MERCHANDISE COUPONS ACT

Article 1(Purpose) #

The purpose of this Act is to establish sound order in the circulation of merchandise coupons and to protect the rights and interests of consumers by prescribing matters necessary for the issuance and redemption of merchandise coupons.

Article 2(Definitions) #

Definitions of the terms used in this Act shall be as follows:

1. The term “merchandise coupons” means securities such that an issuer issues and sells off uninscribed vouchers where a fixed amount of money or quantity of goods or services are recorded (including recording by electronic or magnetic methods; hereinafter the same shall apply.) and the holders are offered goods or services from an issuer or a person who is designated by an issuer (hereinafter referred to as “merchandise coupon issuer, etc.”), according to the contents recorded in the vouchers, by presenting or delivering them to an issuer, or by using other methods;

2. The term “self-issuance merchandise coupons” means merchandise coupons by which one is offered goods or services from a merchandise coupon issuer himself;

3. The term “third-party issuance merchandise coupons” means merchandise coupons (including those by which one is offered goods or services from an issuer or a person who is designated by an issuer) by which one is offered goods or services from a person who is designated by an appropriate merchandise coupon issuer;

4. The term “coupon face value” means an amount of money recorded on the face of a merchandise coupon and the amount which is the equivalent value of goods or services (in case of a goods merchandise coupon or a service merchandise coupon in which the amount of money is not recorded, value of the goods or services which one can request on the date of issue) as a merchandise coupon holder can request to a merchandise coupon issuer, etc.; and

5. The term “redemption” means that a merchandise coupon issuer, etc. offers goods or service according to the contents recorded in merchandise coupons or refunds money in lieu of offering goods or services.

Article 3(Exception of Application) #

This Act shall not apply to vouchers which fall under any of the following subparagraphs:

1. Those issued by the State, a local government, or a public organization as prescribed by the Presidential Decree;

2. Those for which an advance sale is usual, such as passenger tickets, as prescribed by the Presidential Decree;

3. Admission tickets to facilities or places where many and unspecified persons use, such as a public performance house, or tickets to use them, as prescribed by the Presidential Decree; and

4. Those for the purpose other than circulation or those to which it is deemed unnecessary for this Act to apply due to their nature, as prescribed by the Presidential Decree.

Article 4(Classes of Merchandise Coupons) #

Merchandise coupons to which this Act applies shall be classified as follows:

1. Cash merchandise coupon: a merchandise coupon by which one is offered goods or services corresponding to the amount of money recorded in the merchandise coupon;

2. Goods merchandise coupon: a merchandise coupon by which one is offered goods recorded in the merchandise coupon; and

3. Service merchandise coupon: a merchandise coupon by which one is offered services recorded in the merchandise coupon.

Article 5(Self-Issuance Coupon Issuer) #

A person who sells goods or provides services as a business may issue self-issuance merchandise coupons.

Article 6(Third-Party Issuance Coupon Issuer) #

(1) Third-party issuance merchandise coupons may be issued only by a person who has obtained authorization from the Minister of Finance and Economy as a juristic person which meets the following requirements: <Amended by Act No. 5454, Dec. 13, 1997>

1. Its capital or investment shall be not less than the amount of money as prescribed by the Presidential Decree;

2. In case of a person for whom authorization has been revoked under Article 31, three years shall have passed from the date of revocation;

3. In case of a person who has been punished under Article 35, three years shall have passed since the execution is completed or its non-execution becomes definite;

4. There shall be no one among the directors who falls under any cause as prescribed by the Presidential Decree; and

5. Requirements as prescribed by the Presidential Decree shall be met, including the absence of factors which may impede fair competition with a person who has already obtained authorization.

(2) A person who desires to obtain authorization as prescribed in paragraph (1) shall submit an application form for authorization in which the following matters are recorded to the Minister of Finance and Economy: <Amended by Act No. 5454, Dec. 13, 1997>

1. Trade name and address;

2. Capital or investment;

3. Names and addresses of directors; and

4. Other matters as prescribed by the Ordinance of the Prime Minister.

(3) Where persons who desire to issue merchandise coupons are two or more, when they desire to issue merchandise coupons jointly, they shall establish a juristic person which meets the requirements of subparagraphs of paragraph (1), or appoint a juristic person which meets the requirements of subparagraphs of paragraph (1) as a representative, and obtain authorization as prescribed in paragraph (1).

