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Tobacco Business Act


Published: 2013-03-23

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Act is to contribute to the national economy and to ensure the sound development of the tobacco industry by prescribing matters concerning the production, distribution, etc. of tobacco. <Amended by Act No. 6460, Apr. 7, 2001>
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 Article 2 (Definitions)   print
For the purpose of this Act, the term "tobacco" means what is manufactured in a state suitable for smoking, inhaling, chewing or smelling, by using tobacco leaves of as all or part of the raw materials. <Amended by Act No. 7067, Jan. 20, 2004>
[This Article Wholly Amended by Act No. 6460, Apr. 7, 2001]
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 Article 3 (Scope of Application)   print
(1) Anything in forms similar to tobacco, that is manufactured without using tobacco leaves as the raw materials and may be used for smoking (hereinafter referred to as "substitute for tobacco") shall be deemed the tobacco and be subject to this Act: Provided, That those falling under either of the following subparagraphs shall be excluded herefrom: <Amended by Act No. 8365, Apr. 11, 2007; Act No. 10786, Jun. 7, 2011>
1. Narcotics, psychotropic drugs and marijuana as referred to in subparagraphs 2 through 4 of Article 2 of the Act on the Control of Narcotics, etc.;
2. Medicines and non-pharmaceutical drugs as referred to in subparagraphs 4 and 7 of Article 2 of the Pharmaceutical Affairs Act.
(2) Notwithstanding the provisions of paragraph (1), the provisions of Articles 19, 25-3 and 27 shall not apply to substitutes for tobacco.
[This Article Newly Inserted by Act No. 7067, Jan. 20, 2004]
CHAPTER II Deleted.
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 Article 4 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 5 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 6 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 7 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 8 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 9 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 10 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
CHAPTER III MANUFACTURE, SALE AND IMPORT
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 Article 11 (License for Tobacco Manufacturing Business)   print
(1) A person who intends to operate a tobacco manufacturing business shall obtain a license from the Minister of Strategy and Finance under the conditions as prescribed by Presidential Decree. The same shall apply to the case where intending to alter any principal matters as prescribed by Presidential Decree from among the licensed matters. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Strategy and Finance shall grant the license in case where any person who intends to obtain the license for a tobacco manufacturing business under paragraph (1) (hereinafter referring to "tobacco manufacturing business license") satisfies the criteria for equity capital, facility standards, technological manpower, research and development of tobacco manufacturing technology, and quality control for the protection of national health, etc. as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
[This Article Wholly Amended by Act No. 6460, Apr. 7, 2001]
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 Article 11-2 (Disqualification for Tobacco Manufacturing Business License)   print
Any person falling under one of the following subparagraphs shall be prohibited from obtaining a tobacco manufacturing business license:
1. A person of incompetency, quasi-incompetency or minor;
2. A person who has been sentenced to a bankruptcy and not yet reinstated;
3. A person who has been consigned to an unsuspended sentence of imprisonment for violating this Act, and for whom less than one year has passed after the completion (including the case of deeming to be completed) of or exemption from its execution;
4. A person who is under a grace period after having been consigned to a suspended sentence of imprisonment for violating this Act;
5. A person for whom two years have not elapsed since a cancellation of the tobacco manufacturing business license under Article 11-4; and
6. A corporation whose representative falls under one of subparagraphs 1 through 5.
[This Article Newly Inserted by Act No. 6460, Apr. 7, 2001]
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 Article 11-3 (Transfer or Takeover, etc. of Tobacco Manufacturing Business)   print
(1) A person who has obtained a tobacco manufacturing business license (hereinafter referred to as "manufacturer") shall, where he intends to transfer the tobacco manufacturing business or merge with another corporation, file a report thereon with the Minister of Strategy and Finance under the conditions as determined by Ordinance of the Ministry of Strategy and Finance. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Where there exists a report on transfer under paragraph (1), a person who has taken over the tobacco manufacturing business shall succeed to the manufacturer's status of the transferor of tobacco manufacturing business, and where there exists a report on merger of corporations, a corporation to be established or to be survived after such merger shall succeed to the manufacturer's status of a corporation to be extinguished by such merger.
(3) In case where a manufacturer has died, if an heir intends to continue the tobacco manufacturing business, he shall file a report thereon with the Minister of Strategy and Finance within 30 days after the date on which the decedent has died, under the conditions as determined by Ordinance of the Ministry of Strategy and Finance. <Amended by Act No. 8852, Feb. 29, 2008>
(4) In case where an heir has filed a report on succession under paragraph (3), the tobacco manufacturing business license of the decedent shall be deemed the tobacco manufacturing business license of the heir in the period from the date on which the decedent has died to the date of such report.
(5) An heir who has filed a report on succession under paragraph (3) shall succeed to the manufacturer's status of the decedent.
(6) The provisions of Article 11-2 shall apply mutatis mutandis to the report under paragraphs (1) and (3).
