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ACT ON LIVESTOCK FARM ALLIANCE SYSTEMS — 법갈피

영문법령 / ACT ON LIVESTOCK FARM ALLIANCE SYSTEMS

ACT ON LIVESTOCK FARM ALLIANCE SYSTEMS

법률타법개정시행 2021-12-30농림축산식품부 · 제17799호 · 공포 2020-12-29

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to contribute to soundly developing the livestock industry and national economy by strengthening the competitiveness of farmers raising livestock and vertical integrators in the livestock industry; and by promoting fair trade and mutual cooperation between farmers raising livestock and vertical integrators in the livestock industry by providing for matters necessary for vertical integration in the livestock industry.

Article 2(Definitions) #

The terms used in this Act shall be defined as follows: <Amended on Jan. 15, 2019>

1. The term "livestock" means cattle, poultry, etc. under subparagraph 1 of Article 2 of the Livestock Industry Act;

2. The term "breeding stock" means livestock for breeding (including eggs for breeding) under subparagraph 2 of Article 2 of the Livestock Industry Act;

3. The term "livestock products" means livestock products, etc. under subparagraph 3 of Article 2 of the Livestock Industry Act;

4. The term "livestock industry vertical integration" (hereinafter referred to as "vertical integration") means that a vertical integrator defined in subparagraph 5 supplies breeding materials, etc., such as livestock and feed to a farmer raising livestock under contract defined in subparagraph 6 to make the farmer raise livestock, and receive raised livestock or livestock products produced from such livestock from the farmer raising livestock under contract in return;

5. The term "livestock industry vertical integrator" (hereinafter referred to as "vertical integrator") means a person who engages in vertical integration by entering into a contract with farmers raising livestock under contract defined in subparagraph 6;

6. The term "farmer raising livestock under contract" (hereinafter referred to as "contract farmer") means a person who ships livestock or livestock products produced from the livestock to a vertical integrator after raising the livestock by concluding a contract with the vertical integrator;

7. The term "amount payable to farmers" means any of the following prices regardless of pretexts or methods of payment:

Article 5-7(Disposition of penalty surcharges imposed in lieu of disposition of suspension of business) #

(1) Where a vertical integrator falls under Article 5-6 (1) 3 or 4 and the suspension of business is likely to cause inconvenience to users, such as contract farmers, or inflict harm on the public interest, the Mayor/Do Governor may impose a penalty surcharge not exceeding 500 million won in lieu of the disposition of suspension of business.

(2) Amounts of and calculation standards for penalty surcharges depending on the types, seriousness, etc. of offenses subject to the imposition of penalty surcharges prescribed in paragraph (1), and other necessary matters therefor shall be prescribed by Presidential Decree.

(3) If necessary to impose a penalty surcharge, a Mayor/Do Governor may request the head of the competent tax office to provide taxation information with a document stating the following:

1. Personal information of a taxpayer;

2. Purposes of using the taxation information;

3. Sales amounts serving as a basis of imposing a penalty surcharge.

(4) Where a person liable to pay a penalty surcharge prescribed in paragraph (1) fails to pay it by the deadline for payment, the Mayor/Do Governor shall take the disposition of suspension of business prescribed in Article 5-6 (1) or collect it by the Act on the Collection of Local Administrative Penalty Charges, revoking the disposition of imposition of a penalty surcharge prescribed in paragraph (1), as prescribed by Presidential Decree; provided, where it is impracticable to take the disposition of suspension of business due to the closure of business, etc. prescribed in Article 5-4, he or she shall collect it by the Act on the Collection of Local Administrative Penalty Charges. <Amended on Mar. 24, 2020>

(5) Penalty surcharges imposed and collected pursuant to paragraph (1) and the proviso of paragraph (4) shall be reverted to the local governments to which the imposing and collecting agencies belong.

[This Article Added on Jan. 15, 2019]

Article 7(Preparation of written contract) #

(1) Upon concluding a contract on raising livestock with a contract farmer, the vertical integrator shall issue a contract stating the matters specified in the subparagraphs of paragraph (2) (including electronic documents defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply) to the contract farmer: <Amended on Mar. 23, 2013; Jan. 15, 2019>

1. Deleted; <Jan. 15, 2019>

2. Deleted; <Jan. 15, 2019>

3. Deleted; <Jan. 15, 2019>

4. Deleted. <Jan. 15, 2019>

(2) The contract prescribed in paragraph (1) shall include the following: <Added on Jan. 15, 2019>

1. Matters concerning the standards for quality and labelling of quality of breeding materials supplied by the vertical integrator, such as livestock and feed;

2. Matters concerning the methods for calculating the prices of breeding materials the vertical integrator supplies to the contract farmer, such as livestock and feed;

3. Matters concerning the standards for the quality of livestock shipped by the contract farmer;

4. Matters concerning the detailed statements, methods of payment, and deadline for payment of amounts payable to farmers or farmer's charges;

