ACT ON THE PROTECTION OF AND SUPPORT FOR MICRO ENTERPRISES

Article 1(Purpose) #

The purpose of this Act is to contribute to improving the social and economic status of micro enterprises as well as to the balanced development of the national economy by promoting independent business activities of micro enterprises and furthering the management stability and growth thereof.

Article 2(Definition) #

The terms used in this Act are defined as follows: <Amended on Jan. 16, 2024>

1. "Micro enterprise" in this Act means a micro enterprise defined in Article 2 of the Framework Act on Micro Enterprises;

2. "Long-lasting micro enterprise" means a micro enterprise that has made a significant contribution to society while running a business for a long period of time, is expected to grow continuously based on accumulated experience, meets the requirements prescribed in Article 16 and is designated pursuant to Article 16-2;

3. "Business succession" means the comprehensive transfer of business rights and obligations of a micro enterprise to another person through transfer, merger, or inheritance while its identity remains intact, as prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 4, 2020]

Article 3 #

Deleted. <Feb. 4, 2020>

Article 4 #

Deleted. <Feb. 4, 2020>

Article 5(Relationship to other statutes) #

Except as provided in other statutes, this Act shall apply to the protection and support of micro enterprises.

Article 6 #

Deleted. <Feb. 4, 2020>

Article 7 #

Deleted. <Feb. 4, 2020>

Article 8(Support for start-up of micro enterprises) #

The Minister of SMEs and Startups may conduct projects for any of the following matters, in order to support the start-up of micro enterprises: <Amended on Jul. 26, 2017>

1. Discovery of persons desiring to start up a micro enterprise, who have exceptional ideas, etc.;

2. Consultation, advice, and education on the procedures, etc. for the start-up of micro enterprises;

3. Provision of information necessary for start-up, such as on financing, manpower, markets, and locations of business places;

4. Other matters necessary for supporting the start-up of micro enterprises.

Article 9(Support for management stability of micro enterprises) #

The Minister of SMEs and Startups may conduct projects for any of the following matters, in order to support the management stability and growth of micro enterprises: <Amended on Dec. 2, 2016; Jul. 26, 2017; Dec. 11, 2018; Apr. 20, 2021; Dec. 2, 2025>

1. Consultation, advice, and education on managerial affairs for micro enterprises;

2. Support for the funds, human resources, sales, export, etc. of micro enterprises;

3. Support for the modernization of commercial transactions for micro enterprises, such as the introduction of the electronic commerce or payment system using smart devices;

4. Support for establishing an online joint sales platform for micro enterprises;

5. Support for facilitating the issuance and distribution of mobile gift certificates exclusively for the benefit of micro enterprises;

6. Support for the utilization of AI for micro enterprises;

7. Support for energy efficiency for micro enterprises;

8. Support for childbirth, childcare, and work-life balance for micro enterprises;

9. Other matters necessary for supporting the management stability and growth of micro enterprises.

Article 10(Support for structural sophistication of micro enterprises) #

The Government may conduct projects for any of the following matters, to support the structural sophistication of micro enterprises, such as structural improvement and management rationalization (hereinafter referred to as "structural sophistication"): <Amended on Apr. 20, 2021>

1. Discovery of new business opportunities;

2. Support for business conversion;

3. Provision of location information for the movement of a place of business;

4. Provision of related information to facilitate the use of an online joint sales platform for micro enterprises;

5. Support for overseas start-up of micro enterprises;

6. Other matters necessary for supporting the structural sophistication of micro enterprises.

Article 11(Support for organization of and collaboration among micro enterprises, and other matters) #

(1) The Minister of SMEs and Startups may conduct projects for any of the following matters, in order to support organization of and collaboration among micro enterprises: <Amended on Jul. 26, 2017>

1. Establishment of cooperatives under subparagraph 1 of Article 2 of the Framework Act on Cooperatives;

2. Common use of facilities and equipment necessary for the production of goods, the provision of services, etc.;

3. Joint development of trademarks and designs;

4. Securing of joint markets, such as promotion of goods and establishment of sales venues;

5. Other matters necessary for supporting organization of and collaboration among micro enterprises.

(2) Where micro enterprises exceeding the number prescribed by Presidential Decree jointly establish and operate a common logistics center, the Minister of SMEs and Startups may provide administrative and financial support necessary therefor. <Amended on Jul. 26, 2017>

(3) Matters concerning business aspects of common logistics centers established under paragraph (2), methods for operation thereof, facilities criteria therefor, and similar matters shall be prescribed by Presidential Decree.

Article 12(Support for micro enterprise who have closed business) #

(1) The Minister of SMEs and Startups may conduct projects for any of the following matters to support micro enterprises who have closed or intend to close a business (hereinafter referred to as a "person closing a micro business"): <Amended on Dec. 31, 2018>

1. Support for new start-up of a business;

2. Implementation of job training, and job placement;

3. Other matters necessary for supporting a person closing a micro business.

(2) The Minister of SMEs and Startups may establish and operate a support center for business closure of micro enterprises to conduct the projects prescribed in paragraph (1). <Added on Dec. 31, 2018>

(3) The Minister of SMEs and Startups may contribute or subsidize all or part of the expenses necessary for operating a support center for business closure of micro enterprises, and if necessary, may utilize facilities or equipment, etc. of regional SMEs and Startups offices or a center for supporting micro enterprises. <Added on Dec. 31, 2018>

(4) Other matters necessary for establishing and operating a support center for business closure of micro enterprises shall be prescribed by Presidential Decree. <Added on Dec. 31, 2018>

[Title Amended on Dec. 31, 2018]

Article 12-2(Compensation for losses caused by measures under the Infectious Disease Control and Prevention Act) #

(1) Where a micro enterprise suffers any serious loss in business management due to measures prescribed by Presidential Decree, such as restrictions on the use of business places and the operation hours, as measures prescribed in Article 49(1)2 of the Infectious Disease Control and Prevention Act, the Minister of SMEs and Startups shall compensate the relevant micro enterprise for such losses to alleviate the relevant burden.

(2) Notwithstanding paragraph (1), the Minister of SMEs and Startups may provide compensation for losses to any person, other than micro enterprises, which falls under a small and medium business defined in the Framework Act on Small and Medium Enterprises, subject to deliberation by the Deliberative Committee on Compensation for Losses referred to in Article 12-4(1) (hereinafter referred to as the "Deliberative Committee").

(3) A person who intends to receive compensation for loss pursuant to paragraphs (1) and (2) (hereinafter referred to as "applicant") shall apply for payment of compensation for loss to the Minister of SMEs and Startups, as prescribed by Presidential Decree.

