SMALL AND MEDIUM ENTERPRISE COOPERATIVES ACT

영문법령 불러오는 중…

SMALL AND MEDIUM ENTERPRISE COOPERATIVES ACT — 법갈피

Article 6(Business territories) #

(1) The business territory of each cooperative (referring to the boundaries of the area in which its member cooperatives or persons qualified as its member have their domiciles; hereinafter the same shall apply) shall be as follows: <Amended on Jun. 8, 2010; Feb. 3, 2015>

1. For national cooperatives: The entire nation;

2. For regional cooperatives: A Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do"); provided, a cooperative may have its business territory covering at least two jurisdictions of Cities/Dos, if it is deemed improper for the cooperative to have its business territory covering only a single City/Do, in light of the characteristics of the specific business type, the distribution of related business entities, and peculiarities in the management of the cooperative, while a cooperative may also have its business territory covering only a certain area within a City/Do, in the case of the wholesale or retail business, in light of the distribution of the related business entities, etc.

(2) Each business cooperative may specify its business territory nationwide, in a City/Do, or in a Si/Gun/Gu; provided, the business territory of a business cooperative established as falling under the same industry shall be as follows: <Amended on Jun. 8, 2010>

1. A single Si/Gun/Gu or the specific area of a Si/Gun/Gu;

2. If it is deemed improper for the cooperative to have its business territory covering only a single Si/Gun/Gu or the specific area of a Si/Gun/Gu in light of the characteristics of the specific business type, the distribution of related business entities, and peculiarities in the management of the cooperative, at least two jurisdictions of Sis/Guns/Gus (including a Si/Gun/Gu in another City/Do) or the specific areas of at least two jurisdictions of Sis/Guns/Gus.

(3) The business territory of each federation shall be as follows:

1. A federation with a specific business type indicated by its name: The whole territory of the Republic of Korea;

2. A federation with a specific administrative district indicated by its name: A specific City/Do; provided, a federation may have its business territory covering at least two Cities/Dos, if it is deemed improper for the federation to cover only a single City/Do, in light of the peculiarities in the management of the federation.

(4) The KBIZ shall have its business territory covering the whole territory of the Republic of Korea, and shall be the only federation that has overall control over all business types and businesses.

[Title Amended on Jun. 8, 2010]

Article 19(Right to vote on resolutions or in elections) #

(1) Each member shall have one vote per resolution or in each election; provided, the right to vote in elections may be exercised only by each person who has been a member of the relevant cooperative from six month prior to the last day of the term of office for executive officers or representatives (or the day on which grounds for holding a by-election are finalized, in cases of a by-election) to the day of voting. <Amended on Jun. 13, 2008>

(2) In relation to rights to vote, the proviso to paragraph (1) shall not apply to cooperatives for which six months have not passed from the date the registration of establishment is filed. <Added on Mar. 13, 2018>

(3) Each cooperative may restrict members’ right to vote on resolutions or in elections, as prescribed by its articles of association. <Amended on Jun. 13, 2008; Mar. 13, 2018>

(4) In order to exercise the right to vote on resolutions or in elections, members shall be present at the meeting; provided, they are entitled to exercise their right to vote on resolutions in writing or in electronic form for matters notified in advance, as prescribed by the articles of association. <Added on Jun. 13, 2008; Mar. 13, 2018>

(5) Members are entitled to exercise their right to vote on resolutions or in elections by proxy as qualified under the articles of association. In such cases, as prescribed by the articles of association, each proxy shall submit documents or electronic documents attesting his or her right of representation to a cooperative prior to exercising his or her right to vote on resolutions. <Added on Jun. 13, 2008; Mar. 13, 2018>

(6) A member may exercise the right to vote on resolutions or in elections through electronic means (referring to a method of using an information processing system defined in subparagraph 2 of Article 2 of the Framework Act on Electronic Documents and Transactions or any other information and communications technology; hereinafter the same shall apply). <Added on Nov. 15, 2022>