5. Matters concerning the methods for evaluating the results of raising livestock and methods for calculating amounts payable to farmers based thereon;

6. Matters concerning ownership to the livestock the contract farmer raises by receiving it from the vertical integrator;

7. Matters concerning standards for granting permission for livestock farming business prescribed in Article 22 (2) of the Livestock Industry Act and the obligations and responsibilities of persons who obtain permission for livestock farming business prescribed in Article 26 (1) of the same Act to perform the matters to be observed;

8. Matters concerning mutual obligations and responsibilities for the prevention of contagious animal diseases;

9. Matters concerning obligations and responsibilities to perform an order for slaughter prescribed in Article 20 of the Act on the Prevention of Contagious Animal Diseases;

10. Matters concerning the receipt of compensation for slaughter prescribed in Article 48 of the Act on the Prevention of Contagious Animal Diseases;

11. Matters concerning the receipt of amounts of the disaster insurance for livestock prescribed in subparagraph 2 of Article 2 and Article 4 of the Agricultural and Fishery Disaster Insurance Act;

12. Where a contract farmer obtains hazardous analysis and critical control points prescribed in Article 9 (1) of the Livestock Products Sanitary Control Act, certification of organic livestock products prescribed in Article 19 (2) of the Act on the Promotion of Environment-Friendly Agriculture and Fisheries and the Management of and Support for Organic Foods, and certification of antibiotic-free livestock products prescribed in Article 34 (2) of the same Act, matters concerning certification costs, payment of additional amounts payable to farmers, and standards, methods, etc. for supplying breeding materials;

13. Matters concerning the guarantee of payment of amounts payable to farmers for the protection of rights of contract farmers to receive amounts payable to farmers;

14. Matters concerning the guarantee of payment of farmer's charges for the protection of claims for breeding materials, such as livestock and feed the vertical integrator supplies to the contract farmer;

15. Other matters prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs, such as breeding facilities.

(3) The contract farmer and the vertical integrator shall affix their signatures (including electronic signature defined in subparagraph 2 of Article 2 of the Digital Signature Act) to the contract prescribed in paragraph (1) or affix their signatures and seals to the contract, and the vertical integrator shall not request preparations for the performance of the contract, such as preparation for raising livestock, facilities, etc. before concluding a contract. <Added on Jan. 15, 2019; Jun. 9, 2020>

(4) The Minister of Agriculture, Food and Rural Affairs may designate a standard contract in consultation with the Fair Trade Commission and recommend vertical integrators, etc. to use it to establish fair trade order. <Amended on Mar. 23, 2013; Jan. 15, 2019>

(5) A vertical integrator recommended by the Minister of Agriculture, Food and Rural Affairs to use a standard contract shall, when using a contract different from the standard contract, indicate the major matters determined differently from those in the standard contract in a manner easily noticeable by the contract farmer. <Added on Jan. 15, 2019>

(6) The Minister of Agriculture, Food and Rural Affairs may determine and publicly notify matters concerning quality standards and quality indication of materials for raising livestock under paragraph (2) 1; matters concerning quality standards of livestock shipped by contract farmers under subparagraph 3 of the aforesaid paragraph; and matters concerning facilities for raising livestock under subparagraph 15 of the aforesaid paragraph. <Amended on Mar. 23, 2013; Jan. 15, 2019>

Article 8(Payment of costs) #

(1) Amounts payable to farmers or farmer's charges that are mutually paid between contract farmers and vertical integrators under contract shall be paid in cash in principle; provided, where the both parties owe a liability to each other and both parties' period of performing the liability arrives, they may offset an equivalent amount, and in such case, they shall follow the Civil Act or the agreement made between the both parties to the contract. <Amended on Jan. 15, 2019>

(2) Where livestock have been shipped to a vertical integrator by a contract farmer, the vertical integrator shall immediately issue a receipt irrespective of whether livestock have been inspected.

(3) A vertical integrator may calculate and pay amounts payable to farmers based on the results of evaluating the results of raising livestock prescribed in Article 7-2. <Added on Jan. 15, 2019>

(4) The deadline for paying amounts payable to farmers shall be determined within the shortest period not exceeding 20 business days from the date the shipment of livestock or livestock products is completed (where compensation prescribed in Article 48 (1) 3 of the Act on the Prevention of Contagious Animal Diseases and insurance proceeds prescribed in subparagraph 5 of Article 2 of the Agricultural and Fishery Disaster Insurance Act are paid due to the dying, etc. of livestock, the date of such payment); provided, where there is any unavoidable cause, such as a natural disaster, the payment deadline may exceed 20 days based on an agreement between a contract farmer and a vertical integrator. <Amended on Jan. 15, 2019>