(4) Where a person who has obtained authorization as prescribed in paragraph (1) desires to modify the important matters as prescribed by the Presidential Decree, among the matters under subparagraphs of paragraph (2), he shall obtain the authorization of modification from the Minister of Finance and Economy, and where he modifies other matters, he shall without delay make a report to the Minister of Finance and Economy. <Amended by Act No. 5454, Dec. 13, 1997>

Article 7(Registration of Issuance of Merchandise Coupons) #

(1) Where a person desires to issue merchandise coupons, he shall prepare an application form for registration in which the following matters are recorded and make registration to the Special Metropolitan City Mayor, the Metropolitan City Mayor, or Do governor (hereinafter referred to as the “Mayor/Do governor”) who exercises jurisdiction over the location of the main office or the head office: <Amended by Act No. 5454, Dec. 13, 1997>

1. Name (in case of a juristic person, its representative’s or administrator’s name), trade name, and address;

2. Class, coupon face value, and form of merchandise coupons to be issued;

3. Estimated issue amount of merchandise coupons; and

4. Other matters as prescribed by the Ordinance of the Prime Minister.

(2) The Mayor/Do governor may, where the content of an application for registration falls under any of the following subparagraphs, reject registration:

1. Where a person who has been sentenced to a fine or heavier punishment pursuant to this Act, and for whom three years have not passed since the execution was terminated or non-execution became definite, desires to issue merchandise coupons;

2. Where a person for whom the disposition of revocation of authorization or registration was made under Article 31, and three years have not passed since the revocation, desires to issue merchandise coupons;

3. Where a person desires to issue merchandise coupons in a manner or with content which violates this Act or an order issued under this Act;

4. Where a person might cause confusion to consumers, for instance, where he uses a firm name similar to a firm name used by a merchandise coupon issuer who has made registration with the Mayor/Do governor; and

5. Where a person falls under a cause as prescribed by the Presidential Decree, for instance, an estimated issue amount is deemed excessive in terms of the business size of a person who desires to issue merchandise coupons.

(3) Where a merchandise coupon issuer who has made registration as prescribed in paragraph (1) desires to modify the matters of subparagraph 2 or 3 of the said paragraph, he shall make the registration of modification in advance with the Mayor/Do governor, and where he modifies the matters of subparagraph 1 or 4 of the said paragraph, he shall make without delay a report to the Mayor/Do governor.

Article 8(Succession of Status of Merchandise Coupon Issuer) #

(1) Where a self-issuance merchandise coupon issuer transfers all of the business relating to the issuance of merchandise coupons or where a merger or succession of a juristic person concerning the business takes place, the transferee, the juristic person continuing to exist after the merger, a juristic person established by merger, or a successor shall succeed to the status of the appropriate merchandise coupon issuer. In this case, a person who succeeds to the status of a merchandise coupon issuer shall, without delay, report the fact of succession to the Mayor/Do governor.

(2) Where a third-party issuance merchandise coupon issuer transfers all of the business relating to the issuance of merchandise coupons or a merger or succession of a juristic person concerning the business takes place, the transferee, the juristic person continuing to exist after the merger, or a juristic person established by merger may succeed to the status of the appropriate merchandise coupon issuer, upon obtaining approval from the Minister of Finance and Economy. In this case, a person who desires to obtain approval from the Minister of Finance and Economy shall be a juristic person which meets the requirements of subparagraphs of Article 6 (1). <Amended by Act No. 5454, Dec. 13, 1997>

Article 9(Discontinuance of Issuance of Merchandise Coupons) #

(1) Where a self-issuance merchandise coupon issuer desires to suspend or discontinue the issuance business of merchandise coupons, he shall report the contents to the Mayor/Do governor.

(2) Where a juristic person which issues self-issuance merchandise coupons is terminated due to a cause other than merger, the liquidator shall without delay report the contents to the Mayor/Do governor.

(3) Where a third-party issuance merchandise coupon issuer discontinues the issuance of merchandise coupons or is terminated due to a cause other than the merger of a juristic person, the appropriate issuer (in case of termination, a liquidator) shall report the contents to the Mayor/Do governor.

(4) In case of paragraph (3), authorization as prescribed in Article 6 shall lose effect.

(5) A Mayor/Do governor who has received a report as prescribed in paragraphs (1) through (3) shall make public notification thereof under the conditions as prescribed by the Presidential Decree.

