KOREA RACING AUTHORITY ACT

Article 1(Purpose) #

The purpose of this Act is to establish the Korea Racing Authority efficiently conduct business related to the fair implementation of horse racing and the development of the horse industry, thereby contributing to the development of the livestock industry and promoting the welfare of citizens and the use of their leisure time. <Amended on Mar. 9, 2011; Jan. 20, 2015>

[This Article Wholly Amended on May 27, 2009]

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Mar. 24, 2020; Jun. 20, 2023>

1. The term "horse racing" means the act of selling betting tickets for the race of a horse ridden by a jockey and distributing payoffs to winning ticket holders;

2. The term "racehorse" means a horse registered with the Korea Racing Authority (hereinafter referred to as the "KRA") established pursuant to Article 18 for the purpose of competing in races;

3. The term "owner" means a person registered with the KRA who owns, or has the purpose of owning, a racehorse;

4. The term "trainer" means a person who manages and trains a racehorse with a license granted by the KRA;

5. The term "jockey" means a person who rides a racehorse at horse racing with a license granted by the KRA;

6. The term "betting ticket" means a ticket (including an electronic form) on which the betting type, the horse number, the amounts, and other relevant information are marked, which is sold (including sale through an information and communications network under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection (hereinafter referred to as "information and communications network; hereinafter the same shall apply)) at the request of those who wish to receive a payoff by correctly predicting the winning horse at horse racing;

7. The term "payoff" means the amount of money distributed by the KRA to a winning ticket holder or betting ticket purchaser after deducting the sales proceeds and various taxes from the amount of betting tickets sold when the arrival order of the horses in a race is finalized;

8. The term "unit amount" means the minimum bet as the basic unit for the sale of betting tickets;

9. The term "voucher" means a piece of paper issued by the KRA stating the amount, the serial number, and the expiration date to be exchanged for a betting ticket.

[This Article Wholly Amended on May 27, 2009]

Article 2-2(Relationship to other statutes) #

The Act on Special Cases concerning Regulation and Punishment of Speculative Acts shall not apply to the sale of betting tickets (hereinafter referred to as "betting tickets").

[This Article Wholly Amended on May 27, 2009]

Article 3(Holding horse racing) #

(1) Horse racing shall be held by the KRA.

(2) Matters concerning the scope of horse racing held by the KRA for each racecourse, the types of races, and the entry criteria for racehorses shall be prescribed by Presidential Decree. <Amended on Mar. 24, 2020>

[This Article Wholly Amended on May 27, 2009]

Article 4(Racecourses) #

(1) If the KRA intends to establish a racecourse, it shall meet the requirements prescribed by Presidential Decree and obtain permission from the Minister of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

(2) If the Minister of Agriculture, Food and Rural Affairs deems that the facilities of a racecourse are inadequate and therefore it is impracticable to maintain order at racecourse or ensure fair horse racing, the Minister may require the KRA to change the facilities or take other necessary measures. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 5(Admission fees) #

(1) When the KRA holds horse racing, it may collect admission fees from persons who visit racecourses and off-course betting centers under Article 6 (2). <Amended on Jul. 21, 2011>

(2) Matters necessary for persons to pay admission fees under paragraph (1), the methods of collection, and the amount, etc. shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 6(Sale of betting tickets) #

(1) When the KRA holds horse racing, it may sell betting tickets. <Amended on Jun. 20, 2023>

(2) In cases of establishing, moving, or modifying (limited to expanding the floor area of bleachers) a facility to handle the sale, etc. of betting tickets in a place other than racecourses (hereinafter referred to as "off-course betting center"), the KRA shall obtain approval from the Minister of Agriculture, Food and Rural Affairs. <Amended on Jun. 1, 2012; Mar. 23, 2013>

(3) Matters necessary for the unit betting amount and methods of sale of betting tickets under paragraph (1) and the facility standards for, and business affairs of, off-course betting centers under paragraph (2) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on May 27, 2009]

Article 6-2(Sale of betting tickets through information and communications networks) #

(1) The KRA may sell betting tickets in an electronic form (hereinafter referred to as "electronic betting tickets") through information and communications networks at places other than racecourses and off-course betting centers.

(2) In order to sell electronic betting tickets, the KRA shall formulate an operation plan for the sale of electronic betting tickets including the following information every year and shall implement such plan with approval from the Minister of Agriculture, Food and Rural Affairs; the foregoing shall also apply where the KRA intends to change any important matter in an approved operational plan for the sale of electronic betting tickets:

1. Matters regarding the operation of the electronic betting ticket selling system;

2. Matters regarding user verification at each stage of use;

3. Matters regarding the protection of users, such as measures for prevention of addiction and excessive immersion;

4. Matters regarding the management of personal information, including the collection, use, retention, and processing thereof and the designation of a person in charge;

5. Matters regarding the formulation of a plan to ensure the sound operation of the sale of electronic betting tickets under Article 6-5;

6. Other matters prescribed by Minister of Agriculture, Food and Rural Affairs for the operation of the sale of electronic betting tickets.

[This Article Added on Jun. 20, 2023]

[Previous Article 6-2 moved to Article 6-9 <Jun. 20, 2023>]

Article 6-3(Corrective orders) #

(1) If the KRA fails to implement an operational plan for the sale of electronic betting tickets under Article 6-2 (2), the Minister of Agriculture, Food and Rural Affairs may order it to take corrective measures.

(2) If the KRA fails to comply with a corrective order issued under paragraph (1) without good cause, the Minister of Agriculture, Food and Rural Affairs may take necessary measures, such as reducing the number of electronic betting tickets to be sold and suspending the sale of electronic betting tickets.

(3) If the KRA intends to resume the sale of electronic betting tickets suspended pursuant to paragraph (2), it shall obtain approval from the Minister of Agriculture, Food and Rural Affairs.

[This Article Added on Jun. 20, 2023]

[Previous Article 6-3 moved to Article 6-10 <Jun. 20, 2023>]

Article 6-4(Registration) #

(1) A person who intends to purchase an electronic betting ticket shall file for registration of his or her name, device, account, etc. with the KRA.

