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SPECIAL ACT ON THE PROMOTION OF VENTURE BUSINESSES — 법갈피

영문법령 / SPECIAL ACT ON THE PROMOTION OF VENTURE BUSINESSES

SPECIAL ACT ON THE PROMOTION OF VENTURE BUSINESSES

법률일부개정시행 2025-05-27중소벤처기업부,중소벤처기업부,중소벤처기업부,중소벤처기업부 · 제20983호 · 공포 2025-05-27

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to contribute to facilitating the structural adjustment of the industry as well as to enhancing the competitiveness thereof, by promoting the conversion of existing enterprises into venture businesses and the establishment of venture businesses.

[This Article Wholly Amended on Aug. 3, 2007]

Article 2(Definitions) #

(1) The term "venture business" means the business which satisfies the requirements under Article 2-2. <Amended on Aug. 3, 2007>

(2) The term "investment" means an investment defined in subparagraph 1 of Article 2 of the Venture Investment Promotion Act. <Amended on Jan. 9, 2024>

(3) Deleted. <Mar. 3, 2006>

(4) The term "facilities for clustering venture businesses" means such buildings designated under Article 18 for the purpose of facilitating the activities of venture businesses by collectively locating such businesses and supporting installations prescribed by Presidential Decree therein. <Amended on Aug. 3, 2007>

(5) The term "laboratory factory" means a business place which is equipped with production facilities falling into the business types corresponding to urban-type factories under Article 28 of the Industrial Cluster Development and Factory Establishment Act in research facilities held by a university or research institute in order to promote the establishment of venture businesses. <Amended on Aug. 3, 2007>

(6) The term "venture business development and promotion zone" means an area which has the higher concentration of venture businesses than other areas and which is designated under Article 18-4 for the purpose of facilitating the activities of venture businesses by the grouping and cooperation thereof. <Amended on Aug. 3, 2007>

(7) The term "strategic alliance" means a formation of cooperative relationship with the stockholders of other enterprises or with other venture businesses in the fields of technology, facility, information, manpower, capital, etc., for the purpose of improving the productivity and strengthening the competitiveness, etc. <Amended on Aug. 3, 2007>

(8) The term "company specializing in the start-up of new technology-based businesses" means a company established mainly with the aim of industrializing technologies held by universities or research institutes and facilitating business start-up through such industrialization, which is registered pursuant to Article 11-2. <Amended on Aug. 3, 2007>

Article 2-2(Requirements for venture business) #

(1) A venture business shall satisfy the following requirements: <Amended on Aug. 3, 2007; May 21, 2009; Jan. 27, 2010; Mar. 9, 2011; Jan. 14, 2014; Mar. 22, 2016; Mar. 29, 2016; May 29, 2016; Dec. 31, 2018; Jan. 8, 2019; Feb. 11, 2020; Jun. 20, 2023; Feb. 1, 2020; Jun. 20, 2023; Jan. 9, 2024; Jan. 31, 2025>

1. It shall be one of the small and medium enterprises prescribed in Article 2 of the Framework Act on Small and Medium Enterprises (hereinafter referred to as "small and medium enterprises");

2. It shall fall under any of the following:

(a) An enterprise which is up to the standards prescribed by Presidential Decree concerning the total amount invested by any of the following persons (hereafter in this item referred to as "total of invested amount") and the ratio occupied by the total of invested amount in its capital, respectively, and is deemed to satisfy the relevant requirements by a venture business confirmation institution designated under Article 25-3 (1) (hereinafter referred to as "venture business confirmation institution"):

(i) A venture investment company prescribed in subparagraph 10 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "venture investment company");

(ii) Venture investment association prescribed in subparagraph 11 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "venture investment association");

(iii) A new technology venture capital business prescribed in the Specialized Credit Finance Business Act (hereinafter referred to as "new technology venture capital business");

(iv) The new technology venture investment association prescribed in the Specialized Credit Finance Business Act (hereinafter referred to as "new technology venture investment association");

(v) Deleted; <Feb. 11, 2020>

(vi) The Korea Venture Investment Corp. prescribed in Article 66 of the Venture Investment Promotion Act;

(vii) One who conducts technology appraisal of and invests in small and medium enterprises, as prescribed by Presidential Decree;

(viii) An individual who meets the standards prescribed by Presidential Decree, such as investment performance, career, and qualification requirements;

(b) An enterprise equipped with any of the following which is up to the standards prescribed by Presidential Decree regarding annual research and development expenses and the ratio occupied by the sum of research and development expenses in annual gross turnover and which is highly appreciated for its business performance by a venture business confirmation institution; provided, the standards regarding the ratio occupied by the sum of research and development expenses in annual gross turnover shall not apply to enterprises in whose case three years have not passed since their establishment:

(i) A business-affiliated research institute or a department solely responsible for research and development which is recognized under Article 7 (1) of the Act on Support for Research and Development of Business-Affiliated Research Institutes;

(ii) A corporate-affiliated creative research institute or a department in charge of creation in companies recognized under Article 17-3 (1) of the Framework Act on the Promotion of Cultural Industries;

(c) An enterprise (including one in the process of establishment) highly appreciated for its innovative technology and business growth potential by a venture business confirmation institution.

(2) Matters necessary for the standards, methods, etc. for appraisal under the provisions of paragraph (1) 2 (b) and (c) shall be prescribed by Presidential Decree. <Amended on Feb. 11, 2020>

[This Article Wholly Amended on Aug. 3, 2007]

Article 3-4(Establishment and operation of comprehensive management system) #

(1) The Minister of SMEs and Startups may establish and operate a comprehensive management system to manage information related to venture businesses in a comprehensive manner and to provide information useful for the activities of venture businesses by laying the basis for cooperation among venture businesses.

(2) Where it is necessary for establishing and operating the comprehensive management system, the Minister of SMEs and Startups may request persons classified as follows to provide data or information falling under the relevant subparagraph. In such cases, the person so requested shall comply with such request in the absence of special circumstances:

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

(a) Opening day, date of suspension, and date of business closure;

(b) Information classified as follows:

(i) In cases of an enterprise falling under Article 2-2 (1) 2 (a): Capital;

(ii) In cases of an enterprise falling under Article 2-2 (1) 2 (b): Annual gross turnover, research and development expenses incurred for new growth engines or source technologies and general research and human resources development expenses, incurred in the relevant year under Article 10 (1) 1 and 3 of the Restriction of Special Taxation Act;

2. The number of the insured under subparagraph 1 of Article 2 of the Employment Insurance Act: The Minister of Employment and Labor;

3. Other data or information necessary for establishing and operating the comprehensive management system, as prescribed by Presidential Decree: The head of a central administrative agency, the head of a local government, the head of a public institution under the Act on the Management of Public Institutions, or the head of any other relevant institution, corporation, or organization holding the relevant data or information.

