining the physical distribution equipment certification for one year from the date on which his/her physical equipment certification is revoked.
[This Article Newly Inserted by Act No. 7756, Dec. 23, 2005]
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 Article 28 (Designation, etc. of Exemplary Wholesale Delivery Service Provider)   print
(1) The Minister of Knowledge Economy may designate as an exemplary wholesale delivery service provider any person running a wholesale delivery service business who satisfies the following requirements: <Amended by Act No. 8852, Feb. 29, 2008>
1. That the amount of capital or investment shall meet the standards set by Ordinance of the Ministry of Knowledge Economy;
2. That the records of business performance, including wholesale delivery, shall meet the standards as set by Ordinance of the Ministry of Knowledge Economy.
(2) The Minister of Knowledge Economy may grant necessary funds to exemplary wholesale delivery service providers designated under paragraph (1) when they carry out following activities, and he/she may request the head of the central administrative agency or the head of the local government concerned to provide support necessary for securing sites, etc. for collection and delivery facilities: <Amended by Act No. 8852, Feb. 29, 2008>
1. Buildup of distribution information system for management of a number of shops or place of business;
2. Introduction of standard distribution code;
3. Promotion of standardizing slips and commodity classification code in concert with customers;
4. Introduction of certified physical distribution equipment;
5. Such activities as may be necessary for promoting efficiency in distribution functions, as prescribed by Ordinance of the Ministry of Knowledge Economy.
(3) Where an exemplary wholesale delivery service provider designated under paragraph (1) no more satisfies requirements for designation as such, the Minister of Knowledge Economy shall revoke the designation and forthwith inform the head of the central administrative agency and the head of the local government concerned thereof. <Amended by Act No. 8852, Feb. 29, 2008><<The amended provisions of this Article shall cease to have effect on and after January 31, 2009 under Article 2 of the Addenda of Act No. 6959 dated July 30, 2003>>
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 Article 29 (Designation, etc. of Joint Collection and Delivery Center)   print
(1) The Minister of Knowledge Economy may, where he deems it necessary for the purpose of promoting joint physical distribution, designate the area and facilities meeting the requirements determined by Ordinance of the Ministry of Knowledge Economy as a joint collection and delivery center upon recommendation from the Mayor/Do Governor. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Any person who intends to receive designation of a joint collection and delivery center under paragraph (1) shall, pursuant to Ordinance of the Ministry of Knowledge Economy, file an application to the Mayor/Do Governor concerned for recommendation for designation of the joint collection and delivery center by appending a project plan on the establishment and operation of the joint collection and delivery center. <Amended by Act No. 8852, Feb. 29, 2008>
(3) Upon the receipt of such an application for recommendation as referred to in paragraph (2), the Mayor/Do Governor shall, where it is deemed necessary to enhance efficiency in the collection and delivery system of the area concerned as a result of examining the propriety of the project, submit to the Minister of Knowledge Economy reasons for recommendation and documents prescribed by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(4) Any person who desires to establish and run a joint collection and delivery center (hereinafter referred to as "joint collection and delivery center operator") designated under paragraph (1) shall, when he/she intends to modify such important matter prescribed by Ordinance of the Ministry of Knowledge Economy obtain approval for the modification of the designation from the Minister of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(5) The Minister of Knowledge Economy shall, when he/she intends to designate, or modify the designation of, a joint collection and delivery center, consult in advance with the head of the central administrative agency concerned. <Amended by Act No. 8852, Feb. 29, 2008>