[This Article Newly Inserted by Act No. 6460, Apr. 7, 2001]
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 Article 11-4 (Cancellation, etc. of Tobacco Manufacturing Business)   print
The Minister of Strategy and Finance may, where a manufacturer falls under any of the following subparagraphs, either cancel the tobacco manufacturing business license or order the suspension of such business by fixing the period of not more than one year: Provided, That where falling under subparagraphs 1 and 3, the Minister shall cancel such license: <Amended by Act No. 8518, Jul. 19, 2007; Act No. 8852, Feb. 29, 2008>
1. Where he has obtained the tobacco manufacturing business license by illegal means;
2. Where he falls short of the criteria for equity capital, facility standards, technological manpower, research and development of tobacco manufacturing technology, and quality control for the protection of national health, etc. under Article 11 (2);
3. Where he falls under disqualification of each subparagraph of Article 11-2: Provided, That it shall not apply to the case where the representative of a corporation who falls under such disqualification is replaced within six months;
4. Where he has sold tobacco in violation of Article 12 (3); or
5. Where he has violated this Act or the orders issued under this Act.
[This Article Newly Inserted by Act No. 6460, Apr. 7, 2001]
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 Article 12 (Sales of Tobacco)   print
(1) Tobacco manufactured by a manufacturer shall be sold by such manufacturer, and tobacco imported from a foreign country shall be sold by such import and sales business operator (referring to a person who has registered as a tobacco import and sales business under Article 13 (1); hereinafter the same shall apply) to a wholesaler (referring to a person who has registered as a wholesale business under Article 13 (1); hereinafter the same shall apply) or a retailer (referring to a person who has been designated as a retailer under Article 16 (1); hereinafter the same shall apply). <Amended by Act No. 6460, Apr. 7, 2001>
(2) No person other than a retailer shall sell any tobacco to consumers. <Amended by Act No. 7067, Jan. 20, 2004>
(3) No manufacturers, import and sales business operators, wholesalers and retailers shall sell tobaccos falling under any of the following subparagraphs: <Newly Inserted by Act No. 8518, Jul. 19, 2007>
1. Tobacco manufactured by a person who has not obtained a tobacco manufacturing business license under Article 11;
2. Tobacco for which customs duty imposed under Article 14 of the Customs Act has not been paid, which violates a trademark right protected under Article 235 of the same Act or which has been imported without an import declaration under Article 241 of the same Act;
3. Tobacco that has been stolen or robbed.
(4) No retailer shall sell tobacco to consumers by way of postal sale or electronic transaction (referring to the electronic transaction referred to in subparagraph 5 of Article 2 of the Act on Electronic Documents and Transactions; hereinafter the same shall apply). <Newly Inserted by Act No. 7067, Jan. 20, 2004; Act No. 8518, Jul. 19, 2007; Act No. 11461, Jun. 1, 2012>
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 Article 13 (Registration of Tobacco Sales Business)   print
(1) Any person who intends to carry on the business of importing and selling tobacco shall register his/her business with the Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor (hereinafter referred to as "Mayor/Do Governor") having jurisdiction over the place where his/her head office or principal office is located, and any person who intends to carry on the business of wholesaling tobacco (referring to the business of purchasing tobacco from the manufacturer or import and sales business operator, and selling it to other wholesalers or retailers; hereinafter the same shall apply) shall register his/her business with the head of a Si/Gun/autonomous Gu (hereinafter referred to as "head of a Si/Gun/Gu") having jurisdiction over the place where his/her head office or principal office is located. The same shall also apply to any intended alterations of the important matters prescribed by Ordinance of the Ministry of Strategy and Finance among the registered matters. <Amended by Act No. 7067, Jan. 20, 2004; Act No. 8852, Feb. 29, 2008>
(2) Any person who intends to register his/her business in accordance with paragraph (1) shall meet the requirements prescribed by Presidential Decree.
(3) The Mayor/Do Governor who has performed the duties of registering the business of importing and selling tobacco as referred to in paragraph (1) shall notify the Minister of Strategy and Finance, the Minister of Security and Public Administration, the Minister of Health and Welfare, the Minister of Environment, the Minister of Gender Equality and Family, the Commissioner of the Korea Customs Service and other Mayors/Do Governors, respectively, of such details within seven days from the date of registration. <Newly Inserted by Act No. 7067, Jan. 20, 2004; Act No. 7421, Mar. 24, 2005; Act No. 7799, Dec. 29, 2005; Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010; Act No. 11690, Mar. 23, 2013>
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 Article 14 (Disqualifications for Registration of Tobacco Sale Business)   print
Any of the following persons shall be prohibited from registering the business of importing and selling tobacco or the business of wholesaling tobacco under Article 13 (1): <Amended by Act No. 6460, Apr. 7, 2001>
1. A person of incompetency, quasi-incompetency or minor;
2. A person who has been sentenced to a bankruptcy and not yet reinstated;
3. A person who has been consigned to an unsuspended sentence of imprisonment for violating this Act, and for whom less than one year has passed after the completion (including cases of deeming to be completed) of or exemption from its execution;
4. A person who is under a grace period after having been consigned to a suspended sentence of imprisonment for violating this Act;