(2) None of the following persons shall be eligible for the registration under paragraph (1):

1. A person under 21 years of age;

2. A public official of a supervisory agency of the KRA, who is in charge of the business affairs related to the KRA;

3. An executive officer or employee of the KRA;

4. A trainer, jockey, or groom (referring to a person who assists a trainer and conducts business affairs such as managing racehorses; hereinafter the same shall apply);

5. A person who engages in holding horse racing (including a person who engages in holding horse racing under a contract with the KRA; hereinafter the same shall apply);

6. A person for whom one year has not elapsed after his or her registration has been revoked pursuant to paragraph (3).

(3) The KRA shall revoke the registration of a person registered pursuant to paragraph (1) if the person falls under any of the following cases:

1. Where he or she has filed for registration by fraud or other improper means;

2. Where he or she has lent a device registered in his or her name to another person for the purpose of allowing him or her to purchase an electronic betting ticket;

3. Where he or she has borrowed a device registered under another person's name for the purpose of purchasing an electronic betting ticket;

4. Where he or she has performed an act prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs which substantially harms the sound operation of the sale of electronic betting tickets.

(4) Matters necessary for the place of registration, device, opening of an account, and procedures for inspection under paragraph (1), and distribution of payoffs, etc. shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

[This Article Added on Jun. 20, 2023]

Article 6-5(Formulation of plans to ensure sound operation of sale of electronic betting tickets) #

In order to ensure the sound operation of the sale of electronic betting tickets, the KRA shall formulate a plan to ensure the sound operation of the sale of electronic betting tickets, including the following information:

1. Matters regarding the volume of electronic betting tickets to be sold;

2. Matters regarding the limit of purchasing electronic betting tickets and the criteria for sale of such tickets;

3. Matters regarding compliance with the total quantity in terms of the amount of sales, etc. adjusted and recommended by the National Gambling Control Commission pursuant to Article 5 of the National Gambling Control Commission Act;

4. Matters regarding the adjustment of the scale of off-course betting centers linked to sales trends in the sale of electronic betting tickets;

5. Other matters prescribed by the Minister of Agriculture, Food and Rural Affairs to ensure the sound operation of the sale of electronic betting tickets.

[This Article Added on Jun. 20, 2023]

Article 6-6(Measures for prevention of addiction and excessive immersion) #

The KRA shall take the following preventive measures against addiction and excessive immersion in order to prevent the excessive purchase of electronic betting tickets:

1. Verifying the real name, age, and identity of a person who intends to purchase an electronic betting ticket;

2. Indicating warnings under Article 6-10;

3. Displaying the elapsed time of use on the screen for selling electronic betting tickets;

4. Providing education to protect users, such as education for prevention of addiction and excessive immersion;

5. Other matters necessary for the prevention of addiction and excessive immersion.

[This Article Added on Jun. 20, 2023]

Article 6-7(Prevention of illegal use) #

The KRA shall take the following measures to block the illegal use of electronic betting tickets:

1. Measures to prevent and forestall the reproduction, modification, and transmission of on-line racing video clips on the electronic betting ticket; selling system

2. Measures to forestall the design, production, distribution, and use of a system similar to the electronic betting ticket selling system.

[This Article Added on Jun. 20, 2023]

Article 6-8(Inspection of operation results) #

(1) The Minister of Agriculture, Food and Rural Affairs may inspect and evaluate the operation results of the sale of electronic betting tickets.

(2) Matters necessary for the inspection of the operation results of the sale of electronic betting tickets under paragraph (1), the evaluation items and frequency thereof, etc. shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

[This Article Added on Jun. 20, 2023]

Article 6-9(Vouchers) #

(1) Upon request of a person intending to purchase a betting ticket, the KRA may sell a voucher.

(2) A voucher shall not be used for any purpose other than the exchange with a betting ticket.

(3) Where a person with a voucher requests a refund therefor, the KRA shall comply with such request.

(4) The right to exchange vouchers for betting tickets or to refund them pursuant to paragraph (3) shall be extinguished by prescription if not exercised within one year.

[This Article Wholly Amended on May 27, 2009]

[Moved from Article 6-2 <Jun. 20, 2023>]

Article 6-10(Indication of warnings) #

(1) The KRA shall indicate warnings against personal and social harm, etc. that excessive purchase of betting tickets may cause, on betting tickets, vouchers, and advertisements prescribed by Presidential Decree.

(2) Matters necessary for details, methods, etc. of indicating warnings under paragraph (1) shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

[Moved from Article 6-3 <Jun. 20, 2023>]

Article 7(Types of betting methods) #

(1) There shall be eight types of betting methods: win, quinella, exacta, place, quinella place, tierce, trifecta, and special betting.

(2) Matter necessary for determining a winning horse in each type of betting under paragraph (1) and the implementation method thereof shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 8(Payoffs) #

(1) The KRA shall distribute payoffs out of the amount of the betting ticket sales for the relevant racing, to winning ticket holders, as prescribed by Presidential Decree.

(2) If there is no winning ticket holder, the sales amount shall be refunded to persons who purchased betting tickets, as prescribed by Presidential Decree; provided, where there is no person who correctly predicts a certain winning horse in a betting type involving two or more winning horses, the payoff for the relevant horse shall be distributed equally to the persons who correctly predict the other wining horses.