(7) A person who exercises the right to vote on resolutions or in elections pursuant to the proviso of paragraphs (4), (5), and (6) shall be deemed a person present at the meeting. <Amended on Jun. 13, 2008; Mar. 13, 2018; Nov. 15, 2022>

(8) The number of members who can be represented by a proxy shall be limited to only one person. <Amended on Jun. 13, 2008; Mar. 13, 2018; Nov. 15, 2022>

Article 35(Business affairs) #

(1) In order to achieve the purpose of establishment, a cooperative may conduct all or part of the following businesses: <Amended on Dec. 30, 2009; Jul. 25, 2011; Feb. 3, 2015; Sep. 14, 2023>

1. Joint businesses that involve production, processing, receipt of orders, sales, purchases, storage, transportation, environmental improvements, trademarks, services, etc., and the development, management, and operation of commercial complexes and common facilities for such activities;

2. Planning business coordination between members and coordination according to the plan, and filing petitions to the competent administrative agency for conciliation where anyone other than small and medium enterprises encroaches on the business field of the relevant cooperative;

3. Intermediation and coordination in consignment transactions between consigning enterprises under the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises and consignee enterprises which are members of the relevant cooperative;

4. Matters concerning the collective standards for products and joint inspection, testing, and research;

5. Granting or intermediation of loans (including discount of notes) to members of the cooperative for business funding, and borrowing of money for funding projects executed by the cooperative itself;

6. Projects related to guidance for business administration, technology and quality control, and also survey, research, education, and provision of information concerning the business affairs of members of the cooperative;

7. Conclusion of collective contracts to promote the economic interests of members;

8. Exportation of products manufactured by members and importation and research on the prices of raw materials and facilities necessary for producing their products;

9. Welfare and fringe benefits for members;

10. Businesses entrusted by the State, a local government, the KBIZ, or a federation;

11. Establishment and management of overseas facilities for exhibition and sales to facilitate exportation by members;

12. Profit-making businesses necessary for achieving the objectives of its establishment, for which approval is obtained from the competent administrative agency;

13. Support for negotiations and adjustment of subcontract price between a prime contractor and a subcontractor who is a member, under the Fair Transactions in Subcontracting Act;

14. Support for consultation on and adjustment of the price of delivered goods between commissioning enterprises under the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises and commissioned enterprises which are members;

15. Mutual aid projects (excluding guarantee projects necessary for the performance, etc. of liabilities or obligations of members);

16. Other businesses incidental to those prescribed in subparagraphs 1 through 15.

(2) If necessary for conducting any of the businesses referred to in paragraph (1), a cooperative may invest in any other corporation after undergoing a resolution by the board of directors, as determined by articles of association; provided, where a cooperative intends to invest the amount exceeding the sum of the investments and surplus of the cooperative, it shall obtain approval from the competent administrative agency. <Amended on Jan. 27, 2016>

(3) Any cooperative may allow any person other than its own members to use its services so long as such use does not cause any inconvenience to its members, as prescribed by the articles of association. <Amended on Jun. 13, 2008>

Article 53(Restrictions on election campaign) #

(1) No person shall engage in election campaigning outside the campaign period starting from the date following the deadline for candidate registration to the date preceding the election day. <Added on Mar. 13, 2018>

(2) No person shall engage in any of the following conduct with intent to cause himself or herself or any specific person to be successfully elected to an office or cause any specific person to be defeated in an election: <Amended on Mar. 13, 2018>

1. Providing, offering to provide, or promising to provide money, goods, entertainment, or any interest in property, or a public or private job, to any voter;

2. Engaging in any conduct provided for in subparagraph 1 with regard to any person who intends to become or has become a candidate, with intent to cause the person not to become a candidate or withdraw his or her candidacy.