5. A person for whom two years have not elapsed since a cancellation of the registration under Article 15 (1);
6. A corporation, the representative of which falls under one of subparagraphs 1 through 5.
[This Article Wholly Amended by Act No. 6078, Dec. 31, 1999]
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 Article 15 (Cancellation, etc. of Registration of Tobacco Sale Business)   print
(1) The Mayor/Do governor or the head of a Si/Gun/Gu shall, where any import and sale business operator or any wholesaler falls under any of the following subparagraphs, cancel his/her business registration: <Amended by Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004>
1. Where he/she has registered his/her business in an illegal means;
2. Where he/she falls under any subparagraph of Article 14;
3. Where a person who has been subjected to a disposition taken to suspend his/her business twice for the recent five years falls again under any subparagraph of paragraph (3);
4. Where he/she is in the business during a period for which his/her business is suspended;
5. Where he/she fails to file a report on suspension or discontinuance of business referred to in Article 22-2 (1), and fails to carry on the business for one year or longer.
(2) The provisions of paragraph (1) shall not apply where the representative of a juristic person replaces its representative within six months from the date on which he falls under subparagraph 6 of Article 14, or until the date on which six months have elapsed from the date on which a successor to the status of the import and sale business operator or a wholesaler has come to fall under any of subparagraphs 1 through 5 of Article 14. <Amended by Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004>
(3) The Mayor/Do governor or the head of Si/Gun/Gu may, where any import and sale business operator or any wholesaler falls under any of the following subparagraphs, order him to suspend his business for a fixed period not exceeding one year: <Amended by Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 8518, Jul. 19, 2007>
1. Where he has sold tobacco to any consumer in contravention of Article 12 (2);
1-2. Where he has sold tobacco in violation of Article 12 (3);
2. Where an import and sale business operator has failed to report sale prices in accordance with the provisions of Article 18 (1) or (2);
3. Where he has violated the provisions of Article 20 (1);
4. Where he continues to suspend his business for not less than 6 months without filing a report thereof in accordance with the provisions of Article 22-2 (1);
5. Where he has violated the provisions of Article 25;
6. Where he has violated this Act or orders given under this Act.
[This Article Wholly Amended by Act No. 6078, Dec. 31, 1999]
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 Article 16 (Designation of Retailer)   print
(1) Any person who intends to operate a tobacco retail business (referring to the business of selling directly to consumers) shall be designated as a tobacco retailer by the head of a Si/Gun/Gu having jurisdiction over his/her principal place of business. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004>
(2) Any person falling under any of the following subparagraphs shall be prohibited from being designated as a retailer of tobacco: <Amended by Act No. 6078, Dec. 31, 1999>
1. An incompetent, a quasi-incompetent, or a minor;
2. A person who has been declared bankrupt and has not been reinstated;
3. A person who was sentenced to imprisonment for violating this Act, and one year has not elapsed since the execution thereof is completed (including cases where the execution thereof is deemed completed) or since the person is finally declared exempt from the execution thereof;
4. A person who has been granted, and is currently under, a stay of execution after being sentenced to prison for violating this Act;
5. A person for whom two years have not elapsed since such designation is cancelled pursuant to Article 17 (1); and
6. A corporation whose representative falls under one of subparagraphs 1 through 5.
(3) With respect to a person who intends to sell tobacco at a place, etc. deemed inappropriate by the head of a Si/Gun/Gu to operate the business of selling tobacco, including a place where juveniles (referring to juveniles as referred to in subparagraph 1 of Article 2 of the Juvenile Protection Act; hereinafter the same shall apply) may gain easy access to tobacco, the head of such Si/Gun/Gu may refrain from designating such person as a retailer. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 11048, Sep. 15, 2011>
(4) Standards and procedures for the designation of retailers and other matters necessary therefor shall be determined by Ordinance of the Ministry of Strategy and Finance. <Amended by Act No. 4682, Dec. 31, 1993; Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 8852, Feb. 29, 2008>
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 Article 17 (Cancellation, etc. of Designation as Retailer)   print
(1) The head of Si/Gun/Gu shall, if any tobacco retailer falls under any case of the following subparagraphs, cancel the designation of his retail business: <Amended by Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 7881, Mar. 24, 2006; Act No. 8852, Feb. 29, 2008>
1. Where he has been designated as a tobacco retailer in an illegal manner;
2. Where he falls under any subparagraph of Article 16 (2): Provided, That the same shall not apply to the case in which a representative of a juristic person falling under such cause is replaced within 6 months;
3. Where a person who has been subjected to a disposition taken to suspend his business twice for the recent five years falls again under any subparagraph of paragraph (2);
4. Where he continues his business during a period for which his business is suspended;
5. Where he has failed to do business for not less than 60 days without making any report on discontinuance or suspension of business;
6. Where he has failed to purchase tobacco from a manufacturer, an import and sale business operator, or a wholesaler for not less than 60 days without any justifiable reason; and
7. Where he has come, after having been designated as a retailer, to fall short of the criteria for designation as set by Ordinance of the Ministry of Strategy and Finance, as referred to in Article 16 (4); Provided, That such cases shall be excluded where the reasons for falling short thereof are not imputable to the relevant retailer.
