"No Need to Register for Business"
The Supreme Court has ruled that to sell vinegar that has been manufactured and fermented at home for several years for money, it is sufficient to file a business report under the Food Sanitation Act as a ready-to-eat manufacturing and processing business, and there is no need to register the business.
According to the legal community on the 15th, the Supreme Court's 2nd Division (Presiding Justice Kwon Young-jun) overturned the original ruling that sentenced Mr. A, who was indicted on charges of fraud, violation of the Food Sanitation Act, and obstruction of official duties, to a fine of 15 million won, and remanded the case to the Chuncheon District Court.
The court judged that the second trial court's decision to find Mr. A guilty of violating the Food Sanitation Act was incorrect.
The court stated, "According to the Food Sanitation Act, food manufacturing and processing businesses require business registration, but ready-to-eat manufacturing and processing businesses require only a business report," and added, "Food manufacturing and processing businesses refer to businesses that manufacture and process foods designated by the Prime Minister's Decree and sell them directly to the final consumer at the manufacturing and processing site."
It continued, "The Prime Minister's Decree defines foods subject to business registration as all foods except canned or bottled foods, and foods manufactured and processed by food manufacturing and processing business operators that are sold directly to the final consumer in the desired quantity at the manufacturing and processing site, but excludes certain foods such as vinegar. However, it does not differentiate treatment based on the length of the food manufacturing period."
The court further stated, "Just because the manufacturing period of the vinegar in this case is about seven years, it cannot be said that the vinegar manufactured and sold by the defendant himself is excluded from the foods subject to ready-to-eat manufacturing and processing business," and added, "The original court's judgment that the defendant's vinegar manufacturing activity falls under food manufacturing business requiring business registration reflects a misunderstanding of the law regarding ready-to-eat manufacturing and processing business and its subject foods, and failed to conduct necessary investigations, which affected the judgment. Therefore, the case is remanded."
Mr. A was indicted for selling seven bottles of vinegar in May 2020 for 12.4 million won, claiming that the vinegar he manufactured by aging and fermenting it at home for seven years was effective in alleviating constipation symptoms associated with Parkinson's disease. He was also charged with obstructing official duties by verbally abusing and threatening a court officer who visited his home in March 2021 to deliver legal documents.
In April 2020, Mr. A joined an internet cafe for Parkinson's patients and their families and posted an article titled "A Brief Study on Parkinson's Disease and Dementia Treatment Methods," claiming that his elderly mother, who suffers from Parkinson's disease, and patients who visited his home experienced more certain healing effects than hospital treatment with his help.
When victim B, who contacted him after reading the post, asked if it was possible to resolve severe constipation and abdominal pain caused by Parkinson's disease in his mother-in-law, Mr. A said that his mother had relieved constipation symptoms by drinking the vinegar he made and encouraged a visit, saying that an accurate prescription could only be made after seeing the patient in person.
Mr. A told B, who visited him, "There is vinegar worth about 200,000 won with relatively less efficacy, and vinegar concentrate worth about 3 million won with excellent efficacy, but the concentrate is only enough for one person to take and will not be sold." He even lied, saying, "I am researching vinegar with some hospital doctors and have submitted articles to a medical journal."
After B expressed intent to purchase, Mr. A said, "You need to buy five bottles and take them consistently for five weeks to see effects," and sold five bottles of the 3 million won vinegar concentrate and two bottles of the 200,000 won vinegar, receiving 12.4 million won in payment.
The prosecution indicted Mr. A for violating the obligation to register a business while manufacturing and processing food for sale.
Mr. A argued that since he sold directly to consumers who visited his home rather than to distributors, it should be considered a 'ready-to-eat manufacturing and processing business,' which requires a business report to the competent authority rather than business registration.
The first and second trials found all of Mr. A's charges guilty and sentenced him to a fine of 15 million won, reasoning that the nearly seven-year manufacturing period for the vinegar made it difficult to consider it a ready-to-eat manufacturing and processing business.
However, the Supreme Court's judgment differed.
Nonetheless, the Supreme Court found no problem with the second trial's guilty verdicts on Mr. A's fraud and obstruction of official duties charges.
A Supreme Court official said, "This is the first ruling to clearly clarify the concept, requirements, and subject foods of ready-to-eat manufacturing and processing businesses, which require business reporting, as distinguished from food manufacturing and processing businesses that require business registration."
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