(3) No person shall receive any benefit or public or private job prescribed in paragraph (2) 1 or 2 or accept any offer to provide such benefit or job. <Amended on Mar. 13, 2018>

(4) Notwithstanding paragraph (1), no person who intends to become an executive officer shall canvass members of the cooperative door to door, or gather them in a specific place for his or her election campaign regardless of the period prescribed in that paragraph. <Amended on Mar. 13, 2018>

(5) No person shall publish any false information verbally or in the form of poster, or in any other way in connection with the election of an executive officer or defame any candidate by disclosing false information to the public. <Amended on Mar. 13, 2018>

(6) No person shall engage in election campaigning by any means other than the following: <Amended on Feb. 3, 2015; Mar. 13, 2018>

1. Posting campaign posters;

2. Distributing official electoral information and printed materials;

3. Holding joint speeches and public forums;

4. Using telephones (including text messages) and computer communications (including electronic mails).

(7) Detailed methods of election campaigns under paragraph (6) shall be prescribed by Decree of the Ministry of SMEs and Startups. <Added on Feb. 3, 2015; Jul. 26, 2017; Mar. 13, 2018>

Article 82(Business affairs) #

(1) A business cooperative may conduct all or part of the following businesses: <Amended on Jun. 13, 2008; Jul. 25, 2011; Feb. 3, 2015; Sep. 14, 2023>

1. Executing joint projects for production, processing, contracting, selling, purchasing, storage, transportation, and other services and the development, management, and operation of industrial complexes and common facilities;

2. Granting or arranging loans to members for business funding (including discount of notes) or borrowing loans for funding businesses executed by the business cooperative itself;

3. Providing members with guidance, training programs, and information for management, technology, and quality control in their business and conducting research projects;

4. Executing collective contracts for pursuing the economic interests of members;

5. Exportation of products produced by members and importation of raw materials necessary for production of such products;

6. Activities for the welfare and well-being of members;

7. Joint research projects for development of technology, new products, management skills, etc.;

8. Business affairs entrusted by the State, a local government, the KBIZ, a federation, or a cooperative;

9. Profit-making projects approved by the competent administrative agency as necessary for achieving the objectives of its establishment;

10. Mutual aid projects (excluding guarantee projects necessary for the performance, etc. of liabilities or obligations of members);

11. Support for negotiations and adjustment of subcontract price between a prime contractor and a subcontractor who is a member, under the Fair Transactions in Subcontracting Act;

12. Support for consultation on and adjustment of the price of delivered goods between commissioning enterprises under the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises and commissioned enterprises which are members;

13. Other businesses incidental to those referred to in subparagraphs 1 through 12.

(2) A business cooperative referred to in Article 12 (2) 2 (b) of the Distribution Industry Development Act and a shopping district promotion cooperative referred to in Article 18 of that Act may engage in the following businesses in addition to the businesses listed in paragraph (1):

1. Businesses for establishing order in sound commercial transactions in superstores or shopping districts;

2. Installation, operation and management of facilities for the protection and convenience of consumers and members;

3. Other businesses incidental to those referred to in subparagraphs 1 and 2.

(3) The Minister of SMEs and Startups may coordinate some of the businesses of a specific business cooperative if a dispute has arisen or is likely to arise between a national cooperative and a business cooperative in connection with the businesses referred to in paragraph (1), while the Mayor/ Do Governor may do so if a dispute has arisen or is likely to arise between any cooperative other than a national cooperative and a business cooperative in connection with the businesses referred to in paragraph (1), considering the peculiarities of the locality, business sector, and the business purposes of the business cooperative involved. <Amended on Jul. 26, 2017>

Article 93(Business affairs) #

(1) A federation may engage in all or some of the following businesses; provided, any federation whose name bears the name of a certain administrative district shall not engage in the businesses prescribed in subparagraphs 4, 5, 9, 10, and 14 and other businesses specified by Presidential Decree: <Amended on Dec. 30, 2009; Jul. 25, 2011>