(4) Upon receipt of an application filed under paragraph (3), the Minister of SMEs and Startups shall pay compensation for losses to the applicant after determining whether to pay compensation for losses and the amount thereof, following deliberation thereon. In such cases, if an applicant fails to comply with a measure taken under Article 49(1)2 of the Infectious Disease Control and Prevention Act, the compensation for loss may be reduced or may not be paid.

(5) Where an applicant has received preferential support under Article 21(1)22-3, the Minister of SMEs and Startups may calculate compensation for loss under paragraph (4) in consideration of the amount of such support (hereafter referred to as "amount of preferential support" in this paragraph), and where there is any difference between the compensation for loss and amount of preferential support, the Minister of SMEs and Startups shall ensure that such difference is repaid or returned. <Added on Mar. 28, 2023>

(6) Where a person paid compensation for loss pursuant to paragraph (4) fails to comply with measures prescribed in Article 49(1)2 of the Infectious Disease Control and Prevention Act or in any other cases prescribed by Presidential Decree, the Minister of SMEs and Startups may recover all or part of such compensation for loss. <Amended on Mar. 28, 2023>

(7) Other matters necessary for those subject to compensation for loss and recovery, procedures therefor, etc. shall be prescribed by Presidential Decree, and the details of the standards for and the amount and timing of compensation for loss, etc. shall be publicly notified by the Minister of SMEs and Startups, subject to deliberation by the Deliberative Committee. <Amended on Mar. 28, 2023>

[This Article Added on Jul. 7, 2021]

Article 12-3(Filing objections) #

(1) An applicant who has an objection to the determination or disposition rendered by the Minister of SMEs and Startups under Article 12-2(4) through (6) may file an objection with the Minister within 30 days from the date he or she is notified thereof. <Amended on Mar. 28, 2023>

(2) Upon receipt of an objection filed under paragraph (1), the Minister of SMEs and Startups shall determine whether to pay, increase, decrease, or recover compensation for losses subject to deliberation within the period prescribed by Presidential Decree, and shall notify the person who has filed the objection of the determination results.

[This Article Added on Jul. 7, 2021]

[Previous Article 12-3 moved to Article 12-7 <Jul. 7, 2021>]

Article 12-4(Deliberative Committee on compensation for losses) #

(1) A Deliberative Committee on Compensation for Loss shall be established under the Ministry of SMEs and Startups to deliberate on matters concerning compensation for loss under Article 12-2.

(2) The Deliberative Committee shall consist of up to 15 members including a chairperson, and shall be chaired by the Vice Minister of SMEs and Startups designated by the Minister of SMEs and Startups. <Amended on Oct. 1, 2025>

(3) Members of the Deliberative Committee shall be appointed or commissioned by the Minister of SMEs and Startups from among the following persons, as prescribed by Presidential Decree:

1. A person who has extensive knowledge of and experience in the field of compensation for loss or disease control;

2. Persons who can represent micro enterprises;

3. Public officials of related administrative agencies.

(4) The Deliberative Committee shall deliberate on the following: <Amended on Mar. 28, 2023>

1. Subject matters of compensation for loss, whether to pay compensation for loss, and the amount thereof under Article 12-2(1) through (3) and the former part of paragraph (4) of that Article;

2. Matters concerning the calculation, repayment, and return of compensation for loss under Article 12-2(5);

3. Matters concerning reduction or non-payment of compensation for loss under the latter part of Article 12-2(4) and recovery of compensation for loss under paragraph (6) of that Article;

4. Matters concerning the standards for and the amount, timing, etc. of compensation for loss under Article 12-2(7);

5. Matters concerning determination on whether to pay, increase, decrease, or recover compensation for loss under Article 12-3(2);

6. Other matters deemed necessary by the chairperson or the Minister of SMEs and Startups for performing affairs relating to compensation for loss.

(5) Where the Deliberative Committee deliberates on the matters prescribed in paragraph (4), it shall comprehensively consider the level and period of the measures taken under Article 49(1)2 of the Infectious Disease Control and Prevention Act, the business income of the applicant, the size of the business, etc.

(6) A working committee may be established under the Deliberative Committee to efficiently handle the affairs of the Deliberative Committee.

(7) Matters necessary for composition, operation, etc. of the Deliberative Committee shall be prescribed by Presidential Decree.

[This Article Added on Jul. 7, 2021]

Article 12-5(Request for provision of information) #

(1) Where necessary for affairs relating to compensation for loss, the Minister of SMEs and Startups may request the heads of relevant central administrative agencies (including their affiliated agencies and responsible administrative agencies), the heads of local governments (including their affiliated agencies), the heads of public institutions under Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institutions"), and individuals to provide the following information, and a person in receipt of such request shall comply therewith unless there is good cause:

1. Personal information of the representative, such as his or her name, resident registration number prescribed in Article 7-2(1) of the Resident Registration Act, address, and telephone numbers (including cell phone numbers);

2. Information prescribed by Presidential Decree as necessary taxation information, such as business registration number, sales, date of commencement, date of closure, and business type;

3. Other information prescribed by Presidential Decree, as necessary for compensation for loss.

(2) Where necessary for affairs relating to compensation for loss, the Minister of SMEs and Startups may manage data containing information referred to in the subparagraphs of paragraph (1).

(3) The Minister of SMEs and Startups may provide information collected pursuant to paragraphs (1) and (2) to the heads of relevant central administrative agencies, the heads of local governments, the heads of public institutions, and other persons prescribed by Presidential Decree. In such cases, the scope of information to be provided shall be limited to information related to the affairs of the relevant institution to handle compensation for loss.

(4) A person provided with information pursuant to paragraph (3) shall not use the information for any purpose other than affairs related to compensation for loss prescribed by this Act, and shall destroy the information without delay at the time the affairs end and notify the Minister of SMEs and Startups thereof.

(5) Except as provided in this Act, matters regarding the processing and protection of information provided under paragraph (3) shall be governed by the Personal Information Protection Act.

[This Article Added on Jul. 7, 2021]

Article 12-6(Establishment of dedicated organizations) #

(1) The Minister of SMEs and Startups may establish an organization dedicated to handling the affairs relating to compensation for loss, if necessary.

(2) The dedicated organization provided in paragraph (1) shall handle the following affairs:

1. Collection and processing of data to compensate for loss;

2. Establishment and operation of a system for compensation for loss;

3. Other affairs necessary for the operation of the Deliberative Committee and compensation for loss.

(3) Other matters necessary for the organization, operation, etc. of dedicated organizations shall be prescribed by Presidential Decree.

[This Article Added on Jul. 7, 2021]

Article 12-7(Subsidization of Insurance Premiums for Micro Enterprises) #

(1) The Government may support micro enterprises who bought employment insurance prescribed in Article 49-2(1) of the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance in a part of employment insurance premium born by micro enterprises pursuant to paragraph (6) of that Article within the budget.