(2) The head of Si/Gun/Gu may, where any tobacco retailer falls under any of the following subparagraphs, order him to suspend his business for a fixed period not exceeding one year: <Amended by Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 7881, Mar. 24, 2006; Act No. 8518, Jul. 19, 2007; Act No. 8852, Feb. 29, 2008>
1. Where he has sold tobacco in violation of Article 12 (3);
1-2. Where he has violated the provisions of Article 18 (5);
2. Where he has violated the provisions of Article 20;
3. Where he has failed to implement any corrective order or measure such as the removal of advertisements under the provisions of Article 25 (3);
4. Where he has failed to sell tobacco continuously without any justifiable reasons during a period prescribed by Ordinance of the Ministry of Strategy and Finance;
5. Where he has failed to purchase tobacco from a manufacturer, an import and sale business operator, or a wholesaler for not less than 60 days without any justifiable reason;
6. Where he has sold tobacco to juveniles; and
7. Where he has violated this Act or orders issued under this Act.
(3) Matters necessary for the standards and procedures, etc. for the disposition of business suspension under paragraph (2) shall be determined by Ordinance of the Ministry of Strategy and Finance. <Newly Inserted by Act No. 6460, Apr. 7, 2001; Act No. 8852, Feb. 29, 2008>
[This Article Wholly Amended by Act No. 6078, Dec. 31, 1999]
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 Article 18 (Selling Price of Tobacco)   print
(1) A manufacturer or an import and sale business operator shall determine a selling price of tobacco that has been manufactured or imported by himself under the conditions as prescribed by Presidential Decree, and file a report thereon with the Minister of Strategy and Finance in the case of a manufacturer, and with the Mayor/Do governor in the case of an import and sale business operator, respectively. The same shall also apply to the modification of the reported selling price. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Where the same person carries on the business of manufacturing tobacco and that of importing and selling tobacco altogether, he may file a report on the selling price of tobacco with the Minister of Strategy and Finance, notwithstanding the provisions of paragraph (1). The same shall also apply to the modification of the reported selling price. <Amended by Act No. 8852, Feb. 29, 2008>
(3) The Mayor/Do governor in receipt of a report on the selling price as referred to in paragraph (1) shall notify the Minister of Strategy and Finance of details of such report within seven days from the date of receiving the said report. <Amended by Act No. 8852, Feb. 29, 2008>
(4) When a manufacturer or an import and sale business operator has determined the selling price as referred to in paragraph (1) and filed a report thereon, he shall publicly notify thereof under the conditions as stipulated by Ordinance of the Ministry of Strategy and Finance. <Amended by Act No. 8852, Feb. 29, 2008>
(5) Retailers shall sell tobacco in the selling price as notified publicly under paragraph (4).
[This Article Wholly Amended by Act No. 7067, Jan. 20, 2004]
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 Article 19 (Tobacco for Special Use)   print
(1) A manufacturer may manufacture and sell the tobacco for special use as prescribed by Presidential Decree. <Amended by Act No. 6460, Apr. 7, 2001>
(2) No tobacco for special use as referred to in paragraph (1) shall be sold for any purpose other than its proper use. <Amended by Act No. 6460, Apr. 7, 2001>
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 Article 20 (Prohibition of Use of Other Tobacco Packing Papers)   print
(1) No person shall sell tobacco with its packing and contents changed. <Amended by Act No. 6460, Apr. 7, 2001>
(2) Deleted. <by Act No. 6460, Apr. 7, 2001>
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 Article 21 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 22 Deleted.<by Act No. 6460, Apr. 7, 2001>   print
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 Article 22-2 (Suspension or Discontinuance of Tobacco Sale Business, etc.)   print
(1) Where any import and sale business operator, wholesaler or retailer intends to suspend or discontinue his business for a period longer than what is prescribed by Ordinance of the Ministry of Strategy and Finance, the import and sale business operator shall file a report thereon with the Mayor/Do governor, and the wholesaler and retailer shall do so with the head of Si/Gun/Gu, respectively. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 7067, Jan. 20, 2004; Act No. 8852, Feb. 29, 2008>
(2) Upon filing a report as referred to in paragraph (1), the period of business suspension, procedure of report, and other matters necessary for the report on a suspension or discontinuance of business shall be determined by Ordinance of the Ministry of Strategy and Finance. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 8852, Feb. 29, 2008>
[This Article Newly Inserted by Act No. 4682, Dec. 31, 1993]
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 Article 22-3 (Hearing)   print
The Minister of Strategy and Finance, the Mayor/Do governor, or the head of Si/Gun/Gu shall, where he intends to take a disposition falling under any of the following subparagraphs, hold hearings: <Amended by Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 8852, Feb. 29, 2008>
1. Cancellation of the license for manufacturing tobacco under Article 11-4;
1-2. Cancellation of the registration for tobacco import and sale business, or of the registration for tobacco wholesale business under Article 15 (1);
