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Government Legislation

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[Background]

According to Article 51 of the Salt Industry Cooperative Act (Law No. 12656, promulgated on May 21, 2014, and effective on November 22, 2014), the Minister of Oceans and Fisheries can issue corrective orders regarding the business or accounting of a salt industry cooperative, or take action against its executives and employees. If the cooperative fails to comply, the Minister can order a full or partial suspension of its business for a period not exceeding six months. The specific standards for this suspension and other necessary matters are delegated to a Ministry of Oceans and Fisheries Ordinance.

This delegation to a ministerial ordinance is intended to ensure proportionality and predictability in taking unfavorable actions, such as a business suspension order, against a specific legal entity or organization. Therefore, there is a legal obligation to establish detailed standards for business suspension through a Ministry of Oceans and Fisheries Ordinance.


[Need for Government Intervention]

Article 51, Paragraph 3 of the current law was introduced as part of the partial amendment to the Salt Industry Cooperative Act in May 2014. It specifies that the maximum suspension period is "within six months," with the legislative purpose of ensuring the clarity and predictability of the law.

Additionally, on September 29, 2011, the Constitutional Court ruled that a part of Article 32, Paragraph 1 of the Medical Devices Act was unconstitutional. The ruling was based on the principle of prohibiting comprehensive delegation, as the law did not specify an upper limit for the business suspension period and delegated it entirely to a lower-level ordinance. To reflect the intent of this ruling, the law was revised to set the maximum suspension period at "within six months" to ensure legal clarity and predictability.

Therefore, it is necessary to establish the detailed standards and other necessary matters for business suspension in a Ministry of Oceans and Fisheries Ordinance to ensure the clarity and predictability of the law when taking unfavorable actions.


[Regulatory Details]

  • Failure to Comply with a Demand to Replace or Suspend Executives

    • Replace Executives:

      • 1st violation: 3-month business suspension

      • 2nd violation: 6-month business suspension

    • Suspend Executive Duties:

      • 1st violation: 2-month business suspension

      • 2nd violation: 4-month business suspension

  • Failure to Comply with a Demand to Dismiss, Suspend, or Reduce the Pay of an Employee

    • Dismiss Employee:

      • 1st violation: 2-month business suspension

      • 2nd violation: 4-month business suspension

    • Suspend Employee:

      • 1st violation: Warning

      • 2nd violation: 2-month business suspension

    • Reduce Employee Pay:

      • 1st violation: Warning

      • 2nd violation: 1-month business suspension

  • Failure to Comply with Other Corrective Orders

    • 1st violation: 3-month business suspension

    • 2nd violation: 6-month business suspension

Regulatory effect assessment
  • 염업조합법(규제영향분석서)_20250805.hwp [download]
Legislative proposal (draft)
  • 염업조합법 시행규칙 제정령안.hwpx [download]