Article 10(Matters to be Recorded in Merchandise Coupons, etc.) #

(1) The following matters shall be recorded in merchandise coupons: <Amended by Act No. 5454, Dec. 13, 1997>

1. Letters "merchandise coupon"

2. Name or trade name of the issuer;

3. Address of the issuer or the location of the main office or the head office;

4. Coupon face value and the contents of object to be redeemed;

5. Place of redemption;

6. Date of issue;

7. Issue number;

8. Where the term of validity of merchandise coupons is fixed, the term of validity;

9. Signature and seal of the issuer;

10. Method of the execution of rights;

11. Name of the government office with which the registration of issuance has been made; and

12. Other matters as prescribed by the Ordinance of the Prime Minister.

(2) In recording the matters of paragraph (1) 4, the amount of money in cash merchandise coupons, the concrete contents concerning the quality, standards, quantity, etc, of goods and the equivalent value in goods merchandise coupons, and the concrete contents of services and the equivalent value in service merchandise coupons shall be recorded so that the content of goods or services to be redeemed can be easily identified.

(3) The fact of registration of issuance as prescribed in Article 7 and the contents of guarantee of redemption as prescribed by this Act shall be clearly recorded on the face of merchandise coupons, under the conditions as prescribed by the Ordinance of the Prime Minister. <Amended by Act No. 5454, Dec. 13, 1997>

(4) In recording the matters of subparagraphs of paragraph (1), where one records the matters of subparagraphs 5, 10, and 12 of the said paragraph in a separate instruction other than a merchandise coupon and provides it to a consumer, he may omit recording the matters on the face of a coupon.

Article 11(Term of Validity) #

(1) Where a merchandise coupon issuer desires to fix the term of validity of merchandise coupons as prescribed in Article 10 (1) 8, he shall fix a period of not less than one year from the date of issue: Provided, That in case of goods merchandise coupons or service merchandise coupons, he may fix the term of validity differently, under the conditions as prescribed by the Presidential Decree.

(2) The term of validity of merchandise coupons in which the term of validity is not fixed shall follow the provisions concerning the extinctive prescription of mercantile claims as prescribed in Article 64 of the Commercial Act.

(3) Merchandise coupons whose term of validity is fixed shorter than the period as prescribed in paragraph (1) shall be considered as having no fixed term of validity.

(4) The merchandise coupon issuer who desires to fix the term of validity under paragraph (1) shall specify in merchandise coupons that where a person presents a merchandise coupon whose term of validity is terminated, and its extinctive prescription of mercantile claims as prescribed in Article 64 of the Commercial Act is not completed, he will redeem or provide cash, goods, or services corresponding to the percentage greater than the percentage as prescribed by the Presidential Decree.

(5) Where a merchandise coupon holder requires the redemption of cash, goods, or services as specified under paragraph (4), a merchandise coupon issuer, etc. shall comply.

Article 12(Restriction of Coupon Face Value) #

The maximum face value of merchandise coupons shall be determined by the Presidential Decree.

Article 13(Restriction of Issuance of Merchandise Coupons) #

(1) The Minister of Finance and Economy may, if deemed necessary for the protection of consumers, price stabilization, and people’s sound consumption, restrict the target goods and services to be redeemable in exchange for merchandise coupons, under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>

(2) The Minister of Finance and Economy may, if deemed necessary for the sound development of the national economy and the balanced development of distribution industry, restrict the limit of the yearly issue amount of merchandise coupons to a merchandise coupon issuer, under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>

(3) Where the Minister of Finance and Economy desires to restrict the target goods and services to be redeemable in exchange for merchandise coupons under paragraph (1), or desires to restrict the limit of the yearly issue amount of merchandise coupons under paragraph (2), he shall give notice thereof. <Amended by Act No. 5454, Dec. 13, 1997>

Article 14(Deposit of Guarantee Money of Issuance) #

(1) A merchandise coupon issuer shall deposit as the guarantee money of issuance the amount of money corresponding to a half or more of the total amount of the merchandise coupons issued by him which have not been redeemed as of the end of each quarter term not later than the end of the next month.

(2) A Mayor/Do governor may, when he considers the credit standing of a person who desires to issue merchandise coupons and he deems it necessary, order him to deposit the amount of money corresponding to the percentage as prescribed by the Presidential Decree within the limit of 50% of the estimated issue amount of merchandise coupons in advance before the issuance of merchandise coupons.