(6) The Minister of Knowledge Economy shall, when he/she has designated a joint collection and delivery center pursuant to paragraph (1), bring it to public notice in accordance with Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(7) A joint collection and delivery center operator shall establish and run a joint collection and delivery center according to standards for its facilities and operation prescribed by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 30 (Legal Fiction of Authorization, Permission, etc.)   print
(1) In designating a joint collection and delivery center under Article 29, the following permission, reporting, approval, agreement, authorization, consultation, decision, rescission, designation, and examination (hereafter referred to as "authorization, permission, etc." in this Article), for which the Minister of Knowledge Economy has obtained the consent of the head of the relevant administrative agency after consulting with him/her under paragraph (2), shall be deemed that relevant authorization, permission, etc. have been obtained: <Amended by Act No. 7678, Aug. 4, 2005; Act No. 7756, Dec. 23, 2005; Act No. 7995, Sep. 27, 2006; Act Nos. 8351, 8352 & 8370, Apr. 11, 2007;Act No. 8820, Dec. 27, 2007; Act No. 8852, Feb. 29, 2008; Act No. 8976, Mar. 21, 2008; Act No. 9758, Jun. 9, 2009; Act No. 9774, Jun. 9, 2009; Act No. 10272, Apr. 15, 2010; Act No. 10331, May 31, 2010>
1. Permission to convert farmland under Article 34 (1) of the Farmland Act;
2. Permission for and reporting on the conversion of mountainous districts under Articles 14 and 15 of the Management of Mountainous Districts Act, permission for and reporting on the deforestation of standing trees, etc. under Article 36 (1) and (4) of the Forest Resources Creation and Management Act, and permission for cutting down standing trees and bamboos, extracting and collecting forest products, grazing domestic animals, and conducting other activities to change the form and quality of land pursuant to Article 45 (1) and (2) of the same Act;
3. Permission for or reporting on the conversion of grassland under Article 23 (2) and (3) of the Grassland Act;
4. Permission to occupy or use the public waters under Article 8 of the Public Waters Management and Reclamation Act, consultations on or approval for reclamation implemented by the State, etc. under Article 35 of the Act or approval of plans to implement public waters reclamation under Article 38 of the Act;
5. Deleted. <by Act No. 10272, Apr. 15 2010>
6. Permission to undertake river works under Article 30 (1) of the River Act, and permission to occupy rivers under Article 33 (1) of the same Act;
7. Permission to undertake road works under Article 34 of the Road Act, and permission to occupy roads under Article 38 (1) of the same Act (excluding where roads are excavated);
8. Permission to open, rebuild, add to, or alter private roads under Article 4 of the Private Road Act;
9. Authorization for the general water-supply business under Article 17 (1) of the Water Supply and Waterworks Installation Act, for the water-supply business for industrial use under Article 49 of the same Act, for private-use waterworks under Article 52 (1) of the same Act, and for waterwork for exclusive industrial use under Article 54 of the same Act;
10. Permission to undertake public sewerage works under Article 13 (1) of the Sewerage Act;
11. Approval to use agricultural production infrastructure facilities for other purposes under Article 23 (1) of the Rearrangement of Agricultural and Fishing Villages Act;
12. Permission to implement harbor works plan under Article 9 (2) of the Harbor Act, and approval of an implementation plan for harbor works under Article 10 (2) of the same Act;
13. Permission to cut standing timber and bamboo, collect earth, rocks or roots of trees or grass, graze cattle, or conduct any other activities that cause any damage or alteration to anti-erosion facilities or any alteration in the form and quality of land under Article 14 (1) of the Work against Land Erosion or Collapse Act, and revocation of the designation of an anti-erosion area under Article 20 (1) of the same Act;
14. Permission to conduct development activities under Article 56 (1) of the National Land Planning and Utilization Act, and designation of an implementor of an urban planning facility project under Article 86 of the same Act;
15. Permission to reinter dead bodies under Article 23 (1) of the Act on Funeral Services, etc.;
16. Examination for publication of maps, etc., under Article 15 (3) of the Act on Land Survey, Waterway Survey and Cadastral Records.