(5) Where the deadline for paying amounts payable to farmers is not determined or is determined in excess of 20 business days, in violation of the main clause of paragraph (4), the date livestock or livestock products are received (where compensation prescribed in Article 48 (1) 3 of the Act on the Prevention of Contagious Animal Diseases and insurance proceeds prescribed in subparagraph 5 of Article 2 of the Agricultural and Fishery Disaster Insurance Act are paid due to the dying, etc. of livestock, the date of such payment) shall be deemed fixed as the payment deadline. <Amended on Jan. 15, 2019>

(6) Where a vertical integrator pays an amount payable to farmers after the payment deadline without good cause, he or she shall pay the cost of raising livestock plus interest based on the interest rate prescribed by Presidential Decree for the period after the payment deadline. <Amended on Jan. 15, 2019>

(7) The deadline for paying farmer's charges shall be the date a contract farmer receives an amount payable to farmers, and detailed matters, such as the methods and timing of payment and the extension of deadline for payment, shall be determined by the contract between contract farmers and vertical integrators. <Added on Jan. 15, 2019>

[Title Amended on Jan. 15, 2019]

Article 9(Matters to be observed) #

(1) No vertical integrator shall conduct any of the following acts that are feared to harm win-win relationships by which the contract farmer and the vertical integrator can make a complementary development on an equal footing: <Amended on Mar. 23, 2013; Jan. 15, 2019>

1. Inflicting disadvantages on contract farmers by unfairly supplying breeding materials, such as livestock and feed, or receiving livestock or livestock products shipped by contract farmers;

2. Inflicting disadvantages on contract farmers by unfairly paying or settling amounts payable to farmers prescribed in subparagraph 7 of Article 2, compensation prescribed in Article 48 (1) 3 of the Act on the Prevention of Contagious Animal Diseases, and insurance proceeds prescribed in subparagraph 5 of Article 2 of the Agricultural and Fishery Disaster Insurance Act;

3. Inflicting disadvantages on contract farmers with unfair requests related to a vertical integration contract, and revision or non-performance of such contract;

4. Acts other than those provided for in subparagraphs 1 through 3, which are feared to harm win-win relationships between contract farmers and vertical integrators;

5. Deleted; <Jan. 15, 2019>

6. Deleted; <Jan. 15, 2019>

7. Deleted; <Jan. 15, 2019>

8. Deleted. <Jan. 15, 2019>

(2) The types of or standards for the acts in paragraph (1) shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Added on Jan. 15, 2019>

(3) If necessary to prevent acts in violation of paragraph (1), the Minister of Agriculture, Food and Rural Affairs may enact and publish guidelines to be observed by vertical integrators. <Added on Jan. 15, 2019>

(4) No contract farmer shall engage in any of the following: <Amended on Mar. 23, 2013; Jan. 15, 2019>

1. Evading the shipment of livestock where the price of livestock rises;

2. Violating the contract terms concerning the quality of livestock supplied by a vertical integrator and the date of shipment;

3. Unreasonably requesting the vertical integrator to raise amounts payable to farmers, etc.;

4. Inflicting disadvantages on the vertical integrator with amending the contract or failing to perform under the contract without prior notice;

5. Unreasonably requesting matters not specified in the contract;

6. Other acts prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs that disrupt trading order.

Article 9-2(Registration of disclosure documents) #

(1) A vertical integrator shall register the disclosure documents that he or she provides to contract farmers with the Mayor/Do Governor.

(2) The disclosure documents prescribed in paragraph (1) shall include the matters prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs as to the following: <Amended on Dec. 29, 2020>

1. Current status of the vertical integrator in general;

2. Current status of the vertical integration of the vertical integrator (including matters concerning the amounts payable to farmers that he or she pays to the contract farmers);

3. Where a vertical integrator or any of his or her executive officers (referring to executive officers defined in subparagraph 6 of Article 2 of the Monopoly Regulation and Fair Trade Act; hereinafter the same shall apply) falls under any of the following cases, such fact:

(a) Where a vertical integrator or any of his or her executive officers violates this Act, the Monopoly Regulation and Fair Trade Act, or the Act on the Regulation of Terms and Conditions;

(b) Where a vertical integrator or any of his or her executive officers is subject to a final and conclusive court decision declaring his or her defeat or reaches a settlement in a civil case related to a crime of taking possession of or obtaining by fraud another person's property, such as fraud, embezzlement, and dereliction of duty;

(c) Where a vertical integrator or any of his or her executive officers is sentenced to a punishment by taking possession of or obtaining by fraud another person's property, such as fraud, embezzlement, and dereliction of duty;

4. Vertical integrator's charges;

5. Conditions of and restrictions on raising livestock under contract;

6. Detailed procedures and duration of raising livestock under contract;

7. Matters concerning the vertical integrator's supports, and education and training for business management, raising livestock under contract, etc.

(3) Where a vertical integrator intends to change the important matters prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs among the matters entered in the disclosure document registered pursuant to paragraph (1), he or she shall file a registration for the change of such matters entered with the Mayor/Do Governor by the deadline prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs; provided, where he or she intends to change minor matters prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs, he or she shall report thereon.