(3) Where deposit money as prescribed in paragraphs (1) and (2) falls short of the obligatory amount of deposit money due to the completion of the execution of rights by a merchandise coupon holder or any other cause, a merchandise coupon issuer shall without delay deposit the amount of shortage.

(4) Where it is deemed necessary for the protection of consumers due to the aggravation of a merchandise coupon issuer’s credit status or the occurrence of any other cause as prescribed by the Presidential Decree, when the total amount of deposit money falls short of the total amount of money unredeemed for merchandise coupons, the Mayor/Do governor may order him to deposit the additional amount of shortage.

(5) Deposits as prescribed in paragraphs (1) through (4) shall be made at the location of a merchandise coupon issuer’s main office or head office.

(6) A merchandise coupon issuer who has made deposits as prescribed in paragraphs (1) through (4) shall without delay make a report to the Mayor/Do governor, under the conditions as prescribed by the Ordinance of the Prime Minister. <Amended by Act No. 5454, Dec. 13, 1997>

(7) Where the total amount of deposit money as of the end of each quarter term exceeds the total amount of money unredeemed for merchandise coupons, a merchandise coupon issuer may have deposited items returned corresponding to the excess amount of money returned.

Article 15(Payment by Securities) #

(1) Securities may be paid as a substitute for deposit money as prescribed by this Act.

(2) The class of securities which can be paid as a substitute for deposit money and the estimated standards of the equivalent value which is paid as a substitute shall be determined by the Presidential Decree.

Article 16(Payment Guarantee of Financial Institution) #

(1) A merchandise coupon issuer may make a contract of debt payment guarantee (hereinafter referred to as “contract of guarantee”) concerning the obligatory deposit money with a financial institution in lieu of deposits. In this case, he may not make deposits as prescribed in Article 14 during the term of validity of the appropriate contract of guarantee.

(2) Where the amount of payment guarantee as prescribed in paragraph (1) falls short of the obligatory amount of guarantee due to the completion of the execution of rights by a merchandise coupon holder or any other cause, a merchandise coupon issuer shall without delay take necessary measures, such as making another contract of guarantee for the amount of shortage.

(3) A person liable for deposit who has made a contract of guarantee as prescribed in paragraphs (1) and (2) shall, without delay, report the fact to the Mayor/Do governor.

(4) The range of financial institutions which can make payment guarantee as prescribed in paragraph (1) shall be determined by the Presidential Decree.

Article 17(Approval of Return of Items Deposited) #

(1) Where a merchandise coupon issuer desires to repossess items deposited by him, he shall obtain approval from the Mayor/Do governor.

(2) A person who desires to obtain approval as prescribed in paragraph (1) shall submit an application form in which the cause and the matters as prescribed by the Ordinance of the Prime Minister are recorded to the Mayor/Do governor. <Amended by Act No. 5454, Dec. 13, 1997>

Article 18(Redemption of Merchandise Coupon) #

(1) An issuer of goods merchandise coupons or service merchandise coupons shall supply goods or services marked on a merchandise coupon to an appropriate merchandise coupon holder prior to cash transactions. Where the supply of the goods or services is impossible or delayed, he shall, if the merchandise coupon holder makes a request for redemption of the face value of the appropriate merchandise coupon in cash, immediately comply.

(2) Where the merchandise coupon holder purchases goods corresponding to the amount not less than the percentage as prescribed by the Presidential Decree or is offered services corresponding to it and he makes a request for refund of the change, a merchandise coupon issuer of cash merchandise coupons, shall immediately comply.

Article 19(Guarantee of Preference Payment) #

A merchandise coupon holder shall have right to repossess prior to other creditors for the items deposited (including the amount of payment guarantee as prescribed in Article 16) which a merchandise coupon issuer has deposited, within the limit of the unredeemed amount of money of the merchandise coupon.

Article 20(Application of Execution of Rights and Trial) #

(1) Where a merchandise coupon issuer who fails to redeem merchandise coupons has performed the obligation of deposit as prescribed by this Act, a merchandise coupon holder may make an application for the execution of rights as prescribed in Article 19 to a district court or its branch court which exercises jurisdiction over the location of the merchandise coupon issuer’s main office of business or head office.

(2) A trial concerning an application as prescribed in paragraph (1) shall be governed by the Non-Contentious Case Litigation Procedure Act.

