Article 12(Cancellation of business license) #
(1) Where an electric utility business entity falls under any of the following cases, the permitting authority may revoke his or her license; or may issue an order to suspend his or her business for a specified period not exceeding six months, subject to deliberation by the Electricity Regulatory Commission (excluding the case of electricity business in which the licensee is the mayor/ do governor); provided, his or her license shall be revoked if he or she falls under any of subparagraphs 1 through 4 or 4-2: <Amended on Mar. 23, 2013; May 20, 2014; Oct. 15, 2014; Jun. 12, 2018; Feb. 18, 2020; Mar. 31, 2020; Oct. 18, 2022; Oct. 1, 2025>
1. Where any of the subparagraphs of Article 8 (1) is applicable;
2. Where he or she fails to establish electric installations and to commence business within the period for preparation prescribed in Article 9;
3. Where the foreign investment made in an electricity generation business entity running a nuclear power plant (hereinafter referred to as "nuclear power generation business entity") falls under Article 2 (1) 4 of the Foreign Investment Promotion Act;
4. Where he or she obtains a license or a modified license pursuant to Article 7 (1) by fraud or other improper means;
4-2. Where he or she fails to commence works due to failure to obtain approval of his or her plan for the works under Article 61 (1) without any just ground by the time determined and publicly notified by the Minister of Climate, Energy and Environment;
5. Where he or she fully or partially acquires by transfer the electric utility business, or divides or merges any corporation without obtaining approval therefor pursuant to Article 10 (1);
6. Where he or she refuses to supply electricity without any just ground, in violation of Article 14;
7. Where he or she permits the use of any electric installations or supplies electricity without obtaining approval or modification of approval from the Minister of Climate, Energy and Environment, in violation of Article 15 (1) or 16 (1);
8. Where he or she violates an order issued by the Minister of Climate, Energy and Environment pursuant to Article 18 (3);
9. Where the business entity fail to comply with an order by the permitting authority under Article 23 (1);
10. Where he or she violates an order issued by the Minister of Climate, Energy and Environment under Article 29 (1);
10-2. Where a person who disobeys an order of the Minister of Climate, Energy and Environment issued under Article 31-2 (2);
11. Where an electric utility business entity required to trade electricity only under an agreement on compensation for difference pursuant to Article 34 (2) trades electricity without such agreement on compensation for difference approved under paragraph (3) of the same Article;
12. Where he or she fails to obtain approval or to file a report pursuant to Article 61 (1) through (5);
13. Where he or she performs accounting operations in violation of Article 93 (1);
14. Where he or she operates the electric utility business during a period of business suspension.
(2) The period for preparation in paragraph (1) may not exceed the period determined and notified by the Minister of Climate, Energy and Environment within the scope of 10 years; provided, the permitting authority may extend the period if deemed that any just ground exists. <Amended on Mar. 23, 2013; Feb. 18, 2020; Oct. 1, 2025>
1. Where he or she files for registration of, the business under Article 7-2 (1) or modification thereof under Article 7-2 (4), by fraud or other improper means;
2. Where it ceases to meet the standards for registration under Article 7-2 (3); provided, this shall not apply to cases prescribed by Presidential Decree, such as where a micro enterprise defined in Article 2 of the Framework Act on Micro Enterprises or such other entity temporarily fails to meet the standards for registration;
3. Where any of the subparagraphs of Article 8 (2) is applicable;
4. Where he or she refuses to supply electricity without any just ground, in violation of Article 14;
5. Where he or she violates an order issued by the Minister of Climate, Energy and Environment under Article 23 (1);
6. Where he or she engages in the new electric utility business during a period of business suspension.
(3) In any of the following cases, paragraph (1) or (2) shall not apply for six months after the relevant grounds arise: <Amended on Jun. 12, 2018>
1. Where a corporation falls under Article 8 (1) 6 or Article 8 (2) 3;
2. Where a nuclear power generation business entity falls under paragraph (1) 3;
3. Where a successor to the status of an electric utility business entity falls under any of Article 8 (1) 1 through 5;
4. Where a successor to the status of a new electric utility business entity falls under Article 8 (2) 1 or 2.
(4) Where it is recognized that an electric distribution business entity fails to operate his or her licensed electric utility business in part of his or her business zone, in violation of Article 6, the permitting authority may reduce any part of his or her business zone. <Amended on Mar. 23, 2013; Jun. 12, 2018; Feb. 18, 2020>
(5) In any of the following cases, the permitting authority may impose a surcharge not exceeding 50 million won in lieu of a business suspension order if business suspension is likely to cause considerable inconvenience to electricity consumers, etc., or otherwise jeopardize any public interest, as prescribed by Presidential Decree: <Amended on Jun. 12, 2018; Feb. 18, 2020; Mar. 31, 2020>
1. Any of the entities referred to in Article 1 (3) 5 through 10 and 11 through 14;
2. Where a new electric utility business entity falls under any of paragraph (2) 4 through 6.
(6) The standards for dispositions by type of violation, to be imposed under paragraph (1) or (2) and the standards for imposing surcharges under paragraph (5) shall be determined by Presidential Decree. <Amended on Jun. 12, 2018>
(7) If a person who shall pay a penalty surcharge imposed under paragraph (5) fails to pay it by the payment deadline, the permitting authority shall collect it in the same manner as delinquent national taxes are collected or in accordance with the Act on the Collection of Local Non-Tax Revenue. <Amended on Mar. 23, 2013; Jun. 12, 2018; Feb. 18, 2020; Mar. 24, 2020>
[This Article Wholly Amended on May 21, 2009]