SMALL AND MEDIUM ENTERPRISES PROMOTION ACT

영문법령 불러오는 중…

SMALL AND MEDIUM ENTERPRISES PROMOTION ACT — 법갈피

Article 3(Plan for supporting structural advancement) #

(1) Whenever deemed necessary for improving the business scale, management techniques, or manufacturing methods in order to solve the challenges that small and medium enterprises may face in their business management due to changes in economic situations and to enhance their competitiveness, the Government may formulate policies necessary for supporting their efforts for structural advancement, such as conversion of a private business into a corporation, mergers and split-offs of companies, joint ventures, collaboration, business conversion, relocation of business premises, and rationalization of management.

(2) The Special Metropolitan City Mayor, each Metropolitan City Mayor, each Special Self-Governing City Mayor, each Do Governor, or the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall establish and announce a plan for supporting the structural advancement of small and medium enterprises (hereinafter referred to as "plan for supporting structural advancement") within his or her jurisdiction each year to implement supporting policies formulated under paragraph (1). In such cases, a Mayor/Do Governor may request the heads of institutions responsible for supporting small and medium enterprises, including the Korea SMEs and Startups Agency established under Article 68(1) (hereinafter referred to as the "Korea SMEs and Startups Agency"), to submit materials necessary for establishing the plan for supporting structural advancement, and the heads of the institutions in receipt of such request shall cooperate therein. <Amended on Mar. 29, 2016; Dec. 31, 2018>

(3) The plan for supporting structural advancement shall contain the following, reflecting the actual conditions of each local government:

1. Matters concerning budget subsidies for each project;

2. Matters concerning counseling, consulting, guidance for management and technology, provision of information, etc.;

3. Other matters necessary for supporting the structural advancement.

(4) Each Mayor/Do Governor may request necessary support from the heads of the relevant central administrative agencies in order to promote the plan for supporting structural advancement smoothly.

Article 29(Approval of action plans for cooperative movement) #

(1) A person who intends to formulate and implement an action plan for cooperative movement in accordance with the standards for cooperative movement, shall obtain approval from the Minister of SMEs and Startups. The foregoing shall also apply to any modification to matters specified by Decree of the Ministry of SMEs and Startups, contained in the approved plan. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>

(2) A person who intends to formulate and implement an action plan for cooperative movement in accordance with the standards for cooperative movement, shall obtain approval from the competent Mayor/Do Governor (referring to the head of a large city (hereinafter referred to as "the head of a large city") in the case of a large city with a population of at least 500,000 persons, other than Seoul Special Metropolitan City, a Metropolitan City, and a Special Self-Governing City, under Article 198 of the Local Autonomy Act; hereafter in this Section, the same shall apply), notwithstanding paragraph (1), if the action plan for cooperative movement includes any project for developing an industrial complex, which entails changes in the form or quality of land, or infrastructure construction works and is on at least an area specified by Presidential Decree (hereinafter referred to as "industrial complex development project"). The foregoing shall also apply to any modification to matters specified by Decree of the Ministry of SMEs and Startups, contained in the approved plan. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017; Dec. 31, 2018; Jan. 12, 2021>

(3) The Minister of SMEs and Startups or the Mayor/Do Governor shall notify the applicant of whether the approval is granted within 45 days from the date of receiving an application for approval or approval of modification filed under paragraph (1) or (2). <Added on Jan. 3, 2023>

(4) If the Minister of SMEs and Startups or the Mayor/Do Governor fails to notify an applicant of whether to grant the approval or an extension of the handling period under the statutes and regulations related to the handling of civil petitions within the period specified in paragraph (3), the approval shall be deemed granted on the day following the end of the period (if the handling period is extended or re-extended under the statutes and regulations related to the handling of civil petitions, referring to the relevant handling period). <Amended on Added on Jan. 3, 2023>