(2) The Government may fully or partially support micro enterprises who bought industrial accident compensation insurance prescribed in Article 124(1) of the Industrial Accident Compensation Insurance Act in their payment of the industrial accident compensation insurance premium to be borne under Article 49(1) of the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance within the budget. <Added on Jan. 9, 2024>

(3) The subjects of subsidization of employment insurance premiums and industrial accident compensation insurance premiums under paragraphs (1) and (2) shall be prescribed by Presidential Decree, and matters necessary for the levels, methods and procedures of subsidization shall be prescribed by public notice of the Minister of SMEs and Startups. <Amended on Jul. 26, 2017; Jan. 9, 2024>

[This Article Added on Jan. 27, 2016]

[Title Amended on Jan. 9, 2024]

[Moved from Article 12-3 <Jul. 7, 2021>]

Article 12-8(Support for micro enterprises in public utilities charges) #

(1) The Government may provide necessary support, within budgetary limits, to micro enterprises facing a sharp increase in their management burden due to a drastic rise in public utilities charges, etc.

(2) Matters necessary for the standards, methods, and procedures, etc. for the support under paragraph (1) shall be prescribed by Presidential Decree.

[This Article Added on Jan. 21, 2025]

Article 13(Establishment and operation of commercial districts information system) #

(1) The Minister of SMEs and Startups may establish and operate an information system which comprehensively provides information related to commercial districts (hereinafter referred to as "Commercial Districts Information System") to assist micro enterprises in selecting a location of a place of business, and a business category. <Amended on Jul. 26, 2017>

(2) Where it is necessary for establishing and operating the Commercial Districts Information System, the Minister of SMEs and Startups may request the provision of materials or information in the following subparagraphs from persons classified in the relevant subparagraph. In such cases, the person so requested shall comply therewith unless there is a compelling reason not to do so: <Amended on Jul. 26, 2017; Dec. 11, 2018; Dec. 31, 2018; Dec. 8, 2020; Dec. 22, 2020>

1. The following information on taxation information under Article 81-13 of the Framework Act on National Taxes, for which a business entity applies or reports to the head of the competent tax office pursuant to Articles 8(1) and (8), 48, 49 and 67 of the Value-Added Tax Act or which is granted pursuant to Article 8(6) of that Act: the Commissioner of the National Tax Service:

a. Trade name, registration number, and turnover;

b. Locations of the places of business and category of business;

c. Date of business opening, date of business suspension, and date of business closure;

2. Other materials and information prescribed by Presidential Decree being related to commercial districts, which the Minister of SMEs and Startups deems necessary for establishing and operating the Commercial Districts Information System, including information on authorized or permitted business places by district, the number of employees at the place of business, information on population by district, and other related matters: The head of the relevant central administrative agency; the head of the relevant public institution; the head of the relevant institution, corporation, or organization; and the head of any other relevant private enterprise.

(3) No public official (including a person who was a public official) who was or is in charge of the affair of establishing and operating the Commercial Districts Information System shall use such materials or information provided pursuant to paragraph (2), for any purpose other than for such provision, nor provide or disclose such materials or information to any other person or institution.

(4) The Minister of SMEs and Startups may conduct a survey necessary for establishing and operating the Commercial Districts Information System. <Amended on Jul. 26, 2017>

Article 14(Exemption and reduction of taxes) #

If necessary for supporting the management stability and growth of micro enterprises the State or a local government may exempt or reduce income tax, corporate tax, acquisition tax, property tax, registration and license tax, etc. of micro enterprises, as prescribed by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, or other relevant Acts.

Article 15(Establishment and operation of consultation center for damage resulting from unfair transactions) #

(1) The Minister of SMEs and Startups and the heads of local governments may establish and operate a consultation center for damage resulting from unfair transaction involving micro enterprises (hereafter referred to as "consultation center" in this Article) to protect and support micro enterprises suffering from the losses caused by any unfair transaction.

(2) The duties of a consultation center shall be as follows:

1. Consultation on damage resulting from unfair transactions involving micro enterprises;

2. Fact-finding survey on unfair transactions involving micro enterprises;

3. Education for prevention of damage resulting from unfair transactions involving micro enterprises;

4. Proposals for improving statutes or regulations and systems related to damage resulting from unfair transactions involving micro enterprises;

5. Follow-up management of consultation for damage resulting from unfair transactions involving micro enterprises;

6. Other matters necessary for the protection and support of micro enterprises suffering from the damage caused by any unfair transaction.

(3) The Minister of SMEs and Startups and the heads of local governments may provide financial assistance to cover expenses necessary for the performance of duties and operation of a consultation center within the budget.

[This Article Wholly Amended on Feb. 11, 2020]

Article 15-2(Support for digitalization of micro enterprises) #

To narrow the digital divide and to enhance digital competitiveness of micro enterprises, the Minister of SMEs and Startups may conduct projects for the following:

1. Disseminating digital innovation models for the workplaces of micro enterprises;

2. Creating a digital ecosystem for micro enterprises;

3. Establishing infrastructure to support digital transformation;

4. Other matters necessary for supporting the digitalization of micro enterprises.

[This Article Added on Jan. 3, 2023]

Article 15-3(Designation of organizations dedicated to digital transformation of micro enterprises) #

The Minister of SMEs and Startups may designate an organization dedicated to the business affairs of digital transformation of micro enterprises, in order to efficiently support the digital transformation of micro enterprises.

[This Article Added on Jan. 3, 2023]

Article 15-4(Establishment of advisory committee on digital transformation) #

(1) An advisory committee on digital transformation (hereinafter referred to as "advisory committee"), as a special subcommittee for the Committee for Deliberation on Policies for Micro Enterprises provided in Article 10 of the Framework Act on Micro Enterprises, may be established to provide advice to the Minister of SMEs and Startups on the following matters in the process of formulating and evaluating policies for digital transformation of micro enterprises:

1. Policies and basic direction for digital transformation;

2. Periodic evaluation of projects for digital transformation and supplementary measures therefor;

3. Other matters on which the Minister of SMEs and Startups seeks advice regarding digital transformation projects.

(2) Article 10(7) of the Framework Act on Micro Enterprises (limited to matters regarding the operation of special subcommittees) shall apply mutatis mutandis to the operation of the advisory committee.

