Article 1(Purpose) #
The purpose of this Act is to contribute to balanced development of national economy through promoting the structural improvement and striving for managerial stabilization of small and medium enterprises.
Article 2(Definitions) #
For the purpose of this Act, the definitions of terms shall be as follows: <Amended by Act No. 5283, Jan. 13, 1997>
1. The term “small and medium enterprise” means a small and medium enterprise set forth in Article 2 of the Framework Act on Small and Medium Enterprises;
2. The term “conversion of business category” means the conversion of business category set forth in the subparagraph 5 of Article 2 of the Promotion of Small and Medium Enterprises and Encouragement of Purchase of their Products Act;
3. The term “market” means a place where wholesalers, retailers or service providers trade commodities or provide services at a multitude of stores which are set up within a building or buildings or on underground passages in a certain district and are saleable themselves, or a place where a multitude of buyers and suppliers assemble periodically or seasonally within a certain district to trade commodities or to provide services;
4. The term “market redevelopment and reconstruction” means any redevelopment project implemented by the owners of the lands or buildings within the project implementation district (hereinafter referred to as the “owners of the lands, etc.”) or by a market redevelopment cooperative, and any reconstruction project implemented by the owners of the lands, etc. or a market reconstruction cooperative, for the purpose of promoting modernization of distribution and normalization of the market mechanism in the market designated by the Administrator of the Small and Medium Business Administration as the district subject to the implementation of the market redevelopment and reconstruction project;
5. The term “market redevelopment cooperative” means a cooperative which is established for market redevelopment by the owners of the lands, etc. situated within the district subject to the implementation of a market redevelopment project;
6. The term “market reconstruction cooperative” means a cooperative which is established by the owners of the lands, etc. situated within the district subject to the implementation of a market redevelopment project for the reconstruction of the market to which the Act on the Ownership and Management of Aggregate Buildings is applicable (hereinafter referred to as the “market consisting of a partitioned building or buildings”); and
7. Deleted. <by Act No. 6022, Sep. 7, 1999>
Article 3(Plan for Support of Structural Improvement) #
(1) The Government may prepare necessary programs to support the structural improvement such as incorporation of individual enterprises, merger of enterprises, joint business, conversion of business category, move of business place, managerial rationalization, and so on, when they are deemed necessary for improvement in business size, managerial technique, or production method for the purpose of solving the managerial difficulties of small and medium enterprises arising out of the change of economic environment and to enhance competitiveness of the small and medium enterprises.
(2) For the purpose of implementing the programs under paragraph (1), the Seoul Special Metropolitan City Mayor, Metropolitan City Mayor, and Do governor (hereafter shall be referred to as the “Mayor/Do governor”) shall set up and put on public notice a plan (hereafter shall be referred to as the “structural improvement support plan”) to support the structural improvement of small and medium enterprises located within their respective jurisdiction for each year. In this case, the Mayor/Do governor may ask the chief of the organs which support the small and medium enterprises such as the Small and Medium Enterprises Promotion Corporation to submit materials necessary to set up the plan, and, the latter, when asked, shall cooperate in this.
(3) Each of the following subparagraphs shall be included in the structural improvement support plan reflecting circumstances prevailing in the respective local autonomous entities:
1. Matters related to budget support for each program;
2. Matters related to exemption or reduction of local taxes;
3. Matters related to relocation or redevelopment of traditional bazaars;
4. Matters related to counseling, diagnosis, guidance, and provision of information on management and technology; and
5. Other matters related to the structural improvement support.
(4) The Mayor/Do governor may request the heads of the central administrative agencies for necessary assistance for the smooth promotion of structural improvement support plan.
Article 4(Emergency Managerial Stabilization Support Plan) #
In case where a significant number of small and medium enterprises in a specific region is suffering from a serious managerial difficulty due to a rapid change in economic environment, the Government may establish and implement an emergency managerial stabilization support plan under the conditions as prescribed by the Presidential Decree.
