CONSUMER COOPERATIVES ACT

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CONSUMER COOPERATIVES ACT — 법갈피

Article 33(Restrictions on Election Campaign) #

(1) No person shall do any of the following acts for the purpose of causing himself or herself or any specific person to succeed or fail in an election of an executive officer or representative of a cooperative:

1. Any of the following acts done for a cooperative member (including a person who has filed an application for membership in a cooperative: the same shall apply hereafter in this Article) or any of his or her family members or for an institution, organization, or facility established and operated by a cooperative member or any of his or her family members:

(a) Offering money, goods, entertainment, or any other interest in property;

(b) Providing a public or private job;

(c) Expressing his or her intention to offer money, goods, entertainment, or any other interest in property or to provide a government or private job, or promising to offer such favor;

2. Committing an act under any item of subparagraph 1 against a person who intends to become a candidate or who is a candidate with intent to have the person fail to become a candidate or to have the person resign from the candidate;

3. Receiving any benefit or job as referred to in subparagraph 1 or 2, accepting the expression of an intention to provide such benefit or job, or demanding or arranging the provision thereof.

(2) No person who intends to become an executive officer or representative shall visit cooperative members from door to door or solicit cooperative members to gather in a specific place for an election campaign from the announcement date of an election to an election day. <Amended on Dec. 8, 2020>

(3) No person shall slander a candidate by publishing any false information or disclosing any fact publicly in a speech or by poster or any other means in connection with an election of an executive officer or representative of a cooperative.

(4) No person shall conduct an election campaign by any means, other than the following means, in connection with an election of an executive officer or representative: <Amended on May 22, 2013>

1. Posting propaganda posters;

2. Distribution of election campaign bulletins;

3. Distributing printed leaflets;

4. Holding joint speeches or public forums;

5. Soliciting supporters by telephone or computer telecommunications networks.

Article 72(Authorization for Establishment) #

(1) In order to establish a national federation, federations or cooperatives shall prepare articles of incorporation as promoters, obtain a resolution thereon at the inaugural general meeting, and then obtain authorization therefor from the Fair Trade Commission.

(2) Where a federation that is qualified for membership in a national federation classified under the subparagraphs of Article 70 becomes a promoter, the total number of promoters necessary for the establishment of a national federation under paragraph (1) shall be at least 15 cooperatives, which is the sum of the number of cooperatives belonging to the relevant federation participating in establishment as a promoter and cooperatives that do not belong to any federation participating therein as a promoter but participate in establishment as promoters, and the total number of cooperatives consenting to establishment shall be at least 1/2 of the number of all authorized cooperatives that are qualified for membership in a national federation classified under the subparagraphs of Article 70. In such cases, if a federation submits a written consent to the establishment, the cooperatives belonging to the federation shall be deemed to have submitted a written consent thereto. <Amended on Dec. 7, 2021>

(3) A resolution at the inaugural general meeting shall be adopted with the attendance of a majority of cooperatives consenting to establishment and by concurrent votes of at least 2/3 of the cooperatives present at the meeting. If a federation attends the inaugural general meeting and exercises its voting right at the meeting, the cooperatives belonging to the federation shall be deemed to attend the inaugural general meeting and exercise their voting rights at the meeting.

(4) The total amount of equity required for the establishment of a national federation under paragraphs (1) through (3) and other matters regarding the standards and procedure for authorization shall be prescribed by Presidential Decree.

Article 81(Supervision and Entrustment of Authority) #

(1) A Mayor/Do Governor (referring to the Mayor/Do Governor who has authorized establishment; the same shall apply hereafter in this Chapter) may supervise business operations of each cooperative and issue orders necessary therefor, as provided in this Act.

(2）The Fair Trade Commission may supervise business operations of each federation and national federation and issue orders necessary therefor, as provided in this Act: Provided, That part of such supervision duties may be delegated to each Mayor/Do Governor, if necessary.

(3) In any of the following cases, a Mayor/Do Governor may require a cooperative (including a cooperative undergoing incorporation; the same shall apply hereafter in this Article) to report matters regarding its business and property or may authorize public officials under his or her control to inspect the current status of its business, accounting books, and documents and other necessary matters:

1. Where it is necessary to ascertain whether a cooperative complies with the procedure for establishment or meets the standards for authorization under Article 21;

2. Where it is necessary to ascertain whether a cooperative violates this Act, an order issued under this Act, or articles of incorporation;

3. Where it is necessary to ascertain whether a cooperative that provides health and medical services violates the Medical Service Act.

(4) A public official who conducts an inspection pursuant to paragraph (3) shall carry a certificate indicating his or her authority and present it to interested persons.

(5) If a Mayor/Do Governor discovers, upon supervision under paragraph (1), that a cooperative violates an order issued under this Act or articles of incorporation, he or she may order the cooperative to take measures for rectification.

(6) If the Fair Trade Commission deems it necessary for the efficient enforcement of this Act and the formulation of policies on cooperatives, it may require a Mayor/Do Governor to conduct an investigation, inspection, or verification with regard to a cooperative, to demand that a cooperative submit data or take measures necessary for rectification.

(7) If deemed necessary for the efficient enforcement of this Act and the robust growth and development of cooperatives, the Fair Trade Commission or a Mayor/Do Governor may entrust part of supervision duties to a national federation established pursuant to this Act or to the National Health Insurance Service provided in Article 13 of the National Health Insurance Act, as prescribed by Presidential Decree. <Amended on Mar. 29, 2016>

[Title Amended on Mar. 29, 2016]

Article 88(Administrative Fines) #

(1) Any person who violates Article 4 (2) shall be subject to an administrative fine not exceeding five million won.