(3) The claims on payoffs under paragraph (1) or (2) shall be extinguished by prescription if not exercised within one year. <Amended on Dec. 2, 2016>

[This Article Wholly Amended on May 27, 2009]

Article 9(Sales proceeds) #

(1) Revenues of the KRA shall include the sales proceeds and other revenues prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Jan. 20, 2015>

(2) The sales proceeds under paragraph (1) shall be the amount that the KRA collects in accordance with the ratio prescribed by the Minister of Agriculture, Forestry and Fisheries on the sales amount of betting tickets. In such cases, the sales proceeds shall not exceed 20/100 of the sales amount. <Amended on Mar. 23, 2013>

(3) Sales proceeds and other revenues under paragraphs (1) and (2) may be used for operating expenses incurred in conducting the KRA's business or may be allocated to profits, etc. <Amended on Jan. 20, 2015>

[This Article Wholly Amended on May 27, 2009]

Article 10(Invalidation of betting) #

(1) Where any of the following grounds arises after the sale of betting tickets, the betting for the relevant racing shall be invalid: <Amended on Mar. 24, 2020; Dec. 27, 2022>

1. Where only one horse or no horse participates in the racing;

2. Where the racing does not take place;

3. Where a horse participating in the racing is not the one confirmed to participate in the racing as at the time of selling betting tickets.

(2) In any of the following cases, the betting of the relevant type shall be invalid: <Amended on Jan. 20, 2015>

1. Where it is impracticable to apply the relevant betting type prior to starting, due to reasons such as exclusion from starting, after the sale of betting tickets has begun;

2. Where there is no winning horse in racing to which the relevant betting type applies.

(3) If a horse with a number shown on a sold ticket fails to participate in racing, the betting for that horse shall be invalid. <Amended on Mar. 24, 2020>

(4) The scope of horses on which the betting becomes invalid under paragraph (3) shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs for each type of betting. <Amended on Mar. 23, 2013>

(5) A person who has a betting ticket that becomes invalid under paragraphs (1) through (3) may request the KRA to return the purchase price of such invalid ticket.

(6) The right to claim under paragraph (5) shall be extinguished by prescription if not exercised within one year. <Amended on Jan. 20, 2015, May 26, 2020>

(7) Even where the betting becomes invalid pursuant to paragraph (1) 3, it shall not affect the payoff to be distributed pursuant to Article 8 (1) if the reason specified in paragraph (1) 3 is confirmed after the order of arrival is finalized. <Added on Dec. 27, 2022>

[This Article Wholly Amended on May 27, 2009]

Article 11(Registration of owners) #

(1) A person who intends to run a horse in racing shall file for registration of his or her horse with the KRA. <Amended on Jan. 20, 2015; Mar. 24, 2020>

(2) None of the following persons shall be eligible for the registration under paragraph (1): <Amended on Mar. 23, 2013; Mar. 18, 2014; Jan. 20, 2015; Jun. 20, 2023>

1. A person under adult guardianship or under limited guardianship;

2. A person declared bankrupt and not yet reinstated;

3. A person who is sentenced to a fine or any heavier punishment for a violation of this Act;

4. A person for whom five years have not passed since his or her imprisonment without labor or heavier punishment declared by a court was completely executed (where it is deemed to have been completely executed) or the non-execution of such sentence became final;

5. A person who was sentenced to imprisonment without labor or heavier punishment and for whom two years have not passed since the period of suspension of the execution thereof expired;

6. An executive officer or employee of the KRA or a person who engages in horse racing affairs prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs;

7. A trainer, jockey, or groom;

8. A person for whom five years have not passed since his or her registration of an owner was revoked because he or she fell under paragraph (3) 3 or 5 or (4) 3 through 5, 7, or 8;

9. A corporation that has an executive officer (including a person in a similar position to an executive officer; hereinafter the same shall apply) who falls under any of subparagraphs 1 through 8.

(3) The KRA shall revoke the registration under paragraph (1) if an owner falls under any of the following cases:

1. If an owner has been deceased (in cases of a corporation, if it has been dissolved);

2. If an owner has applied the revocation of registration;

3. If an owner has been registered by fraud or other improper means;

4. If an owner falls under any of paragraph (2) 1 through 3, 6, 7 or 9;

5. If an owner has been sentenced to imprisonment without labor or heavier punishment;

6. If an owner is a corporation and has an executive officer who falls under any of paragraph (2) 1 through 7.

(4) Where an owner falls under any of the following, the KRA may revoke the registration under paragraph (1) or order the owner to suspend engagement in activities for a fixed period of up to six months: <Amended on Mar. 23, 2013; Jan. 20, 2015; Mar. 24, 2020>

1. Where he or she fails to file with the KRA a report on a change in any matter reported for resident registration (the name, address, representative, or articles of incorporation, in cases of a corporation) within 14 days from the date such change occurs;

2. Where he or she fails to own a horse for at least six consecutive months without any good cause;

3. Where he or she requires a trainer, jockey, or groom to perform any act that undermines the fairness of racing;

4. Where he or she receives, demands, or agrees to receive goods and property interests offered by any other person on condition of undermining the fairness of horse racing or providing information on horse racing;

5. Where he or she runs his or her horse in racing under the name of another owner or runs a horse not owned by him or her in racing under his or her name;

6. Where he or she violates the duty of compliance in the course of performing his or her duties or commits an act of impairing his or her dignity, as an owner;

7. Where he or she fails to comply with an order to suspend engagement in activities as an owner or has received such order on at least two occasions;

8. Where he or she commits an act prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs as seriously undermines the fairness of horse racing.

(5) Matters necessary for the standards and procedures, etc. for the registration under paragraph (1) shall be determined by the KRA.

[This Article Wholly Amended on May 27, 2009]

Article 12(Registration of racehorses) #

(1) No horse shall participate in a race unless it is registered as a racehorse with the KRA. <Amended on Mar. 24, 2020; Oct. 24, 2023>

(2) Matters for registration of a racehorse under paragraph (1) shall be as follows: <Added on Oct. 24, 2023>

1. The name of a horse;

2. The breed, sex, hair color, characteristics, date of birth, and pedigree of a horse;

3. The name of the owner;

4. The registration number and the registration date;

5. The country of origin and the name of producer;

6. Other matters prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

(3) The KRA shall revoke the registration under paragraph (1) if the owner falls under any of the following cases: <Amended on Oct. 24, 2023>

1. If the owner has applied for the revocation of registration of a horse;

2. In the event of the horse’s death;

3. If a horse is diverted or disposed of for purposes other than horse racing;

4. If the horse has been registered by fraud or other improper means;

5. Where any other cause prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs occurs.

(4) The method and procedure for the registration of a racehorse and other necessary matters shall be determined by the KRA. <Added on Oct. 24, 2023>

[This Article Wholly Amended on May 27, 2009]

[Title Amended on Oct. 24, 2023]

Article 12-2(Establishment and operation of individual identification system) #

(1) The KRA shall take technical and administrative measures, such as the establishment and operation of an individual identification system to verify whether the registered matters under Article 12 (2) (hereafter in this Article referred to as "registered information") of a racehorse registered for participation at the time of sale of betting tickets is consistent with the registered information of the relevant racehorse before participation in the horse race.