(4) The Minister of Agriculture, Food and Rural Affairs shall publish the disclosure documents registered, registered for change, or reported pursuant to paragraph (1) or (3); provided, personal information defined in subparagraph 1 of Article 2 of the Personal Information Protection Act and trade secrets defined in subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act shall be excluded therefrom.

(5) Where the Minister of Agriculture, Food and Rural Affairs publishes a disclosure document pursuant to paragraph (4), he or she shall notify the relevant vertical integrator of the matters and methods of publication in advance, and provide the vertical integrator with an opportunity to correct untruthful matters.

(6) To publish disclosure documents pursuant to paragraph (4), the Minister of Agriculture, Food and Rural Affairs may construct and operate an information system within budgetary limits.

(7) To publish disclosure documents pursuant to paragraph (4), the Minister of Agriculture, Food and Rural Affairs may have Mayors/Do Governors put necessary data into the information system prescribed in paragraph (6) or submit necessary data.

(8) Other matters necessary for the registration, registration for change, reporting of disclosure documents, methods and procedures of publication, and construction and operation of the information system shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

[This Article Added on Jan. 15, 2019]

Article 9-6(Prohibition of provision of false or exaggerated information) #

(1) No vertical integrator shall conduct the following acts when providing information to farmers who desire to conclude a contract or contract farmers:

1. Providing false or exaggerated information prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs, such as providing untruthful information or providing information by inflating facts (hereinafter referred to as "provision of false or exaggerated information");

2. Providing deceitful information prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs, such as providing information by means of concealing or diminishing facts that immensely affect the conclusion or maintenance of contract (hereinafter referred to as "provision of deceitful information").

(2) Where a vertical integrator provides any of the following information to farmers who desire to conclude a contract or contract farmers, he or she shall provide such information in writing (hereinafter referred to as "written statement of calculation of estimated return of raising livestock"):

1. Information on the status of expected return in the future of farmers who desire to conclude a contract, including the number of breeding animals, return and net profit of amounts payable to farmers, etc.;

2. Information on the status of return in the past and the status of expected return in the future of contract farmers, including the number of breeding animals, return and net profit of amounts payable to farmers, etc.

(3) Where a vertical integrator provides information pursuant to paragraph (2), he or she shall keep the materials serving as the bases of the calculation of such information and prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs in the office of the vertical integrator, and shall make it possible to inspect such materials any time during business hours when requested by farmers who desire to conclude a contract or contract farmers.

(4) A vertical integrator shall keep written statements of calculation of estimated return of raising livestock for five years from the date the contract is concluded.

[This Article Added on Jan. 15, 2019]

Article 14(Council of contract farmers) #

(1) Contract farmers may voluntarily establish the council of farmers raising livestock under contract (hereinafter referred to as the "council of farmers") to form a mutually equal contractual relationship with, and to create infrastructure for confidence in, a vertical integrator.

(2) Where it is necessary to make changes in connection to the terms and conditions of contract, quality of livestock, feed, etc., plans for raising livestock, disease control, and operation, adjustment of amounts payable to farmers or farmer's charges in consideration of inflation rates, etc., vertical integrators shall determine such changes in consultation with the council of farmers prescribed in paragraph (1); provided, the same shall not apply to contract farmers without the establishment of the council of farmers. <Amended on Jan. 15, 2019>

(3) The council of farmers may request vertical integrators to consult on the matters in paragraph (2). In such case, the vertical integrators shall comply therewith unless there is good cause to the contrary. <Added on Jan. 15, 2019>

(4) Where a dispute arises between a contract farmer and a vertical integrator, the council of farmers may consult with the vertical integrator, representing or on behalf of the contract farmer. <Amended on Jan. 15, 2019>

(5) No vertical integrator shall interfere with the formation and activities of the council of farmers nor conduct acts to inflict disadvantages, etc. on contract farmers on the pretext that the contract farmers form the council of farmers. <Amended on Jan. 15, 2019>

(6) The council of farmers may establish the central council of farmers raising livestock under contract (hereinafter referred to as the "central council of farmers") by the type of livestock to consult on the following matters: <Added on Jan. 15, 2019; May 19, 2020>

1. Matters concerning win-win measures for the complementary development of contract farmers and vertical integrators;

2. Matters concerning the terms and conditions of contract between contract farmers and vertical integrators, amounts payable to farmers, farmer's charges, etc.