(2) If a cooperative or federation violates any of the following, it shall be subject to an administrative fine not exceeding three million won: <Amended on Mar. 29, 2016>

1. If a cooperative fails to indicate the fact that its own medical institution has been founded by a cooperative, in violation of Article 4 (3);

2. If a cooperative permits a cooperative member to hold equity shares in excess of 20/100 of the total number of equity shares of the cooperative (40/100 in cases to which this subparagraph applies mutatis mutandis under Article 59 or 71), in violation of Article 15 (2) (including cases applicable mutatis mutandis under Article 59 or 71);

3. If a cooperative gives unequal right to vote on resolutions or in elections to cooperative members according to the number of equity shares, in violation of Article 16 (1);

4. If a cooperative or federation permits any person, other than a cooperative member or a member cooperative or federation, to use the business services of the cooperative or federation, in violation of Article 46 (1) or 67 (1) (including cases applicable mutatis mutandis under Article 78).

(3) If an executive officer, employee, or liquidator of a cooperative or federation falls under any of the following subparagraphs, such person shall be subject to an administrative fine not exceeding one million won: <Amended on Mar. 29, 2016>

1. Neglecting to file for registration;

2. If he or she makes a false statement or submits a false report to a supervisory agency or the general assembly, or conceals a fact;

3. If he or she refuses, interferes with, or evades an inspection of a supervisory agency.

4. Failing to keep a sales account on health and medical services provided to non-members separate from that on health and medical services provided to his or her members, in violation of Article 47 (5).

(4) Administrative fines prescribed in the provisions of paragraphs (1) through (3) shall be imposed and collected by the Minister of Health and Welfare or Mayors/Do Governors, as prescribed by Presidential Decree.

CONSUMER COOPERATIVES ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Corporate Personality and Address) #

Article 4(Name) #

Article 5(Business Territory) #

Article 6(Basic Principles) #

Article 7(Prohibition of Involvement in Election of Public Officials) #

Article 8(Responsibilities of Cooperatives or Federations) #

Article 9(Cooperation of the State) #

Article 9-2(Formulation of Policies on Cooperatives) #

Article 10(Cooperation with Other Cooperatives or Federations) #

Article 11(Relationship to Other Statutes) #

Article 12(Application Mutatis Mutandis of Other Statutes) #

Article 13(Qualification for Membership) #

Article 14(Accession) #

Article 15(Investment) #

Article 16(Voting Rights on Resolutions or in Elections) #

Article 17(Apportionment and Collection of Expenses) #

Article 18(Withdrawals) #

Article 19(Expulsion) #

Article 20(Right to Request Refund of Equity Shares) #

Article 21(Authorization for Establishment) #

Article 22(Registration for Incorporation) #

Article 23(Articles of Incorporation) #

Article 24(Bylaws or Regulations) #

Article 25(General Meetings) #

Article 26(Matters Subject to Resolution at General Meeting) #

Article 27(Quorum for Proceedings and Resolutions and Exercise of Voting Rights on Resolutions at General Meetings) #

Article 27-2(Exercise of Right to Vote on Resolutions and in Elections in Writing or by Electronic Means) #

Article 28(Matters Subject to Special Resolution at General Meetings) #

Article 29(Minutes of General Meeting) #

Article 30(General Meeting of Representatives) #

Article 31(Executive Officers) #

Article 32(Term of Office for Executive Officers) #

Article 33(Restrictions on Election Campaign) #

Article 34(Organization and Operation of Election Committee) #

Article 35(Responsibilities of Executive Officers) #

Article 36(Duties of President and Directors) #

Article 37(Duties of Auditor) #

Article 38(Auditors' Authority to Represent) #

Article 39(Dismissal of Executive Officers) #

Article 40(Grounds for Disqualification of Executive Officers) #

Article 40-2(Separate Sentence of Punishment of Fines) #

Article 41(Board of Directors) #

Article 42(Matters subject to Resolution by Board of Directors) #

Article 43(Prohibition of Holding Concurrent Office by Executive Officers) #

Article 44(Duty to Keep Documents) #

Article 45(Types of Business Services) #

Article 46(Use of Business Services) #

Article 46-2(Establishment of Medical Institutions by Health and Medical Cooperatives) #

Article 47(Fiscal Year and Accounting) #

Article 48(Business Plan, Budget, and Closing of Accounts) #

Article 49(Reserves) #

Article 50(Compensation for Losses and Distribution of Surplus) #

Article 51(Prohibition of Acquisition of Equity Shares) #

Article 52(Merger and Division) #

Article 53(Dissolution) #

Article 54(Registration of Dissolution) #

Article 55(Liquidator) #

Article 56(Disposal of Residual Property) #

Article 57(Qualification for Membership) #

Article 58(Withdrawals) #

Article 59(Provisions Applicable Mutatis Mutandis) #

Article 60(Authorization for Establishment) #

Article 61(Provisions Applicable Mutatis Mutandis) #

Article 62(General Meetings) #

Article 63(Executive Officers) #

Article 64(Provisions Applicable Mutatis Mutandis) #

Article 65(Types of Business Services) #

Article 66(Mutual Aid Regulations) #

Article 67(Use of Business Services) #

Article 68(Provisions Applicable Mutatis Mutandis) #

Article 69(Provisions Applicable Mutatis Mutandis) #

Article 70(Classification of National Federations and Qualifications for Membership) #

Article 71(Provisions Applicable Mutatis Mutandis) #

Article 72(Authorization for Establishment) #

Article 73(Provisions Applicable Mutatis Mutandis) #

Article 74(General Meetings) #

Article 75(Executive Officers) #