(3) Except as provided in paragraphs (1) and (2), matters necessary for establishing and operating the comprehensive management system shall be prescribed by Presidential Decree.

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

Article 11-2(Establishment of companies specializing in start-up of new technology-based businesses) #

(1) Any of the following universities or research institutes may establish a company specializing in the start-up of new technology-based businesses (hereinafter referred to as "specialized company"): <Amended on Jan. 30, 2009; Jul. 25, 2011>

1. Universities (including industry-academic cooperation groups pursuant to Article 25 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act);

2. National or public research institutes;

3. Government-invested research institutes;

4. Other research institutes prescribed by Presidential Decree in the field of science or industrial technology.

(2) In establishing a specialized company pursuant to paragraph (1), the relevant university or research institute shall register such company with the Minister of SMEs and Startups as prescribed by Presidential Decree. The same shall also apply where any registered matter is altered. <Amended on Jul. 26, 2017>

(3) Where the application for registration is filed pursuant to paragraph (2), the Minister of SMEs and Startups shall grant the registration except where the application falls under any of the following: <Amended on Jan. 30, 2009; Mar. 22, 2013; Jul. 26, 2017>

1. Where it is not a stock company pursuant to the Commercial Act;

2. Where any executive officer falls under any of the following:

(a) A person under adult guardianship or person under limited guardianship;

(b) A person who has been declared bankrupt, but has not yet been reinstated;

(c) A person who has been sentenced to imprisonment without labor or heavier punishment, and for whom five years have not yet lapsed since the execution of such sentence is terminated (including where the execution of sentence is deemed to have been terminated) or the decision to waive such sentence has been made;

(d) A person who has been sentenced to the suspension of the execution of imprisonment without labor or heavier punishment, and for whom two years have not yet lapsed since the period of suspension is terminated;

(e) A person who is under a grace period after having been sentenced to a suspended sentence of imprisonment without labor or heavier punishment;

(f) A person who is disqualified, or whose qualification is suspended according to a court ruling or other statutes;

3. Where its manpower and facilities fail to meet the standards prescribed by Presidential Decree.

(4) The specialized company shall perform the following business: <Amended on Jan. 27, 2010; May 18, 2015; Jul. 26, 2017; Feb. 11, 2020; Dec. 28, 2021>

1. Industrialization of technologies held by universities, research institutes or specialized companies;

2. Establishment of subsidiaries necessary to industrialize technologies pursuant to subparagraph 1; provided, the universities provided for in paragraph (1) 1 may not establish their subsidiaries;

3. Establishment and operation of the business incubators provided for in Article 53 (1) of the Support for Small and Medium Enterprise Establishment Act;

4. Investment in venture investment associations, new technology venture investment associations, or private investment associations under subparagraph 8 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "private investment associations");

4-2. Operation of assets of private investment associations;

5. Transfer of technologies possessed by specialized companies to industrial enterprises, etc.;

6. Assistance in transferring technologies possessed by universities and research institutes to industrial enterprises, etc.;

7. Managerial and technical support for any company established by teachers, researchers, etc. of universities and research institutes;

8. Other businesses incidental to those provided for in subparagraphs 1 through 7, as determined by the Minister of SMEs and Startups.

[This Article Wholly Amended on Aug. 3, 2007]

Article 15(Exchange of stocks by venture businesses) #

(1) Any venture business (excluding a corporation which is listed in the securities market under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act; hereafter the same shall apply in this Article, and Articles 15-2 through 15-11, 16-3 through 16-6, 16-11, 16-12, 16-14, 16-15, and 16-17 through 16-19) which is a stock company may exchange the treasury stocks with stocks of principal stockholders of other stock companies (referring to stockholders owning at least 10/100 of the total number of issued voting stocks of the relevant corporations; hereinafter the same shall apply) or those of other venture businesses which are stock companies, for the purpose of strategic alliance, as determined by the articles of incorporation. <Amended on Aug. 3, 2007; Jan. 30, 2009; May 28, 2013; Jan. 3, 2023; May 16, 2023; Jan. 9, 2024>

(2) Any venture business which seeks to make a stock exchange under paragraph (1) shall acquire treasury stocks necessary for stock exchange under paragraph (1) on its own account, notwithstanding Article 341 of the Commercial Act. In such cases, the amount of acquisition shall be within the limits capable of paying a dividend under Article 462 (1) of that Act.

(3) Any venture business which seeks to make a stock exchange under paragraph (1) shall prepare a written contract for stock exchange containing the following matters, and obtain approval at a general meeting of stockholders. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of approval by the general meeting of stockholders:

1. Details of the strategic alliance;

2. Matters related to the method, price and time of acquisition of treasury stocks;

3. Matters related to the gross amount of values, assessment, kinds and volume of the stocks to be exchanged;

4. Date of share swap;

5. Where making a stock exchange with the principal stockholders of other stock companies, the names and resident registration numbers of stockholders and the kinds and volume of stocks to be exchanged.

(4) Any venture business which seeks to make a stock exchange under paragraph (1) shall, when there exists a resolution thereon made by the board of directors, promptly notify the stockholders of the details of such resolution, and keep the written contract for stock exchange under paragraph (3) so as to make it available for a perusal.

(5) Where any venture business acquires stocks of the principal stockholders of other stock companies or those of other venture businesses pursuant to the stock exchange under paragraph (1), it shall retain them for at least one year from the date of acquisition. The same shall also apply to the principal stockholders of other stock companies who have acquired the stocks of venture businesses pursuant to the stock exchange under paragraph (1).

(6) The acquisition period of treasury stocks under paragraph (2) shall be within six months from the date of a resolution on approval of the general meeting of stockholders under paragraph (3).

[This Article Wholly Amended on Aug. 3, 2007]

Article 15-3(Simplification of merger procedures) #

(1) When any venture business that is a stock company has made a decision on merging with another stock company [in the case of a small-scale merger under Article 15-9 and a short-form merger under Article 15-10, referring to the resolution of approval by the board of directors], it shall, within one week from the day the said merger resolution has been made, give the creditors a public notice that any objection against such merger, if any, should be raised within the period of not less than 10 days, and shall make a peremptory notice on matters of the public announcement to the creditors who are known to itself, notwithstanding Article 527-5 (1) of the Commercial Act.

(2) Any venture business that is a stock company may notify a convocation of the general meeting of stockholders for making a merger resolution seven days prior to the date of general meeting of stockholders, notwithstanding Article 363 (1) of the Commercial Act.