2. Cancellation of the designation of a retailer under Article 17 (1).
[This Article Wholly Amended by Act No. 5453, Dec. 13, 1997]
CHAPTER IV SUPPLEMENTARY PROVISIONS
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 Article 23 Deleted.<by Act No. 7067, Jan. 20, 2004>   print
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 Article 24 (Report and Confirmation of Related Books, etc.)   print
(1) The Minister of Strategy and Finance may, when deemed necessary to enforce this Act, have a manufacturer, the Mayor/Do governor may have an import and sale business operator, and the head of Si/Gun/Gu may have a wholesaler and a retailer, respectively, file a report on his business. <Amended by Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 8852, Feb. 29, 2008>
(2) The Minister of Strategy and Finance, the Mayor/Do governor, or the head of Si/Gun/Gu may have the officials under his command verify or peruse the related books or documents etc. of the manufacturers, the import and sale business operators, and the wholesalers and retailers, respectively. <Amended by Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 8852, Feb. 29, 2008>
(3) Any official who carries out the confirmation or perusal under paragraph (2) shall carry with him/her a certificate indicating his/her competence and produce it to interested parties.
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 Article 25 (Indication of Warning Words and Restriction on Advertisement on Tobacco)   print
(1) The warning words clearly expressing the effect that smoking is harmful to health shall be indicated on the wrapping paper of a tobacco pack and in the advertisement prescribed by Presidential Decree. <Amended by Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004>
(2) The Minister of Strategy and Finance may prohibit or restrict any advertisement on tobacco, as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 8852, Feb. 29, 2008>
(3) Where no words of warning under paragraph (1) are indicated or the prohibition of or restrictions on advertisement under paragraph (2) are violated, the Minister of Strategy and Finance may issue orders to or take measures against a manufacturer to restrict the imports or sales of relevant tobacco, or to perform what are required for the corrections, such as the removal of advertisement, the Mayor/Do governor may do so against the import and sale business operator, and the head of a Si/Gun/Gu may do so against the wholesaler and retailer, respectively. <Amended by Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004; Act No. 8852, Feb. 29, 2008>
(4) The Minister of Strategy and Finance shall determine the words of warning referred to in paragraph (1) after consulting with the Minister of Health and Welfare and the Minister of Gender Equality and Family. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 7421, Mar. 24, 2005; Act No. 7799, Dec. 29, 2005; Act No. 8852, Feb. 29, 2008; Act No. 9932, Jan. 18, 2010>
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 Article 25-2 (Indication of Tobacco Ingredients)   print
(1) A manufacturer and an import and sale business operator shall indicate the major ingredients and their contents in the smoke of one cigarette on the wrapping paper of each tobacco pack and in the advertisements prescribed by Presidential Decree.
(2) A manufacturer and an import and sale business operator shall entrust the measurement agency designated by the Minister of Strategy and Finance with a measurement of ingredients of tobacco for sale by item every quarter within one month after beginning the quarter. <Newly Inserted by Act No. 7067, Jan. 20, 2004; Act No. 8852, Feb. 29, 2008>
(3) Kinds of ingredients, criteria for measurement, designation of measuring agency, method of indication, scope of allowable errors, omission of indication of ingredients, which are to be indicated under paragraph (1), and other matters necessary for indication of ingredients, shall be prescribed by Presidential Decree.
(4) The provisions of Article 25 (3) shall apply mutatis mutandis to a case where there exists no indication of ingredients and their contents under paragraph (1), and where the contents of indicated ingredients are in excess of the scope of allowable errors.
[This Article Newly Inserted by Act No. 6625, Jan. 26, 2002]
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 Article 25-3 (Participation of Manufacturers, etc. in Public Activities)   print
(1) The Minister of Strategy and Finance may have a manufacturer directly carry out public activities, such as public health, medical care, protection of environment, etc., and projects, such as the support for tobacco cultivation, within a limit of 20 won per 20 cigarettes which he sells, under the conditions as determined by Ordinance of the Ministry of Strategy and Finance, or make a contribution to those carrying out such projects. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 8852, Feb. 29, 2008>
(2) Any import and sale business operator may directly carry out such public activities as referred to in paragraph (1), or make any contribution to those who carry out such activities. In this case, the provisions of paragraph (1) shall apply mutatis mutandis.
(3) The Minister of Strategy and Finance shall consult with the heads of related central administrative agencies about fundamental matters concerning the activities carried out by a manufacturer or an import and sale business operator under paragraphs (1) and (2). <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999; Act No. 6460, Apr. 7, 2001; Act No. 8852, Feb. 29, 2008>
(4) A person who intends to run the business directly supporting the agricultural technology development for tobacco cultivators with the contribution from manufacturers under paragraph (1) shall establish a corporation by obtaining an approval of the Minister of Strategy and Finance. <Newly Inserted by Act No. 6460, Apr. 7, 2001; Act No. 8852, Feb. 29, 2008>
(5) The provisions concerning the foundation in the Civil Act shall apply mutatis mutandis to the establishment and operation of the corporation under paragraph (4) except for those as otherwise provided in this Act. <Newly Inserted by Act No. 6460, Apr. 7, 2001>
[This Article Newly Inserted by Act No. 4682, Dec. 31, 1993]
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 Article 25-4 (Prohibition of Money Providing, etc. for Promotion of Tobacco Sales)   print
Any manufacturers, import and sale business operators and wholesalers shall be prohibited from providing money and others as prescribed by Presidential Decree, to the retailers in order to promote their tobacco sales.