[This Article Added on Jan. 3, 2023]

Article 15-5(Establishment and operation of open big data platform for micro enterprises) #

(1) The Minister of SMEs and Startups may formulate policy measures necessary for the following matters, such as the establishment and operation of an open big data platform for micro enterprises (hereinafter referred to as "platform") so as to support information and communications infrastructure, services, etc. necessary for the management innovation of micro enterprises, in consultation with the Minister of Science and ICT:

1. Establishing and operating the platform;

2. Conducting research including fact-finding surveys for operating and maintaining the platform;

3. Promoting the development of technology and services related to the platform;

4. Creating a foundation for promoting the platform and improving systems therefor;

5. Other matters necessary to establish and operate the platform.

(2) Where it is necessary for establishing and operating the platform, the Minister of SMEs and Startups may request persons classified as follows to provide the following data or information (hereinafter referred to as "data, etc."); in such cases, the person so requested shall comply with such request unless there is a compelling reason not to do so: <Amended on Oct. 2025>

1. The following information on taxation information under Article 81-13 of the Framework Act on National Taxes, for which a business entity files an application or report with the head of the competent tax office pursuant to Articles 8(1) and (8), 48, 49, and 67 of the Value-Added Tax Act or which is granted pursuant to Article 8(7) of that Act: The Commissioner of the National Tax Service:

a. Trade name, business registration number, and turnover;

b. Locations of the places of business and category of business;

c. Date of business opening, date of business suspension, and date of business closure;

2. Information that does not constitute credit information (referring to the credit information defined in subparagraph 1 of Article 2 of the Credit Information Use and Protection Act; hereinafter the same shall apply) among information on credit card merchants provided in subparagraph 6 of Article 64 of the Specialized Credit Finance Business Act, as determined through consultation between the Minister of SMEs and Startups and the Chairperson of the Financial Services Commission: A specialized credit finance business association referred to in Article 62(1) of the Specialized Credit Finance Business Act;

3. Information management system data at the time of sale: The head of a relevant corporation or organization entrusted with relevant business affairs by the Minister of Trade, Industry and Resources pursuant to Articles 9 and 18(1)1 of the Franchise Business Promotion Act and the head of other related institutions, corporations, organizations, and private enterprises;

4. Other data or information prescribed by Presidential Decree, which the Minister of SMEs and Startups deems necessary for establishing and operating the platform, including information on authorized or permitted business places by district, the number of employees at business places, information on population by district, data on the Government's projects for supporting micro enterprises, and public data under subparagraph 2 of Article 2 of the Act on Promotion of the Provision and Use of Public Data: The head of the relevant central administrative agency of the relevant data or information, the head of a public institution, the head of the relevant institution, corporation, or organization, and the head of any other relevant private enterprise.

(3) No person who was or is in charge of the business affairs of establishing and operating the platform shall use such data or information provided pursuant to paragraph (2), for any purpose other than for such provision, nor provide or disclose such data or information to any other person or institution.

[This Article Added on Jan. 3, 2023]

Article 15-6(Principles for utilization and protection of data) #

(1) In principle, data related to the platform shall be utilized to contribute to the interest of micro enterprises.

(2) No one shall infringe on the rights of data subjects or undermine fair commercial transaction practices and competition order when utilizing data, etc. contained on the platform.

(3) The Minister of SMEs and Startups may encourage interested parties who have involved in the creation or utilization of data, etc. to conclude contracts stipulating matters regarding the smooth utilization of data, reasonable distribution of profits accruing from the results thereof, etc.

(4) A person who has the right to use or profit from data, etc. shall take measures necessary to secure the reliability of data and to prevent the relevant data from being lost, stolen, divulged, forged, altered, or damaged, and to prevent products and services utilizing such data from causing any risk, as prescribed by Presidential Decree.

(5) The Minister of SMEs and Startups may prepare guidelines on contracts for micro enterprises to utilize big data in order to conclude contracts under paragraph (3), in consultation with the Minister of Science and ICT.

[This Article Added on Jan. 3, 2023]

Article 15-7(Promotion of utilization of platform) #

(1) In order to vitalize platforms, the Minister of SMEs and Startups may provide administrative, technical, and financial support to persons who have participated in the establishment, operation, etc. of the platform by any of the following methods:

1. Data sharing;

2. Developing new businesses by utilizing data related to micro enterprises;

3. Providing various management information services available to micro enterprises.

(2) Matters necessary for support under paragraph (1) shall be prescribed by Presidential Decree.

[This Article Added on Jan. 3, 2023]

Article 16(Requirements for Long-Lasting Micro Enterprises) #

(1) A long-lasting micro enterprise shall meet the following requirements:

1. Manufacturing: A skilled small manufacturer who has been in his or her business without any change in the main type of business for at least 15 years from the date of commencement of such business;

2. Types of business other than that in subparagraph 1: A micro enterprise that has been in its business without any change in the main type of business for at least 30 years from the date of commencement of such business;

3. Differentiation of products or services;

4. Contribution to the local community.

(2) Details regarding the commencement, continuation, differentiation, and contribution of the business under the subparagraphs of paragraph (1) shall be prescribed by Presidential Decree.

[This Article Added on Jan. 16, 2024]

Article 16-2(Designation of Long-Lasting Micro Enterprises) #

(1) A micro enterprise intending to be designated as a long-lasting micro enterprise shall file with the Minister of SMEs and Startups an application for the designation thereof.

(2) Where the Minister of SMEs and Startups deems that a micro enterprise that has filed an application under paragraph (1) meets the requirements under Article 16, he or she may designate it as a long-lasting micro enterprise. In such cases, the Minister of SMEs and Startups shall issue a certificate of designation as a long-lasting enterprise to a long-lasting micro enterprise, which shall be valid for a certain period of time, as prescribed by Decree of the Ministry of SMEs and Startups.

(3) A long-lasting micro enterprise designated pursuant to paragraph (2) may place a mark of designation as a long-lasting micro enterprise, as prescribed by Decree of the Ministry of SMEs and Startups.

(4) No person, other than a long-lasting micro enterprise designated under paragraph (2), shall place a mark of designation or any other mark similar thereto and shall use the name or any other name similar thereto.

(5) Matters necessary for the designation of a long-lasting micro enterprise under paragraphs (1) and (2) shall be prescribed by Decree of the Ministry of SMEs and Startups.

[This Article Added on Jan. 16, 2024]

Article 16-3(Revocation of Designation of Long-Lasting Micro Enterprises) #

(1) The Minister of SMEs and Startups may revoke the designation of a long-lasting micro enterprise designated under Article 16-2 in any of the following cases; provided, he or she shall revoke the designation if it falls under subparagraph 1: <Amended on Dec. 2, 2025>

1. Where it has been designated by fraud or other improper means;

2. Where it no longer meets the requirements for a long-lasting micro enterprise under Article 16;

3. Where it is found unable to continuously conduct business due to bankruptcy, permanent or temporary closure, or on other grounds;

4. Where, within the validity period under Article 16-2(2), a long-lasting micro enterprise has received an administrative disposition in connection with its business operations, such as suspension of business, revocation of business permit, or imposition of a penalty surcharge, for violating relevant statutes including the Act on Origin Labeling of Agricultural and Fishery Products, the Food Sanitation Act, and the Act on Labeling and Advertising of Foods; provided, this shall not apply where objections or other appeal procedures are in progress;

5. Other cases prescribed by Presidential Decree, such as causing a social controversy.

(2) Where the Minister of SMEs and Startups intends to revoke the designation of a long-lasting micro enterprise pursuant to paragraph (1), he or she shall hold a hearing thereon.

