CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to serve to develop the national economy and improve the people's lives by stabilizing the demand and supply as well as the prices of petroleum and ensuring the proper quality of petroleum products and petroleum substitute fuel.

Article 2 (Definitions)

The definitions of the terms used in this Act shall be as follows:

1. The term "petroleum" means crude oil, natural gas (including liquefied natural gas; hereinafter the same shall apply) and petroleum products;

2. The term "petroleum products" means gasoline, kerosene, light oil, heavy oil, lubricant, hydrocarbon oil equivalent thereto and petroleum gas (including liquefied petroleum gas; hereinafter the same shall apply) that are all prescribed by the Presidential Decree;

3. The term petroleum by-products means petroleum products that derive as by-products from the process of manufacturing other goods than petroleum products;

4. The term "petroleum refining business" means the business of refining petroleum to manufacture petroleum products (excluding the petroleum by-products);

5. The term "petroleum export-import business" means the business of exporting and importing petroleum;

6. The term "petroleum selling business" means the business of selling petroleum;

7. The term "petroleum refining business operator" means anyone who runs the business of refining petroleum after having his business registered or making a report on his business in accordance with Article 5;

8. The term "petroleum export-import business operator" means anyone who runs the business of exporting and importing petroleum after having his business registered in accordance with Article 9 (including a case where the registration of his business is exempted);

9. The term "petroleum selling business operator" means anyone who runs the business of selling petroleum after having his business registered or making a report on his business in accordance with Article 10;

10. The term "pseudo petroleum products" means comburents, additives (including any additives that are prescribed by other Acts) and other products (excluding the petroleum substitute fuel referred to in subparagraph 11) that are manufactured by the method falling under any of the following items, regardless of their names, which are manufactured to use them or for the purpose of using them as fuel for automobiles provided for in subparagraph 1 of Article 2 of the Automobile Management Act, vehicles and machinery (limited to a case where gasoline or light oil is used as fuel):

(a) The method of mixing petroleum products with other petroleum products (including any petroleum products whose grade is different);

(b) The method of mixing petroleum products with petrochemicals (referring to organic chemical products that are prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, with the exception of petroleum products, from among products that are manufactured by going through the physical and chemical process from petroleum; hereinafter the same shall apply);

(c) The method of mixing petrochemicals with other petrochemicals; and

(d) The method of mixing petroleum products or petrochemicals with materials containing carbon and hydrogen;

11. The term "petroleum substitute fuel "means the fuel (excluding any coal and any natural gas) that is prescribed by the Presidential Decree as being possible to be used as substitute fuel to petroleum products without changing the fundamental structure of the burning equipment of petroleum products;

12. The term "petroleum substitute fuel manufacture and export-import business" means the business of manufacturing or exporting and importing petroleum substitute fuel;

13. The term "petroleum substitute fuel selling business" means the business of selling petroleum substitute fuel;

14. The term "petroleum substitute fuel manufacture and export-import business operator" means anyone who runs the business of manufacturing, or exporting and importing petroleum substitute fuel after having his business registered in accordance with Article 32 (including a case where the registration is exempted); and

15. The term "petroleum substitute fuel selling business operator" means anyone who runs the business of selling petroleum substitute fuel after having his business registered in accordance with Article 33.

Article 3 (Forecast of Petroleum Supply and Demand)

The Minister of Commerce, Industry and Energy shall project the petroleum supply and demand for 5 years following the current year every year in order to ensure the stable supply and demand of petroleum of the entire nation under the conditions as prescribed by the Presidential Decree. In this case, matters falling under each of the following subparagraphs shall be taken into account:

1. The demand quantity of petroleum;

2. The production quantity of petroleum and the export-import quantity of petroleum;

3. The capacity of refining petroleum by refineries; and

4. Other important matters that affect the supply and demand of petroleum.

Article 4 (Relation with Other Acts)

This Act shall not apply to matters concerning natural gas and petroleum gas that are prescribed by the Urban Gas Business Act, the High Pressure Gas Safety Control Act and the Safety Control and Business Regulation of Liquified Petroleum Gas Act.

CHAPTER II PETROLEUM BUSINESS

Article 5 (Registration, etc. of Petroleum Refining Business)(1) Anyone who intends to run the business of refining petroleum shall have his business registered with the Minister of Commerce, Industry and Energy under the conditions as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy. The same shall apply to a case where he intends to change matters, including the refining capacity, etc. that are prescribed by the Presidential Decree.

(2) Anyone who intends to run the business of refining petroleum for products, including lubricants, etc. that are prescribed by the Presidential Decree from among petroleum products shall make a report on his business to the Minister of Commerce, Industry and Energy under the conditions as prescribed by the Ordinance of the Ministry of Commerce, Industry and Energy, notwithstanding paragraph (1). The same shall apply to a case where he intends to change any matters, including the production capacity, etc. that are prescribed by the Presidential Decree from among the reported matters.

(3) The standards for the facilities of the petroleum refining business, registration requirements and matters to report referred to in para

graphs (1) and (2) shall be prescribed by the Presidential Decree.

Article 6 (Grounds of Disqualifications)

Anyone who falls under any of the following subparagraphs shall be prohibited from having his business of refining petroleum registered:

1. A minor;

2. One who is incompetent or quasi-incompetent;

3. One who has not been reinstated after he was declared bankrupt;

4. One who was sentenced to imprisonment with prison labor for violating this Act and for whom 2 years have not passed from the date on which the execution of the sentence was terminated (including a case where the execution of the sentence is deemed to be terminated) or exempted;

5. One who is in a stay period after having been sentenced to a stay of the execution of the imprisonment with prison labor for violating this Act;

6. One for whom 2 years have not passed after the registration of his petroleum refining business has been revoked in accordance with Article 13 (1); and

7. A corporation whose representative falls under any of subparagraphs 1 through 6.

Article 7 (Succession of Status of Petroleum Refining Business Operator)(1) When any petroleum refining business operator transfers the whole of his petroleum refining business, dies or merges with any other petroleum business operator who is a corporation, the transferee, the heir or the corporation that continues to exist after the merger or the corporation that is incorporated by the merger shall succeed the status of the relevant petroleum refining business operator.

(2) Anyone who takes over the whole of any refinery according to the auction provided for in the Civil Execution Act, the conversion provided for in the Debtor Rehabilitation and Bankruptcy Act, the sale of seized property provided for in the National Tax Collection Act, the Customs Act or the Local Tax Act and other procedures corresponding thereto shall succeed the status of the relevant petroleum refining business operator.  <Amended by Act No. 7428, Mar. 31, 2005>

Article 8 (Succession of Disposition Effect)

When the status of any petroleum refining business operator is succeeded in accordance with Article 7, the effect of a business-suspension disposition taken to the previous petroleum refining business operator in accordance with Article 13 (1) (including the penalty charge imposed in lieu of the business suspension provided for in Article 14) shall be succeeded by anyone who succeeds the status of the petroleum refining business operator for one year from the date on which the disposition term expires and if disposition procedures are underway, anyone who succeeds the status of the previous petroleum refining business operator may continue such disposition procedures: Provided, That the same shall apply to a case where the person who succeeds the statue of the petroleum refining business operator (excluding a person who succeeds such status by inheritance) verifies that he is ignorant of such disposition or the fact of violation when he succeeds such status.