(3) Any venture business that is a stock company may, in disclosing a written contract for merger, etc. in order to merge with another stock company, make the period of such disclosure from seven days prior to the date of general meeting of stockholders for a merger approval to the day on which one month elapses after the date of merger, notwithstanding Article 522-2 (1) of the Commercial Act.

(4) When there exists a resolution of the board of directors relating to a merger of venture business that is a stock company, any stockholder of the venture business who is opposed to the said resolution shall, notwithstanding Article 522-3 (1) of the Commercial Act, inform the venture business in writing of his or her intention of opposing the merger prior to the general meeting of stockholders, and demand a purchase of his stocks, stating the kinds and numbers of stocks possessed by him or her.

(5) Where any venture business has received a demand under paragraph (4), it shall purchase such stocks within two months from the date of resolution by the general meeting of stockholders relating to the merger, notwithstanding Articles 374-2 (2) and 530 (2) of the Commercial Act.

(6) Article 374-2 (3) through (5) of the Commercial Act shall apply mutatis mutandis to a determination of purchase prices of stocks pursuant to paragraph (5). In such cases, "date of receiving a demand of paragraph (1)" in Article 374-2 (4) of that Act shall be read as the "date of resolution by the general meeting of stockholders relating to the merger".

[This Article Wholly Amended on Aug. 3, 2007]

Article 15-4(Stock Exchanges by Issuing New Stocks) #

(1) A venture business that is a stock company may issue new stocks and exchange them with the stocks of the major stockholders of other stock companies or stocks of other venture businesses which are stock companies, for the purpose of strategic alliance as determined by the articles of incorporation. In such cases, the major stockholders of such other stock companies or the other venture businesses which are stock companies shall become the stockholders of the relevant venture business by receiving an allotment of new stocks to be issued by the venture business for a stock exchange.

(2) A venture business seeking to make a stock exchange pursuant to paragraph (1) shall prepare a contract for stock exchange containing the following matters and obtain approval therefor from the general meeting of stockholders. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of approval of the general meeting of stockholders:

1. Details of the strategic alliance;

2. Matters concerning the value, gross amount, assessment, kinds, volume and allotments of new stocks to be exchanged;

3. Date of making the stock exchange;

4. Where making stock exchange with major stockholders of other stock companies, the names and resident registration numbers of the stockholders and the kinds and volume of stocks to be exchanged.

(3) Where the major stockholders of other stock companies or other venture businesses which are stock companies make an investment in kind in the venture business with their retained stocks through a stock exchange pursuant to paragraph (1), if a certified assessment agency prescribed by Presidential Decree has made an assessment of the price of said stocks, it shall be deemed that an inspector has made an investigation pursuant to Article 422 (1) of the Commercial Act or that a certified appraiser has made an appraisal. In such cases, Article 422 (3) and (4) of the Commercial Act shall not be applicable. <Amended on May 29, 2016>

(4) Article 15 (4) and (5) shall apply mutatis mutandis where a stock exchange is made pursuant to paragraph (1).

[This Article Wholly Amended on Aug. 3, 2007]

Article 15-8(Special cases concerning takeover of business by other stock companies) #

(1) Where a venture business that is a stock company transfers the whole or part of its business to another stock company (excluding the corporations listed in the securities exchange under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act; hereafter in this Article and Articles 15-9 through 15-11, the same shall apply), if the transfer value does not exceed 10/100 of the amount of net assets existing on the final balance sheet of the other stock company, approval of the general meeting of stockholders of the other stock company may be substituted by approval of the board of directors as determined by the articles of incorporation. <Amended on Aug. 3, 2007; Jan. 30, 2009; May 28, 2013>

(2) A venture business seeking to transfer the whole or part of its business pursuant to paragraph (1) shall state, on the written contract for transfer or takeover of business, the purport that another stock company may take over the whole or part of business of the venture business without obtaining approval from the general meeting of stockholders.

(3) Another stock company which seeks to take over the whole or part of business of a venture business under paragraph (1) shall make a public announcement of the following matters or notify the stockholders thereof within two weeks from the date of preparing a written contract for transfer or takeover of business:

1. Important details of the written contract for transfer or takeover of business;

2. The purport that the business is taken over without obtaining approval from the general meeting of the stockholders.

(4) When a stockholder who owns stocks equivalent to at least 20/100 of the total number of issued stocks of another stock company has notified in writing his or her intention of opposing the business takeover pursuant to paragraph (1), within two weeks from the date of public announcement or notification under paragraph (3), no business takeover under this Article shall be made.

(5) In the case of business takeover under paragraph (1), Article 374-2 of the Commercial Act shall not be applicable.

[This Article Wholly Amended on Aug. 3, 2007]

Article 16(Grant of leave of absence of public educational officials) #

(1) Any of the following persons (hereinafter referred to as "public educational official, etc.") may be allowed a leave of absence so as to work as a representative or an executive officer of a venture business or startup, notwithstanding Article 44 (1) of the Public Educational Officials Act, Article 71 (2) of the State Public Officials Act, Article 63 (2) of the Local Public Officials Act, and Article 59 (1) of the Private School Act: <Amended on Mar. 22, 2013; May 18, 2015; Mar. 13, 2018; Feb. 11, 2020; Dec. 28, 2021; Jan. 9, 2024>

1. Teaching staff (including a researcher at a university-affiliated institute; hereinafter the same shall apply) at a university (including a university established under other statutes; hereinafter the same shall apply) under the Higher Education Act;

2. Researchers at a national or public research institute (including teaching staff and researchers under Article 15 of the Korea Advanced Institute of Science and Technology Act, Article 14 of the Gwangju Institute of Science and Technology Act, Article 12-3 of the Daegu Gyeongbuk Institute of Science and Technology Act, and Article 8 of the Ulsan National Institute of Science and Technology Act; hereinafter the same shall apply);

3. Researchers at a research institute under Article 8 (1) of the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes and Article 8 (1) of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes (including researchers at affiliated research institutes; hereinafter the same shall apply);

4. Researchers at a specialized manufacturing technology research institute prescribed in Article 42 of the Industrial Technology Innovation Promotion Act.

5. Researchers at a government-funded institution under Article 2 of the Act on the Operation of Local Government-Invested or -Funded Institutions as prescribed by Presidential Decree;

6. Research institutes prescribed by Presidential Decree, such as public institutions for research and development designated under the Act on the Management of Public Institutions.