(2) Where the Minister of Knowledge Economy intends to designate a joint collection and delivery center under Article 29, he/she shall consult with the head of the relevant administrative agency when the contents of the designation contain matters falling under any subparagraph of paragraph (1). In such cases, the head of the relevant administrative agency shall submit his/her opinion thereon within a period prescribed by Presidential Decree after receipt of a request for consultation made by the Minister of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 31 (Support to Joint Collection and Delivery Center)   print
(1) The Minister of Knowledge Economy may support necessary funds, etc. for creation of joint collection and delivery centers designated pursuant to Article 29 (1). <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy may, in granting the funds, etc. as stipulated in paragraph (1), prioritize the exemplary chain business operators designated under Article 17 (1) or the exemplary wholesale delivery service providers designated under Article 28 (1) when they create joint collection and delivery centers designated pursuant to Article 29 (1). <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy may, where it is deemed necessary for creation of joint collection and delivery centers, request Mayors/Do Governors to render cooperation in relation to securing of their building sites, the alteration of urban planning, or establishment of urban planning facilities, etc. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 32 (Development under Trust of Joint Collection and Delivery Center)   print
(1) A joint collection and delivery center operator may enter into a trust contract with such trust business entity as stipulated in Financial Investment Services and Capital Markets Act, and develop, under trust, a joint collection and delivery center. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8635, Aug. 3, 2007>
(2) The trust business entity, which has concluded the trust contract referred to in paragraph (1), shall succeed to the status of the joint collection and delivery center operator. In such cases, the joint collection and delivery center operator shall submit a copy of the trust contract to the Minister of Knowledge Economy within 14 days from the date the contract is concluded. <Amended by Act No. 8635, Aug. 3, 2007; Act No. 8852, Feb. 29, 2008>
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 Article 33 (Corrective Order and Revocation of Designation)   print
(1) The Minister of Knowledge Economy may, where a joint collection and delivery center fails to meet the requirements for its designation and the standards for its facilities and operation under Article 29 (1) and (7), order the joint collection and delivery center operator to correct it under the conditions prescribed by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy may revoke designation of a joint collection and delivery center where it falls under any of the following subparagraphs: Provided, That in cases falling under subparagraph 1, he/she shall revoke the designation: <Amended by Act No. 8852, Feb. 29, 2008>
1. When a joint collection and delivery center is found to have been designated by fraud or other unjustifiable means;
2. When a joint collection and delivery center has not been built without any justifiable reasons within three years from the date when it was designated as such;
3. When a joint collection and delivery center operator has failed to comply with a corrective order under paragraph (1);
4. When a joint collection and delivery center is deemed to find much difficulty in executing its projects normally due to any reason prescribed by Presidential Decree, such as where its operator has been declared bankrupt.
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 Article 34 (Designation, etc. of Joint Collection and Delivery Center Development Promotion Zone)   print
(1) The Mayor/Do governor may, for the purpose of promoting collective installation of collection and delivery facilities and efficiently arranging collection and delivery facilities, request the Minister of Knowledge Economy to designate a joint collection and delivery center development promotion zone (hereinafter referred to as "promotion zone"). <Amended by Act No. 8852, Feb. 29, 2008>
(2) When an area requested by the Mayor/Do governor under paragraph (1) is deemed as satisfying such requirements prescribed by Ordinance of the Ministry of Knowledge Economy, the Minister of Knowledge Economy shall designate such area as a promotion zone, and publicly announce it in accordance with Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy shall, when he/she intends to designate a promotion zone, consult, in advance, with the head of the central administrative agency concerned. <Amended by Act No. 8852, Feb. 29, 2008>
(4) Necessary matters concerning requirements, procedures, etc. for the designation referred to in paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 35 (Support for Promotion Zones)   print
(1) The Minister of Knowledge Economy or the Mayor/Do Governor may, for the purpose of vitalizing the development of promotion zones, provide funds and other necessary support for collection and delivery facilities installed within or transferred into the promotion zones. <Amended by Act No. 8852, Feb. 29, 2008>
(2) With respect to collection and delivery facilities located within the promotion zones, the Minister of Knowledge Economy may, notwithstanding Article 29 (1), designate them as joint collection and delivery centers regardless of a recommendation by the Mayor/Do Governor therefor. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 35-2 (Sales, etc. of State and Public Properties)   print
(1) Where it is deemed necessary to open superstores and build small and medium joint wholesale physical distribution centers pursuant to Article 8, which are prescribed by Presidential Decree, the State or the local governments may sell State and public properties by means of free contracts notwithstanding the State Property Act or the Public Property and Commodity Management Act. In such cases, the contents and terms of the sale of State and public properties shall be governed by the State Property Act or the Public Property and Commodity Management Act.