(3) Where the Minister of SMEs and Startups revokes the designation of a long-lasting micro enterprise pursuant to paragraph (1), he or she shall notify the head of the relevant central administrative agency and the head of the competent local government of such fact without delay.

(4) The Minister of SMEs and Startups shall regularly inspect the operational status of long-lasting micro enterprises, as prescribed by Presidential Decree. <Amended on Dec. 2, 2025>

(5) Specific standards and detailed procedures for revocation of the designation under paragraph (1) shall be prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Dec. 2, 2025>

[This Article Added on Jan. 16, 2024]

Article 16-4(Support for Long-Lasting Micro Enterprises) #

(1) The Minister of SMEs and Startups may conduct projects for supporting long-lasting micro enterprises in terms of the following:

1. Promotion of products and services, consulting and market development, and management improvement education;

2. Securing human resources and facilitating retention thereof;

3. Business succession and training of successors;

4. Tax, accounting, and legal consulting;

5. Support for the acquisition of intellectual property rights and protection thereof under subparagraph 3 of Article 3 of the Framework Act on Intellectual Property;

6. Support for the preservation, transmission, and commercialization of traditional technologies;

7. Support for necessary expenses and facility improvements for places of business;

8. Various research and surveys to foster long-lasting micro enterprises;

9. Conduct of promotional activities and holding of fairs and exhibitions related to long-lasting micro enterprises;

10. Other matters prescribed by Decree of the Ministry of SMEs and Startups as necessary for the existence and growth of long-lasting micro enterprises.

(2) In order to efficiently conduct projects for supporting long-lasting enterprises under paragraph (1), the Minister of SMEs and Startups may entrust the projects to the Small Enterprise and Market Service under Article 17.

(3) Where the Minister of SMEs and Startups entrusts projects pursuant to paragraph (2), he or she may fully or partially subsidize expenses incurred in the conduct of such projects within budgetary limits.

(4) Matters necessary for the methods, procedures, etc. for providing support under paragraph (1) shall be prescribed by Decree of the Ministry of SMEs and Startups.

[This Article Added on Jan. 16, 2024]

Article 16-5(Contribution to Development of Local Economy by Long-Lasting Micro Enterprises) #

(1) A long-lasting micro enterprise designated pursuant to Article 16-2 shall endeavor to contribute to the economic development of the region.

(2) The Minister of SMEs and Startups may grant a reward to a long-lasting micro enterprise that has made a significant contribution to the economic development of the region.

(3) Matters necessary for the standards, methods, and procedures for granting rewards under paragraph (2) shall be prescribed by Presidential Decree.

[This Article Added on Jan. 16, 2024]

Article 16-6(Special cases concerning Onnuri gift certificate member shop) #

(1) A long-lasting micro enterprise may be registered as a member shop defined in subparagraph 13 of Article 2 of the Special Act on the Development of Traditional Markets and Shopping Districts.

(2) Articles 26-4 through 26-6 and 74 of the Special Act on the Development of Traditional Markets and Shopping Districts shall apply mutatis mutandis to the registration of member shops, matters to be complied with, revocation of registration, and others.

[This Article Added on Sep. 20, 2024]

Article 17(Establishment of the small enterprise and market service) #

(1) The Small Enterprise and Market Service (hereinafter referred to as the "Service") shall be established to efficiently perform projects for the management stability and growth of micro enterprises, and the revitalization of traditional markets, shopping districts, and commercial districts revitalization zones (hereinafter referred to as "traditional markets, etc.") under Article 2 of the Special Act on the Development of Traditional Markets and Shopping Districts.

(2) The Service shall be a corporation.

(3) The Service shall come into existence upon completing registration for incorporation at the location of its principal office.

(4) The Service shall establish and operate a center for supporting micro enterprises in each region; and may establish branches, training centers, or auxiliary organs, as prescribed by its articles of association.

(5) The Service shall conduct the following projects: <Amended on Jul. 26, 2017; Aug. 20, 2019; Jan. 26, 2021; Jan. 3, 2023; Jan. 16, 2024>

1. The following projects for the management stability and growth of micro enterprises, and the revitalization of traditional markets, etc.:

a. Research, investigation, evaluation, and publicity of policies for supporting micro enterprises and traditional markets, etc.;

b. Evaluation of the effects of projects for supporting micro enterprises and traditional markets, etc.;

2. Developing and dispatching experts for the management stability and growth of micro enterprises, and the revitalization of traditional markets, etc.;

3. Provision of information, consultation services, and education, for the management modernization of traditional markets, etc.;

4. Development and operation of the platform and a database, such as the Commercial Districts Information System, for supporting micro enterprises;

5. Operation of broadcasting for providing information on start-up and management of micro enterprises;

6. Development and distribution of guidelines on start-up by business category of micro enterprises, and innovation of shops thereof;

7. Support for technology development of micro enterprises, and exchanges among different business categories;

8. Support for organization of and collaboration among micro enterprises, such as joint purchase, and establishment of distribution logistics centers;

8-2. Support for micro enterprises’ entry into overseas markets and establishment of distribution networks overseas;

9. Discovery and distribution of new businesses suitable for micro enterprises;

10. Support for corporations and organizations which assist the revitalization of traditional markets, etc.;

11. Fostering merchants’ self-help organizations in traditional markets, etc.;

12. Promotion of cultural tourism-type markets designated under subparagraph 3-2 of Article 2 of the Special Act on the Development of Traditional Markets and Shopping Districts;

13. Projects entrusted by the Minister of SMEs and Startups or the head of a local government for the management stability and growth of micro enterprises, and the revitalization of traditional markets, etc.;

13-2. Support for digitization of micro enterprises, traditional markets, etc.;

13-3. Support for long-lasting micro enterprises;

14. Projects deemed by the Minister of SMEs and Startups to be necessary for the management stability and growth of micro enterprises, and the revitalization of traditional markets, etc.

(6) The Service may request the cooperation of relevant institutions and organizations such as the Korea Trade-Investment Promotion Agency under the Korea Trade-Investment Promotion Agency Act to ensure smooth operation of support projects falling under paragraph (5)8-2. In such cases, the institution or organization shall comply with such request unless there is a compelling reason not to do so. <Added on Aug. 20, 2019>

(7) The Government may contribute or subsidize expenses necessary for conducting projects of the Service. <Amended on Aug. 20, 2019>

(8) Except as provided in this Act, the provisions of the Civil Act governing incorporated foundations shall apply mutatis mutandis to the Service. <Amended on Aug. 20, 2019>

(9) No person, other than the Service established pursuant to this Act, shall use the name, "Small Enterprise and Market Service" or any other name similar thereto. <Amended on Aug. 20, 2019>

Article 17-2(Request for materials) #

(1) The Service may request materials necessary for conducting the affairs prescribed in Article 21(1)1 from the State, local governments, the National Pension Service under the National Pension Act, the National Health Insurance Service under the National Health Insurance Act, the Korea Workers’ Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act, and other public organizations prescribed by Presidential Decree.