(3) In a trial concerning an application as prescribed in paragraph (1), the merchandise coupon issuer shall be notified.

(4) An applicant or a merchandise coupon issuer may make an immediate appeal against a trial as prescribed in paragraph (3).

(5) An immediate appeal as prescribed in paragraph (4) shall have the effect of a stay of execution.

(6) A judgement that an application as prescribed in paragraph (1) has merit shall have effect on all merchandise coupon holders.

(7) An applicant, after he has received notification of completion of adjudication, shall not withdraw his application.

Article 21(Procedure after Completion of Adjudication) #

(1) Where adjudication as prescribed in Article 20 (6) is completed, a period of not less than 30 days shall be fixed and merchandise coupon holders shall be notified by a public notice of the court that an application for claims for merchandise coupons should be made within the fixed period.

(2) A public notice as prescribed in paragraph (1) shall be made in the same way as a public notice of the registration matters made by a court.

(3) A court, when it makes a notification as prescribed in paragraph (1), may request the delivery of a public register concerning the issuance of merchandise coupons and other necessary documents to the Mayor/Do governor.

Article 22(Making Out Allotment Table and Deposit of Amount of Allotment) #

(1) Where the period of notification as prescribed in Article 21 (1) is terminated, a court shall without delay make out an allotment table to holders of unredeemed merchandise coupons.

(2) Where the court designates a statement concerning an allotment table and the date of execution of allotment, it shall make public notification thereof two weeks in advance and give notice individually to identified merchandise coupon holders and issuers.

(3) With regard to a public notice as prescribed in paragraph (2), the provisions of Article 21 (2) shall apply mutatis mutandis.

(4) The amount of allotment for the claims of merchandise coupon holders who fail to share in allotment at the date of execution of allotment, and the claims for which an objection is under progress on the date of execution of allotment shall be deposited for creditors.

Article 23(Conversion, Allotment Procedure, and Calculation of Period) #

(1) With regard to the conversion and allotment procedure of securities, except as otherwise provided in this Act, the provisions of the Civil Procedure Act shall apply mutatis mutandis.

(2) In case of performing the conversion and allotment of securities under paragraph (1), in an action which should be made by merchandise coupon holders, or the merchandise coupon issuer who has made an application for an objection for the claims of merchandise coupon holders unrecognized, the period of Article 592 of the Civil Procedure Act shall be reckoned from the date when the merchandise coupon holders are identified.

Article 24(Execution of Rights to Financial Institution) #

(1) Where a merchandise coupon issuer has made a contract of guarantee in lieu of deposits under Article 16, a merchandise coupon holder who desires to execute rights as prescribed by this Act may claim the execution of rights to a financial institution which has made the appropriate payment guarantee according to the terms of the appropriate contract of guarantee.

(2) Where there is a claim for the execution of rights as prescribed in paragraph (1), a merchandise coupon issuer shall, without delay, make report to the Mayor/Do governor.

Article 25(Prohibition of Use of Merchandise Coupons for Other Purposes) #

A merchandise coupon issuer shall not pay for subcontracting cost or wages with the issued merchandise coupons.

Article 26(Prohibition of Name-Lending) #

A third-party issuance coupon issuer shall not lend his name or to have another person carry out the issuance business of merchandise coupons.

Article 27(Making and Preserving Records) #

(1) A merchandise coupon issuer shall make, keep, and preserve records and documents concerning the issuance business of merchandise coupons, under the conditions as prescribed by the Ordinance of the Prime Minister. <Amended by Act No. 5454, Dec. 13, 1997>

(2) A Mayor/Do governor shall keep documents concerning the registration of the issuance of merchandise coupons so that the general public can peruse them, under the conditions as prescribed by the Ordinance of the Prime Minister. <Amended by Act No. 5454, Dec. 13, 1997>

Article 28(Report on Record of Issuance) #

(1) A merchandise coupon issuer shall submit a report in which the issue amount during each quarter term, the redeemed amount, the cumulative total amount of unredemption as of the end of each quarter term, and other matters as prescribed by the Ordinance of the Prime Minister are recorded, to the Mayor/Do governor not later than one month after the end of each quarter term, under the conditions as prescribed by the Ordinance of the Prime Minister. <Amended by Act No. 5454, Dec. 13, 1997>

(2) A third-party issuance coupon issuer and a merchandise coupon issuer whose last year’s issue amount of self-issuance merchandise coupons exceeds the amount as prescribed by the Presidential Decree shall be subject to a certified public accountant’s inspection with respect to last year’s records of the issuance of merchandise coupons and other matters as prescribed by the Ordinance of the Prime Minister. <Amended by Act No. 5454, Dec. 13, 1997>

(3) A merchandise coupon issuer who has undergone a certified public accountant’s inspection shall submit a certified public accountant’s certificate of inspection to the Mayor/Do governor not later than 4 months after the end of the business year.