(2) Any of the following persons (hereinafter referred to as "employees, etc. of public institutions") may be allowed a leave of absence so as to work as a representative or an executive officer of a venture business or startup, with permission from the head of an institution to which he or she belongs: <Added on May 18, 2015; Feb. 11, 2020; Dec. 28, 2021; Jan. 9, 2024>

1. Employees of a public institution under Article 4 (1) of the Act on the Management of Public Institutions (excluding researchers under paragraph (1) 3 of this Article);

2. Employees of a specialized manufacturing technology research institute under paragraph (1) 4 (excluding researchers);

3. Employees of a local government-funded institution under paragraph (1) 5 (excluding researchers).

(3) The period of leave of absence under paragraph (1) or (2) shall not exceed seven years (including six months for preparing for the establishment and the period of leave of absence extended upon approval from the head of the institution to which he or she belongs). In such cases, the period of leave of absence of a university faculty member may exceed the remaining period of his or her employment, notwithstanding Article 45 (2) of the Educational Officials Act. <Amended on Mar. 19, 2024>

(4) Where public educational officials, etc. or employees, etc. of public institutions are awarded a leave of absence for at least six months in compliance with paragraph (1) or (2), it shall be deemed that there are a fixed number of extra regular staff which is equal to that of public educational officials, etc. or employees, etc. of public institutions who are awarded the leave of absence from the beginning date of leave of absence at the university, research institute, or public institution. <Amended on Mar. 22, 2013; May 18, 2015; Feb. 11, 2020>

(5) Where public educational officials, etc. or employees, etc. of public institutions resume office after taking a leave of absence under paragraph (1) or (2), the head of an institution to which they belong shall not give them any unfavorable treatment in terms of their status or salary due to the leave of absence. <Added on Mar. 22, 2013; May 18, 2015; Feb. 11, 2020>

[This Article Wholly Amended on Aug. 3, 2007]

[Title Amended on Mar. 22, 2013]

Article 16-3(Stock options of venture businesses) #

(1) A venture business that is a stock company may grant the following persons who has contributed, or is capable of contributing, to the establishment of such venture business or to its technological or managerial innovation, etc. the right to purchase the stocks of the relevant venture business (hereinafter referred to as "stock option") as prescribed by Presidential Decree; in such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to a resolution at a general meeting of shareholders: <Amended on Mar. 19, 2024>

1. An executive officer or employee of the venture business (excluding persons prescribed by Presidential Decree);

2. An executive officer or employee (excluding a person prescribed by Presidential Decree) of a business acquired by the venture business (limited to where the venture business owns more than 30/100 of the total number of issued stocks of the business);

3. A person prescribed by Presidential Decree who has the expertise that the venture business needs.

(2) Stock options under paragraph (1) shall be granted by any of the following methods: <Added on Mar. 19, 2024>

1. The right to acquire new stocks at a predetermined price (hereinafter referred to as "exercise price");

2. The right to purchase treasury stocks at the exercise price;

3. The right to receive a cash payment for the difference between the exercise price of the stock option and the market price of such stock valuated on the date the stock option is exercised (referring to the difference where the exercise price is lower than the market price) or to receive the treasury stocks of a venture business equivalent to such difference.

(3) Stocks granted under paragraph (1) shall not exceed 50/100 of the total number of issued stocks of a company; provided, in cases falling under paragraph (1) 3, they shall not exceed 10/100 of the total number of issued stocks of the company. <Amended on Mar. 19, 2024>

(4) The exercise price of a stock option under the subparagraphs of paragraph (1) shall be at least the value as classified below: <Amended on Mar. 19, 2024>

1. In the case of granting under paragraph (2) 1, the market value of stocks or the face value of stocks, whichever is higher, as of the date a stock option is granted;

2. In the case of granting under paragraph (2) 2 or 3, the market price of stocks as of the date a stock option is granted.

(5) Notwithstanding paragraph (4), where a stock option is granted to a person prescribed in paragraph (1) 1 or 2 and the requirements prescribed by Presidential Decree are satisfied, the price of a stock option may be determined at a price lower than the market value (provided, the price shall be at least the face value). <Amended on Mar. 19, 2024>

[This Article Wholly Amended on Jan. 3, 2023]

Article 16-11(Issuance of multiple voting stocks) #

(1) Notwithstanding Article 369 of the Commercial Act, where a venture business that is a stock company meets the following requirements, it may issue stocks with multiple voting rights (hereinafter referred to as "multiple voting stocks") that are exercisable for up to 10 years following a resolution at a general meeting of stockholders, as prescribed by the articles of incorporation:

1. Investments shall be made in the venture business by a person who is not a related party prescribed by Presidential Decree in an amount not less than that prescribed by Presidential Decree. In such cases, the amount of the last investment shall be not more than the amount prescribed by Presidential Decree;

2. A founder under paragraph (5) shall no longer own stocks in the percentage prescribed in paragraph (5) 4 (in the case of a founder under paragraph (6), referring to where the founder no longer owns stocks in the percentage specified in that paragraph) following investments made under the latter part of subparagraph 1.

(2) When a venture business that is a stock company intends to issue multiple voting stocks, the following matters shall be prescribed by the article of incorporation:

1. The purport that multiple voting stocks may be issued in a certain case;

2. The qualification requirements for persons to be granted multiple voting stocks;

3. The procedures for issuing multiple voting stocks;

4. The total number of multiple voting stocks to be issued;

5. The number of voting rights per share of multiple voting stocks;

6. The period during which multiple voting stocks are exercisable;

7. The purport that multiple voting stocks are converted into common stocks in a certain case.

(3) The following matters shall be determined by a resolution at a general meeting of shareholders under paragraph (1):

1. The names of persons to be granted multiple voting stocks;

2. The quantity of multiple voting stocks to be issued to persons who receive such stocks;

3. The value per share of multiple voting stocks;

4. Payment for multiple voting stocks.

(4) An amendment to the articles of incorporation prescribed in paragraph (2) and a resolution at a general meeting of stockholders under paragraph (3) shall require at least 3/4 of the total number of issued voting stocks.

(5) Multiple voting stocks shall be issued to a stockholder who meets all of the following requirements (hereinafter referred to as "founder"):

1. He or she shall be an incorporator specified in the articles of incorporation prepared under Article 289 (1) of the Commercial Act as at the time the relevant venture business that is a stock company is established;

2. He or she shall be a director who is appointed at a general meeting of stockholders under Article 382 (1) of the Commercial Act and engages in regular business of the relevant company as at the time multiple voting stocks are issued;

3. He or she shall not be a person in whose cases two years have not elapsed since his or her imprisonment without labor or heavier punishment declared by a court was completely executed (including where such execution is deemed completed) or exempted;

4. He or she shall be a person who continues to own the largest number of issued voting stocks, which shall be at least 30/100 of the total number thereof, during the period from the time when the relevant venture business that is a stock company is established until the last investment is made therein.

(6) Where there exist at least two persons who meet the requirements under paragraph (5) 1 through 3, each person shall be deemed a founder under paragraph (5) if they continue to own the largest number of issued voting stocks on aggregate, which shall be at least 50/100 of the total number thereof, during the period from the time the relevant venture business that is a stock company is established until the last investment is made therein.