(7) Matters necessary for the organization, operation, etc. of councils of farmers and central councils of farmers shall be prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs. <Added on Jan. 15, 2019>

Article 19(Composition of Mediation Committee) #

(1) The Mediation Committee shall be comprised of not more than seven members, including one chairperson. <Amended on Jan. 15, 2019>

(2) Members shall be appointed or commissioned by the Minister of Agriculture, Food and Rural Affairs from among the following persons, and the chairperson shall be elected among and by the members: <Amended on Jan. 15, 2019>

1. A public official of at least Grade IV belonging to the Ministry of Agriculture, Food and Rural Affairs and the Korea Fair Trade Commission (including public officials in general service belonging to the Senior Executive Service) or a person who holds or held office in public institutions equivalent thereto and has experience or professional knowledge in fair trade;

2. A person qualified as a judge, public prosecutor, or attorney-at-law;

3. A person whose major is related to jurisprudence, economy, business management, consumer, and livestock industry and who works or worked for a university or officially recognized research institute as at least an associate professor or in a position equivalent thereto for at least seven years.

(3) The members of the Mediation Committee shall be non-permanent members and the term of office shall be three years, and they may serve consecutive terms. <Amended on Jan. 15, 2019>

(4) Where there occurs a vacancy in the members, a supplementary member shall be commissioned pursuant to paragraph (2), and the term of office of the supplementary member shall be the remaining term of office of his or her predecessor. <Added on Jan. 15, 2019>

(5) No member shall be dismissed against his or her will unless he or she falls under any of the following cases: <Added on Jan. 15, 2019>

1. Where a member is sentenced to a punishment of suspension of qualification or a heavier punishment;

2. Where a member becomes unable to perform his or her duties due to mental or physical disorder;

3. Where a member engages in any misconduct in connection with his or her duties;

4. Where a member is deemed unsuitable as a member due to neglect of a duty or loss of dignity.

Article 25(Application for dispute mediation) #

(1) A contract farmer or a vertical integrator who suffers damage caused by an act related to matters specified in the subparagraphs of Article 17 may apply for dispute mediation by submitting a document stating matters prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs (hereinafter referred to as "application for dispute mediation") to the competent Mayor/Do Governor or to the Mediation Committee; provided, the same shall not apply in any of the following cases: <Amended on Jan. 15, 2019; Dec. 29, 2020>

1. Where it is appropriate to be handled pursuant to Articles 31 and 33 hereof or Articles 49 and 88 of the Monopoly Regulation and Fair Trade Act in consideration of the details, nature, seriousness, etc. of the application for dispute mediation;

2. Where the Ministry of Agriculture, Food and Rural Affairs or the Korea Fair Trade Commission is investigating the case before an application for dispute mediation application is filed;

3. Where a lawsuit is raised at the court;

4. Where dispute mediation by other statutes is in progress or is established;

5. Where it is deemed inappropriate to be mediated by the Medication Committee due to the nature of the case;

6. Where an application for dispute mediation is deemed filed for unjust purposes.

(2) Upon receipt of an application for dispute mediation pursuant to paragraph (1), a Mayor/Do Governor or the Mediation Committee shall accept it after reviewing whether it falls under the acts or cases specified in the subparagraphs of paragraph (1), and notify the parties to the dispute of such acceptance, etc. without delay, as prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs: <Amended on Mar. 23, 2013; Jan. 15, 2019>

1. Deleted; <Jan. 15, 2019>

2. Deleted; <Jan. 15, 2019>

3. Deleted; <Jan. 15, 2019>

4. Deleted. <Jan. 15, 2019>

(3) Where a Mayor/Do Governor accepts an application for dispute mediation pursuant to paragraph (2), he or she shall notify the Mediation Committee of the results of review prescribed in paragraph (2) along with a copy of the application for dispute mediation within 10 days from the date he or she accepts the application for dispute mediation, and may recommend the parties to the dispute to make an agreement, and where they fail to make an agreement within 20 days, he or she shall refer to the Mediation Committee therefor without delay. <Amended on Jan. 15, 2019>

(4) Notwithstanding paragraph (3), where the chairperson of the Mediation Committee deems necessary to take prompt measures in consideration of the details, nature, seriousness, etc. of the application for dispute mediation he or she is notified of by the Mayor/Do Governor pursuant to paragraph (2), he or she may refer to the Mediation Committee therefor by authority without undergoing the procedure during which the Mayor/Do Governor recommends to make an agreement. In such case, he or she shall notify the competent Mayor/Do Governor of such fact. <Amended on Jan. 15, 2019>

(5) An application for dispute mediation prescribed in paragraph (1) shall take the effect of suspending prescription; provided, the same shall not apply where an application is withdrawn or dismissed. <Amended on Jan. 15, 2019>

(6) Where there is a judicial claim, participation in bankruptcy procedures, seizure or provisional seizure, or provisional disposition within six months in cases falling under the proviso of paragraph (5), the prescription shall be deemed suspended by the first application for dispute mediation. <Amended on Jan. 15, 2019>

(7) Prescription suspended pursuant to the main clause of paragraph (5) shall newly proceed from any of the following points of time: <Added on Jan. 15, 2019>

1. When a mediation report is prepared after a dispute mediation is established;

2. When a mediation procedure is terminated without the establishment of a dispute mediation.

[Title Amended on Jan. 15, 2019]

Article 25-2(Mediation of disputes) #

(1) The Mediation Committee may recommend parties to a dispute to make an agreement about the subject matter of the dispute mediation by themselves, or prepare and present a mediation proposal.