(2) The Service may request taxation-related information (limited to specific items included in materials about the assessment of composite income taxes and local taxes and relevant materials regarding business registration) from the head of the competent tax agency or the head of the competent local government in the form of a document which contains the taxpayer’s personal information and the purpose of use. Such request for taxation-related information shall be made within the extent necessary to conduct affairs prescribed in Article 21(1)1 and to recover loan assets and shall not be abused for any other purpose.

(3) A person requested under paragraphs (1) and (2) shall comply with such request unless there is a compelling reason not to do so.

[This Article Added on Aug. 20, 2019]

Article 17-3(Appointment of agents) #

The Chairperson of the Service may appoint an agent authorized to engage in all judicial or extrajudicial actions regarding its’ affairs.

[This Article Added on Aug. 20, 2019]

Article 18(Guidance and supervision concerning affairs of the service) #

(1) The Minister of SMEs and Startups shall guide and supervise the affairs of the Service, and may, if necessary, issue instructions or orders regarding the projects thereof. <Amended on Jul. 26, 2017>

(2) Matters necessary for guidance for and supervision over the Service by the Minister of SMEs and Startups shall be prescribed by Presidential Decree. <Amended on Jul. 26, 2017>

Article 19(Establishment of the market promotion fund for micro enterprises) #

The Market Promotion Fund for Micro Enterprises (hereinafter referred to as the "Fund") shall be established to secure financial resources necessary for supporting the management stability and growth, structural sophistication, etc. of micro enterprises, such as merchants, etc. of traditional markets, etc.

Article 20(Creation of financial resources) #

(1) The Fund shall raise financial resources from the following:

1. Contributions of the Government (calculated on the basis of 3/100 of the amount of customs duties collected in the immediately preceding fiscal year);

2. Cash, goods, or other properties contributed by any person other than the Government or local governments;

3. Money transferred and borrowed from other funds;

4. Lottery proceeds allocated pursuant to the Lottery Tickets and Lottery Fund Act;

5. Deposit money transferred from the Public Capital Management Fund pursuant to the Public Capital Management Fund Act;

6. Profits accruing from the operation of the Fund;

7. Other revenues prescribed by Presidential Decree.

(2) The Government shall include the contributions in the estimated expenditure, within the national budget every fiscal year.

Article 21(Use of fund) #

(1) The Fund may be used for the following projects: <Amended on Jan. 27, 2016; Jul. 26, 2017; Dec. 11, 2018; Aug. 20, 2019; Dec. 8, 2020; Jan. 26, 2021; Apr. 20, 2021; Jan. 3, 2023; Mar. 28, 2023; Jan. 9, 2024, Jan. 16, 2024; Dec. 2, 2025>

1. Financial support for continuous growth of micro enterprises such as direct loans;

2. Support for business conversion of micro enterprises engaged in any category of overcrowded business:

3. Support for the structural sophistication and informatization of micro enterprises;

4. Support for organization, collaboration, and franchise commercialization of micro enterprises;

5. Support for the establishment and operation of common logistics centers;

6. Support for innovative micro enterprises;

6-2. Support for digitalization of micro enterprises;

6-3. Support for long-lasting micro enterprises;

7. Education and consultation for micro enterprises;

8. Support for start-ups (including start-ups overseas) of micro enterprises;

9. Discovery and dissemination of new businesses, and provision of information thereon;

10. Development of experts for supporting micro enterprises;

11. Investigations and research for the management stability and growth of micro enterprises;

12. Support for technology development of micro enterprises, and exchanges among different business categories;

13. Support for traditional markets, etc.;

14. Matters concerning the invigoration of micro enterprises, such as the improvement of understanding thereon;

15. Operation of broadcasting for micro enterprises;

16. Support for employment of a person closing a micro business;

17. Support for micro enterprises engaged in any of those business categories, declared as business categories and items suitable for small-medium enterprises, or in the process of business coordination pursuant to the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises;

17-2. Subsidization of insurance premiums for micro enterprises;

17-3. Subsidization of industrial accident compensation insurance premiums for micro enterprises;

17-4. Support for work-life balance for micro enterprises, such as easing childbirth or childcare-related burdens;

18. Repayment of the principal and interest of the money borrowed from any other funds;

19. Repayment of the principal and interest on the deposits transferred from the Public Capital Management Fund prescribed in the Public Capital Management Fund Act;

20. Payment of expenses incurred in relation to the creation, management, and operation of the Fund;

21. Support for modernizing commercial transactions through the introduction of electronic commerce, an electronic payment system using smart devices, etc.;

22. Support for facilitating the issuance and distribution of mobile gift certificates exclusively for the benefit of micro enterprises;

22-2. Financial support for micro enterprises suffering from the damage caused by the occurrence of a disaster defined in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety;

22-3. Preferential support for compensation for loss under Article 12-2(1) and (2);

23. Support for establishing an online joint sales platform for micro enterprises;

24. Support for tax and accounting management of micro enterprises;

25. Other projects entrusted by the Minister of SMEs and Startups for protecting and supporting micro enterprises.

(2) Where necessary for conducting any of the following projects falling under paragraph (1), the Minister of SMEs and Startups may provide subsidies to micro enterprises, such as merchants, etc. of traditional markets, etc., or to relevant organizations, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>

(3) Where any person uses the Fund for any purpose other than the relevant payment, and other similar cases prescribed by Presidential Decree, the Minister of SMEs and Startups may recover such money paid to such person. <Amended on Jul. 26, 2017>

(4) The recovery of money paid from the Fund provided for in paragraph (3) shall be made in the same manner as delinquent national taxes.