(7) The number of voting rights per share of multiple voting stock shall be more than one but not more than 10, as prescribed by the articles of incorporation.

(8) A founder may make a payment for multiple voting stocks with common stocks, as prescribed by Presidential Decree, if a resolution is adopted at a general meeting of stockholders with the consent of all stockholders. In such cases, Articles 341, 341-2, and 422 of the Commercial Act shall not apply.

[This Article Added on May 16, 2023]

Article 16-12(Conversion of multiple voting stocks) #

(1) Multiple voting stocks shall be converted into common stocks on the following relevant date in any of the following cases:

1. Where the period during which multiple voting stocks are exercisable expires: The date following the expiration date;

2. Where a founder has his or her multiple voting stocks inherited or transfer such stocks: The date of such inheritance or transfer;

3. Where a founder is removed from the position of director prescribed in Article 16-11 (5) 2;

4. Where a venture business that is a stock company is listed in the securities market specified in Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act: The date three years after the date the relevant venture business is listed (where the period during which multiple voting stocks are exercisable expires before that date, the date following the expiration date);

5. Where a venture business that is a stock company is notified of designation as a business group subject to disclosure under Article 31 (1) of the Monopoly Regulation and Fair Trade Act or of inclusion in domestic affiliates of a business group subject to disclosure under Article 32 (1) of that Act (including where the venture business is deemed included in domestic affiliates of or related parties to a business group subject to disclosure or deemed notified of such inclusion under Article 33 of that Act): The date of such notification;

6. Where a venture business that is a stock company is notified of exclusion from domestic affiliates of a business group subject to disclosure as such venture business falls under the case prescribed by Presidential Decree, although there exists a ground for including the venture business in domestic affiliates of a business group subject to disclosure under Article 32 (1) of the Monopoly Regulation and Fair Trade Act: The date of such notification.

(2) Where multiple voting stocks are issued by false or improper means, the same number of common stocks shall be deemed issued on the date such multiple voting stocks are issued.

(3) Matters necessary for notification, etc. of conversion of multiple voting stocks shall be prescribed by Presidential Decree.

[This Article Added on May 16, 2023]

Article 16-17(Restricted stock unit agreement by venture business) #

(1) A venture business that is a stock company may conclude an agreement on the delivery of its treasury stocks without consideration with an executive officer or employee of the venture business who has contributed, or is capable of contributing, to the establishment of such venture business or to its technological or managerial innovation, etc. under Article 16-3 (1) 1 (hereinafter referred to as "restricted stock unit agreement") upon a resolution of the general meeting of shareholders, as prescribed by the articles of incorporation. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of the general meeting of shareholders.

(2) The articles of incorporation governing a restricted stock unit agreement shall include the following matters:

1. The purport that a restricted stock unit agreement may be concluded under certain circumstances;

2. The type and number of stocks to be delivered under a restricted stock unit agreement;

3. Qualification requirements for a person to enter into a restricted stock unit agreement;

4. Details of certain restrictions and conditions set by the company in a restricted stock unit agreement;

5. The purport that a restricted stock unit agreement may be terminated or canceled under certain circumstances.

(3) The following matters shall be determined by a resolution at a general meeting of shareholders under paragraph (1):

1. The name of the person to enter into a restricted stock unit agreement;

2. The type and number of stocks to be delivered to each person who has entered into a restricted stock unit agreement;

3. Restrictions and conditions set out in a restricted stock unit agreement.

(4) A venture business that is a stock company shall conclude an agreement with a person to whom stocks shall be delivered under a restricted stock unit agreement by a resolution at a general meeting of shareholders under paragraph (1) and shall prepare a written contract thereon within a reasonable period of time.

(5) A person who has entered into a restricted stock unit agreement with a venture business that is a stock company may acquire or transfer treasury stocks only when he or she holds office or remains in service for at least two years from the date of a resolution at the general meeting of shareholders under paragraph (1).

(6) A venture business that is a stock company shall keep the written contract under paragraph (4) at the head office until a party to the restricted stock unit agreement acquires or transfers treasury stocks to make it available for viewing by its shareholders during business hours.

(7) A venture business that is a stock company shall register the matters provided in the articles of incorporation under paragraph (1).

[This Article Added on Jan. 9, 2024]

Article 16-18(Special cases concerning acquisition of treasury stocks under restricted stock unit agreement) #

(1) Notwithstanding Article 341 of the Commercial Act, a venture business that is a stock company may acquire treasury stocks, if necessary for performing a restricted stock unit agreement; provided, the total amount of the acquisition price shall not exceed the amount obtained by subtracting the capital from the net assets on the balance sheet for the immediately preceding period for the settlement of accounts.

(2) Acquisition of treasury stocks under paragraph (1) shall be made in accordance with the subparagraphs of Article 341 (1) of the Commercial Act. In such cases, the number thereof shall not exceed the total number of treasury stocks to be delivered in the future under a restricted stock unit agreement.

(3) A venture business that is a stock company intending to acquire treasury stocks under paragraph (1) shall determine the following matters by a prior resolution of a general meeting of shareholders:

1. Acquisition counterpart;

2. The type and number of stocks to be acquired;

3. The period during which treasury stocks can be acquired, which shall not exceed one year.

(4) A venture business that is a stock company shall not acquire stocks under paragraph (1), where the value of the net assets on the balance sheet is likely to fall short of the capital during the period for the settlement of accounts for the relevant business year.

(5) Where a venture business that is a stock company has acquired stocks under paragraph (1) even though the value of the net assets on the balance sheet falls short of the capital during the period for the settlement of accounts for the relevant business year, the directors shall be jointly and severally liable to compensate the venture business that is a stock company for such shortfall; provided, this shall not apply where the directors proves that they have exercised due care in judging that the concern specified in paragraph (4) does not exist.

(6) A venture business that is a stock company shall dispose of the treasury stocks acquired under paragraph (1) by the following methods:

1. Delivery under a restricted stock unit agreement;

2. Disposal under Article 342 of the Commercial Act;

3. Retirement under Articles 438 through 446 of the Commercial Act.

(7) Where treasury stocks are disposed of in violation of paragraph (6), Article 399 of the Commercial Act shall apply mutatis mutandis.

(8) Where a venture business that is a stock company acquires treasury stocks under paragraph (1), Article 460 of the Commercial Act shall not apply.