1. Executing joint projects for manufacturing, processing, selling, purchasing, storage, transportation, environmental improvement, trademarks, services, etc. and development, management, and operation of industrial complexes and common facilities for such purposes;

2. Filing applications for conciliation with the competent administrative agency where conciliation between member cooperatives is required in connection with their business or any person, other than small and medium entrepreneurs encroaches on the business area of its member cooperatives;

3. Arranging and coordinating consignment transactions between a consigning enterprise and a consigned enterprise, a member of a member cooperative, under the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises;

4. Arranging loans to member cooperatives for business funds and borrowing of funds for the federation’s business;

5. Matters concerning collective standards for products and inspection thereof;

6. Offering guidance for organization, businesses, development of new technology, and quality control in its member cooperatives;

7. Furnishing member cooperatives with training programs and information and implementing projects for promotion of informatization;

8. Conducting surveys and research on cooperatives;

9. Concluding collective contracts for pursuing the economic interests of member cooperatives;

10. Exporting products manufactured by members of its member cooperatives and importing and researching prices of raw materials and building materials required by members of its member cooperatives for manufacturing their products;

11. Businesses entrusted by the State, a local government, or the KBIZ;

12. Installing and managing exhibitions and fairs, at home and abroad, for member cooperatives;

13. Engaging in profit-making businesses approved by the competent administrative agency as necessary for achieving the objectives of its establishment;

14. Support for adjustment of subcontract price between a prime contractor and a subcontractor who is a member, under the Fair Transactions in Subcontracting Act;

15. Mutual aid projects (excluding guarantee projects necessary for the performance, etc. of liabilities or obligations of members);

16. Other businesses incidental to those prescribed in subparagraphs 1 through 15.

(2) A federation may, if necessary for promoting any business under paragraph (1), request any of its member cooperatives to submit a report or issue an order as required, as prescribed by its articles of association or by-laws.

(3) A federation may audit matters relating to the business affairs and accounting of its member cooperatives as prescribed by its articles of association and may also receive cooperation from the KBIZ to conduct such audit jointly with the KBIZ, if necessary.

(4) If a federation finds that any matter requires correction upon an audit conducted under paragraph (3), it shall order the relevant member cooperative to take corrective measures and report the results of such audit to the competent administrative agency through the KBIZ.

Article 106(Business affairs) #

(1) The KBIZ may engage in the following businesses: <Amended on Jul. 25, 2011; Jan. 28, 2015; Mar. 13, 2018; Feb. 4, 2020; Jan. 11, 2022; Sep. 14, 2023>

1. Providing guidance for organization and businesses of cooperatives, business cooperatives, and federations;

2. Executing projects for protecting the interests of regular members and their sound growth, and making proposals to the Government;

3. Providing regular members with guidance and training programs for business management, technology, and quality control;

4. Furnishing regular members and small and medium entrepreneurs with information and executing projects for promoting informatization;

5. Conducting surveys, research and education on small and medium enterprises;

6. Granting subsidies to regular members or intermediating grants of subsidies;

7. Borrowing money for the business of the KBIZ;

8. Operating and managing the mutual aid fund for small and medium enterprises;

9. Executing mutual aid projects for stabilizing the livelihood of small enterprises and micro enterprises (referring to small enterprises defined in Article 2 (2) of the Framework Act on Small and Medium Enterprises and micro enterprises defined in Article 2 of the Framework Act on Micro Enterprises; hereinafter the same shall apply);

10. Executing joint projects for regular members;

11. Carrying out the business affairs relating to exportation and importation for small and medium enterprises, and installing, operating, and managing exhibitions and fairs, locally and abroad, for products manufactured by small and medium enterprises;