(2) Matters necessary for technical and administrative measures, such as the establishment and operation of an individual identification system under paragraph (1) shall be determined by the KRA.

[This Article Added on Oct. 24, 2023]

Article 13(Registration of clothing colors) #

(1) The colors and patterns of clothing worn by jockeys during horse racing shall be limited to those registered with the KRA.

(2) Matters necessary for the registration of colors and patterns of clothing under paragraph (1) shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 14(Licenses of trainers and jockeys) #

(1) A person who intends to manage and train racehorses shall obtain a trainer's license and a person who intends to ride racehorses shall obtain a jockey's license from the KRA. <Amended on Mar. 24, 2020>

(2) A person who intends to conduct shoeing shall file for registration with the KRA.

(3) Matters necessary for requirements for a license or registration, revocation thereof, etc. under paragraph (1) or (2) shall be determined by the KRA.

[This Article Wholly Amended on May 27, 2009]

Article 15 #

Deleted. <May 27, 2009>

Article 16(Special registration fees) #

(1) The KRA may collect special registration fees from an owner who intends to run his or her horse in a specific race. <Amended on Jan. 20, 2015; Mar. 24, 2020>

(2) The full amount of special registration fees under paragraph (1) shall be included in the prize money for the relevant race. <Amended on Jan. 20, 2015>

[This Article Wholly Amended on May 27, 2009]

Article 17(Organizing members) #

In order to hold horse racing, the KRA shall have organizing members to conduct business affairs related to the horse racing as prescribed by Presidential Decree.

[This Article Wholly Amended on May 27, 2009]

Article 18(Incorporation) #

A Korea Racing Authority shall be established in order to efficiently perform projects for attaining the purpose specified in Article 1.

[This Article Wholly Amended on May 27, 2009]

Article 19(Legal personality) #

The KRA shall be a corporation.

[This Article Wholly Amended on May 27, 2009]

Article 20(Offices and address) #

(1) The location of the principal office of the KRA shall be prescribed by the articles of incorporation.

(2) The KRA may establish a branch office as necessary to conduct its business affairs.

(3) The address of the KRA shall be the location of its principal office.

[This Article Wholly Amended on May 27, 2009]

Article 21(Registration) #

(1) The KRA shall come into existence upon the registration of the following matters at the place of its principal office:

1. Purpose of incorporation;

2. Name;

3. Locations of the principal office and branch offices;

4. Date of establishment;

5. Total amount of assets;

6. Addresses and names of executive officers.

(2) When changing the matters specified in the subparagraphs of paragraph (1) or establishing a branch office, the KRA shall complete the registration of such change or establishment at the location of the principal office. <Amended on Sep. 20, 2024>

(3) Matters to be registered pursuant to paragraph (2) may not be effective against a third party unless and until they are registered.

(4) Except as provided in paragraphs (1) through (3), matters necessary for registration shall be prescribed by Presidential Decree.

[This Article Wholly Amended on May 27, 2009]

Article 22(Prohibition of use of similar names) #

(1) No entity, other than the KRA under this Act, shall use the name the Korea Racing Authority or any similar name.

(2) No entity, other than the KRA under this Act, shall use the name of the KRA, racecourse, or horse racing in any advertisement for a place where speculative activities similar to horse racing are conducted.

[This Article Wholly Amended on May 27, 2009]

Article 23(Articles of incorporation) #

(1) The articles of incorporation of the KRA shall include the following information:

1. Purpose of incorporation;

2. Name;

3. Matters regarding the locations of the principal office and branch offices;

4. Matters regarding executive officers and employees;

5. Matters regarding business and conducting such business;

6. Matters regarding borrowing of funds, assets, and accounting;

7. Matters regarding the board of directors;

8. Matters regarding the amendment of the articles of incorporation;

9. Methods of making public announcements.

(2) If the KRA intends to amend the articles of incorporation, it shall obtain authorization from the Minister of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 24(Provisions) #

(1) The KRA may determine the following matters within the scope of statutes and regulations and the articles of incorporation:

1. Matters regarding the implementation of horse racing;

2. Matters regarding accounting;

3. Matters regarding the remuneration of executive officers, and the fixed number, appointment and dismissal, and salaries of employees.

(2) If the KRA intends to determine the matters specified in paragraph (1) 1 or modify such determined matters, it shall obtain authorization from the Minister of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 25(Executive officers) #

The KRA shall have the following executive officers:

1. One chairperson;

2. One vice-chairperson;

3. Up to five executive directors;

4. Up to eight part-time directors;

5. One full-time auditor.

[This Article Wholly Amended on May 27, 2009]

Article 26(Duties of executive officers) #

(1) The chairperson shall represent the KRA, exercise overall control over its business affairs, and take responsibility for the management performance of the KRA during the term of office.

(2) The vice-chairperson and executive directors shall assist the chairperson and perform the business affairs of the KRA as prescribed by the articles of incorporation.

(3) Where the position of the chairperson is vacant or the chairperson becomes unable to perform his or her duties due to any unavoidable cause, vice-chairperson and executive directors in the order prescribed by the articles of incorporation shall act on behalf of the chairperson.

(4) Part-time directors shall deliberate on the agenda items referred to a meeting of the board of directors and participate in adopting resolutions.