Article 5(Special Cases concerning Conversion of Business Category) #
(1) The Government and a local government may provide support for matters falling under each of the following subparagraphs on a priority basis, for the purpose of promoting structural improvement of small and medium enterprises through the conversion of business category: <Amended by Act No. 5454, Dec. 13, 1997>
1. Financial support from the regional small and medium enterprise support fund under Article 45 (2) of the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act;
2. Relocation into an agricultural and industrial complex;
3. Relocation into a rental factory building site or a rental apartment type factory furnished by the Government or a local government;
4. Relocation into an incorporation foster center built by the State or a local government;
5. Relocation into a comprehensive support center for small and medium enterprises or an exhibition fair and its supporting facility built by a local government;
6. Provision of managerial and technical guidance by the counseling organ set forth in Article 29 of the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act; and
7. Support for other businesses which the Administrator of Small and Medium Business Administration deems it necessary.
(2) Matters pertaining to the kind of business eligible for support in relation to the conversion of business category under the paragraph (1) shall be determined by the Presidential Decree.
(3) The Administrator of Small and Medium Business Administration may require the Small and Medium Industry Promotion Corporation to organize and operate a professional educational course to help the small and medium enterprises convert their business category smoothly. <Amended by Act No. 5454, Dec. 13, 1999>
Article 6(Special Cases of Market Redevelopment and Reconstruction) #
(1) The Administrator of the Small and Medium Business Administration shall, for the purpose of promoting market redevelopment and reconstruction, designate, at the recommendation of the head of Si/Gun/Gu (referring to the head of autonomous Gu; the same shall be applicable hereinafter), some of the markets stipulated under subparagraph 3 of Article 2 as the market redevelopment project implementation district or the market reconstruction project implementation a district, and may, subject to the availability of the budget, grant support for a part of the project expenditures to the project operators such as the owners of the lands, etc., the market redevelopment cooperatives or the market reconstruction cooperatives within the scope of the budget.
(2) The owners of the lands, etc. situated within a market redevelopment or reconstruction project implementation district may, notwithstanding the provisions of other Acts, set up a market redevelopment or reconstruction cooperative subject to authorization of the head of Si/Gun/ Gu, in case where they have obtained consent of the owners of the lands having three fifths or more of the total lands within the district in question as well as of three fifths or more of the total number of the land owners (in the case of a piece of land owned jointly by several persons, the several persons shall be regarded as a single person) and building owners (in the case of a market consisting of a partitioned building or buildings, each partitioned real estate owner shall be counted as a single person). The same shall apply where the project operator such as the owners of the lands, etc. or a market redevelopment or reconstruction cooperative applies for authorization of the project implementation plan, etc. or where the owners of the lands, etc. or the market redevelopment or reconstruction cooperative applies for approval of the project plan and for permission to construct.
(3) The Government and a local government may, during the period when the market redevelopment or reconstruction is under way in a project implementation district designated under the provisions of paragraph (1), take support measures aimed at the promotion of market redevelopment or reconstruction by arranging for an alternative temporary market, etc. to enable the stores in the market to continue their business activities during such a period.
(4) When the Administrator of the Small and Medium Business Administration has designated a certain district as the market redevelopment or reconstruction project implementation district pursuant to the provisions of paragraph (1), he shall have it published on the official gazette.
(5) Matters necessary with respect to the designation and public notice of and the procedure for support of, the market redevelopment or reconstruction project implementation districts shall be prescribed by the Presidential Decree.
(6) Where a project operator submits, pursuant to the provisions of paragraph (1), a plan on the demolition of the existing market and a plan on the disposition of the building to be constructed (it shall contain a plan on the sales, etc. of the lots) for the purpose of redeveloping or reconstructing a market designated by the Administrator of the Small and Medium Business Administration as the district subject to the implementation of market redevelopment or reconstruction pursuant to the provisions of paragraph (1), the partitioned lot and building facilities acquired from such sales shall be regarded as the substitute lot stipulated under the Land Compartmentalization and Rearrangement Projects Act.
(7) In redeveloping or reconstructing a market which the Administrator of the Small and Medium Business Administration has, pursuant to the provisions of paragraph (1), designated as the district subject to the implementation of market redevelopment or reconstruction projects, where the market is redeveloped or reconstructed in such a manner as to accommodate shops and housing units within a same building and where it satisfies such requirements as prescribed by the Presidential Decree, such a market shall, notwithstanding the provisions of Article 33 (1) of the Housing Construction Promotion Act, be excluded from the objects of approval in respect of the project plans thereof.
(8) As regards matters not prescribed under this Act with respect to market redevelopment or reconstruction projects, the Urban Redevelopment Act shall apply mutatis mutandis in relation to any market development projects, and the Housing Construction Promotion Act and the Act on the Ownership and Management of Aggregate Buildings in relation to any market reconstruction projects.