12. Installing and managing industrial complexes and common facilities for small and medium enterprises;

13. Businesses entrusted by the State or a local government;

14. Raising and managing financial resources for supporting regular member’s businesses;

15. Establishing and operating research institutes and training institutes for small and medium enterprises;

16. Installing and operating common logistics facilities including warehouses for small and medium enterprises;

17. Facilitating electronic commerce of products manufactured by small and medium enterprises;

18. Publishing a newspaper relating to small and medium enterprises;

19. Raising professional human resources necessary for operating small and medium enterprise cooperatives;

20. Conducting businesses for executing contracts on product liability insurance or such for the products manufactured by small and medium entrepreneurs for them under Article 639 of the Commercial Act;

21. Profit-making projects approved by the competent administrative agency as necessary for achieving the objectives of its establishment;

22. Mutual aid projects (guarantee projects necessary for the performance, etc. of liabilities or obligations of members, etc. shall be conducted only for procurement contracts concluded with public agencies);

23. Projects to improve public awareness referred to in subparagraph 4 of Article 2 of the Special Act on Support for Human Resources of Small and Medium Enterprises;

24. Support for negotiations for the adjustment of subcontract price between a prime contractor and a subcontractor who is a member of a cooperative (including a business cooperative) under the Fair Transactions in Subcontracting Act;

25. Support for consultation on and adjustment of the price of delivered goods between commissioning enterprises under the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises and commissioned enterprises which are members;

26. Job projects for small and medium enterprises;

27. PR projects for small and medium enterprises;

28. Other businesses incidental to those specified in subparagraphs 1 through 27.

(2) If necessary for promoting any business under paragraph (1), the KBIZ may invest in any other corporation with prior approval from the competent administrative agency.

(3) If necessary for promoting any business under paragraph (1), the KBIZ may demand any of its regular members to submit a report on its business affairs and accounting, and issue a necessary order, as prescribed by the articles of association or bylaws.

(4) The KBIZ may audit the matters relating to the business affairs and accounting of regular members, as prescribed by the articles of association, and when any regular member refuses, interferes with, or evades an audit of the KBIZ, the KBIZ may request the competent administrative agency to take necessary measures. <Amended on Feb. 3, 2015>

(5) Whenever the results of an audit under paragraph (4) indicate that a corrective measure or any other action is required, the KBIZ shall order the relevant regular member to take such a corrective measure or other necessary action and report the audit results to the competent administrative agency immediately.

(6) Upon receipt of a request to take a measure under paragraph (5), a regular member shall take a necessary measure within two months and report the results thereof to the KBIZ. <Added on Feb. 3, 2015>

(7) If a regular member fails to take a necessary measure within the prescribed period, the KBIZ shall re-request him or her to take the measure under paragraph (5) within one month, and if he or she fails to comply with such request even during the said period, it may request the competent administrative agency to take necessary measures. <Added on Feb. 3, 2015>

(8) The KBIZ may establish a joint business support fund to support joint projects promoted by its members: <Amended on Feb. 3, 2015>

1. The joint project support fund shall be raised with the following resources:

(a) Investments and contributions from members;

(b) Contributions from enterprises;

(d) Other incomes specified by the articles of association;

2. The joint project support fund referred to in subparagraph 1 shall be used for the following:

(a) Projects for developing technology and trademarks jointly;

(b) Projects for joint testing and researching;

(d) Projects for acquiring certifications on standards domestically and abroad, and entering into international procurement markets;

(e) Projects for informatization;

(f) Other projects specified by the articles of association.

(9) The chairperson of the KBIZ may appoint an employee as his or her agent to perform in all judicial or extrajudicial affairs, as prescribed by the articles of association. <Amended on Feb. 3, 2015>

Article 118-4(Request for provision of data) #

(1) With respect to the mutual aid for small and micro enterprises, the KBIZ may request the following persons to provide data as categorized below to verify the qualifications for membership, the eligibility for the payment of mutual aids and for subsidies granted by the Government or local governments, and other matters; in such cases, a request for provision of taxation information shall be made to the minimum extent: <Amended on Jan. 3, 2023>