(5) The full-time auditor shall audit the status of the business affairs and accounting of the KRA.

[This Article Wholly Amended on May 27, 2009]

Article 27(Appointment of executive officers) #

The appointment of executive officers shall be governed by the Act on the Management of Public Institutions.

[This Article Wholly Amended on May 27, 2009]

Article 28(Term of office of executive officers) #

The term of office of executive officers shall be governed by the Act on the Management of Public Institutions.

[This Article Wholly Amended on May 27, 2009]

Article 29(Grounds for disqualification of executive officers) #

(1) None of the following persons shall serve as an executive officer of the KRA:

1. A person who is not a national of the Republic of Korea;

2. A person specified in any of the subparagraphs of Article 33 of the State Public Officials Act;

3. A person for whom three years have not passed since he or she was removed pursuant to Article 22 (1), 31 (6), 35 (2) or (3), 36 (2), or 48 (8) of the Act on the Management of Public Institutions;

4. An owner registered with the KRA.

(2) Where an executive officer falls under any subparagraph of paragraph (1) or is found to fall under any subparagraph of paragraph (1) as at the time of his or her appointment, he or she shall ipso facto retire from his or her office.

(3) No activity in which an executive officer who retired from his or her office pursuant to paragraph (2) has been involved prior to his or her retirement shall lose its legal effects.

[This Article Wholly Amended on May 27, 2009]

Article 30(Restrictions on dual office holding of executive officers and employees) #

The restrictions on dual office holding of executive officers and employees shall be governed by the Act on the Management of Public Institutions.

[This Article Wholly Amended on May 27, 2009]

Article 31(Restrictions on representative authority) #

(1) The full-time auditor shall represent the KRA with respect to matters in which the interests of the KRA conflict with those of the chairperson, the vice-chairperson, an executive director, or a part-time director.

(2) Paragraph (1) shall apply mutatis mutandis to lawsuits between the KRA and the chairperson, the vice-chairperson, an executive director, or a part-time director.

[This Article Wholly Amended on May 27, 2009]

Article 32(Board of directors) #

(1) The board of directors shall be comprised of up to 15 directors including the chairperson and the vice-chairperson, and the part-time directors shall be at least 50/100 of the members of the board of directors.

(2) The chairperson shall convene meetings of the board of directors where he or she deems it necessary or at the request of at least 1/3 of the members of the board of directors and shall preside over such meetings.

(3) The following matters shall be subject to the resolution of the board of directors: <Amended on Jul. 21, 2011>

1. Business goals, budget, and management plan;

2. Settlement of accounts;

3. Amendment of the articles of incorporation;

4. Acquisition and disposition of real estate;

5. Establishment and amendment of important bylaws;

6. Borrowing of long-term loans, issuance of bonds, and a plan for repayment of such loans or bonds;

7. Use of reserve funds and carryover of the budget;

8. Admission fees to racecourses and off-course betting centers;

9. Disposal of surpluses;

10. Investment in and contribution to other enterprises, etc.;

11. Debt guarantees for other enterprises, etc.;

12. Remuneration of executive officers;

13. Matters that the chairperson requests the board of directors to deliberate and resolve on as he or she deems it necessary;

14. Other matters that the board of directors deems particularly necessary.

(4) A resolution of the board of directors shall require the concurring vote of a majority of the members.

(5) The chairperson, the vice-chairperson, or a director who has a special interest in an agenda item of a directors' meeting shall not participate in the resolution on such item. In such cases, the chairperson, the vice-chairperson, or a director who is barred from participating in the resolution shall not be included in the number of the members under paragraph (4).

(6) No executive officer shall participate in the resolution on the standards for remuneration of executive officers under Article 24 (1) 3, if he or she has an interest therein.

(7) Part-time directors may demand the chairperson to provide them with materials necessary for performing their duties. In such cases, the chairperson shall comply with such request, unless there is a compelling reason not to do so.

(8) The full-time auditor may attend a meeting of the board of directors to present his or her opinion.

[This Article Wholly Amended on May 27, 2009]

Article 32-2(Horse Industry Development Committee) #

(1) A Horse Industry Development Committee shall be established under the KRA to provide advice on the development of horse racing and the horse industry. <Amended on Jan. 20, 2015>

(2) The Horse Industry Development Committee shall be comprised of up to 15 members including one chairperson, who shall be elected from among its members. <Amended on Jan. 20, 2015>

(3) The members of the Horse Industry Development Committee shall be commissioned by the chairperson from among the following persons: <Amended on Jan. 20, 2015>

1. The relevant public officials of the Government Ministries related to horse racing and the horse industry;

2. The representative of a training institution for experts designated under Article 10 of the Horse Industry Development Act;

3. The representative of owners, trainers, or jockeys registered with the KRA;

4. The representative of horse breeders;

5. Other persons with extensive knowledge of and experience in horse racing and the horse industry.

(4) Matters necessary for the operation, etc. of the Horse Industry Development Committee shall be determined by the KRA. <Amended on Mar. 23, 2013; Jan. 20, 2015>

[This Article Wholly Amended on May 27, 2009]

[Title Amended on Jan. 20, 2015]

Article 33(Appointment and dismissal of employees) #

Employees of the KRA shall be appointed or dismissed by the chairperson.

[This Article Wholly Amended on May 27, 2009]

Article 34(Appointment of agent) #

The chairperson may appoint an agent authorized to engage in all judicial or extrajudicial activities regarding the business affairs of the KRA from among executive officers and employees.

[This Article Wholly Amended on May 27, 2009]

Article 35(Application mutatis mutandis of the Civil Act) #

Articles 35 and 65 of the Civil Act shall apply mutatis mutandis to the KRA.