(5) The Mayor/Do Governor shall have a prior consultation with the Minister of SMEs and Startups to grant approval or approval of modification pursuant to paragraph (2). <Amended on Jul. 26, 2017; Jan. 3, 2023>

(6) Matters necessary for formulating action plans for cooperative movement under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Amended on Jan. 3, 2023>

Article 31(Approval of execution plans for industrial complex development projects) #

(1) To execute an industrial complex development project, a person who has obtained approval of his or her action plan for cooperative movement pursuant to Article 29 or the Korea SMEs and Startups Agency (hereinafter referred to as "small and medium entrepreneur, etc.") shall prepare an execution plan for the industrial complex development project (hereinafter referred to as "execution plan") and obtain approval from the competent Mayor/Do Governor. The foregoing shall also apply to any modification to matters specified by Decree of the Ministry of SMEs and Startups, contained in the approved plan. <Amended on Feb. 29, 2008; Mar. 23, 2013; Mar. 29, 2016; Jul. 26, 2017; Dec. 31, 2018>

(2) A small and medium entrepreneur, etc. that intends to obtain approval of his or her execution plan or approval of modification thereto pursuant to paragraph (1) (excluding approval or approval of modifications granted by the head of a large city), shall submit the execution plan to the competent Mayor/Do Governor via the head of the competent Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply). <Amended on Dec. 31, 2018>

(3) The Mayor/Do Governor shall determine whether to approve an execution plan pursuant to paragraph (1), considering the following matters:

1. Whether the development of an industrial complex is appropriate for the related cooperative movement project and whether its scale is adequate;

2. Whether the plan is in line with the related State plans for national land, industries, the environment, etc.;

3. Other matters specified by Presidential Decree, including making the infrastructure available.

(4) Upon granting approval of an execution plan or approval of modification thereto pursuant to paragraph (1), the Mayor/Do Governor shall report it to the Minister of Land, Infrastructure and Transport and publicly announce it, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(5) When a small and medium entrepreneur, etc. seeks to implement a cooperative movement project by acquiring, or leasing, on a long-term basis, a parcel of land for industrial purpose developed in a foreign country, he or she shall prepare an execution plan and obtain approval thereof from the Minister of SMEs and Startups. The foregoing shall also apply to any modification to the matters specified by Decree of the Ministry of SMEs and Startups, contained in the approved plan. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>

Article 62-9(Designation of support centers for small and medium enterprises that integrate corporate social responsibility into their business) #

(1) To support efficiently small and medium enterprises that integrate corporate social responsibility into their business, the Minister of SMEs and Startups may designate an institution or an organization involved in supporting small and medium enterprises, as a support center for small and medium enterprises that integrate corporate social responsibility into their business (hereafter in this Article referred to as "support center for corporate social responsibility management"). <Amended on Jul. 26, 2017>

(2) The support center for corporate social responsibility management shall perform the following functions: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. Providing guidelines for corporate social responsibility management of small and medium enterprises;

2. Training experts in corporate social responsibility management of small and medium enterprises;

3. Education and training for raising awareness of corporate social responsibility management of small and medium enterprises;

4. Providing information and consulting services necessary for corporate social responsibility management of small and medium enterprises;

5. Other services prescribed by Decree of the Ministry of SMEs and Startups as necessary to vitalize corporate social responsibility management of small and medium enterprises.

(3) The Minister of SMEs and Startups may provide a contribution or subsidy for support centers for corporate social responsibility management to cover expenses incurred in performing the functions prescribed in the subparagraphs of paragraph (2), within budgetary limits. <Amended on Jul. 26, 2017>

(4) Where a support center for corporate social responsibility management falls under any of the following cases, the Minister of SMEs and Startups may revoke its designation or order it to suspend all or some of its functions for a period of up to six months; provided, in cases falling under subparagraph 1, such designation shall be revoked: < Amended on Jul. 26, 2017; Dec. 31, 2018>