(2) Anyone who intends to open a superstore or to build a small and medium joint wholesale physical distribution center may commission the work of opening roads to any State organ or any local government under the conditions prescribed by Presidential Decree.
(3) Where anyone who intends to open a superstore or to build a small and medium wholesale physical distribution center commission the work of opening roads to any State organ or any local government pursuant to paragraph (2), he/she shall pay commission fees, the rates of which are determined by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
[This Article Newly Inserted by Act No. 7756, Dec. 23, 2005]
CHAPTER VII ESTABLISHMENT OF ORDER IN COMMERCIAL TRANSACTIONS
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 Article 36 (Distribution Dispute Mediation Committee)   print
(1) A Distribution Dispute Mediation Committee (hereinafter referred to as the "Committee") shall be established at the Special Metropolitan City, a Metropolitan City, a Do and a Special Self-Governing Province (hereinafter referred to as "City/ Do") and a Si (including an administrative city under Article 17 (1) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply)/Gun/Gu, respectively, to mediate the following disputes over distribution: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 9585, Apr. 1, 2009; Act No. 10398, Nov. 24, 2010>
1. Disputes over business activities between superstores and wholesalers or retailers in the neighborhood: Provided, That this shall not include any matter governed by the Monopoly Regulation and Fair Trade Act;
1-2. Matters regarding business activities between superstores and small and medium manufacturing enterprises: Provided, That any matter governed by the Monopoly Regulation and Fair Trade Act shall be excluded;
2. Disputes over a living environment between superstores and residents in the neighborhood.
(2) The Committee shall consist of not less than 11 but not more than 15 members, including one chairman.
(3) The chairman of the Committee shall be elected, from among the members of the Committee. <Amended by Act No. 7756, Dec. 23, 2005>
(4) The members of the Committee shall be:
1. Any of the following persons, who is commissioned by the head of the relevant local government:
(a) Persons who hold qualifications as judges, public prosecutors, or attorneys-at-law;
(b) Executives or employees of the Chamber of Commerce and Industry;
(c) Representatives of consumers' associations;
(d) Persons with abundant knowledge about and experience in the field of the distribution industry;
(e) Consumers residing in the relevant local government;
2. Public officials who take charge of the wholesale and retail business of the relevant local government, who are designated by the head of the relevant local government.
(5) The term of office of non-public official members shall be two years and they may be reappointed.
(6) The scope of superstores, business activities, and a living environment referred to in the subparagraphs of paragraph (1) shall be prescribed by Presidential Decree. <Amended by Act No. 10398, Nov. 24, 2010>
(7) Except as otherwise expressly provided for in paragraphs (1) through (5), matters necessary for the organization and operation of the Committee and other matters shall be prescribed by ordinance of the local government.
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 Article 37 (Mediation of Disputes)   print
(1) Any one who wishes to have disputes over superstores, etc. mediated under Article 36 may file an application for mediation of disputes with the Committee belonging to a Si/Gun/Gu. <Amended by Act No. 10398, Nov. 24, 2010>
(2) The Committee shall, upon receipt of an application for mediation of a dispute under paragraph (1), examine the case and prepare a draft mediation agreement within 60 days after receipt of such application: Provided, That if any unavoidable circumstances exit to the contrary, the Committee may resolve to extend the period.
(3) Any person who is dissatisfied with the draft mediation agreement of the Committee of a Si/Gun/Gu under paragraph (2) may file an application for mediating the case with the Committee of the relevant City/Do concerned within 15 days after receipt of the draft mediation.
(4) The Committee of the relevant City/Do shall, upon receipt of the application for mediation under paragraph (3), notify the contents of the application to the Committee of the relevant Si/Gun/Gu and the relevant parties, excluding the applicant, and then examine the case and prepare a draft mediation within 30 days after receipt of such application: Provided, That if any unavoidable circumstances exit to the contrary, the Committee may resolve to extend the period.
(5) Where the period is extended in accordance with the provisos to paragraphs (2) and (4), the Committee shall notify the relevant parties of the grounds for extending the period.