[This Article Wholly Amended on May 27, 2009]

Article 36(Scope of projects) #

The KRA shall conduct the following projects in order to attain the purpose prescribed in Article 1: <Amended on Mar. 9, 2011; Jan. 20, 2015; Feb. 3, 2015; Sep. 18, 2018; Mar. 24, 2020; Dec. 22, 2020; Dec. 27, 2022>

1. Projects regarding the implementation of horse racing:

(a) Holding horse racing;

(b) Registration of horses, owners, and clothing colors;

(c) License of trainers and jockeys and registration of persons who intend to conduct shoeing;

(d) Developing and training jockeys;

2. Projects for the development of the horse industry:

(a) Production, improvement of breed, propagation, and rearing of horses and development and dissemination of technology therefor;

(b) Facilitation of the use of horses, and guidance on and encouragement of such use;

(c) Disease control for health of, and sanitation for, horses;

(d) Prevalence of horseback riding;

(e) International exchange and development of foreign markets for the horse industry;

(f) Production, distribution, and utilization of content that uses models, images, and video clips of horses or services providing such content;

(g) Holding exhibitions, international conferences, etc. related to the horse industry;

(h) Support for training institutions for experts in the horse industry under Article 10 of the Horse Industry Promotion Act;

3. Contribution to the Livestock Development Fund under Article 43 of the Livestock Industry Act;

4. Installation and operation of facilities for play, exercise, recreation, performance, and exhibition at racecourses;

5. Horse racing-like projects involving the racing of livestock;

6. Scholarship projects for children of farmers and fishers, such as the operation of dormitories for the children and other projects for the promotion of social welfare of rural communities;

7. Projects for convenient living and welfare promotion for residents in areas adjacent to racecourses and off-course betting centers;

8. Domestic and international projects related to the lease, sale, and transportation of equipment and horses, and services using specialized technology, in connection with the projects specified in subparagraphs 1 and 2;

9. Investment in, and contribution and assistance to, corporations that conduct projects related to projects specified in subparagraphs 1 through 8;

10. Acquisition and management (including lease) of real estate for projects specified in subparagraph 1 (a) and (d), 2, and 7;

11. Projects that the KRA is allowed to conduct in accordance with any other statutes or regulations;

12. Projects entrusted by the State, a local government, or a public institution under Article 4 of the Act on the Management of Public Institutions;

13. Support for the sale and distribution of agricultural and marine products and the installation and operation of facilities for play, exercise, recreation, performance, and exhibition, by utilizing idle spaces;

14. Projects for the management and welfare of retired racehorses;

15. Programs for education, public relations, surveys, and research related to the projects specified in subparagraphs 1 through 14;

16. Projects incidental to the projects specified in subparagraphs 1 through 15.

[This Article Wholly Amended on May 27, 2009]

Article 36-2(Formulation of project plans) #

(1) The KRA shall annually formulate and implement a plan for projects specified in subparagraphs 4 and 6 of Article 36. In such cases, the KRA shall have a prior consultation with the head of the relevant local government with regard to projects for areas prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

(2) The KRA shall make public project plans under paragraph (1) and the performance thereof on its website, etc.

[This Article Added on Jun. 1, 2012]

Article 37(Budget planning) #

The budget planning shall be governed by the Act on the Management of Public Institutions.

[This Article Wholly Amended on May 27, 2009]

Article 38(Business year) #

The business year of the KRA shall be determined according to the fiscal year of the Government.

[This Article Wholly Amended on May 27, 2009]

Article 39(Borrowed funds) #

The KRA may, if necessary, borrow funds, as prescribed by the articles of incorporation.

[This Article Wholly Amended on May 27, 2009]

Article 40(Operation of funds) #

The KRA shall obtain approval from the Minister of Agriculture, Food and Rural Affairs unless it manages the funds by the following methods: <Amended on May 17, 2010; Mar. 23, 2013>

1. Deposit in banks under the Banking Act;

2. Acquisition of Government or public bonds and securities prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

[This Article Wholly Amended on May 27, 2009]

Article 41(Restrictions on disposal of property) #

When the KRA intends to transfer, exchange, or provide its real estate as collateral, or to give up rights, it shall obtain approval from the Minister of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 42(Disposal of profits and losses) #

(1) Where the KRA has profits in the settlement of accounts for each fiscal year, it shall dispose of the profits in the following order: <Amended on Jan. 20, 2015>

1. Offsetting losses brought forward;

2. Accumulating 10/100 of the profits as earned surplus reserves until such reserves amount to 50/100 of the capital;

3. Accumulating 20/100 of the profits as business expansion reserves until such reserves reach the amount equal to the capital;

4. Accumulating a portion of the profits as special reserves.

(2) Where the KRA sustains losses in the settlement of accounts for each business year, it shall use special reserves under paragraph (1) 4 to offset the losses, and if such reserves are insufficient, it shall use business expansion reserves under paragraph (1) 3, followed by earned surplus reserves under paragraph (1) 2. <Amended on Jan. 20, 2015>

(3) Earned surplus reserves under paragraph (1) 2 and business expansion reserves under subparagraph 3 of that paragraph may be transferred to the capital. <Amended on Jan. 20, 2015>

(4) Special reserves under paragraph (1) 4 shall be appropriated for the horse industry, livestock industry development projects, scholarship projects for children and successors of farmers and fishers, projects to promote understanding of agriculture and rural communities and consumption of agricultural and livestock products, support for farmers and fishers, etc. following the implementation of free trade agreements, and other expenses incurred in improving the welfare of agricultural and fishing villages, as prescribed by Presidential Decree. <Amended on Mar. 9, 2011>

(5) Where the KRA intends to use reserves pursuant to paragraphs (2) and (3), it shall obtain approval therefor from the Minister of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013>

(6) The Minister of Agriculture, Food and Rural Affairs shall report the spending records of special reserves under paragraph (4) (excluding the amount contributed to the Livestock Industry Development Fund; hereafter in this paragraph, the same shall apply) for the previous year to the competent Standing Committee of the National Assembly within three months after the end of the fiscal year of the special reserves and shall report a spending plan of special reserves for the following year to such Committee immediately after the plan is finalized. <Amended on Mar. 9, 2011; Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 43(Submission of statements of accounts) #

The submission of statements of accounts shall be governed by the Act on the Management of Public Institutions.