[This Article Wholly Amended by Act No. 5283, Jan. 13, 1997]
Article 7(Special Cases concerning Mutual Aid Project Fund) #
(1) The Government may provide small and medium enterprises which joined the small and medium enterprise mutual aid fund (hereinafter referred to as “fund”) established by Article 87-3 of the Small and Medium Enterprise Cooperatives Act with taxational support in accordance with the provisions of the tax laws with a view to stabilizing the management of small and medium enterprises by promoting their entry into the fund. <Amended by Act No. 5454, Dec. 13, 1997>
(2) In case there occurs any surplus in the fund, notwithstanding the Article 87-6 of the Small and Medium Enterprise Cooperatives Act, the surplus fund may be used as the financial resources for the implementation of the emergency managerial stabilization support plan set forth in Article 4, under the conditions as prescribed by the Presidential Decree.
(3) The manager of the fund may provide guarantees to financial institutions on the fund’s account with an approval of the Administrator of Small and Medium Business Administration. <Amended by Act No. 5454, Dec. 13, 1997>
(4) The manager of the fund may specially provide support to a small and medium enterprise who joined the fund from among the small and medium enterprises deemed eligible for support under the emergency managerial stabilization support plan set forth in Article 4.
(5) Matters necessary for the payment guarantee set forth in paragraph (3) and special support set forth in paragraph (4) shall be determined by the Presidential Decree.
Article 7-2(Operation of Mutual Aid Project Fund) #
(1) For the efficient operation of the fund, there shall be established the Mutual Benefit Association for Small and Medium Enterprises (hereinafter referred to as the “Mutual Benefit Association”) within the Federation of Small and Medium Enterprise Cooperatives.
(2) For the purpose of deliberating and taking decisions on the basic guidelines relating to the operation of the fund in lieu of the board of directors of the Federation of Small and Medium Enterprise Cooperatives, there shall be set up the Fund Operation Committee (hereinafter referred to as the “operation committee”) within the Mutual Benefit Association.
(3) The operation committee shall be comprised of not more than 11 members including the chairman.
(4) Matters necessary with respect to the composition and operation of the Mutual Benefit Association and the operation committee shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 5283, Jan. 13, 1997]
Article 8(Improvement for Conditions Commodity Price Payment between Enterprises) #
(1) The Administrator of Small and Medium Business Administration may periodically investigate and put notice to the public concerning the conditions of payment to the small and medium enterprises for the goods and services by the corporations belonging to a large size business conglomerates designated under Article 14 of the Monopoly Regulation and Fair Trade Act, and, when found necessary, may order improvement to such conditions. <Amended by Act No. 5454, Dec. 13, 1999>
(2) The Administrator of Small and Medium Business Administration may take measures set forth in paragraph (1) against a large enterprise not belonging to a large size business conglomerate set forth in paragraph (1) or a small and medium enterprise with a size larger than that determined by the Presidential Decree which commissioned production and etc. to other small and medium enterprises. <Amended by Act No. 5454, Dec. 13, 1999>
(3) The Administrator of Small and Medium Business Administration, when measures pursuant to the provisions of the Fair Transaction in Subcontracting Act are deemed necessary as a result of investigation set forth in paragraphs (1) and (2), may ask the Fair Trade Commission to take such necessary measures. <Amended by Act No. 5454, Dec. 13, 1999>
(4) The Administrator of Small and Medium Business Administration may recommend a corporation belonging to a large size business conglomerate set forth in paragraph (1) to abide by the maximum face amount of a commercial paper determined by the Presidential Decree when issuing a commercial draft as the means of payment for the commodity price. <Amended by Act No. 5454, Dec. 13, 1999>
(5) The Administrator of Small and Medium Business Administration, when it finds, as the result of investigation under paragraphs (1) and (2), that an enterprise maintains favorable payment conditions, e. g., by expanding cash payment, or that it abides by the recommendation under paragraph (4), may render reward or give necessary support to it. <Amended by Act No. 5454, Dec. 13, 1999>
Article 9 #
Deleted.<by Act No. 6022, Sep. 7, 1999>
Article 10(Delegation and Commission of Authority) #
The Administrator of Small and Medium Business Administration may delegate a part of his authority under this Act to the head of local government, or commission it to the head of another administrative agency, the Chairman of Small and Medium Enterprises Promotion Corporation, the Chairman of the Federation of Small and Medium Enterprise Cooperative Associations, or to the Chairman of the Korea Chamber of Commerce and Industry. <Amended by Act No. 5454, Dec. 13, 1997>