(5) Where the Minister of SMEs and Startups pursues any of the projects specified in paragraph (1) (excluding subparagraph 17-2), he or she may give preferential treatment to micro enterprises that have purchased an employment insurance policy under Article 49-2(1) of the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance. <Added on Jan. 21, 2025>

Article 21-2(Request for provision of information) #

(1) Where necessary for providing financial support under Article 21(1)22-2 (hereinafter referred to as "disaster relief for micro enterprises"), the Minister of SMEs and Startups may request any of the following persons to provide data or information on those subject to disaster relief for micro enterprises, as classified below; in such cases, the person so requested shall comply unless there is a compelling reason not to do so:

1. Any of the following taxation information referred to in Article 81-13 of the Framework Act on National Taxes The Commissioner of the National Tax Service;

a. The following information, for which an application or a report is filed with the head of the competent tax office by a business entity under Article 8 of the Value-Added Tax Act or Article 168 of the Income Tax Act:

1) Trade name; name, resident registration number, and mobile phone number of its representative (in the case of co-representatives, all of them); and location and telephone number of the place of business;

2) Date of commencement of business, primary business type and secondary business type;

3) Date of permanent closure of business, date of permanent closure report, the start and end dates of temporary closure of business, and date of temporary closure report;

b. The following information, for which an application or a report is filed with the head of the competent tax office by a business entity under Article 111 of the Corporate Tax Act:

1) Corporate name; name, resident registration number, and mobile phone number of its representative (in the case of co-representatives, all of them); and location and telephone number of the place of business;

2) Date of commencement of business, primary business type and secondary business type;

3) Date of permanent closure of business, date of permanent closure report, the start and end dates of temporary closure of business, and date of temporary closure report;

c. A business registration number assigned to a business entity by the competent tax office under Article 8 of the Value-Added Tax Act or Article 111 of the Corporate Tax Act;

d. The following information, for which a report is filed with the head of the competent tax office by a business entity under Articles 48, 49 and 67 of the Value-Added Tax Act, Article 78 of the Income Tax Act or Article 60 of the Corporate Tax Act:

1) Semi-annual sales: General taxpayers;

2) Annual sales: Simplified taxpayers;

3) Annual revenue: Tax-exempt business entities;

e. Information transmitted or submitted according to the following:

1) Amount of cash receipt settlement for each cash receipt merchant under Article 126-3 of the Act on Restriction on Special Cases concerning Taxation;

2) Amount of electronic tax invoices issued under Article 32 of the Value-Added Tax Act;

3) Amount of electronic invoices issued under the latter part of Article 163(1) of the Income Tax Act and the latter part of Article 121(1) of the Corporate Tax Act;

2. Electronic information data on resident registration under Article 30(1) of the Resident Registration Act necessary for the payment or recovery of disaster relief subsidies for micro enterprises (limited to addresses of micro enterprises subject to disaster relief): The Minister of the Interior and Safety;

3. The following information on measures under Article 49(1)2 of the Act on the Prevention and Control of Infectious Diseases: The head of a local government (including its affiliated agencies):

a. Applicability of the measures, details thereof, and the period for implementation;

b. Violation of the measures, details thereof, and the duration of such violation, if any;

4. Other data or information prescribed by Presidential Decree, as deemed necessary by the Minister of SMEs and Startups for the business affairs regarding disaster relief for micro enterprises: The head of a central administrative agency (including its affiliated agencies and responsible administrative agencies), the head of a local government (including its affiliated agencies), the head of a public institution, the head of a corporation or organization, and individuals relevant to such data or information.

(2) The Minister of SMEs and Startups may process data containing the information referred to in each subparagraph of paragraph (1), where necessary for performing the business affairs regarding disaster relief for micro enterprises.

(3) The Minister of SMEs and Startups may provide data or information provided under paragraph (1) or processed under paragraph (2) to the heads of relevant central administrative agencies, the heads of local governments, the heads of public institutions, and other persons prescribed by Presidential Decree. In such cases, the scope of the data or information to be provided shall be limited to data or information related to the business affairs of the relevant institution for the processing of disaster relief for micro enterprises.

(4) A person who performs business affairs regarding disaster relief for micro enterprises using the data or information provided under paragraph (1), a person who processes data under paragraph (2), and a person who receives data or information under paragraph (3) may not use such data or information for any purpose other than business affairs regarding disaster relief for micro enterprises under this Act.

(5) Upon completion of business affairs regarding disaster relief for micro enterprises under this Act, a person provided with data or information under paragraph (3) shall, without delay, destroy the relevant data or information and notify the Minister of SMEs and Startups thereof.

(6) Except as provided in this Act, matters regarding the processing and protection of data or information provided under paragraph (3) shall be governed by the Personal Information Protection Act.

[This Article Added on Jan. 21, 2025]

Article 22(Management and operation of fund) #

(1) The Fund shall be managed and operated by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

(2) The Minister of SMEs and Startups may entrust some of the business of the management and operation of the Fund to the Service, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>

(3) The person in charge of managing and operating the Fund may operate the Fund by means of lending, etc. thereof, as determined by the fund operation plan under Article 66 of the National Finance Act.

(4) The fiscal year of the Fund shall be in accordance with the Government’s fiscal year.

(5) The person in charge of managing and operating the Fund shall keep accounts of the Fund, separately from other accounts for other activities.

(6) Except as provided in paragraphs (1) through (5), other matters necessary for managing and operating the Fund shall be prescribed by Presidential Decree.

Article 22-2(Extension of repayment period, deferment of repayment, etc.) #

(1) Where a person who took out a loan under Article 22(3) is deemed unable to repay the loan, the Service may extend the repayment period, defer repayment, or allow long-term installment payments. <Amended on Jan. 21, 2025>

(2) The Service may provide consulting for the improvement of management, technology, finance, accounting, etc., if deemed necessary to help resolve management difficulties facing a person granted an extension of the repayment period or deferment of repayment or allowed to make long-term installment payments pursuant to paragraph (1). <Added on January 21, 2025>

(3) Where the person who took out a loan under Article 22(3) is no longer a micro enterprise and has not yet paid off the loan, the Service may have such person continue to repay the outstanding amount as a micro enterprise for the remaining repayment period. <Added on Jan. 21, 2025>

(4) Matters necessary for the criteria, procedures, etc. for extension of the repayment period, deferment of repayment, or long-term installment payments under paragraph (1) shall be prescribed by Presidential Decree. <Amended on Jan. 21, 2025>

[This Article Added on Aug. 20, 2019]

[Title Amended on Jan. 21, 2025]

Article 22-3(Settlement of profits and deficits) #

(1) Where any profit is realized in the settlement of Fund accounts, the total amount of such profit shall be reserved.

(2) If any deficits are incurred from the settlement of Fund accounts, such deficits shall be covered with the reserve funds under paragraph (1), and the Government may cover such deficits within the budget, if the reserve funds are insufficient to cover such deficits.

[This Article Added on Aug. 20, 2019]

Article 22-4(Sale of bad debts) #

(1) Where deemed necessary for efficient recovery and management of bad debts, the Service may write off or sell off bad debts, as prescribed by Decree of the Ministry of SMEs and Startups.

(2) Where bad debts are sold off under paragraph (1), they may be sold off to the following: <Amended on Nov. 26, 2019>

1. The Korea Asset Management Corporation established under the Act on the Establishment of Korea Asset Management Corporation;

2. Other persons prescribed by Presidential Decree, who specialize in the sale and management of bad debts.

[This Article Added on Aug. 20, 2019]

Article 22-5(Prompt assistance in cases of disaster) #

Where the Service provides loan, etc. for the recovery of damage to a micro enterprise suffering serious damage to its business caused by the occurrence of a disaster under subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, it shall endeavor to ensure prompt assistance for micro enterprises.

