Act on Livestock Farm Alliance Systems.

The purpose of this Act is to contribute to soundly developing the livestock industry and national economy by strengthening the competitiveness of farmers raising livestock and vertical integrators in the livestock industry; and by promoting fair trade and mutual cooperation between farmers raising livestock and vertical integrators in the livestock industry by providing for matters necessary for vertical integration in the livestock industry.
The term "vertical integrator in the livestock industry" refers to a person who engages in vertical integration by entering into a contract with farmers raising livestock under contract. The Minister of Agriculture, Food and Rural Affairs shall formulate a master plan for developing vertical integration in the livestock industry every five years to develop vertical integration and improve the competitiveness thereof (art.4). Those intending to engage in vertical integration must register with the relevant local authorities, meeting specific requirements such as being a registered company or corporation and having a steady place of business (art.5). The Dispute Mediation Committee on Vertical Integration in the Livestock Industry shall be established in the Ministry of Agriculture, Food and Rural Affairs to mediate disputes between vertical integrators and contract farmers(art.16).
The Act further makes provisions, inter alia, for: principle of good faith, preparation of written contract, evaluation of results of raising livestock, prohibition of provision of false or exaggerated information, evaluation and grading of vertical integrators, council of contract farmers, etc.