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 Article 38 (Request for Materials, etc.)   print
(1) The Committee may request parties involved in a dispute or other relevant witnesses to provide materials necessary to mediate the dispute. In such cases, the relevant parties shall comply with the request unless justifiable grounds exist that make it impossible for them to do so.
(2) The Committee may, when it is deemed necessary, have the relevant parties or witnesses to be present at a meeting of the Committee to hear their opinions.
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 Article 39 (Effect of Mediation)   print
(1) The Committee shall, when it prepares a draft mediation in accordance with Article 37, present such draft mediation to each of the parties without delay.
(2) Each of the parties presented with a draft mediation agreement under paragraph (1) shall serve a notice on the Committee as to whether or not he accepts the draft mediation within 15 days from the date on which he/she has received such draft mediation.
(3) If the parties accept the draft mediation, the Committee shall promptly prepare a written mediation, and the chairman and the parties shall write their names thereto and affix their seals thereon.
(4) When the parties accept the draft mediation under paragraph (3) and the parties subscribe their names thereto and affix their seals thereon, an agreement identical to the written mediation between the parties shall be deemed reached.
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 Article 40 (Rejection and Suspension of Mediation)   print
(1) When the Committee deems that it is inappropriate for it to mediate a dispute in the light of its nature or that an application for mediating a dispute is filed for an unfair purpose, it may reject the relevant mediation. In such cases, a notice on the grounds, etc. of rejecting the mediation shall be served on the relevant parties.
(2) In the event that any of the parties to a medication case files a lawsuit in the process of examining the case, the Committee shall suspend handling the dispute and serve a notice thereon on the relevant parties.
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 Article 41 (Procedures, etc. for Mediation)   print
Other than those as prescribed in Articles 36 through 40, necessary matters concerning the method of and procedures for mediating any dispute, the handling of mediation business, the allotment of mediation expenses involved, etc. shall be prescribed by Presidential Decree.
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 Article 42 (Recommendation to Non-profit Corporation)   print
(1) Where the head of a local government deems that a non-profit corporation established under the Civil Act or any other Act deviates, in the course of engaging in sales activities, from the scope of the purpose of the establishment of the corporation, and thus significantly undermines the interests of its adjacent wholesalers or retailers, he/she may recommend the relevant corporation to suspend the sales activities conducted outside the scope of the purpose of its establishment. <Amended by Act No. 7756, Dec. 23, 2005>
(2) The head of a local government may request the non-profit corporation under paragraph (1) to furnish records of sales activities and other materials.
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 Article 43 (Transparency in Commercial Transactions)   print
The Government shall strive to establish fair and transparent order in commercial transactions in the distribution sector.
CHAPTER VIII SUPPLEMENTARY PROVISIONS
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 Article 44 (Hearings)   print
The Minister of Knowledge Economy, the Administrator of the Small and Medium Business Administration, or the head of a Si/Gun/Gu shall hold a hearing when he/she intends to take any of the following measures: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008; Act No. 10398, Nov. 24, 2010>
1. Revocation of establishment registration of superstores under Article 11 (1);
2. Revocation of designation of an exemplary chain business operator under Article 17 (4);
3. Revocation of a designated distribution training institution pursuant to Article 23 (5);
4. Revocation of the certificate of a certified distribution manager under Article 24 (5);
5. Revocation of a physical distribution equipment certification, and the revocation of the designation of any performance testing institution and any certification institution pursuant to Article 27-2;
6. Revocation of the designation of an exemplary center for wholesale delivery service providers under Article 28 (3);
7. Revocation of the designation of a joint collection and delivery center under Article 33 (2).
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 Article 45 (Reports)   print
(1) The Mayor/Do Governor or the head of a Si/Gun/Gu shall report the following matters to the Minister of Knowledge and Economy, as prescribed by Ordinance of the Ministry of Knowledge and Economy: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10398, Nov. 24, 2010>
1. Implementation plans by region under Article 7 and the outcomes thereof;
2. Establishment registration of superstores, revocation thereof or current status on reports from a person who has established a superstore, etc. under Articles 8, 11 and 12;