[This Article Wholly Amended on May 27, 2009]

Article 44(Guidance and supervision) #

(1) The Minister of Agriculture, Food and Rural Affairs shall provide guidance on and supervision over the business affairs of the KRA related to any of the following matters: <Amended on Mar. 9, 2011; Mar. 23, 2013>

1. Matters regarding the implementation of horse racing and the development of the horse industry;

2. Matters regarding the operation of racecourses and off-course betting centers;

3. Matters regarding the use of special reserves.

(2) If deemed necessary, the Minister of Agriculture, Food and Rural Affairs may require that the KRA file a report or that its public official inspect the business situation of the KRA's office or racecourses, its books and documents, and other necessary articles. <Amended on Mar. 23, 2013>

(3) A public official who conducts an inspection under paragraph (2) shall carry identification verifying his or her authority and show it to relevant persons.

[This Article Wholly Amended on May 27, 2009]

Article 44-2(Establishment and operation of Horse Racing Supervisory Committee) #

(1) A Horse Racing Supervisory Committee shall be established under the Ministry of Agriculture, Food and Rural Affairs to deliberate on the following matters related to implementing horse racing:

1. Matters regarding the establishment of racecourses under Article 4 (1);

2. Matters regarding the establishment, transfer, or modification of off-course betting centers under Article 6 (2);

3. Other matters deemed to require deliberation by the Minister of Agriculture, Food and Rural Affairs.

(2) The Horse Racing Supervisory Committee under paragraph (1) (hereinafter referred to as the "Horse Racing Supervisory Committee") shall be comprised of up to seven members including one chairperson.

(3) The members of the Horse Racing Supervisory Committee shall be appointed or commissioned by the Minister of Agriculture, Food and Rural Affairs, from among any of the following persons:

1. A person who has expert knowledge of or extensive experience in the field related to the gaming industry defined in subparagraph 1 of Article 2 of the National Gambling Control Commission Act (hereinafter referred to as "gaming industry") or to the horse industry;

2. A public official in general service belonging to the Senior Executive Service, in charge of business affairs related to the gaming industry or the horse industry.

(4) The chairperson of the Horse Racing Supervisory Committee shall be commissioned by the Minister of Agriculture, Food and Rural Affairs, from among the non-public official members.

(5) Each member shall hold office for a term of two years and may be commissioned consecutively only for one further term.

(6) Except as provided in paragraphs (1) through (5), matters necessary for the establishment, operation, etc. of the Horse Racing Supervisory Committee shall be prescribed by the Presidential Decree.

[This Article Added on May 26, 2020]

Article 44-3(Impact assessment and order for improvement) #

(1) The Minister of Agriculture, Food and Rural Affairs may assess the impact of off-course betting centers on the local community, such as the residential or educational environment (hereinafter referred to as "impact assessment of off-course betting centers").

(2) Matters necessary for the timing and methods of impact assessment of off-course betting centers shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

(3) Where deemed necessary to prevent and correct side effects resulting from the operation of off-course betting centers based on the results of the impact assessment of off-course betting centers, the Minister of Agriculture, Food and Rural Affairs may give a warning to the KRA or order it to take measures necessary for improvement.

(4) The KRA shall comply with an improvement order under paragraph (3) and report the results thereof to the Minister of Agriculture, Food and Rural Affairs without delay.

[This Article Added on May 26, 2020]

Article 45(Attendance at meetings of board of directors) #

A public official designated by the Minister of Agriculture, Food and Rural Affairs may attend a meeting of the board of directors of the KRA to state opinions. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]

Article 46(Removal of executive officers) #

The removal of an executive officer shall be governed by the Act on the Management of Public Institutions.

[This Article Wholly Amended on May 27, 2009]

Article 47(Enforcement at racecourse and off-course betting center) #

(1) The KRA shall take necessary measures to maintain order at racecourses and off-course betting centers and ensure fair horse racing. <Amended on Jan. 20, 2015>

(2) Matters necessary for the measures under paragraph (1) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on May 27, 2009]

[Title Amended on Jan. 20, 2015]

Article 48(Prohibition of similar acts) #

(1) No person other than the KRA shall perform any of the following acts:

1. Implementing horse racing;

2. Having others conduct acts similar to betting for horse racing implemented by the KRA and distributing goods or property interests to the winning ticket holders.

(2) No person shall perform any of the following acts:

1. Having others participate in electronic betting or conduct acts similar thereto in Korea for horse races held overseas and distributing goods or property interests to the winning ticket holders;

2. Making a purchase of betting tickets or anything similar thereto on behalf of others, arranging such purchase, or transferring betting tickets, for the purpose of making a profit.

(3) No person shall perform any of the following acts: <Amended on Jun. 20, 2023>

1. Reproducing, modifying, or transmitting race odds, race screens and audio, computer program works (including electronic documents on race information), etc. provided by the KRA for the purpose of conducting the acts specified in paragraph (1) or (2);

2. Designing, manufacturing, distributing, or making available to the public a system for selling betting tickets or anything similar thereto through information and communications networks for the purpose of conducting the acts specified in paragraph (1) or (2);

3. Publicizing the acts specified in paragraph (1) or (2).

[This Article Wholly Amended on Feb. 3, 2015]

Article 49(Restrictions on purchase of betting tickets) #

(1) The KRA shall not sell betting tickets to minors (in cases of electronic betting tickets, referring to persons under the age of 21; hereafter in this Article, the same shall apply). <Amended on Jun. 20, 2023>

(2) None of the following persons shall purchase, arrange the purchase of, or transfer, betting tickets: <Amended on Jan. 20, 2015; Jun. 20, 2023>

1. A public official of a supervisory agency of the KRA, who is in charge of the business affairs related to the KRA;

2. An executive officer or employee of the KRA;

3. A trainer, jockey, or groom;

4. A minor;

5. A person who engages in holding horse racing.

[This Article Wholly Amended on May 27, 2009]

Article 49-2(Granting monetary awards) #

The chairperson of the KRA may grant a monetary award to a person who files a report on, or a criminal charge against, another person who commits an act falling under the penalty provisions of Article 50 (1), subparagraph 1, 2, 8, or 9 of Article 51, or subparagraph 1 of Article 53 with the competent administrative agency, the KRA, or an investigative agency, as prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Amended on Mar. 23, 2013; Feb. 3, 2015; May 26, 2020>

[This Article Wholly Amended on May 27, 2009]

Article 49-3(Legal fiction as public officials for purposes of applying penalty provisions) #

A non-public official member of the Horse Racing Supervisory Committee shall be deemed to be a public official for purposes of applying Articles 127 and 129 through 132 of the Criminal Act.