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

2. Where it no longer meets the criteria for designation under paragraph (5);

3. Where it fails to perform the functions designated without good cause for at least three months.

(5) Matters necessary for the criteria and procedures for designation of support centers for corporate social responsibility management, suspension of their functions, and revocation of their designation, and operation of such support centers shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2018>

[This Article Added on Dec. 11, 2012]

[Moved from Article 62-6, previous Article 62-9 moved to Article 62-12 <Mar. 29, 2016>]

Article 62-10(Special cases concerning establishment of factories by small enterprises) #

(1) If a small enterprise builds a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act or a place of work equivalent thereto, of less than 500 square meters, its business registration certificate issued under Article 8 of the Value-Added Tax Act shall be deemed a certificate prescribed by Presidential Decree, such as a document verifying that its factory has been registered under Article 16 of the Industrial Cluster Development and Factory Establishment Act.

(2) Where a small enterprise that has built a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act or a place of work equivalent thereto, of less than 1,000 square meters, intends to build a new factory, extends or relocates its factory (limited to where the aggregate of the building area of the factory and the area of its place of work equivalent thereto, does not exceed 1,000 square meters after building a new factory or extending or relocating its factory) in or to an area outside the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act (hereafter in this Article referred to as "area outside the Seoul Metropolitan area"), it is entitled to exemption from the following charges and expenses:

1. Farmland preservation charges levied under Article 38 of the Farmland Act;

2. Expenses incurred in creating forest replacement resources under Article 19 of the Mountainous Districts Management Act;

3. Development charges levied under Article 5 of the Restitution of Development Gains Act.

(3) Where a person who intends to develop a national industrial complex, general industrial complex, urban high-tech industrial complex, or agricultural and industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act, develops a national industrial complex, a general industrial complex, an urban high-tech industrial complex, or an agricultural and industrial complex within which at least 50/100 of all enterprises are small enterprises, in an area outside the Seoul Metropolitan area, the person is entitled to exemption from the charges and expenses referred to in the subparagraphs of paragraph (2).

(4) Methods of computing the building area of a factory or a place of work equivalent thereto under paragraphs (1) and (2), and other relevant matters, shall be prescribed by Presidential Decree.

[This Article Added on Jan. 28, 2015]

[Moved from Article 62-7, previous Article 62-10 moved to Article 62-13 <Mar. 29, 2016>]

Article 67(Use of fund) #

(1) The Fund may be used for the following purposes: <Amended on Dec. 19, 2008; Jan. 17, 2012; Mar. 29, 2016; Jul. 26, 2017; Dec. 31, 2018; Feb. 11, 2020; Jul. 27, 2021; Dec. 28, 2021; Jun. 10, 2022; Jan. 3, 2023; Mar. 28, 2023; Jun. 20, 2023>

1. Financial support to the operators of business incubators designated under Article 53(1) of the Support for Small and Medium Enterprise Establishment Act, and to resident companies therein;

2. Investments in, or loans to, venture investment companies under subparagraph 10 of Article 2 of the Venture Investment Promotion Act;

3. Investments in venture investment associations under subparagraph 11 Article 2 of the Venture Investment Promotion Act;

4. Financial support to small and medium business consulting companies under Article 54(1) of the Support for Small and Medium Enterprise Establishment Act;

5. Projects entrusted by the Minister of SMEs and Startups to provide support for the establishment of small and medium enterprises and venture businesses;

6. Support for automation of small and medium enterprises and venture businesses;

7. Support for informatization of small and medium enterprises and venture businesses;

8. Support for technology development and inter-industry exchanges of small and medium enterprises and venture businesses;

9. Support for business conversion of small and medium enterprises and venture businesses;

10. Support for endeavors made by small and medium enterprises and venture businesses to enter into new markets locally and internationally to sell their products and support for collaborative production;

11. Support for logistics modernization by small and medium enterprises and venture businesses;

12. Support for cooperative projects by small and medium enterprises and venture businesses;

13. Support for collaborative projects by small and medium enterprises and venture businesses;

14. Support for site location of small and medium enterprises and venture businesses and their endeavors to reduce environmental pollution;