1. The Commissioner of the National Tax Service: Taxation information referred to in Article 81-13 of the Framework Act on National Taxes, the provision of which has been consented to by the parties concerned, among data prescribed by Presidential Decree;

2. The Minister of the Interior and Safety: Computerized data on resident registration of the insured under the Resident Registration Act (including heirs under Articles 1000, 1001, 1003, and 1004 of the Civil Act, if the insured is deceased);

3. The Minister of the National Court Administration and the head of a local government: Computerized data on family relation registration, family relation certificates, and basic certificates of the insured under the Act on the Registration of Family Relations (including heirs under Articles 1000, 1001, 1003, and 1004 of the Civil Act, if the insured is deceased).

(2) A person requested to provide data pursuant to paragraph (1) shall comply with such request unless there is a compelling reason not to do so. <Amended on Jan. 3, 2023>

(3) Any person who performs or has performed duties by utilizing the data referred to in paragraph (1) shall neither use the data provided under that paragraph or the information acquired in the course of performing his or her duties for any purpose other than those prescribed by this Act, nor provide or divulge such data or information to other persons or institutions. <Added on Jan. 3, 2023>

(4) The data to be provided to the KBIZ pursuant to paragraph (1) shall be exempt from usage fees, service charges, etc. <Added on Jan. 3, 2023>

[This Article Added on Feb. 11, 2020]

[Title Amended on Jan. 3, 2023]

Article 123(Appointment of executive officers) #

(1) The chairperson shall be elected by vote, as prescribed by the articles of association at the general meeting from among the representatives of regular members; provided, the chairperson shall not concurrently hold the office of the chairperson of a cooperative or business cooperative or the chairperson of a federation and the representative director of a corporation invested pursuant to Article 106 (2). <Amended on Jun. 8, 2010; Mar. 13, 2018>

(2) The term of the chairperson shall be four years, which may be renewed consecutively only once. In such cases, the chairperson shall be deemed to have qualifications for the representative of regular members under the main clause of paragraph (1). <Added on Jun. 8, 2010>

(3) Vice-chairpersons and directors shall be elected from among the representatives of regular members at a general meeting, as prescribed by the articles of association. <Amended on Jun. 8, 2010>

(4) The full-time vice-chairperson shall be appointed by the chairperson from among the persons recommended by the board of directors and approved by the Minister of SMEs and Startups as having abundant knowledge and experience in small and medium enterprises. In such cases, he or she shall be appointed from among those who are not members of a cooperative or a business cooperative. <Amended on Jun. 8, 2010; Jul. 26, 2017>

(5) Full-time directors shall be appointed by the chairperson, as prescribed by the articles of association, and the auditor shall be appointed by the chairperson on the recommendation of the board of directors, after obtaining approval from the Minister of SMEs and Startups, and shall serve as full-time officers. In such cases, full-time directors and the auditor shall be appointed from among those who are not members of a cooperative or a business cooperative, nor members of any organization relating to small and medium enterprises. <Amended on Jun. 8, 2010; Jul. 26, 2017>

(6) The KBIZ may commission the National Election Commission under the Election Commission Act to manage the elections for the chairperson under paragraph (1), as prescribed by the articles of association. <Amended on Jun. 8, 2010>

(7) Where the National Election Commission is entrusted with the management of elections for the chairperson of the KBIZ under paragraph (6), Article 272-2 of the Public Official Election Act and Article 14-2 of the Election Commission Act shall apply mutatis mutandis to the crackdown and investigation of violations of this Act. <Added on Feb. 3, 2015>

Article 133(Administrative orders) #

(1) The competent administrative agency may, if it finds that a cooperative, a business cooperative, a federation, or the KBIZ falls under any of the following subparagraphs, order it to take corrective measures or any other necessary actions within a given time period:

1. If its operations or accounting are in violation of any statute, the articles of association, or by-laws;

2. If it fails to commence its business without justifiable grounds within one year from the date its establishment is authorized, or if it has suspended its business for one year or longer;

3. If it fails to complete the registration of its establishment within 90 days after the date its establishment is authorized;

4. If the number of its members or member cooperatives has decreased and fails to reach the number required under Article 27 (2) (including cases applied mutatis mutandis pursuant to Article 81 or 92).

