1.

Amendments to Existing Regulations
 
There have been a number of proposed amendments to existing regulations requiring businesses to disclose any changes in product capacity or quality. In particular, the aim of the amendments to the “Act on Labeling and Advertising of Foods, Etc.,” the “Act on Fair Labeling and Advertising,” the “Act on Price Stabilization,” and the “Framework Act on Consumers” is to notify consumers of price increases.
 

–

Businesses making any changes to product volumes must clearly indicate the changes, with violations subject to a fine of up to KRW 5 million.

–

The Minister of the Ministry of Food and Drug Safety (the “MFDS”) may conduct a fact-finding survey on foods to announce any changes on product amount, etc.
 

–

If a business operator changes the volume or quality of a product that could have a significant impact on consumers’ choice, the business entity must indicate the changes (before and after).
 

–

Businesses may be ordered to indicate changes in the product volume, as well as any changes in raw materials.
 

–

The Korea Consumer Agency may conduct a fact-finding survey on the reduction of capacity or decrease in product quality, and may publish the survey results.
 

2.

Establishment and Amendment of Administrative Rules
 
During a December 2023 emergency economic ministers’ meeting, various ministries discussed with manufacturers/distributors ways to ensure that consumers swiftly receive information on capacity changes. The aim of such meeting was to expand the scope of items monitored by the Korea Consumer Agency. Specifically, the MFDS and the Korea Fair Trade Commission (the “KFTC”) each proposed the following measures to improve the system.
 

–

In the event of a reduction in the content of a food product, stickers or other labels will indicate the product content before and after the change (for at least three months from the date of such change).

–

However, the following foods are not subject to labeling: (i) foods not directly sold to consumers (e.g., supplied to catering facilities); (ii)agricultural and livestock products and marine products in their natural state; (iii) raw material foods supplied to the food manufacturing and processing industry and the livestock processing industry; and (iv) foods that have not increased in price.
 

–

A business entity’s failure to notify changes in important matters of its products, such as capacity, size, weight, number, and important raw materials, will be deemed wrongful, and violations will be subject to a corrective order or administrative fine (KRW 5 million for the first violation and KRW 10 million for the second violation).

–

Businesses must notify consumers of important changes by: (i) posting the change on the product’s package; (ii) posting the change on the manufacturer’s website; or (iii) posting the change at the product’s sales place for at least three months.