[This Article Newly Inserted by Act No. 6460, Apr. 7, 2001]
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 Article 26 (Delegation of Authority)   print
Part of the authority of the Minister of Strategy and Finance as prescribed by this Act may be delegated to the head of the local government under the conditions as prescribed by Presidential Decree. <Amended by Act No. 6460, Apr. 7, 2001>
CHAPTER V PENAL PROVISIONS
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 Article 27 (Penal Provisions)   print
(1) Any person who has manufactured tobacco without obtaining a tobacco manufacturing business license in contravention of Article 11 shall be punished by imprisonment for not more than 3 years, or a fine not exceeding 20 million won.
(2) Any attempted crime under paragraph (1) shall be punished.
(3) In cases of paragraphs (1) and (2), the punishment of imprisonment and fine may be concurrently imposed.
[This Article Wholly Amended by Act No. 6460, Apr. 7, 2001]
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 Article 27-2 (Penal Provisions)   print
Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year, or a fine not exceeding ten million won: <Amended by Act No. 6625, Jan. 26, 2002; Act No. 7067, Jan. 20, 2004>
1. A person who has failed to file a report on transfer, takeover, etc. of tobacco manufacturing business in contravention of Article 11-3 (1) or (3);
2. A person who has manufactured a substitute for tobacco in contravention of Article 11;
3. A person who has manufactured or imported tobacco on which the warning words under Article 25 (1) are not indicated, or such words as violating thereof are indicated;
4. A person who has made any advertisement on tobacco in contravention of Article 25 (2); and
5. A person who has manufactured or imported tobacco on which the ingredients and their contents under Article 25-2 (1) are not indicated, or the content of each ingredient is falsely indicated.
[This Article Newly Inserted by Act No. 6460, Apr. 7, 2001]
law view
 Article 27-3 (Penal Provisions)   print
Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding five million won: <Amended by Act No. 6625, Jan. 26, 2002; Act No. 7067, Jan. 20, 2004; Act No. 8518, Jul. 19, 2007>
1. A person who has sold tobacco to consumers without obtaining a designation of retailer in contravention of Article 12 (2);
1-2. A person who has sold tobacco, as a retailer, to consumers by means of a postal sale and digital transaction, in contravention of Article 12 (4);
2. A person who has run tobacco import and sale business or tobacco wholesaler business without making a registration in contravention of Article 13 (1);
3. A person who has failed to comply with the orders or measures required for correction, such as the removal of advertising materials under Article 25 (3);
3-2. A person who has failed to comply with the orders or measures required for correction, such as restrictions, etc. on the import or sale of tobacco under Article 25-2 (4); and
4. A person who has provided money, etc. in contravention of Article 25-4.
[This Article Newly Inserted by Act No. 6460, Apr. 7, 2001]
law view
 Article 28 (Fine for Negligence)   print
(1) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding two million won: <Amended by Act No. 7067, Jan. 20, 2004; Act No. 8518, Jul. 19, 2007>
1. A person who has sold tobacco in violation of Article 12 (3);
2. A person who has failed to file a report on the selling price (including a report on alterations) in violation of the provisions of Article 18 (1) or (2);
3. A person who has sold tobacco for special use for a purpose other than its proper use in violation of Article 19 (2);
4. A person who has sold tobacco after changing the package and contents in violation of Article 20 (1);
5. A person who has failed to entrust a measurement of tobacco ingredients as referred to in Article 25-2 (2): Provided, That such cases shall be excluded where deemed to be actually in the status of discontinuation of business.
(2) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding one million won: <Amended by Act No. 4862, Dec. 31, 1993; Act No. 6460, Apr. 7, 2001; Act No. 7067, Jan. 20, 2004>
