Article 23(Succession of business) #
(1) When a business operator who has filed a report or registration under Article 16 or 18 intends to transfer his or her business or to merge with another corporation, he or she shall file a report thereon with the head of a Si/Gun/Gu, as prescribed by Decree of the Ministry of Culture, Sports and Tourism. <Amended on Feb. 18, 2020>
(2) A person, who takes over a business operator’ facilities and apparatus (referring to major facilities and apparatus prescribed by Presidential Decree; hereinafter the same shall apply) in accordance with any of the following procedures, shall file a report with the head of a Si/Gun/Gu, as prescribed by Decree of the Ministry of Culture, Sports and Tourism. <Amended on Feb. 18, 2020>
1. Auction under the Civil Execution Act;
2. Realization under the Debtor Rehabilitation and Bankruptcy Act;
3. Sales of seized property provided in the National Tax Collection Act, the Customs Act or the Local Tax Collection Act;
4. Procedures corresponding to those referred to in subparagraphs 1 through 3.
(3) Where a business operator is deceased, if his or her heir intends to continue to engage in music record and music-video production business, music record and music-video distribution business, online music service business, or karaoke business, the heir shall report thereon to the head of the competent Si/Gun/Gu within 30 days from the date of the decedent’s death, as prescribed by Decree of the Ministry of Culture, Sports and Tourism. <Amended on Feb. 18, 2020>
(4) With regard to karaoke business registered under Article 18, the head of a Si/Gun/Gu shall notify a person who files a report of whether the report is accepted within 7 days from the date of receipt of the report under paragraphs (1) through (3). <Amended on Feb. 18, 2020; Mar. 25, 2025>
(5) Where the head of a Si/Gun/Gu fails to notify a person who has filed a report of whether to accept it or the extension of handling period pursuant to the statutes or regulations related to civil petition handling within the period prescribed in paragraph (4), the report shall be deemed accepted on the date following the end of such period (referring to the relevant extended handling period in cases of the extension or re-extension of the handling period under the statutes or regulations related to civil petition handling). <Added on Feb. 18, 2020>
(6) Where the head of a Si/Gun/Gu receives a report from a music record and music-video production business entity, a music record and music-video distribution business entity, or an online music service business entity under paragraph (1) or (2), or accepts a report from a karaoke business entity (including cases where a report is deemed accepted under paragraph (5)), a person who acquires all the facilities and apparatus of a transferee, a corporation or business entity newly established by merger or surviving after merger shall succeed to the status of the previous business entity as of the date of such acquisition, merger, or succession. <Amended on Mar. 25, 2025>
(7) Where the head of a Si/Gun/Gu receives a report from a music record and music-video production business entity, a music record and music-video distribution business entity, or an online music service business entity under paragraph (3), or accepts a report from a karaoke business entity under paragraph (3) (including cases where the report is deemed accepted under paragraph (5)), the heir shall succeed to the status of the decedent as a business entity; During the period from the date of the decedent's death to the date on which the head of the Si/Gun/Gu receives or accepts such report (including the date on which the report is deemed accepted under paragraph (5)), the registration or report of the music record and music-video production business, a music record and music-video distribution business, or an online music service business, or karaoke business regarding the decedent shall be deemed the registration or report of the relevant business regarding the heir. <Amended Mar. 25, 2025>
(8) Where a person succeeds to the status of a business operator in accordance with paragraphs (1) through (7), the effects of an administrative disciplinary disposition imposed on the preceding business operator for a violation of any subparagraph of Article 27 (1) are transferred to the person succeeding to the status of the preceding business operator and remain effective against the successor for one year from the day the administrative disciplinary disposition was made, and where proceedings for an administrative disciplinary disposition are pending, the proceedings may continue against the person who succeeds to the status of the preceding business operator; provided, the proceedings may not continue where the person who succeeded to the status of a business operator was unaware of such disposition or violation as at the time of his or her succession.
(9) Where a business operator discontinued his or her business, but his or her spouse or lineal relative by blood (hereinafter referred to as "spouse or lineal relative by blood") has commenced the same type of business at the same place of business, the effects of an administrative disciplinary disposition imposed on the preceding business operator for a violation of any subparagraph of Article 27 (1) are transferred to the spouse or lineal relative by blood and remain effective against the spouse or lineal relative by blood for one year from the day the administrative disciplinary disposition was made, and in cases where proceedings for an administrative disciplinary disposition are pending, the proceedings may continue against the spouse or lineal relative by blood; provided, the proceedings may not continue where the spouse or lineal relative by blood was unaware of such disposition or violation at the time of his or her commencement of the business.
[This Article Wholly Amended on Dec. 24, 2018]