(2) The competent administrative agency may order a cooperative, a business cooperative, a federation, or the KBIZ to dismiss its officers or to be dissolved if it violates an order issued under paragraph (1); provided, if it violates an order issued pursuant to paragraph (1) 3, the authorization for its establishment may be revoked.

(3) In order for the competent administrative agency to issue an order of dissolution pursuant to paragraph (2), it shall hold a hearing.

(4) Where a cooperative, business cooperative, federation, or the KBIZ violates the details or conditions of the authorization prescribed in Article 35-2 (including the cases applied mutatis mutandis in Articles 83, 94, and 106-2), the Minister of SMEs and Startups may order to correct the violated matters and other necessary measures for a specified period of time. <Added on Jan. 27, 2016; Jul. 26, 2017>

(5) The Minister of SMEs and Startups may order a suspension of the operation of a mutual aid project pursuant to Articles 35 (1) 15, 82 (1) 10, 93 (1) 15, and 106 (1) 22, or revoke its authorization after holding a hearing in any of the following cases: <Added on Jan. 27, 2016; Jul. 26, 2017>

1. Where a project has been authorized under Article 35-2 (including the cases applied mutatis mutandis in Articles 83, 94, and 106-2) by fraud or other improper means;

2. Where a project has violated an order prescribed in paragraph (4).

Article 141(Administrative fines) #

(1) A person shall be subject to an administrative fine not exceeding 5 million won, if he or she rejects, interferes with, or evades an inspection under Article 131. <Amended on Sep. 14, 2023>

(2) A promoter, an officer or a liquidator of a cooperative, a business cooperative, a federation, or the KBIZ shall be punished by an administrative fine not exceeding 5 million won, if he or she falls under any of the following subparagraphs: <Amended on Sep. 14, 2023>

1. If the cooperative, business cooperative, federation, or KBIZ engages in any business other than those allowed under this Act;

2. If he or she violates Article 15 (2) or 25 (3) (including cases applied mutatis mutandis pursuant to Article 79 or 89);

3. If he or she violates Article 43 (3) (including cases applied mutatis mutandis pursuant to Article 85, 96, or 125);

4. If he or she violates Article 62 or 66 (3) (including cases applied mutatis mutandis pursuant to Article 85 or 96);

5. If he or she fails to retain documents or omits to make an entry of any mandatory description in a certain document, makes a false entry of such description, or rejects a request for allowing others to inspect or copy such documents without good cause in violation of Article 63 or 64 (including cases applied mutatis mutandis pursuant to Article 85, 96, or 125);

6. If he or she rejects a request for allowing others to inspect or copy account books or documents without good cause in violation of Article 65 (2) (including cases applied mutatis mutandis pursuant to Article 85, 96, or 125);

7. If he or she neglects his or her duty to issue a public notice or provides a false public notice in violation of Article 68 (2) (including cases applied mutatis mutandis pursuant to Article 86 or 97);

8. If he or she violates Article 70 or 71 (including cases applied mutatis mutandis pursuant to Article 86 or 97);

9. If he or she acquires any equity or receives such equity as the subject matter of a pledge in violation of Article 72 (including cases applied mutatis mutandis pursuant to Article 86 or 97);

10. If he or she violates Article 73 (2) (including cases applied mutatis mutandis pursuant to Article 87, 98, or 127);

11. If he or she violates any provision of Article 93 (2) through (4) or 106 (3) through (5);

12. If he or she fails to submit a document or submits a false document in violation of Article 129;

13. If he or she fails to submit a report under Article 130 or submits a false report.

(3) The Minister of SMEs and Startups (referring to the head of an entrusted central administrative agency, if his or her authority has been entrusted to the head of the central administrative agency pursuant to Article 136; hereafter the same shall apply in this Article) or the Mayor/Do Governor shall impose and collect administrative fines under paragraphs (1) and (2) as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>

