The problems that sex industry brings have existed in human¡¦s society for a long time without being eliminated. Except for some licensed prostitutes (sex workers), sex trading is prohibited in Taiwan by law. However, neglecting the impossibility of eliminating sex industry intentionally will lead to the encouragement of underground prostitution and related social problems of public security. After the Council of Grand Justices made the interpretation of No. 666, the Social Order Maintenance Act was amended allowing local government to set up and manage red light districts. It stipulates that any sex trade outside of the designated areas will be penalized, and sex trade inside the areas will be exempted from penalty. However, local governments are opposed to setting up the red light districts, which disillusion the expectation that disadvantage workers had to solve the difficulty they have encountered. Due to the considerable accounts of underground sex industry and scarcity of effective result of banning it, I want to analyze whether the problems are brought by the deficiency of the legal system and managing policy with this study. Based on the 5 major frameworks of administration law, including the legal principles, administrative organization, administrative authority, administrative remedy and administrative supervision, this study aims at analyzing the legal system of managing the sex industry in Taiwan. Through researching with the 5 major frameworks, the reason why sex industry can not be run like other industries has been found out. Due to the traditional and conservative perspective of the public, sex industry has been regarded as a low class industry without ethics, so that a comprehensive legal system of managing sex industry can not be made, let alone protecting the right to work, the right of equality and the right to exist of sex workers and the balanced development of sex industry. The legal system of managing sex industry has not been adhering to the principle of legal reservation. The ineffectiveness of the scale of administrative organization, the fuzzy space of administrative remedy, the scarcity and insufficiency of the design and practice of administrative authority and the undeveloped interior and exterior controlling function of administrative supervision are all left to be adjusted by the government and the society with a profound discussion and a comprehensive mechanism. Finally, based on the 5 major frameworks of administrative law, this study will provide comprehensive suggestions as followings. A. Manage sex industry with the believing of goodness of human nature. Regard this industry as a regular category and respect its equity right given by the Constitution. B. Learn from the effective managing method from abroad to decriminalize the trading relationship between customers and providers and also to ban the ¡§third party¡¨ for exploiting with strict regulations. C. Establish a managing law for sex industry with coherence in the nation and to regulate authorized local governments to manage the industry. D. Administrate by the managing concept of administrative guidance and administrative contract in lieu of administration with public power. E. Enforce regional cooperative administration with related organizations and its participation in the management of sex industry. F. Design administrative penalty which is awarding the good and punishing the bad with public announcement. G. Strengthen the opinion exchanging on the Internet for supervising the management and starting a quick and effective administrative remedy by public will and the responds of sex workers. H. Facilitate the managing system of interior controlling to prevent the abuse of administrative authority by imitating universities evaluation. Followed by the above-mentioned suggestions, an appropriate adjustment is expected to create a balanced environment and development for sex workers and sex industry.