[This Article Added on Jan. 9, 2024]

Article 17-2(Designation of Areas for Clustering New Technology-Based Businesses) #

(1) The head of a university or a research institute may request the Minister of SMEs and Startups to designate a specific land held by the university or research institute as an area for clustering new technology-based businesses (hereinafter referred to as "clustering area") in which the production facilities and other support facilities of startups, venture businesses, etc. are collectively equipped. <Amended on Jul. 26, 2017; Dec. 28, 2021>

(2) The head of a university or a research institute shall, when requesting the designation of a clustering area under paragraph (1), submit a plan for developing the clustering area containing the matters prescribed by Presidential Decree such as the name, area of designation, etc. of the clustering area.

(3) The Minister of SMEs and Startups, who is requested to designate an area as a clustering area, may designate such area as a clustering area after examining whether it meets the requirements provided for in the subparagraphs of Article 17-3. In such cases, he or she shall publicly notify the details of designation as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>

(4) When the size of an area to be designated as a clustering area pursuant to paragraph (3) is not smaller than the area prescribed by Presidential Decree, the Minister of SMEs and Startups shall consult with the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor or the Jeju Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") who has jurisdiction over such area; provided, if the clustering area is within the jurisdiction of a large city with a population of at least one million under Article 198 (2) 1 of the Local Autonomy Act, he or she shall consult with the head of that large city. <Amended on Jul. 26, 2017; Jan. 8, 2019; Oct. 18, 2022>

[This Article Wholly Amended on Aug. 3, 2007]

Article 17-4(Special Cases concerning Clustering Areas) #

(1) A clustering area may be designated in an area other than areas prescribed by Presidential Decree, such as green belts for preservation, among the areas provided for in Article 36 of the National Land Planning and Utilization Act, notwithstanding Article 76 of the said Act.

(2) A startup or a venture business may construct in the relevant clustering area the urban-type factories (referring to urban-type factories prescribed by Presidential Decree) pursuant to Article 28 of the Industrial Cluster Development and Factory Establishment Act and other related business facilities to the extent that the structural safety is not threatened, by obtaining approval from the head of the relevant university or research institute, notwithstanding Article 19 (1) of the Building Act and Article 76 (1) of the National Land Planning and Utilization Act. In such cases, approval for establishment, etc. of factories under Article 13 of the Industrial Cluster Development and Factory Establishment Act and approval for installation of manufacturing facilities under Article 14-3 of that Act shall be deemed obtained. <Amended on Mar. 21, 2008; Jan. 27, 2010; Dec. 28, 2021>

(3) The clustering area, the designated area of which is not smaller than the area prescribed by Presidential Decree pursuant to Article 17-2 (4) and, which is designated in an urban area shall be deemed the up-to-date city industrial complex under Article 7-2 of the Industrial Sites and Development Act.

(4) The Minister of SMEs and Startups shall be the authorized administrator (referring to the authorized administrator prescribed in Article 30 (1) of the Industrial Cluster Development and Factory Establishment Act) of the clustering area under paragraph (3). <Amended on Jul. 26, 2017>

(5) The university or research institute concerned shall be the management agency (referring to the management agency prescribed in Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act) of the clustering area under paragraph (3).

(6) The head of a university or research institute may lease part of the relevant clustering area to a startup, a venture business, or the installer or operator of support facilities who intends to construct buildings (including any factory structures) or other permanent installations in the clustering area concerned, notwithstanding Articles 18 and 27 of the State Properties Act, Articles 13 and 20 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. In such cases, when the period of the lease contract (including the renewed contract) expires, the installations in question shall be donated to the relevant university or research institute or the relevant land shall be reinstated to the original state and returned, taking into consideration the types, utilities, etc. of the installations. <Amended on Jan. 30, 2009; Dec. 28, 2021>

(7) Matters necessary for the rental fee, lease period, etc. pursuant to paragraph (6) shall be prescribed by Presidential Decree.

(8) Article 22 (1) and (3) shall apply mutatis mutandis with respect to the clustering areas.

(9) Where the head of each Si/Gun/Gu receives an application for registration of factories under paragraph (2) from a startup or venture business located in a clustering area, he or she shall register a factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Added on Jan. 27, 2010; Dec. 28, 2021>

[This Article Wholly Amended on Aug. 3, 2007]

Article 18(Designation of Facilities for Clustering Venture Businesses) #

(1) A person who intends to establish the facilities for clustering venture businesses or use existing buildings as those facilities may obtain designation thereof from the Mayor/Do Governor (referring to the Mayor in cases of large cities with a population of at least 500,000 except for the Seoul Special Metropolitan City, Metropolitan Cities, and Special Self-Governing Cities under Article 198 of the Local Autonomy Act; hereafter the same shall apply in this Article, Article 18-4, and Article 26) where their total floor area exceeds the total floor area prescribed by Presidential Decree. The same shall also apply where the designated matters are modified. <Amended on Jan. 8, 2019; Jan. 12, 2021>

(2) The facilities for clustering venture businesses that have been designated under paragraph (1) shall satisfy the following requirements within one year from the date they are so designated (in cases of buildings under construction, referring to the date approval for use of the buildings is granted under Article 22 of the Building Act): <Amended on Mar. 21, 2008; Jan. 30, 2009>

1. The businesses prescribed by Presidential Decree, such as venture businesses, etc., shall move in, and the number of venture businesses from among enterprises located therein shall be no less than four (no less than three in cases of an area other than the Seoul Metropolitan Area under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act);

2. The businesses prescribed by Presidential Decree, such as venture businesses, shall use at least 70/100 (50/100 in cases of an area other than the Seoul Metropolitan Area under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act) of the total floor area;

3. The facilities prescribed by Presidential Decree, such as facilities for clustering venture businesses, shall occupy the designated area which does not fall under subparagraph 2.

(3) If deemed necessary for supporting venture businesses, the Mayor/Do Governor may establish the facilities for clustering venture businesses or designate existing buildings as those facilities, so that venture businesses and their supporting installations may move therein.

(4) When the facilities for clustering venture businesses fall under any of the following cases, the Mayor/Do Governor may revoke such designation; provided, when they fall under subparagraph 1, he or she shall revoke such designation:

1. When they have been designated by fraud or other improper means;

2. When they fail to satisfy the requirements for designation under paragraph (1) or (2).

(5) The Mayor/Do Governor intends to revoke the designation of the facilities for clustering venture businesses under paragraph (4), he or she shall hold a hearing.