(2) Parties to a dispute who receive a recommendation prescribed in a mediation proposal in paragraph (1) shall inform the Mediation Committee of their approval or disapproval for the mediation proposal within 15 days from the date they receive the recommendation. In such case, where there is no declaration of intention within 15 days, they shall be deemed to accept it.

(3) If necessary to verify the truthfulness of the subject matter of the relevant dispute mediation, the Mediation Committee may conduct investigations, or request the submission of relevant materials or appearance to the parties to the dispute or witnesses. In such case, the parties to the dispute shall comply with such request unless there is good cause to the contrary.

(4) The Mediation Committee shall dismiss applications for mediation as to the acts or cases falling under the subparagraphs of Article 25 (1). The same shall apply to disputes Mayors/Do Governors notify of pursuant to Article 25 (3).

(5) The Mediation Committee shall terminate mediation in any of the following cases:

1. Where mediation is established by the acceptance of the recommendation or mediation proposal of the Mediation Committee prescribed in Article 25-2 (1) or submission of an agreement on mediation, etc. by parties to a dispute;

2. Where mediation is not established even after the lapse of 30 days (where both parties to a dispute agree on the extension of the period, 60 days) from the date an application for dispute mediation is received pursuant to Article 25 (1) or from the date a notice of the Mayor/Do Governor is received pursuant to paragraph (3) of the same Article;

3. Where an application for dispute mediation is withdrawn;

4. Where there is no practical benefit from proceeding with mediation procedures due to rejecting mediation or filing a litigation with a court as to the subject matter of the relevant dispute mediation by one party to a dispute.

(6) Where the Mediation Committee dismisses an application for mediation or terminates procedures for mediation, it shall report the sequences of the mediation, grounds of dismissing the application for mediation or terminating the procedures for mediation, etc. to the Minister of Agriculture, Food and Rural Affairs along in writing with relevant documents without delay, as prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs, and notify the parties to the dispute of such fact.

(7) The Minister of Agriculture, Food and Rural Affairs and the Korea Fair Trade Commission shall not take measures for correction nor give a recommendation for correction prescribed in Articles 31 and 33 hereof, or Articles 49 and 88 of the Monopoly Regulation and Fair Trade Act against or to the parties to the relevant dispute until the procedures for mediation terminate as to the subject matter of the dispute mediation by this Act. <Amended on Dec. 29, 2020>

[This Article Added on Jan. 15, 2019]

Article 29-2(Reporting of offenses) #

(1) If deemed necessary for measures for correction prescribed in Article 31 or recommendation to correct offenses prescribed in Article 33, the Minister of Agriculture, Food and Rural Affair may conduct necessary investigations by authority.

(2) Anyone who finds a violation of this Act may report such fact to the Minister of Agriculture, Food and Rural Affairs.

(3) Where the Minister of Agriculture, Food and Rural Affairs conducts an investigation pursuant to paragraph (1) or (2), he or she shall notify the party to the relevant case of the results thereof (where he or she intends to take a disposition, such as an order to take measures for correction as a result of the investigation, including the details of the disposition) in writing.

(4) Where the following periods elapse, the Minister of Agriculture, Food and Rural Affairs shall not order measures for correction nor impose a penalty surcharge prescribed by this Act against offenses in violation of this Act; provided, the same shall not apply where a disposition of measures for correction or imposition of a penalty surcharge is revoked by a court decision and a new disposition is taken on the grounds of the court decision:

1. Where the Minister of Agriculture, Food and Rural Affairs commences an investigation into an offense in violation of this Act, five years from the date the investigation is commenced;

2. Where the Minister of Agriculture, Food and Rural Affairs has not commenced an investigation into an offense in violation of this Act, seven years from the date the relevant offense ends.

(5) If deemed necessary to conduct an investigation on the grounds specified in the subparagraphs of Article 9 (1), the Minister of Agriculture, Food and Rural Affairs or a Mayor/Do Governor shall consult with the Korea Fair Trade Commission before commencing the investigation. Where an investigation prescribed in Article 80 of the Monopoly Regulation and Fair Trade Act is under way or the Korea Fair Trade Commission has taken a measure for correction or imposed a penalty surcharge on the same grounds, he or she shall not take a measure for correction nor impose a penalty surcharge prescribed by this Act. <Amended on Dec. 29, 2020>

[This Article Added on Jan. 15, 2019]

Article 29-3(Investigation of offenses) #

(1) If deemed necessary for the enforcement of this Act, the Minister of Agriculture, Food and Rural Affairs may take the following dispositions, as prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs:

1. Appearance of and listing to the opinions of parties concerned, interested persons, or witnesses;

2. Ordering contract farmers, vertical integrators, or executive officers and employees of vertical integrators to report on the costs and status of business management or to submit necessary materials or things, or keeping materials or things submitted in custody.