15. Guidance and training programs for small and medium enterprises and venture businesses and training of technical experts;

16. Support for internationalization of small and medium enterprises and venture businesses;

17. Support for the normalization of management of small and medium enterprises and venture businesses;

18. Underwriting of stocks or debentures held by small and medium enterprises and venture businesses;

18-2. Non-recourse purchase, management, and collection of accounts receivable acquired by small and medium enterprises or venture businesses for providing goods or services;

19. Installation and operation of facilities for the Korea SMEs and Startups Agency;

20. Business affairs entrusted by the Minister of SMEs and Startups for promoting small and medium enterprises and venture businesses;

21. Projects entrusted by the Minister of SMEs and Startups for management considering factors, such as the environment, society, and governance of small and medium enterprises and venture businesses;

22. Leasing necessary facilities to small and medium enterprises and venture businesses, and collecting, disseminating, surveying, and researching related information;

23. Fostering local small and medium enterprises, including support for creating the fund for fostering local small and medium enterprises under Article 8 of the Act on the Fostering of Local Small and Medium Enterprises and Promotion of Their Innovation;

24. Projects under the subparagraphs of Article 28 of the Industrial Development Act;

25. Investment in or contribution to the projects provided in subparagraphs 6 through 18, 18-2, and 19 through 24.

26. Projects incidental to those provided in subparagraphs 1 through 18, 18-2, and 19 through 24.

(2) Deleted. <Dec. 19, 2008>

(3) Subsidies may be provided to small and medium entrepreneurs, organizations, etc., from the Fund, if necessary for performing projects referred to in the subparagraphs of paragraph (1). <Amended on Dec. 19, 2008>

(4) Matters necessary for the operation and management of the Fund, and subsidies that may be disbursed from the Fund, shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 27, 2007]

Article 74(Business affairs) #

(1) The Korea SMEs and Startups Agency may perform the following business affairs regarding small and medium enterprises or provide support therefor: <Amended on Jan. 21, 2014; Jul. 26, 2017; Dec. 31, 2018; Jan. 3, 2023; Mar. 28, 2023>

1. Support for automation;

2. Support for informatization;

3. Support for technology development and inter-industry exchanges;

4. Support for business conversion;

5. Support for endeavors made by small and medium enterprises and venture businesses to enter into new markets locally and internationally and support for collaborative production;

6. Support for logistics modernization;

7. Promotion of cooperative projects, acquisition of land, buildings, facilities, etc., for cooperative projects, development of industrial complexes, or installation, leases, and transfer of common facilities;

8. Support for collaborative projects;

9. Support for site location;

10. Support for the establishment of small and medium enterprises and venture businesses;

11. Support for small and medium enterprises taking occupancy in agricultural and industrial complexes;

12. Support for reducing environmental pollution;

13. Diagnosis of and consultation on business management and technology, nurturing of professionals therefor, fostering private institutions, organizations, and business entities specializing in consultation on business management and technology, and the introduction and dissemination of technology;

14. Training for small and medium entrepreneurs, their employees, and consultants on business management and technology for small and medium enterprises and venture businesses, and nurturing of technical experts;

14-2. Projects designed to provide incentives in the form of monthly reserve accumulations to core human resources of small and medium enterprises, and other projects regarding support for human resources of small and medium enterprises;

15. Support for overseas investment and internationalization, including entry into overseas markets and cooperation in industrial technology with foreign countries;

16. Support for business normalization;

17. Underwriting of stocks and debentures held by small and medium enterprises and venture businesses;

17-2. Non-recourse purchase, management, and collection of accounts receivable acquired by small and medium enterprises or venture businesses for providing goods or services;

18. Operation and management of the Fund;

19. Establishment and operation of exhibition centers and ancillary facilities in Korea and overseas, for supporting the sale of products made by small and medium enterprises and venture businesses;

20. Business affairs entrusted by the Minister of SMEs and Startups for promoting small and medium enterprises and venture businesses;

21. Collecting, disseminating, surveying, and researching information relating to small and medium enterprises and venture businesses;

22. Leasing facilities necessary for the projects and business affairs prescribed in subparagraphs 1 through 12, 15 and 20;

23. Business affairs incidental to those provided in subparagraphs 1 through 14, 14-2, 15 through 17, 17-2, and 18 through 21.

