Restaurants in South Korea that charge customers more than their posted prices will face a business suspension from their first violation, following a rule change prompted by cases such as a Gwangjang Market street stall in Seoul that demanded 10,000 won for an 8,000-won order of sundae after adding meat without the customer's consent.
The Ministry of Food and Drug Safety said it promulgated and put into effect on the 1st a revision to the Enforcement Rule of the Food Sanitation Act that toughens administrative penalties for failing to post prices and for collecting more than the posted amount at food service businesses.
Under the revision, a food service business caught either not posting a price list or charging customers more than the posted price faces a five-day business suspension from the first violation. Previously, a first violation drew only a corrective order.
Penalties escalate for repeat offenses. A second violation brings a 10-day suspension and a third a 20-day suspension, up from seven days and 15 days under the previous standard.
The ministry said administrative sanctions against price gouging had been limited to corrective orders, leaving gaps in protecting consumers. The tougher penalties follow up on a joint government package to eradicate price gouging announced by related ministries on February 25.
At the time, the government said it would revise the relevant rules so that restaurants, lodging businesses and others charging more than set prices could be suspended on a first offense alone.
The revised enforcement rule also includes measures to ease administrative burdens on business operators.
Operators will no longer be required to submit original documents when changing details of a business permit, registration or report. The requirement that operators separately keep their business report certificate, along with the fines imposed for failing to do so, is also abolished.
Administrative penalty standards for distribution-specialized sellers are being adjusted on a more reasonable basis, while benefits for certified safe food establishments are being expanded.
A special exemption from facility standards, previously applied when agricultural producer groups manufacture and sell food using domestic farm produce as the main ingredient, will be extended to fishery producer groups.
Fish paste products, vinegar and starch are newly added to the list of items that on-site manufacturing and processing businesses may sell in portioned amounts.
The enforcement rule also clarifies standards for fee reductions applied to electronic civil applications and for fees on temporary business reports.