(2) If deemed necessary for the enforcement of this Act, the Minister of Agriculture, Food and Rural Affairs may assign the public officials under his or her control to access the offices or places of business of contract farmers and vertical integrators to inspect business, status of business management, account books, documents, computerized data, voice data, image data, and other materials and things prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs, and may assign such public officials to listen to the statements of parties concerned, interested persons, or witnesses at designated places, as prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

(3) A public official who conducts an investigation pursuant to paragraph (2) may order contract farmers, vertical integrators, or executive officers and employees of vertical integrators to submit materials or things necessary for the investigation or keep the materials or things submitted in custody, as prescribed by Decree of the Ministry of Agriculture, Food and Rural Affairs.

(4) A public official who conducts an investigation pursuant to paragraph (2) shall present a certificate indicating his or her authority to relevant persons.

(5) Except as provided in this Act, the details, procedures, methods, etc. of questioning or investigation prescribed in paragraphs (2) and (3) shall be governed by the Framework Act on Administrative Investigations.

[This Article Added on Jan. 15, 2019]

Article 35(Penalty provisions) #

(1) Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 150 million won: <Amended on Oct. 15, 2014; Jan. 15, 2019>

1. A person who engages in vertical integration without filing a registration of vertical integration, in violation of Article 5-2;

2. A person who files a registration prescribed in Article 5-3 by fraud or other improper means;

3. A person who continues to conduct business in violation of an order to suspend business prescribed in Article 5-6;

4. A person who continues to engage in vertical integration prescribed by this Act even after his or her registration is revoked pursuant to Article 5-6;

5. A person who provides false or exaggerated information or deceitful information, in violation of Article 9-6 (1);

6. A person who fails to report or submit necessary materials or things prescribed in Article 29-3 (1) 2 or (3) or reports or submits materials or things in falsehood;

7. A person who refuses, interferes with, or evades an investigation by means of violent language, assault, intentional blocking or postponing access to the site, etc. at the time of conducting an investigation prescribed in Article 29-3 (2);

8. A person who refuses, interferes with, or evades an investigation by means of concealing, disposing of, refusing access to, forging, or fabricating materials at the time of conducting an investigation prescribed in Article 29-3 (2);

9. A person who fails to comply with measures for correction prescribed in Article 31.

(2) Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 50 million won: <Added on Jan. 15, 2019>

1. A person who concludes a vertical integration contract with a person who violates Article 5-3;

2. A person who manufactures or uses a sign indicating the fact that he or she has concluded a contract farmer indemnity insurance contract, etc. or a sign similar thereto, in violation of Article 7-3 (3);

3. A person who concludes a contract, in violation of Article 9-5 (2).

(3) A person who provides or divulges the information or materials he or she acquires to other persons or institutions or uses such information or materials for other than the purposes of his or her duties, in violation of Article 34, shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won. <Added on Jan. 15, 2019>

Article 37(Administrative fines) #

(1) A vertical integrator who commits any of the following offenses shall be subject to an administrative fine not exceeding 50 million won:

1. A person who fails to file a report for change, in violation of Article 5-4 (1);

2. A person who refuses, evades, or interferes with the request of the Minister of Agriculture, Food and Rural Affairs and Mayor/Do Governor to submit data or put data into the computer, or submits or puts in false data, in violation of Article 5-9 (3);

3. A person who violates Article 9 (1);

4. A person who fails to register a disclosure document or registers a false disclosure document, in violation of Article 9-2 (1);

5. A person who fails to file a registration for change by the deadline or files a false registration for change, in violation of the main clause of Article 9-2 (3);

6. A person who fails to submit information falling under any subparagraph of Article 9-6 (2) in writing, in violation of Article 9-6 (2);

7. A person who fails to keep materials serving as bases or fails to comply with a request for materials, in violation of Article 9-6 (3);

8. A person who fails to keep a written statement of calculation of estimated number of breeding animals, in violation of Article 9-6 (4);

9. A person who refuses, interferes with, or evades an investigation or the submission of materials, or submits false materials, in violation of Article 10 (3);

10. A person who changes the terms and conditions of contract, etc. unilaterally without determining them in consultation with the council of farmers in advance, in violation of Article 14 (2);

11. A person who refuses or evades a request of the council of farmers for consultation without good cause, in violation of Article 14 (3);

12. A person who interferes with the organization and activities of the council of farmers, or inflicts disadvantages, etc. on contract farmers on the pretext that the contract farmers form the council of farmers, in violation of Article 14 (5);

13. A person who fails to appear without good cause, in violation of Article 29-3 (1) 1;

14. A person who refuses, interferes with, or evades reporting or inspection prescribed in Article 32 (1);

15. A person who refuses, interferes with, or evades the submission of documents or materials prescribed in Article 32 (1) or (2), or submits false documents or materials;

16. A person who fails to report selling prices or reports false selling prices, in violation of Article 32-2 (1);

17. A person who submits false materials, or refuses or evades the submission of materials, in violation of Article 32-3 (4).