(6) Application for designation under paragraph (1) and other matters necessary for such designation shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Aug. 3, 2007]

Article 18-2(Special Cases concerning Laboratory Factories) #

(1) Any of the following persons may establish a laboratory factory with approval from the head of an institution (referring to the head of an institution which establishes a laboratory factory, in cases falling under subparagraph 4) to which he or she belongs, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. The same shall also apply where any approved matter is modified: <Amended on Mar. 21, 2008; Jan. 27, 2010; Jan. 26, 2012; May 18, 2015>

1. Teaching staff and students at a university under the Higher Education Act;

2. A researcher at a national or public research institute or a government-invested research institution;

3. A researcher at a research institute prescribed by Presidential Decree, which is in the field of science or industrial technology;

4. The founder of a venture business.

(2) The head of an institution to which a person who falls under any subparagraph of paragraph (1) belongs shall notify the applicant whether he or she grants an approval, within seven days from the date of the receipt of an application for approval or an application for approval for the modification. <Added on Mar. 21, 2017>

(3) If the head of the competent institution referred to in paragraph (2) fails to notify the applicant whether he or she grants an approval within the period prescribed in that paragraph or that the processing period is extended pursuant to statutes or regulations related to processing of civil complaints, the approval shall be deemed granted on the day following the end of such period. <Added on Mar. 21, 2017>

(4) If approval (including approval for modification; hereafter in this paragraph the same shall apply) of a laboratory factory is obtained under paragraph (1), approval for factory establishment, etc. under Article 13 of the Industrial Cluster Development and Factory Establishment Act or approval for the installation of manufacturing facilities under Article 14-3 of the said Act shall be deemed obtained. <Added on May 18, 2015; Mar. 21, 2017>

(5) The total floor area of a laboratory factory for the use of production facilities shall not exceed 3,000 square meters; provided, the same shall not apply where the standards for construction of buildings, etc. in special purpose areas under Article 76 (1) of the National Land Planning and Utilization Act are fulfilled. <Amended on May 18, 2015; Mar. 21, 2017>.

(6) The total area of a laboratory factory (where at least two laboratory factories exist, referring to their total area) shall not exceed 1/2 of the total floor area of buildings in the relevant university or research institute; provided, the same shall not apply where the standards for construction of buildings, etc. in special purpose areas under Article 76 (1) of the National Land Planning and Utilization Act are fulfilled. <Amended on May 18, 2015; Mar. 21, 2017>

(7) The head of a Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) shall, upon receipt of application for registration of a laboratory factory, register the factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Amended on May 18, 2015; Mar. 21, 2017>

(8) The head of a university or a research institute may allow any person who has established a laboratory factory under paragraph (1), even if he or she is voluntarily retired (graduated) from his or her office, to use the factory for a fixed period not exceeding two years from the date of such retirement (graduation). <Amended on Jan. 27, 2010; May 18, 2015; Mar. 21, 2017>

(9) Other matters necessary for the establishment, operation, etc. of a laboratory factory shall be prescribed by Presidential Decree. <Amended on May 18, 2015; Mar. 21, 2017>

[This Article Wholly Amended on Aug. 3, 2007]

Article 18-3(Special Cases concerning Venture Businesses and Founders Moved into Business Incubators) #

(1) A venture business or startup that has moved into a business incubator established and operated at a university or research institute which falls under any of the following may establish a urban-type factory prescribed in Article 28 of the Industrial Cluster Development and Factory Establishment Act by obtaining approval from the head of the operating agency of a business incubator, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones, and Article 28 of the Industrial Cluster Development and Factory Establishment Act. In such cases, approval for establishment, etc. of factories under Article 13 of the Industrial Cluster Development and Factory Establishment Act and approval for installation of manufacturing facilities under Article 14-3 of that Act shall be deemed obtained: <Amended on Mar. 21, 2008; Jan. 27, 2010; Jan. 26, 2012; Jul. 26, 2017; Dec. 28, 2021>

1. A business incubator which is designated by the Minister of SMEs and Startups under Article 53 (1) of the Support for Small and Medium Enterprise Establishment Act;

2. A business incubator which is recognized by the head of a central administrative agency or local government.

(2) The head of Si/Gun/Gu shall, upon receipt of application for registration of a factory from a venture business or startup that has moved into a business incubator under paragraph (1), register a factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Amended on Dec. 28, 2021>

(3) The business incubator established and operated at a university or research institute shall be deemed the facility group pursuant to Article 19 (4) 2 of the Building Act. <Amended on Mar. 21, 2008>

[This Article Wholly Amended on Aug. 3, 2007]

[Title Amended on Dec. 28, 2021]

Article 19(Sale of State or Public Properties) #

(1) If deemed necessary for developing, establishing and operating facilities for clustering venture businesses, the State or local governments may sell or lease, by free contract, State or public properties to a person who has established or operated the facilities for clustering venture businesses, notwithstanding the provisions of the State Properties Act or the Public Property and Commodity Management Act.

(2) Matters necessary for the selling price, rental fee, lease period, etc. of State properties, pursuant to paragraph (1), shall be determined by the Presidential Decree.

(3) The State or local governments may trust real estates that are State-owned general property or public miscellaneous property with a trust business entity, on condition that such properties shall be leased to venture businesses. In such cases, Article 58 of the State Property Act shall apply mutatis mutandis to the trust of public real estates. <Amended on Aug. 3, 2007; Jan. 30, 2009; Mar. 22, 2013>

(4) The State, local governments, or educational foundations of private schools may lease State or public lands or a part of the land of a university to a person who has established or operated the facilities for clustering venture businesses, and allow him or her to construct buildings or other permanent installations, notwithstanding Article 18 of the State Properties Act, Articles 13 and 20 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. In such cases, lease conditions shall be defined in consideration of the types, utilities, etc. of the installations concerned to the effect that such installations shall be donated to the State, local governments, or educational foundations of private schools, or that such lands shall be restored to the original state and returned at the end of the lease period. <Amended on Jan. 30, 2009>

(5) A person who has established or operated the facilities for clustering venture businesses may allow other persons to use or make profits upon installations built in compliance with paragraph (4) on condition that such installations are used for the same purposes as leased, notwithstanding Article 30 (2) of the State Property Act, Article 35 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. <Amended on Jan. 30, 2009>

[This Article Wholly Amended on Aug. 3, 2007]

Article 25(Confirmation as to Whether to Be Categorized as Venture Businesses or Not) #

(1) A venture business seeking to receive support under this Act may request the head of a venture business confirmation institution to confirm whether it fits into the category of venture businesses. <Amended on Mar. 29, 2016; Feb. 11, 2020>

(2) From the date of receipt of the request under paragraph (1), the head of the venture business confirmation institution shall make confirmation as to whether the business may be categorized as a venture business or not through the deliberation by the venture business confirmation committee under Article 25-4 (1) (hereinafter referred to as the "venture business confirmation committee") within the period prescribed by Decree of the Ministry of SMEs and Startups, and give notice on the result of confirmation to the requester. In such cases, when the relevant business is a venture business, the head of the venture business confirmation institution shall issue the certificate of venture business with a valid period fixed as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017; Feb. 11, 2020>

