CONTENTS
- 1. Act on Origin Labeling | Indictment of a Restaurant Representative for Violating the Act on Origin Labeling
- - Key Issues in the Case
- 2. Act on Origin Labeling | Daeryun's Assistance in the Case of Violating the Act on Origin Labeling
- - Recalculation of the Actual Quantity Used and Reduction of the Scope of the Violation
- - Systematic Preparation of Sentencing Materials
- - Organization of Contributions to the Region and Social Reputation
- 3. Act on Origin Labeling | Case Result: Limitation of the Scope of the Violation and a Determination of Leniency
- - Explanation of the Concept of the Act on Origin Labeling
- - Act on Origin Labeling Risks You Must Be Aware Of
- - Checklist for Responding to a Charge of Violating the Act on Origin Labeling
1. Act on Origin Labeling | Indictment of a Restaurant Representative for Violating the Act on Origin Labeling
The client who came to this firm, stating that the client was facing a charge of violating the Act on Origin Labeling, was a representative who had operated a restaurant in the region for more than twenty years.
The client's establishment was a place that had taken part in media and local government promotion with menu items featuring regional specialties, and the client faced a charge of violating the Act on Origin Labeling on the ground that imported beef used in some menu items had been labeled as ‘domestic’ on the menu.
The prosecution determined, based on the sales period, sales revenue, and quantity used, that the scale of the violation was substantial and indicted the client, and as a result, criminal punishment of the client was unavoidable.
Key Issues in the Case
The core of this case lay in the following three points.
- What was the actual quantity of imported beef used
- Whether the entire sales revenue could be regarded as violation sales
- Whether it was an intentional deception or an oversight in management
The investigative agency took issue with the entire sales revenue based on the point-of-sale figures, but considering the actual cooking process, the loss rate of the raw meat, and the supply structure for other establishments, this was a matter in which the scale could be reduced considerably.
2. Act on Origin Labeling | Daeryun's Assistance in the Case of Violating the Act on Origin Labeling
In order to respond to the charge of violating the Act on Origin Labeling, the Daeryun attorney provided assistance as follows.
Recalculation of the Actual Quantity Used and Reduction of the Scope of the Violation
- Recalculation of the actual quantity of the relevant menu item used relative to the total amount of raw meat purchased
- Reflection of the loss rate arising during the trimming process
- Distinction of the portion supplied to other establishments
- Analysis of cases of discrepancy between point-of-sale figures and the menu items actually sold
Through this, the Daeryun attorney broke the structure of "all sales revenue equals violation sales" and reduced the actual scope of the violation with objective evidence.
Systematic Preparation of Sentencing Materials
- Preparation of a letter of reflection and a recurrence prevention plan
- Establishment of an origin management procedure manual
- Submission of materials on the revision of supply contracts
- Organization of an employee training plan and materials on the completion of training
- Submission of photographs of the in-store posting of origin disclosures
The attorney emphasized a willingness to improve centered on specific implementation materials, rather than stopping at a statement that the client "is remorseful."
Organization of Contributions to the Region and Social Reputation
- The fact of a long-standing contribution to the region's food culture
- Organization of the history of local government designation and participation
- Submission of materials on participation in broadcasts and events
- Securing of reputation materials from business partners and the local community
In a criminal trial, the defendant's social contribution and whether there is a risk of reoffending become important sentencing factors.
The attorney of this firm organized and submitted these materials systematically.
3. Act on Origin Labeling | Case Result: Limitation of the Scope of the Violation and a Determination of Leniency
In the Act on Origin Labeling case, the court comprehensively considered the fact that the actual scope of the violation was limited, that it was difficult to regard the offense as intentional, that specific recurrence prevention measures had been taken, and the client's contribution to the local community and economic circumstances, and it issued a determination of leniency by imposing a suspended sentence instead of an actual custodial sentence.
Accordingly, the client, who escaped the risk of an actual custodial sentence, was able to maintain the foundation for continuing to operate the restaurant, and was also able to avoid economic harm such as a fine.
Explanation of the Concept of the Act on Origin Labeling
The Act on Origin Labeling is the abbreviation for the Act on Origin Labeling of Agricultural and Fishery Products, and it is a statute that mandates the accurate labeling of the origin of agricultural and fishery products and their processed goods.
Restaurants also become subject to punishment if, in the course of cooking and selling, they make labeling that may mislead consumers.
1. Falsely labeling the origin or making labeling that is likely to cause confusion
2. Damaging or altering the origin labeling for the purpose of causing confusion as to the origin
3. Disguising the origin and selling, or mixing other agricultural or fishery products or processed goods with agricultural or fishery products bearing an origin label or their processed goods and selling them, or storing or displaying them for the purpose of sale
② A person who cooks and sells or provides agricultural or fishery products or their processed goods shall not engage in any of the following acts.
1. Falsely labeling the origin or making labeling that is likely to cause confusion
2. Disguising the origin and cooking, selling, or providing, or damaging or altering the origin labeling of agricultural or fishery products or their processed goods and storing or displaying them for the purpose of cooking, selling, or providing
3. Mixing identical agricultural or fishery products or their processed goods of a different origin with agricultural or fishery products bearing an origin label or their processed goods and cooking, selling, or providing them
A violation of the relevant provision may result in imprisonment for not more than seven years or a fine of not more than 100 million won, or both, and where a person is sentenced for a violation of the relevant provision and reoffends within five years after the sentence becomes final, the person may be subject to imprisonment for not less than one year and not more than ten years or a fine of not less than 5 million won and not more than 150 million won, or both may be imposed.
Act on Origin Labeling Risks You Must Be Aware Of
If these risks of violating the Act on Origin Labeling are not prevented in advance, criminal liability may be attributed not to the staff in charge of operations, but to the representative, who is the final decision-maker.
Checklist for Responding to a Charge of Violating the Act on Origin Labeling
Category | Materials to Prepare |
Raw Meat Management | Supply contracts, transaction statements |
Sales Management | Point-of-sale records, menu change history |
Internal Control | Origin management manual |
Improvement Measures | Proof of completion of relevant training, posting photographs |
Reputation Materials | Records of local government participation and awards |
An Act on Origin Labeling case must be handled comprehensively, from the criminal procedure response, the administrative disposition response, and the media response to the strategy for restoring the trust of franchise stores and business partners, and the redesign of the internal control system.
Daeryun provides a strategic response that reorganizes the risk structure itself, as follows.
A consultation is necessary if you find yourself in the following situations.
- Where you have received a request to appear from an investigative agency
- Where a search and seizure has been carried out
- Where the entire sales revenue has been taken issue with
- Where a franchise store and the head office are under simultaneous investigation
- Where media coverage is a concern
Because the result of a charge of violating the Act on Origin Labeling varies greatly depending on the early response structure, a professional strategic design is necessary in order to protect the survival of the establishment and brand trust.
If you need the assistance of Daeryun, the ninth-ranked law firm in the Republic of Korea (based on 2025 value-added tax filings with the National Tax Service), which provides an integrated design of criminal, administrative, and management risks, we invite you to proceed with a 🔗Legal Consultation Reservation.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
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