(2) A vertical integrator who commits any of the following offenses shall be subject to an administrative fine not exceeding 30 million won:

1. A person who fails to prepare a contract or fails to render a contract to the contract farmer, in violation of Article 7 (1);

2. A person who fails to include matters to be included in the contract, in violation of Article 7 (2);

3. A person who requires preparations for the performance of contract, such as preparation for raising livestock, facilities, etc. before concluding a contract, in violation of Article 7 (3);

4. A person who fails to indicate the major matters different from those in the standard contract in a manner easily noticeable by the contract farmer, in violation of Article 7 (5);

5. A person who fails to file a report for the change of a disclosure document or files a false report, in violation of the proviso of Article 9-2 (3).

(3) A contract farmer who commits any of the following offenses shall be subject to an administrative fine not exceeding 10 million won:

1. A person who violates Article 9 (4);

2. A person who fails to appear without good cause, in violation of Article 29-3 (1) 1;

3. A person who refuses, interferes with, or evades reporting or inspection prescribed in Article 32 (1);

4. A person who refuses, interferes with, or evades the submission of documents or materials prescribed in Article 32 (1) or (2) or submits false documents or materials.

(4) Where an executive officer, worker, or other interested person of a vertical integrator commits an offense falling under any subparagraph of paragraphs (1) and (2), the offender shall be also subject to an administrative fine not exceeding 10 million won.

(5) Mayors/Do Governors shall impose and collect administrative fines prescribed in paragraphs (1) through (4), as prescribed by Presidential Decree.

[This Article Added on Jan. 15, 2019]

ACT ON LIVESTOCK FARM ALLIANCE SYSTEMS

Article 1(Purpose) #

Article 2(Definitions) #

Article 3 #

Article 4(Formulation and implementation of master plan and action plan) #

Article 5(Supply and demand regulation) #

Article 5-2(Prohibition of unregistered business) #

Article 5-3(Registration of vertical integration) #

Article 5-4(Reporting for change) #

Article 5-5(Grounds for disqualification) #

Article 5-6(Revocation of registration) #

Article 5-7(Disposition of penalty surcharges imposed in lieu of disposition of suspension of business) #

Article 5-8(Succession to effect of administrative dispositions) #

Article 5-9(Construction and operation of information system) #

Article 6(Principle of good faith) #

Article 7(Preparation of written contract) #

Article 7-2(Evaluation of results of raising livestock) #

Article 7-3(Contract farmer indemnity insurance contract) #

Article 8(Payment of costs) #

Article 9(Matters to be observed) #

Article 9-2(Registration of disclosure documents) #

Article 9-3(Refusal of registration of disclosure documents) #

Article 9-4(Revocation of registration of disclosure documents) #

Article 9-5(Obligation of provision of disclosure documents) #

Article 9-6(Prohibition of provision of false or exaggerated information) #

Article 10(Evaluation and grading of vertical integrators) #

Article 11 #

Article 12 #

Article 13 #

Article 14(Council of contract farmers) #

Article 15 #

Article 16(Establishment of Dispute Mediation Committee on Livestock Industry Vertical Integration) #

Article 17(Affairs under jurisdiction of Mediation Committee) #

Article 18 #

Article 19(Composition of Mediation Committee) #

Article 20 #

Article 21(Grounds for disqualification) #

Article 22(Duties of chairperson) #

Article 23(Exclusion, challenge, and abstention of members) #

Article 24 #

Article 25(Application for dispute mediation) #

Article 25-2(Mediation of disputes) #

Article 25-3(Notification of violation) #

Article 26 #

Article 27 #

Article 28(Preparation of mediation report and validity thereof) #

Article 28-2(Operation of Mediation Committee) #

Article 29 #

Article 29-2(Reporting of offenses) #

Article 29-3(Investigation of offenses) #

Article 29-4(Prohibition of abuse of right to investigate) #

Article 29-5(Requests for postponement of investigation) #

Article 30 #

Article 31(Corrective Measures) #

Article 32(Reporting, inspection, and disclosure) #

Article 32-2(Reporting and disclosure of selling prices) #

Article 32-3(Fact-finding surveys in writing) #

Article 33(Recommendation for correction of offenses) #

Article 34(Confidentiality) #

Article 34-2(Liability to compensate damage) #

Article 34-3(Legal fiction as public officials in application of penalty provisions) #

Article 35(Penalty provisions) #

Article 36(Joint penalty provisions) #

Article 37(Administrative fines) #