Article 29(Report and Inspection) #

(1) A Mayor/Do governor, if deemed necessary, may request a merchandise coupon issuer to submit records or necessary reports as prescribed in Article 27 (1), or he may have a public official under his control inspect records, the issuance of merchandise coupons, or the conditions of redemption, or ask questions of interested persons.

(2) A person who conducts an inspection as prescribed in paragraph (1) shall carry with him a certificate indicating his competence to do so and show it to interested persons.

Article 30(Order to Improve Business) #

A Mayor/Do governor, if deemed necessary to protect merchandise coupon holders’ rights, may order the appropriate merchandise coupon issuer to modify the method of business concerning the issuance of merchandise coupons, or to take other measures necessary for the improvement of business.

Article 31(Revocation of Authorization or Registration and Suspension of Issuance) #

(1) Where a merchandise coupon issuer falls under any of the following subparagraphs, the Minister of Finance and Economy or the Mayor/Do governor may revoke the appropriate authorization or registration or order him to suspend the issuance of merchandise coupons for a fixed period not exceeding three years: <Amended by Act No. 5454, Dec. 13, 1997>

1. Where a person who has succeeded to the status of a merchandise coupon issuer under Article 8 (1) falls under any of subparagraphs of Article 7 (2);

2. Where he issues merchandise coupons in violation of the provisions of Article 10;

3. Where the maximum of coupon face value or equivalent value as prescribed in Article 12 is fixed, he issues merchandise coupons exceeding the maximum;

4. Where he issues merchandise coupons in violation of restriction as prescribed in Article 13 (1) or (2);

5. Where he fails to comply with the obligation of deposit as prescribed in Article 14;

6. Where he violates the provisions of Article 18 or 27 (1);

7. Where he fails to submit a report as prescribed in Article 28 without any justifiable reason, or he makes a false statement in the submitted report;

8. Where he fails to comply with an order to submit records and to make report as prescribed in Article 29 (1) without justifiable reason, or he refuses, impedes, or evades an inspection;

9. Where he fails to comply with an order to improve business as prescribed in Article 30 without justifiable reason; and

10. Where he violates this Act or an order issued under this Act.

(2) A Mayor/Do governor may, if revocation of authorization is deemed necessary due to the fact that a third-party issuance coupon issuer falls under any of subparagraphs of paragraph (1), propose the revocation of authorization to the Minister of Finance and Economy. <Amended by Act No. 5454, Dec. 13, 1997>

Article 32(Hearing) #

Where the Minister of Finance and Economy or the Mayor/Do governor intends to revoke the authorization or registration of merchandise coupon issuer under Article 31 (1), he shall hold a hearing

[This Article Wholly Amended by Act No. 5453, Dec. 13, 1997]

Article 33(Supervision of Affairs) #

The Minister of Finance and Economy may, if necessary to protect the rights and interests of merchandise coupon holders or merchandise coupon issuers, and to operate the rational and unified system of merchandise coupons, order the Mayor/Do governor to make a report or submit materials concerning the performance conditions of the business as prescribed by this Act, and he may have a public official under his control inspect the performance conditions of the business or take other necessary measures. <Amended by Act No. 5454, Dec. 13, 1997>

Article 34(Delegation of Authority) #

The Minister of Finance and Economy may delegate part of his authority as prescribed by this Act to the Mayor/Do governor, under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>

Article 35(Penal Provisions) #

Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than two years or a fine not exceeding thirty million won. In this case, when the amount of money corresponding to three times the total amount of the merchandise coupons issued without making the registration of issuance or obtaining authorization exceeds thirty million won, he shall be punished by imprisonment for not more than two years or a fine not exceeding three times the equivalent value of the merchandise coupons issued: <Amended by Act No. 5454, Dec. 13, 1997>

1. A person who issues third-party issuance merchandise coupons without obtaining authorization as prescribed in Article 6 (1);

2. A person who issues merchandise coupons without making registration or registration of modification as prescribed in Article 7 (1) or (3);

3. A person who issues merchandise coupons without obtaining approval, where he must obtain approval from the Minister of Finance and Economy as prescribed in Article 8 (2);

4. A person who violates the provisions of Article 25; and

5. A person who issues merchandise coupons during the period of suspension, where his power to issue merchandise coupons has been suspended under Article 31.