1. A retailer who has sold tobacco in violation of the provisions of Article 18 (5);
2. Deleted; <by Act No. 6460, Apr. 7, 2001>
3. A retailer who has suspended his business in excess of the suspension period as prescribed by Article 22-2 (2).
(3) Deleted. <by Act No. 8518, Jul. 19, 2007>
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 Article 29 (Procedures for Imposition of Fine for Negligence)   print
(1) The Minister of Strategy and Finance, the Mayor/Do governor or the head of Si/Gun/Gu (hereafter referred to as the "imposition right holder" in this Article) shall impose and collect a fine for negligence under the provisions of Article 28 according to their respective jurisdictions under the conditions as prescribed by Presidential Decree. <Amended by Act No. 6078, Dec. 31, 1999; Act No. 8852, Feb. 29, 2008>
(2) Any person who is dissatisfied with a disposition of a fine for negligence as referred to in paragraph (1) may raise an objection to an imposition right holder within 30 days from the date when he is aware of it. In this case, the imposition right holder shall notify without delay the competent court thereof, which shall, upon receiving the notification, bring the case of a fine for negligence to a trial under the Non-Contentious Case Litigation Procedure Act. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6078, Dec. 31, 1999>
(3) If a fine for negligence is not paid without raising an objection within the period as referred to in paragraph (2), it shall be collected in the same manner as delinquent national or local taxes are collected. <Amended by Act No. 6078, Dec. 31, 1999>
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 Article 30 (Confiscation and Additional Collection)   print
(1) Any leaf tobacco and tobacco involved in any crime under Articles 27, 27-2 and 27-3 shall be confiscated. <Amended by Act No. 6460, Apr. 7, 2001>
(2) If it is impossible to confiscate those items referred to in paragraph (1), the value thereof shall be collected additionally.
(3) Deleted. <by Act No. 6460, Apr. 7, 2001>
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 Article 31 (Restriction on Application of Criminal Act)   print
With respect to those who commits any crime prescribed by this Act, Articles 9, 10 (2), 11, 16, 32 (2), and 38 (1) 2 of the Criminal Act concerning the restriction or aggravation of the concurrence of fines, and Article 53 of the same Act, shall not be applied: Provided, That this shall not apply to imprisonment where a criminal is to be punished by imprisonment, or by both an imprisonment and fine.
law view
 Article 32 (Joint Penal Provisions)   print
If a representative of a juristic person, or an agent, employee, or other servant of the juristic person or an individual commits an offence under Article 27, 27-2 or 27-3 in connection with the affairs of the juristic person or individual, in addition to the punishment of such offender, the juristic person or individual shall be punished by a fine under each relevant Article: Provided, That where such juristic person or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offence, the same shall not apply.
[This Article Wholly Amended by Act No. 9822, Dec. 29, 2009]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1989.
Article 2 (Repeal of Other Acts)
The Tobacco Monopoly Act shall hereby be repealed.
Article 3 (Amendment, etc. of Other Acts)
(1) and (2) Omitted.
(3) Any citation of the Tobacco Monopoly Act in other Acts and subordinate statutes at the time when this Act enters into force shall be considered to have cited this Act, and that of the provisions of the Tobacco Monopoly Act shall be considered to have cited the provisions of this Act if they are the corresponding provisions in this Act.
Article 4 (General Transitional Measures)
(1) What was enforceable under the previous Tobacco Monopoly Act at the time when this Act enters into force shall be considered to be in force, pursuant to the corresponding provisions of this Act.
(2) Any disposition or other acts taken by the Minister of Finance and Economy under the previous Tobacco Monopoly Act before the enforcement of this Act, shall be considered as that or those taken pursuant to the corresponding provisions of this Act.
(3) Any public notice or other acts taken by the Korea Monopoly Corporation, or any application filed with or other acts taken by the said Corporation, under the previous Tobacco Monopoly Act before the enforcement of this Act, shall be considered as that or those taken by or for the Corporation pursuant to the corresponding provisions of this Act.
Article 5 (Transitional Measures concerning Cultivation of Tobacco Plant and Purchase of Leaf Tobacco)
Notwithstanding the provisions of Chapter 2 of this Act, the provisions of the previous Tobacco Monopoly Act shall apply to the first cultivation of tobacco plants and the first purchase of leaf tobacco for raw mate rials of manufactured tobacco after this Act enters into force.
Article 6 (Transitional Measures concerning Designation of Manufactured Tobacco Retailer)
Any person who is designated as a manufactured tobacco retailer by the Korea Monopoly Corporation under the previous Tobacco Monopoly Act, before the enforcement of this Act, shall be considered to have been designated by the Minister of Finance and Economy under this Act.
Article 7 (Transitional Measures concerning Operation of Corporation)
Operations of the Corporation as prescribed by this Act shall be carried out by the Korea Monopoly Corporation under the Korea Monopoly Corporation Act until the Korea Tobacco and Ginseng Corporation Act is enacted and enforced.
Article 8 (Transitional Measures concerning Application of Penal Provisions)
Application of the penal provisions to any act committed before this Act enters into force, shall be subject to the provisions of the previous Tobacco Monopoly Act.
ADDENDA<Act No. 4682, Dec. 31, 1993>
(1) (Enforcement Date) This Act shall enter into force on January 1, 1994.
(2) (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.
ADDENDA<Act No. 5453, Dec. 13, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM<Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA<Act No. 6078, Dec. 31, 1999>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Disqualifications) Any person who has his import and sale business of manufactured tobacco or his wholesale business of manufactured tobacco registered, or his retail business of manufactured tobacco designated under the previous provisions at the time that this Act is enforced, where he falls under disqualifications as described in the amended provisions of Article 14 or 16 (2) due to unavoidable reasons that occurred prior to the enforcement of this Act, shall be dealt with according to the previous provisions notwithstanding the amended provisions.