3. Outcomes of mediation of disputes under Article 37;
4. Outcomes of recommendations to non-profit corporations under Article 42.
(2) When the Minister of Knowledge Economy, the Administrator of the Small and Medium Business Administration or the head of a local government deems it necessary to provide funds, etc. under this Act, he/she may have the person falling under any of the following subparagraphs report his/her business performance and other matters determined by Ordinance of the Ministry of Knowledge Economy: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
1. Exemplary chain business operators, small and medium joint wholesale physical distribution centers, exemplary wholesale delivery service providers, or joint collection and delivery center project implementors;
2. Distributors' organizations;
3. Distribution training institutions provided for in each subparagraph of Article 23 (3).
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 Article 46 (Delegation and Entrustment of Authorities)   print
(1) The Minister of Knowledge Economy may delegate part of his/her authority under this Act to the Administrator of the Small and Medium Business Administration or the Administrator of the Korean Agency for Technology and Standards prescribed by Presidential Decree. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy or the Administrator of the Small and Medium Business Administration may delegate part of his authorities under this Act to the Mayor/Do Governor, prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Minister of Knowledge Economy may entrust his/her authority under Article 24 in relation to the conduct of the qualifying examination for certified distribution managers to the Korea Chamber of Commerce and Industry, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
(4) The Minister of Knowledge Economy may commission surveying work of the actual state of the distribution industry provided for in the provisions of Article 7-4 to a designated statistics collection agency under Article 15 of the Statistics Act. <Newly Inserted by Act No. 7756, Dec. 23, 2005; Act No. 8387, Apr. 27, 2007; Act No. 8852, Feb. 29, 2008>
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 Article 47 (Legal Fiction of Public Officials in Applying Penal Provisions)   print
Officers and employees of the Korea Chamber of Commerce and Industry, who perform duties entrusted under Article 46 (3), shall be deemed public officials for the purposes of applying Articles 129 through 132 of the Criminal Act. <Amended by Act No. 7756, Dec. 23, 2005>
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 Article 48 (Fees)   print
(1) Any person who intends to file for an establishment registration of a superstore, etc. under Article 8 shall pay fees, as prescribed by ordinances of a Si/Gun/Gu within the scope determined by Ordinance of the Ministry of Knowledge and Economy. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10398, Nov. 24, 2010>
(2) Anyone who intends to obtain physical distribution equipment certification pursuant to Article 27 (1), or anyone who intends to have his/her performance testing institution or his/her certification institution designated pursuant to paragraph (5) of the same Article shall pay fees within the scope prescribed by Ordinance of the Ministry of Knowledge Economy. <Newly Inserted by Act No. 7756, Dec. 23, 2005; Amended by Act No. 8852, Feb. 29, 2008>
CHAPTER IX PENAL PROVISIONS
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 Article 49 (Penal Provisions)   print
(1) Any person who forges or alters a standard electronic distribution document, or uses or distributes a forged or altered electronic document in violation of Article 22 (1), shall be punished by imprisonment for not more than ten years or by a fine not exceeding one hundred million won.
(2) Any of the following persons shall be punished by imprisonment for not more than one year or by a fine not exceeding 30 million won: <Amended by Act No. 7756, Dec. 23, 2005; Act No. 10398, Nov. 24, 2010>
1. Any person who has established a superstore, etc. without registration in violation of the forepart of Article 8 (1) or has filed for an establishment registration of a superstore, etc. by fraudulent or other illegal means;
2. Any person who has established a superstore, etc. without reporting in violation of Article 12 (3) or has reported the establishment of a superstore, etc. by fraudulent or other illegal means.
(3) Any person who fails to keep a standard electronic distribution document in violation of Article 22 (3) shall be punished by imprisonment for not more than one year or by a fine not exceeding ten million won.
(4) Attempts to commit the offence of paragraph (1) shall be punishable.
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 Article 50 (Penal Provisions)   print
Any person who makes public distribution information recorded on a standard electronic distribution document or on the file of the electronic data processing system, including computers, in contravention of Article 22 (2), shall be punished by a fine not exceeding ten million won.