(2) In performing the projects and business affairs prescribed in paragraph (1), the Korea SMEs and Startups Agency may cooperate with local governments to provide support for small and medium enterprises and venture businesses. <Amended on Dec. 31, 2018>

(3) Matters necessary for cooperating with local governments under paragraph (2) shall be prescribed by Presidential Decree.

Article 81(Relationship to other statutes) #

(1) Where a small and medium entrepreneur, etc. has obtained approval of an execution plan for an industrial complex development project under Article 31(1), any of the following permission, decision, authorization, license, agreement, consent, approval, release, disposition, etc. (hereinafter referred to as "authorization, permission, etc.") shall be deemed granted; where an approval of an execution plan is publicly notified under paragraph (4) of that Article, a public notice or public announcement of authorization, permission, etc. under the following relevant statutes shall be deemed given or made: <Amended on Dec. 27, 2007; Mar. 21, 2008; Jun. 9, 2009; Apr. 15, 2010; May 31, 2010; Jan. 14, 2014; Jun. 3, 2014; Dec. 27, 2016; Jan. 29, 2020; Jul. 20, 2021; Dec. 27, 2022>

1. Permission to partition a parcel of land and to alter the shape and quality thereof under Article 56 of the National Land Planning and Utilization Act, designation of an executor of an urban planning facility project under Article 86 of the same Act, and authorization of an execution plan under Article 88 of the same Act;

2. Authorization for waterworks business under Articles 17 and 49 of the Water Supply and Waterworks Installation Act, and authorization for installation of private-use waterworks under Articles 52 and 54 of the same Act;

3. Permission to execute a public sewerage construction project under Article 16 of the Sewerage Act;

4. Permission to occupy and use public waters under Article 8 of the Public Waters Management and Reclamation Act and approval for or reporting on an implementation plan for occupation and use under Article 17 of the same Act;

5. Permission to execute a harbor development project under Article 9(2) of the Harbor Act or approval for an implementation plan for a harbor development project under Article 10(2) of the same Act;

6. Permission to execute river works under Article 30 of the River Act, permission to occupy and use a river under Article 33 of the same Act;

7. Permission to execute a road construction project under Article 36 of the Road Act or permission to occupy and use a road under Article 61 of the same Act;

8. Permission for, or consultation for conversion of farmland under Article 34 of the Farmland Act;

9. Permission for, or reporting on, conversion of mountainous districts under Articles 14 and 15 of the Mountainous Districts Management Act, the permission for, or reporting on, temporary use of mountainous districts under Article 15-2 of that Act, and permission for, or reporting on, lumbering of standing trees, etc. under Articles 36(1) and (5), and 45(1) and (2) of the Creation and Management of Forest Resources Act;

10. Permission for lumbering, etc. under Article 14 of the Erosion Control Work Act, and revocation of designation of an erosion control area under Article 20 of the same Act;

11. Permission for conversion of grassland under Article 23 of the Grassland Act;

12. Permission for opening a private road under Article 4 of the Private Road Act;

13. Examination of publication of maps, etc. under Article 15(4) of the Act on the Establishment and Management of Spatial Data;

14. Non-approval disposition under Article 24 of the Mining Industry Act, and a disposition of reducing a mining area or revoking mining rights under Article 34 of the same Act;

15. Permission for re-burial of a grave in which an unclaimed body is buried under Article 23 of the Act on Funeral Services;

16. Approval for using an agricultural production infrastructure under Article 23 of the Rearrangement of Agricultural and Fishing Villages Act.