(3) (Transitional Measures concerning Registration of Sale Business of Manufactured Tobacco) Any person who has his wholesale business of manufactured tobacco registered under the previous provisions at the time that this Act is enforced shall be deemed to register his business in accordance with the amended provisions of Article 13 (1).
(4) (Transitional Measures concerning Designation of Retail Business of Manufactured Tobacco) Any person who has his retail business of manufactured tobacco designated under the previous provisions at the time that this Act is enforced shall be deemed to have his business designated in accordance with the amended provisions of Article 16 (1).
ADDENDA<Act No. 6460, Apr. 7, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2001.
Article 2 (Transitional Measures Following Abolition of Systems of Tobacco Cultivation and Leaf Tobacco Purchase)
The Korea Tobacco and Ginseng Corporation (hereinafter referred to as the "Corporation") under subparagraph 1 of Article 2 of the Act on the Improvement of Managerial Structure and Privatization of Public Enterprises, which has run tobacco manufacturing business under the previous provisions at the time of enforcement of this Act, may conclude a contract with the tobacco cultivators on the tobacco cultivation, purchase of leaf tobacco as for raw materials of tobacco, and support of tobacco cultivators, and perform it.
Article 3 (Transitional Measures concerning Existing Manufacturers)
The Corporation which has run the tobacco manufacturing business under the previous provisions at the time of enforcement of this Act shall be considered to have obtained a license for tobacco manufacturing under the amended provisions of Article 11.
Article 4 Omitted.
ADDENDA<Act No. 6625, Jan. 26, 2002>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2003.
(2) (Application Example) This Act shall apply from the portion of car rying out from the manufacturing place or bonded area or of advertisement for the first time since the enforcement of this Act.
(3) Omitted.
ADDENDA<Act No. 7067, Jan. 20, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2004.
Article 2 (Application Example concerning Prohibition of Tobacco Sale by Means of Mail and Digital Transaction)
The amended provisions of Article 12 (3) and subparagraph 1-2 of Article 27-3 shall apply from the portion of selling tobacco after an enforcement of this Act.
Article 3 (Application Example concerning Revocation of Designation of Retailer)
The amended provisions of Article 17 (1) 6 shall apply from the retailer who has come to fall short of the designation criteria after an enforcement of this Act.
Article 4 (Transitional Measures concerning Substitute for Tobacco)
(1) What have been manufactured or imported prior to an enforcement of this Act that are equivalent to the substitute for tobacco as referred to in the amended provisions of Article 3 shall be governed by the previous provisions.
(2) A person who has obtained a license or filed a report etc. thereon, as referred to in other Acts prior to an enforcement of this Act in respect of the manufacturing what are equivalent to the substitute for tobacco as referred to in the amended provisions of Article 3, shall be deemed to have obtained the license for tobacco manufacturing business as referred to in Article 11: Provided, That he shall equip himself with the license criteria as referred to in this Act within two years after an enforcement of this Act.
Article 5 (Transitional Measures concerning Registration etc. of Import and Sale Business of Tobacco)
A person who has made a registration of the import and sale business of tobacco to the Minister of Finance and Economy as referred to in the previous provisions at the time of enforcement of this Act shall be deemed to have made a registration to the Mayor/Do governor as referred to in the amended provisions of Article 13 (1), and a person who has made a registration of the wholesale business of tobacco to the Mayor/Do governor shall be deemed to have made a registration of the wholesale business of tobacco to the head of Si/Gun/Gu as referred to in the amended provisions of Article 13 (1).
Article 6 (Transitional Measures concerning Revocation of Registration of Tobacco Sale Business)
When calculating the period of suspension or discontinuation of business as referred to in the amended provisions of Article 15 (1) 5 for a person who is in the status of suspension or discontinuation of business without filing a report on suspension or discontinuation of business at the time of enforcement of this Act, he shall be deemed to have suspended or discontinued the business on the enforcement date of this Act.
Article 7 (Transitional Measures concerning Report on Selling Price of Tobacco)
Selling price of tobacco that has been reported to the Minister of Finance and Economy by an import and sale business operator as referred to in the previous provisions at the time of enforcement of this Act shall be deemed to have been reported to the Mayor/Do governor as referred to in the amended provisions of Article 18.
ADDENDA<Act No. 7421, Mar. 24, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on the date on which the Presidential Decree governing the organization of the Juvenile Commission enters into force within 3 months after the promulgation of this Act.
Articles 2 through 4 Omitted.
ADDENDA<Act No. 7799, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA<Act No. 7881, Mar. 24, 2006>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures Pertaining to Calculation of Period Wherein Tobacco is not Purchased) The amended provisions of Article 17 (1) 6 and (2) 5 shall not apply to the period wherein tobacco is not purchased at the time of enforcement of this Act.
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. 8518, Jul. 19, 2007>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures Concerning Fine for Negligence) The former provisions on fines for negligence shall apply to an act committed before this Act enters into force.
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.
ADDENDUM<Act No. 9822, Dec. 29, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 9932, Jan. 18, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA<Act No. 10786, Jun. 7, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA<Act No. 11048, Sep. 15, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA<Act No. 11461, Jun. 1, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA<Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.