[This Article Added on May 26, 2020]

Article 50(Penalty provisions) #

(1) Any of the following persons shall be punished by imprisonment with labor for not more than seven years or by a fine not exceeding 70 million won: <Amended on Feb. 3, 2015; Mar. 24, 2020>

1. A person who violates Article 48 (1), (2), or (3) 1;

2. A person who gambles on a race implemented by the KRA and aids such gambling;

3. A person who falls under the subparagraphs of Article 49 (2) (except subparagraph 4 of that paragraph) and becomes the other party to an act specified in subparagraph 2;

4. A person who uses drugs, medicines, or other substances that temporarily increase or decrease a competing horse's ability to race;

5. A jockey who does not use a horse's full capacity in a race for the purpose of gaining, or causing another to gain, goods or property interests in horse racing;

6. A person who commits an illegal act that constitutes a crime specified in subparagraph 1 or 2 of Article 51.

(2) A person who attempts to commit a crime specified in paragraph (1) 1 through 5 shall be punished. <Added on Feb. 3, 2015>

(3) Imprisonment with labor and a fine may be imposed concurrently on a person specified in paragraph (1) 1 through 5. <Added on Feb. 3, 2015>

[This Article Wholly Amended on May 27, 2009]

Article 51(Penalty provisions) #

Any of the following persons shall be punished by imprisonment with labor for not more than five years or a by fine not exceeding 50 million won; provided, in the case of subparagraphs 8 and 9, imprisonment with labor and a fine may be imposed concurrently: <Amended on Mar. 24, 2020; Jun. 20, 2023>

1. A trainer, jockey, or groom who receives, demands, or agrees to receive, goods or property interests in return for an improper solicitation in connection with his or her business affairs;

2. A trainer, jockey, or groom who causes, demands, or promises the offering of goods or property interests to a third party, in return for an improper solicitation in connection with his or her business affairs;

3. A person who agrees to give, offers, or expresses an intention to offer, goods or property interests under subparagraph 1 or 2;

4. A person who uses fraud or physical force to undermine fairness in horse racing or interfere with the implementation thereof;

5. A person who interferes with the conduct of a race by entering a racecourse, exhibition hall (referring to a place where spectators can check the condition of the competing horses before a race), horse movement passage, etc. without permission or by throwing objects, or a person who interferes with the conduct of a race by threatening the safety of race management personnel such as jockeys and organizing members;

6. A person who fails to file for registration of an owner under Article 11 (1) and enters his or her horse in a race under the name of another owner;

7. A person who conducts an act specified in 11 (4) 5;

8. A person who becomes the other party to an act specified in Article 48 (1) or (2);

9. A person who violates Article 48 (3) 2;

10. A person who violates Article 49 (2).

[This Article Wholly Amended on Feb. 3, 2015]

Article 52 #

Deleted. <Feb. 3, 2015>

Article 53(Penalty provisions) #

Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine of not more than 30 million won; provided, in the case of subparagraph 1, imprisonment with labor and a fine may be imposed concurrently: <Amended on Jun. 20, 2023>

1. A person who violates Article 48 (3) 3;

2. A person who violates Article 49 (1).

[This Article Wholly Amended on Feb. 3, 2015]

Article 54 #

Deleted. <Feb. 3, 2015>

Article 55 #

Deleted. <Feb. 3, 2015>

Article 56(Confiscation and punitive collection) #

Goods referred to in Article 50 (1) 1 through 3 and 6 and subparagraphs 1 through 3 and 8 of Article 51 shall be confiscated; provided, where it is impracticable to confiscate any goods or where any property interests are acquired, the value thereof shall be punitively collected. <Amended on Feb. 3, 2015>

[This Article Wholly Amended on May 27, 2009]

Article 57(Concurrent imposition of suspension of qualification) #

With respect to the crimes specified in Article 50 (1) 6 and subparagraphs 1 through 3 of Article 51, suspension of qualification for not more than 10 years may be concurrently imposed. <Amended on Feb. 3, 2015; Jun. 20, 2023>

[This Article Wholly Amended on May 27, 2009]

Article 58 #

Deleted. <Feb. 3, 2015>

Article 59 #

Deleted. <Feb. 3, 2015>

Article 60 #

Deleted. <Feb. 3, 2015>

Article 61(Administrative fines) #

(1) Any of the following persons shall be subject to an administrative fine not exceeding one million won; provided, the provisions of subparagraphs 1, 2, and 4 through 7 shall apply only to an executive officer of the KRA or an organizing member under Article 17: <Amended on Mar. 23, 2013; May 26, 2020; Jun. 20, 2023>

1. A person who installs racecourses without obtaining permission under Article 4 (1);

2. A person who violates an order under Article 4 (2);

3. A person who uses the name the Korea Racing Authority or any similar name, in violation of Article 22;

4. A person who fails to obtain approval for matters that require approval from the Minister of Agriculture, Food and Rural Affairs under Articles 6-2 (2), 6-3 (3), 40, 41, and 42 (5);

5. A person who violates Article 42 (1) through (4);

6. A person who fails to file a report under Article 44 (2) or files a false report or who refuses, obstructs, or evades an inspection under that paragraph;

7. A person who fails to comply with an improvement order issued under Article 44-3 (3).

(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Agriculture, Food and Rural Affairs, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 27, 2009]