[This Article Added on Dec. 8, 2020]

Article 23(Fund Operation Committee) #

(1) The Fund Operation Committee shall be established under the Ministry of SMEs and Startups, to deliberate on the important matters concerning the management and operation of the Fund. <Amended on Jul. 26, 2017>

(2) Matters necessary for the organization and operation of the Committee for Fund Management referred to in paragraph (1) shall be prescribed by Presidential Decree.

Article 24(Establishment and operation of the Korea Federation of Micro Enterprise) #

(1) Corporations, cooperatives, and organizations which meet all the following requirements may establish the Korea Federation of Micro Enterprise (hereinafter referred to as the "Federation"):

1. At least 90/100 of all the members shall be micro enterprises;

2. The representative shall be a micro enterprise.

(2) The Federation shall be a body corporate.

(3) The Federation shall come into existence upon completing registration for incorporation at the location of its principal office.

(4) A person who intends to establish the Federation shall submit its articles of association and other necessary documents to the Minister of SMEs and Startups to obtain permission for its establishment, as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017>

(5) The Federation may establish branches to efficiently perform its business for each district, as prescribed by its articles of association.

(6) Except as otherwise provided in this Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to the Federation.

(7) Matters concerning the establishment and operation of the Federation, and other necessary matters related thereto shall be prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017>

(8) No person, other than the Federation established pursuant to this Act, shall use the name, "Korea Federation of Micro Enterprise" or similar, as its title.

Article 25(Affairs of the federation) #

(1) The Federation shall conduct the following affairs: <Amended on Dec. 31, 2018>

1. Mutual aid and cooperation affairs for promoting friendship among micro enterprises;

2. Provision of information on the start-up, investments, and management activities of micro enterprises;

3. Joint businesses with respect to the purchases, sales, etc. of micro enterprises;

4. Proposals for policies for resolving challenges of micro enterprises;

5. Investigation of, research on, and education for micro enterprises;

6. Collection and provision of information and the establishment and operation of an informatization system for micro enterprises;

7. Provision of services regarding tax, accounting, and legal affairs;

8. Support for organization of micro enterprises;

9. Any other affairs provided for by its articles of association for achieving the objectives of the Federation.

(2) The Government and local governments may subsidize expenses incurred in conducting the affairs of the Federation provided for in paragraphs (1).

Article 25-2(Subsidy) #

(1) The Minister of SMEs and Startups may subsidize expenses necessary for operating the Federation within the budget to foster micro enterprises.

(2) The heads of local governments may subsidize part of the expenses necessary for operating the branch of the Federation located in their jurisdiction through the Federation to foster micro enterprises and to develop local communities.

[This Article Added on Dec. 31, 2018]

Article 26(Guidance and supervision) #

(1) If necessary, the Minister of SMEs and Startups may guide and supervise the affairs of the Federation. <Amended on Jul. 26, 2017>

(2) Where necessary for the guidance and supervision provided for in paragraph (1), the Minister of SMEs and Startups may request the Federation to submit documents, etc. thereof. In such cases, the Federation shall comply with such request in the absence of special circumstances. <Amended on Jul. 26, 2017>

(3) The Federation may guide and supervise the affairs or accounting conducted by regular members of the Federation pursuant to its articles of association; and may order the said members to report on the Federation's affairs or accounting or to undergo an audit. <Added on Dec. 31, 2018>

[Title Amended on Dec. 31, 2018]

Article 27(Administrative order) #

(1) Where it is deemed that any affair or accounting of the Federation violates its articles of association, the Minister of SMEs and Startups may issue an order to rectify such affair and to take other necessary measures within a fixed period. <Amended on Jul. 26, 2017>

(2) If the Federation fails to comply with an order issued under paragraph (1), the Minister of SMEs and Startups may issue an order to dismiss an executive officer or dissolve the Federation. <Amended on Jul. 26, 2017>

(3) If the Minister of SMEs and Startups intends to issue an order to dissolve the Federation pursuant to paragraph (2), he or she shall hold a hearing. <Amended on Jul. 26, 2017>

Article 28(Delegation and entrustment of authority) #

(1) The authority of the Minister of SMEs and Startups vested under this Act may be partially delegated to the head of an institution affiliated therewith, or a Mayor/Do Governor, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>

(2) The affairs of the Minister of SMEs and Startups provided for in this Act may be partially entrusted to any of the following persons, as prescribed by Presidential Decree: <Amended on Mar. 29, 2016; Jul. 26, 2017; Dec. 31, 2018>

1. The Chairperson of the Service;

2. The Chairperson of the Credit Guarantee Fund established pursuant to the Credit Guarantee Fund Act;

3. The Chairperson of the Korea Technology Finance Corporation established pursuant to Article 12 of the Korea Technology Finance Corporation Act;

4. The Chairperson of credit guarantee foundations established pursuant to Article 9 of the Regional Credit Guarantee Foundation Act;

5. President of the Federation;

6. Other persons prescribed by Presidential Decree, who are the heads of institutions in charge of affairs to protect and support micro enterprises.

Article 28-2(Legal fiction as public officials for purposes of applying penalty provisions) #

A non-public official member of the Deliberative Committee shall be deemed a public official for purposes of applying penalty provisions pursuant to Articles 127 and 129 through 132 of the Criminal Act.

[This Article Added on Jul. 7, 2021]

Article 29(Penalty provisions) #

(1) Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Added on Jul. 7, 2021; Jan. 21, 2025>

1. A person who uses the provided information for any purpose other than performing business affairs related to compensation for loss under this Act, in violation of Article 12-5(4);

2. A person who uses the provided data or information for any purpose other than performing business affairs related to disaster relief for micro enterprises under this Act, in violation of Article 21-2(4).

(2) Where the Federation violates any order issued under Article 27(1), it shall be punished by a fine not exceeding 10 million won. <Amended on Jul. 7, 2021>

Article 30(Administrative fines) #

(1) A person who uses the name, "Small Enterprise and Market Service" or similar, as its title, in violation of Article 17(9) shall be subject to an administrative fine not exceeding 10 million won. <Amended on Aug. 20, 2019>

(2) Any of the following persons shall be subject to an administrative fine not exceeding 3 million won: <Amended on Jan. 16, 2024>

1. A person who places a mark of designation as a long-lasting micro enterprise or any other mark similar thereto or uses the name or any other name similar thereto, in violation of Article 16-2(4);

2. A person who uses the name "federation of micro enterprises" or any other name similar thereto, in violation of Article 24(8).

(3) Administrative fines provided for in paragraphs (1) and (2) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>