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 Article 51 (Joint Penal Provisions)   print
Where the representative of a corporation, or an agent, a servant or other employee of a corporation or an individual commits any offenses referred to in Article 49 or 50 in relation to duties of the corporation or an individual, not only the offender shall be punished but the corporation or an individual shall be subject to a fine under the relevant Articles: Provided, That the same shall not apply where a corporation or an individual is not negligent in paying considerable attention to or supervising relevant duties in order to prevent such offenses.
[This Article Wholly Amended by Act No. 9243, Dec. 26, 2008]
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 Article 52 (Fines for Negligence)   print
(1) The following persons shall be punished by fines for negligence not exceeding 30 million won: <Newly Inserted by Act No. 11175, Jan. 17, 2012>
1. Any person who conducts a business during hours of business restriction, in violation of an order under Article 12-2 (1) 1;
2. Any person who fails to comply with an order for compulsory closedown under Article 12-2 (1) 2.
(2) The following persons shall be punished by fines for negligence not exceeding five million won. <Amended by Act No. 7756, Dec. 23, 2005; Act No. 10398, Nov. 24, 2010; Act No. 11175, Jan. 17, 2012>
1. Any person who fails to make an alteration registration of a superstore, etc., in violation of the latter provisions of Article 8 (1) or makes an alteration registration thereof by false or other illegal means;
2. Any person who fails to establish a superstore, etc. under Article 12 (1) and (2);
3. Any person who opens a temporary market, in violation of Article 14 (1);
4. Any person who fails to obtain designation for alteration, in violation of Article 29 (4);
5. Any joint collection and delivery center operator who fails to comply with a corrective order under Article 33 (1);
6. Any person who files a false report under Article 45 (2).
(3) Fines for negligence under paragraphs (1) and (2) shall be imposed and collected by the Minister of Knowledge and Economy, the Administrator of Small and Medium Business Administration and the heads of local governments, as prescribed by Presidential Decree. <Amended by Act No. 9585, Apr. 1, 2009; Act No. 11175, Jan. 17, 2012>
(4) and (5) Deleted. <by Act No. 9585, Apr. 1, 2009>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Period of Effect)
The amended provisions of Articles 17 and 28 shall have effect for five years beginning with the enforcement date of this Act.
Article 3 (Transitional Measures concerning Registration, etc. of Superstore Opening)
(1) A person who has effected registration of opening of superstore or filed an application therefor with the Mayor/Do Governor pursuant to the previous provisions at the time this Act enters into force shall be deemed to have effected such registration or filed such application with the head of a Si/Gun/Gu in accordance with the amended provisions of Article 8.
(2) The amended provisions of Article 9 shall also apply with respect to a superstore the procedures of whose registration are in process at the time this Act enters into force. In such cases, a person who intends to obtain the application of the amended provisions of Article 9 (1) shall submit the relevant documents to the head of a Si/Gun/Gu pursuant to the amended provisions of paragraph (2) of the said Article.
Article 4 (Transitional Measures concerning Designated Chain Business Operator)
Any designated chain business operator as designated under the previous provisions at the time this Act enters into force shall be deemed to be designated as an exemplary chain business operator under the amended provisions of Article 17 (1).
Article 5 (Transitional Measures concerning Certified Sales Manager)
Any person who holds the qualification of a certified sales manager pursuant to the previous provisions at the time this Act enters into force shall be deemed to have the qualification of a certified distribution manager under the amended provisions of Article 24.
Article 6 (Transitional Measures concerning Designated Wholesale Delivery Service Provider)
Any such designated wholesale delivery service provider as designated under the previous provisions at the time this Act enters into force shall be deemed to be designated as an exemplary wholesale delivery service provider under the amended provisions of Article 28 (1).
Article 7 (Transitional Measures concerning Joint Collection and Delivery Complex)
(1) Any such collection and delivery center which is created in a joint collection and delivery complex as designated under the previous provisions at the time this Act enters into force shall be deemed to be designated as a joint collection and delivery center under the amended provisions of Article 29 (1).
(2) Any such joint collection and delivery complex as designated under the previous provisions at the time this Act enters into force shall be deemed to be designated as a joint collection and delivery center development promotion zone under the amended provisions of Article 34.