(3) The head of the venture business confirmation institution may disclose information on the venture businesses confirmed as prescribed by Presidential Decree to secure the transparency in confirming venture businesses; provided, none of the following information shall be disclosed:

1. Trade secrets under subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act;

2. Matters concerning personal information, such as the resident registration numbers of representatives.

(4) The head of the venture business confirmation institution may have the one seeking the confirmation for a venture business pay for the costs for confirmations under paragraphs (1) and (2). In such cases, matters necessary for estimating the costs and for the payment shall be determined and publicly notified by the Minister of SMEs and Startups. <Added on Apr. 23, 2019>

(5) Matters necessary for the procedures for confirmation, etc. under paragraphs (1) and (2) shall be prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017; Apr. 23, 2019>

[This Article Wholly Amended on Aug. 3, 2007]

Article 26(Report) #

(1) Deleted. <Feb. 11, 2020>

(2) Deleted. <Feb. 11, 2020>

(3) Deleted. <Feb. 11, 2020>

(4) If the Minister of SMEs and Startups deems it necessary for the enforcement of this Act, he or she may ask the venture business confirmation institution to file a report on the actual record, etc. for the confirmation of venture businesses and the revocation of such confirmation under Articles 25 and 25-2, or have the public officials under his or her jurisdiction enter the relevant agency inspect the books and other documents. In such cases, the public officials conducting the inspection shall carry certificates of their competence and present them to the parties concerned. <Amended on Jul. 26, 2017>

(5) The Mayor/Do Governor may ask the person who has obtained a designation of the facilities for clustering venture businesses under Article 18 to submit the information on the current status of location and operational situations as to the said facilities.

(6) When the head of the venture business confirmation institution deems it necessary for the confirmation of a venture business, the revocation of such confirmation, etc. pursuant to Articles 25 and 25-2, he or she may ask the venture business to submit the information required for the actual status of operations.

(7) The Minister of SMEs and Startups may have a university, research institute or public institution submit the information on the actual results of permission for the leaves of absence or concurrent posts or offices of the public educational officials, etc. or employees, etc. of public institutions, and of approval for establishment of laboratory factories, under Articles 16, 16-2 and 18-2. <Amended on May 18, 2015; Jul. 26, 2017; Feb. 11, 2020>

(8) The Minister of SMEs and Startups may have a specialized company submit the materials relating to those provided for in the subparagraphs of Article 11-2 (4) or its settlement statement for every fiscal year. <Amended on Jul. 26, 2017>

[This Article Wholly Amended on Aug. 3, 2007]

SPECIAL ACT ON THE PROMOTION OF VENTURE BUSINESSES

Article 1(Purpose) #

Article 2(Definitions) #

Article 2-2(Requirements for venture business) #

Article 3(Decision on business type excluded from venture business) #

Article 3-2(Establishment of venture business promotion plans) #

Article 3-3(Fact-finding surveys) #

Article 3-4(Establishment and operation of comprehensive management system) #

Article 3-5(Promotion of projects for supporting the growth of venture businesses) #

Article 3-6(Designation of specialized venture business support institution) #

Article 4 #

Article 4-2 #

Article 4-3 #

Article 4-4 #

Article 4-5 #

Article 4-6 #

Article 4-7 #

Article 4-8 #

Article 4-9 #

Article 4-10 #

Article 5(Provision of preferential credit guarantee) #

Article 6(Special cases concerning contributions of intellectual property rights) #

Article 7 #

Article 8 #

Article 9(Special cases concerning restrictions on acquisition of stocks by foreigners) #

Article 10 #

Article 10-2 #

Article 11 #

Article 11-2(Establishment of companies specializing in start-up of new technology-based businesses) #

Article 11-3(Operation of specialized companies) #

Article 11-4(Preferential provision of funds to specialized companies) #

Article 11-5(Special cases concerning specialized companies) #

Article 11-6(Restrictions on activities of specialized companies) #

Article 11-7(Revocation of registration of specialized companies) #

Article 12 #

Article 13 #

Article 13-2 #

Article 13-3 #

Article 14(Special cases concerning taxation) #

Article 15(Exchange of stocks by venture businesses) #

Article 15-2(Appraisal rights of opposing stockholders) #

Article 15-3(Simplification of merger procedures) #

Article 15-4(Stock Exchanges by Issuing New Stocks) #

Article 15-5(Appraisal rights by stockholders at time of stock exchange by issuing new stocks) #

Article 15-6(Special cases concerning stock exchange) #

Article 15-7(Litigation for invalidity of stock exchange) #

Article 15-8(Special cases concerning takeover of business by other stock companies) #

Article 15-9(Special cases concerning small-scale merger of venture businesses) #

Article 15-10(Special cases concerning short-form merger of venture businesses) #

Article 15-11(Short-form transfer of business) #

Article 15-12(Provisions applicable mutatis mutandis) #

Article 15-13(Designation of supporting centers for merger and acquisition of small and medium venture businesses) #

Article 15-14(Revocation of designation as supporting centers) #

Article 16(Grant of leave of absence of public educational officials) #

Article 16-2(Special cases concerning concurrent posts or offices of public educational officials) #

Article 16-3(Stock options of venture businesses) #

Article 16-4(Granting stock options of venture businesses) #

Article 16-5(Exercise of stock options) #

Article 16-6(Reporting on stock options) #

Article 16-7(Provision of information to venture businesses) #

Article 16-8(Special cases concerning limited liability companies which are venture businesses) #

Article 16-9(Special cases concerning use of industrial property rights) #

Article 16-10(Social venture businesses) #

Article 16-11(Issuance of multiple voting stocks) #

Article 16-12(Conversion of multiple voting stocks) #

Article 16-13(Restrictions on voting rights of multiple voting stocks) #

Article 16-14(Reporting on issuance of multiple voting stocks) #

Article 16-15(Special cases concerning tender offer and reporting on stocks held in bulk) #

Article 16-16(Recognition of and reporting on violations) #

Article 16-17(Restricted stock unit agreement by venture business) #

Article 16-18(Special cases concerning acquisition of treasury stocks under restricted stock unit agreement) #

Article 16-19(Reporting on restricted stock unit agreement) #

Article 17 #

Article 17-2(Designation of Areas for Clustering New Technology-Based Businesses) #

Article 17-3(Requirements for Designation of Clustering Areas) #

Article 17-4(Special Cases concerning Clustering Areas) #

Article 17-5(Guidelines for Management of Clustering Areas) #

Article 17-6(Revocation of Designation of Clustering Areas) #

Article 18(Designation of Facilities for Clustering Venture Businesses) #

Article 18-2(Special Cases concerning Laboratory Factories) #