(4) Deleted. <Mar. 20, 2018>

(5) Deleted. <Mar. 20, 2018>

(6) Deleted. <Mar. 20, 2018>

SMALL AND MEDIUM ENTERPRISE COOPERATIVES ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Categories) #

Article 4(Legal personality and address) #

Article 5(Use of titles) #

Article 6(Business territories) #

Article 7(Nature) #

Article 8(Prohibition of political involvement) #

Article 9(Duties of the Government and local governments to cooperate) #

Article 10(Prohibition of concurrent office-holding by public officials) #

Article 11(Application mutatis mutandis of other statutes) #

Article 11-2(Exclusion from application of other statutes) #

Article 12(Supervision by competent administrative agencies) #

Article 12-2(Formulation of policies on small and medium enterprise cooperatives) #

Article 13(Qualification for membership) #

Article 14(Special members) #

Article 15(Admission procedures) #

Article 16(Investment) #

Article 17(Minimum investments in cooperative) #

Article 18(Revolving investment) #

Article 19(Right to vote on resolutions or in elections) #

Article 20(Payment of expenses) #

Article 21(Charges and fees) #

Article 22(Succession to membership) #

Article 23(Transfer of equities) #

Article 24(Discretionary withdrawal) #

Article 25(Statutory withdrawal) #

Article 26(Refund of withdrawing member’s equity and suspension of refund) #

Article 27(Promoters) #

Article 28(Inaugural general meeting) #

Article 29(Mandatory provisions of articles of association) #

Article 30(Mandatory provisions of by-laws or regulations) #

Article 31(Minutes of meetings) #

Article 32(Authorization for establishment) #

Article 33(Transfer of administrative affairs to president) #

Article 34(Payment of investments) #

Article 35(Business affairs) #

Article 35-2(Mutual aid regulations) #

Article 35-3(Extinctive prescription of right to claim mutual aid) #

Article 36(Business plan) #

Article 37(Collective standards and quality certification) #

Article 38(Inspection according to collective standards) #

Article 39(Quality certification marks) #

Article 40(Collective contract) #

Article 41(Fund for vitalizing cooperative functions) #

Article 42(Function vitalization system) #

Article 43(General meeting) #

Article 44(General meeting of representatives) #

Article 45(Calling of general meetings of members) #

Article 46(Procedure for holding meetings) #

Article 47(Matters subject to resolution at general meeting) #

Article 48(Resolution of general meetings) #

Article 49(Extraordinary resolution) #

Article 50(Executive officers) #

Article 51(Grounds for disqualification of executive officers) #

Article 51-2(Separate sentence of fines) #

Article 52(Terms of office for executive officers) #

Article 53(Restrictions on election campaign) #

Article 54(Organization and operation of election commission) #

Article 55(Board of directors) #

Article 56(Matters subject to resolution of board of directors) #

Article 57(President’s duties) #

Article 58(Duties of full-time director) #

Article 59(Vacancy for full-time director) #

Article 60(Auditor’s duties) #

Article 61(Auditor's liability) #

Article 62(Prohibition of concurrent office-holding by executive officers) #

Article 63(Keeping articles of association and other documents) #

Article 64(Keeping documents relating to settlement of accounts) #

Article 65(Inspection of accounting books) #

Article 66(Request for re-election of officers) #

Article 67(Business year) #

Article 68(Devaluation of investment unit) #

Article 69(Filing objections) #

Article 70(Reserves and carryovers) #

Article 71(Appropriation of surplus) #

Article 72(Prohibition on acquisition of equity) #

Article 73(Dissolution) #

Article 74(Procedure for merger) #