Article 8 (Transitional Measures concerning Application of Penal Provisions)
The application of penal provisions in respect of an act which was committed prior to the enforcement of this Act shall be made in accordance with the previous provisions.
Article 9 (Relations with Other Acts)
Where other Acts cite the previous Distribution Industry Development Act or the provisions thereof at the time this Act enters into force, if this Act includes any provisions corresponding to the said Act or provisions, this Act or the corresponding provisions of this Act shall be deemed to be cited in lieu thereof.
ADDENDA<Act No. 7100, Jan. 20, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 24 Omitted.
ADDENDA<Act No. 7219, Sep. 23, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA<Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 7678, Aug. 4, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA<Act No. 7756, Dec. 23, 2005>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Application Example concerning Ways to Elect Chairman of Distribution Dispute Mediation Committee) The amended provisions of Article 36 (3) shall apply to the chairman who is first elected after the enforcement of this Act.
(3) (Transitional Measures concerning Certification of Physical Distribution Equipment) The physical distribution equipment for which a certification is granted pursuant to the previous provisions at the time this Act enters into force shall be deemed that such certification is granted for the physical distribution equipment pursuant to the amended provisions of Article 27 (1).
(4) (Transitional Measures concerning Application of Penal Provisions) The application of the penal provisions to any act committed before this Act enters into force shall be governed by the previous provisions.
(5) Omitted.
ADDENDA<Act No. 7943, Apr. 28, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 15 Omitted.
ADDENDA<Act No. 7995, Sep. 27, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 8349, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA<Act No. 8351, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA<Act No. 8352, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 16 Omitted.
ADDENDA<Act No. 8354, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA<Act No. 8365, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 22 Omitted.
ADDENDA<Act No. 8370, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 20 Omitted.
ADDENDA<Act No. 8371, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA<Act No. 8387, Apr. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA<Act No. 8466, May 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA<Act No. 8617, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA<Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA<Act No. 8820, Dec. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
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. 8976, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA<Act No. 8979, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM<Act No. 9242, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 9432, Feb. 6, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA<Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Articles 2 through 6 Omitted.
ADDENDUM<Act No. 9585, Apr. 1, 2009>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA<Act No. 9758, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA<Act No. 9774 Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 19 Omitted.
ADDENDA<Act No. 10272, Apr. 15, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA<Act No. 10310, May 25, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA<Act No. 10331, May 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA<Act No. 10398, Nov. 24, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Period of Validity)
The provisions related to a quasi-superstore, etc. of the amended provisions of subparagraph 3-2 of Article 2 and Article 8 (1), and the amended provisions of Article 8 (2) and (3) and Article 13-3 shall remain effective for five years from the date this Act enters into force. <Amended by Act No. 10813, Jun. 30, 2011>
Article 3 (Transitional Measures concerning Establishment Registration of Superstores)
(1) Any person who has filed for an establishment registration of a superstore pursuant to the previous provisions as at the time this Act enters into force, and has operated a quasi-superstore in the relevant traditional commerce preservation area as at the time an ordinance concerning the traditional commerce preservation area under the amended provisions of Article 13-3 is enacted, shall be deemed to have filed for an establishment registration under the amended provisions of Article 8 (1), respectively.
(2) Any person who has operated a quasi-superstore in the relevant traditional commerce preservation area as at the time an ordinance concerning the traditional commerce preservation area under the amended provisions of Article 13-3 is enacted, shall report to the head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Knowledge and Economy, within six months from the date the relevant ordinance enters into force.
ADDENDA<Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA<Act No. 10813, Jun. 30, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Establishment Registration Following Expansion of Traditional Commerce Preservation Areas)
Any person who has operated a quasi-superstore in a traditional commerce preservation area (hereinafter referred to as "existing operator") as at the time an ordinance concerning a traditional commerce preservation area is enacted under the amended provisions of Article 13-3, shall be deemed to have filed for an establishment registration under Article 8 (1).
(2) An existing operator shall report to the head of a Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Knowledge and Economy, within six months from the date the relevant ordinance is enacted.
ADDENDUM<Act No. 11175, Jan. 17, 2012>
This Act shall enter into force on the date of its promulgation.