(2) Where a Mayor/Do Governor intends to grant approval of an execution plan that contains the matters set forth in any subparagraph of paragraph (1), he or she shall pre-consult with the head of a relevant administrative agency.

(3) Any area covered by an approved execution plan shall be deemed designated as a promotional zone under Article 23 of the Industrial Cluster Development and Factory Establishment Act.

(4) Authorization that a small and medium entrepreneur, etc. has obtained for completion of an industrial complex development project in accordance with Article 32 shall be deemed a final inspection or completion approval of the project that is granted with the permission, authorization, license, agreement, consent, approval, or release which is deemed approval for the execution plan pursuant to paragraph (1).

(5) A small and medium entrepreneur who has taken a training course for industrial standardization and quality control at a training institution under Article 57(1) shall be deemed to have completed a training course under Article 28 of the Industrial Standardization Act. <Amended on Jan. 28, 2015>

SMALL AND MEDIUM ENTERPRISES PROMOTION ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Plan for supporting structural advancement) #

Article 4(Projects for supporting automation of small and medium enterprises) #

Article 5(Projects for supporting inter-industry exchange) #

Article 6 #

Article 7 #

Article 8 #

Article 9 #

Article 10 #

Article 11 #

Article 12 #

Article 13 #

Article 14 #

Article 15 #

Article 16 #

Article 17 #

Article 18 #

Article 19 #

Article 20 #

Article 21 #

Article 22 #

Article 23 #

Article 24 #

Article 25 #

Article 26 #

Article 27 #

Article 28(Public notice of standards for cooperative movement among small and medium enterprises) #

Article 29(Approval of action plans for cooperative movement) #

Article 30(Revocation of approval of action plans for cooperative movement) #

Article 31(Approval of execution plans for industrial complex development projects) #

Article 32(Authorization of completion of industrial complex development projects) #

Article 33(Expropriation of land) #

Article 34(Access to land) #

Article 35(Sale of State-owned and public land) #

Article 36(Application mutatis mutandis of other statutes) #

Article 37 #

Article 38 #

Article 39(Collaboration support projects) #

Article 39-2(Selection of collaborative enterprises and revocation of selection) #

Article 39-3(Designation of dedicated institutions) #

Article 39-4(Revocation of designation of dedicated institutions) #

Article 40(Inspections of outcomes) #

Article 41(Projects to support business site development) #

Article 42(Projects to support reduction of environmental pollution) #

Article 43(Establishment of guidance plan) #

Article 44(Guiding agencies) #

Article 45(Preparation of guidelines for guidance) #

Article 46 #

Article 46-2 #

Article 47 #

Article 48 #

Article 49 #

Article 50 #

Article 51 #

Article 52 #

Article 53 #

Article 53-2 #

Article 54 #

Article 55(Applications for consultation) #

Article 56(Establishment of training plans) #

Article 57(Training institutions) #

Article 58(Projects to support internationalization) #

Article 59(Aids for relocation of manufacturing facilities to overseas) #

Article 60(Assistance in business normalization) #

Article 60-2(Operation of system to support management soundness of small and medium enterprises) #

Article 61(Preparation and implementation of emergency aid plan for business stabilization) #

Article 61-2(Opening of account of insurance for trade receivables of small and medium enterprises) #

Article 61-3(Financial resources, purposes, and operation of account) #

Article 61-4(Accounting and settlement of accounts) #

Article 61-5(Accumulation of liability reserves) #

Article 61-6(Accounting of profits and losses) #

Article 61-7(Operating manual) #

Article 61-8(Supervision and orders) #

Article 61-9(Maximum amount of insurance for trade receivables of small and medium enterprises) #

Article 62(Support for traditional crafts industry) #

Article 62-2(Support for family business succession) #

Article 62-3(Designation of centers for supporting small and medium enterprises in family business succession) #

Article 62-4(Requirements for prestigious long-lived enterprises) #