Article 36(Penal Provisions) #

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 twenty million won. In this case, when the amount of money corresponding to three times the guarantee money of issuance by deposit exceeds twenty million won, he shall be punished by imprisonment for not more than one year or a fine not exceeding three times the guarantee money of issuance:

1. A person who issues merchandise coupons without making deposit or a contract of guarantee as prescribed in Article 14 or 16; and

2. A person who violates the provisions of Article 26.

Article 37(Penal Provisions) #

Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding ten million won: <Amended by Act No. 5454, Dec. 13, 1997>

1. A person who violates the provisions of Article 11 (4);

2. A person who violates the restriction of the target goods and service to be redeemed in exchange for merchandise coupons, or the restriction of the limit of the yearly issue amount of merchandise coupons, as prescribed in Article 13;

3. A person who fails to make and keep records and documents as pre scribed in Article 27 (1) or records false information in the documents;

4. A person who fails to undergo a certified public accountant’s inspection as prescribed in Article 28 (2); and

5. A person who refuses, impedes, or evades an inspection as prescribed in Article 29 (1).

Article 38(Penal Provisions) #

Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding five million won:

1. A person who violates the provisions of Article 10 or 11 (1);

2. A person who issues merchandise coupons exceeding the limit of coupon face value as prescribed in Article 12; and

3. A person who violates an order as prescribed in Article 30.

Article 39(Penal Provisions) #

Where a merchandise coupon issuer fails to perform the obligation of redemption or refund as prescribed in Article 11 (5) or 18 (1) or (2), he shall be punished by a fine not exceeding one million won. In this case, when the obligatory amount of redemption or refund exceeds one million won, he shall be punished by a fine not exceeding the amount of money corresponding to ten times the appropriate obligatory amount of redemption or refund.

Article 40(Joint Penal Provisions) #

Where a representative of a juristic person, or an agent, servant or other employees of a juristic person or individual violates the provisions of Articles 35 through 39 in connection with the business of the juristic person or individual, the fine as prescribed in the respective Articles shall also be imposed on the juristic person or individual in addition to the punishment of the offender.

Article 41(Fine for Negligence) #

(1) Any person who has not obtained the authorization of modification concerning the matters for which the authorization of modification as prescribed in Article 6 (4) has to be obtained shall be punished by a fine for negligence not exceeding one million won.

(2) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding five hundred thousand won:

1. A person who fails to make a report as prescribed in Article 6 (4), 7 (3), the latter part of Article 8 (1), Article 9 (1) through (3), 14 (6), 16 (3) or 24 (2), or makes a false report;

2. A person who fails to make report as prescribed in Article 28 (1) or 29 (1), or makes a false report; and

3. A person who fails to submit a certified public accountant’s certificate of inspection as prescribed in Article 28 (3).

(3) A fine for negligence as prescribed in paragraphs (1) and (2) shall be imposed and collected by the Minister of Finance and Economy or the Mayor/Do governor, under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>

(4) A person who is dissatisfied with the disposition of a fine for negligence as prescribed in paragraph (3) may raise an objection to the Minister of Finance and Economy or the Mayor/Do governor not later than 30 days from the date when he is notified of the disposition. <Amended by Act No. 5454, Dec. 13, 1997>

(5) Where a person who is subject to the disposition of fine for negligence as prescribed in paragraph (3) has made an objection under paragraph (4), the Minister of Finance and Economy or the Mayor/Do governor shall without delay notify the competent court, and the court which has received the notification shall try the fine for negligence according to the Non-Contentious Case Litigation Procedure Act. <Amended by Act No. 5454, Dec. 13, 1997>

(6) Where no objection is made and no fine for negligence is paid within the period as prescribed in paragraph (4), it shall be collected by reference to the example of disposition of national taxes or local taxes in arrears.

Article 42(Enforcement Decree) #

Matters necessary for the enforcement of this Act shall be determined by the Presidential Decree.