Article 1(Purpose) #
The purpose of this Decree is to provide for the matters mandated by the Special Act on the Promotion of Venture Businesses and matters necessary for the enforcement thereof. <Amended on Jul. 2, 2024>
[This Article Wholly Amended on Nov. 4, 2008]
Article 2(Scope of supporting institutions) #
"Supporting institutions prescribed by Presidential Decree" in Article 2(4) of the Special Act on the Promotion of Venture Businesses (hereinafter referred to as the "Act") means facilities built and managed by any of the following persons for facilitating the activities of venture businesses: <Amended on May 6, 2009; Nov. 20, 2009; Nov. 15, 2010; Jun. 24, 2011; Mar. 24, 2014; May 31, 2016; Sep. 22, 2016; Sep. 29, 2016; Jul. 26, 2017; Apr. 2, 2019; May 12, 2020; Aug. 11, 2020; Apr. 6, 2021; Jun. 8, 2021; Jun. 28, 2022; Dec. 19, 2023; Jul. 2, 2024; Jan. 27, 2026>
1. A venture investment company prescribed in subparagraph 10 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "venture investment company");
2. Business incubators referred to in Article 53(1) of the Support for Small and Medium Enterprise Establishment Act;
3. Small and medium enterprise consulting companies referred to in Article 54(1) of the Support for Small and Medium Enterprise Establishment Act;
4. Banks referred to in Article 2(1)2 of the Banking Act (including branch offices, agents, or offices of foreign banks, which are located in Korea and authorized by the Financial Services Commission under Article 58(1) of the same Act);
5. New technology venture capitalists referred to in the Specialized Credit Finance Business Act;
6. The Korea Credit Guarantee Fund established under the Korea Credit Guarantee Fund Act;
7. The Korea Technology Finance Corporation incorporated under the Korea Technology Finance Corporation Act (hereinafter referred to as the "Korea Technology Finance Corporation");
8. Business-affiliated research institutes recognized under Article 7 (1) of the Act on Support for Research and Development of Business-Affiliated Research Institutes;
9. The Korea SMEs and Startups Agency referred to in Article 68 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as the "Korea SMEs and Startups Agency");
10. The Korea Industrial Complex Corporation referred to in Article 45-17 of the Industrial Cluster Development and Factory Establishment Act;
11. Corporate restructuring companies registered under Article 14 of the Industrial Development Act (referring to the Act before the wholly amended Industrial Development Act (Act No. 9584)) (hereinafter referred to as "corporate restructuring company");
12. Regional credit guarantee foundations under the Regional Credit Guarantee Foundation Act;
13. Investment traders and investment brokers referred to in Article 8(2) and (3) of the Financial Investment Services and Capital Markets Act;
14. Technology trading agencies referred to in Article 10 of the Technology Transfer and Commercialization Promotion Act;
15. Technology evaluation institutions referred to in Article 35 of the Technology Transfer and Commercialization Promotion Act;
16. The National Information Technology Industry Promotion Agency referred to in Article 26 of the Information and Communications Technology Industry Promotion Act (hereinafter referred to as the "National Information Technology Industry Promotion Agency");
17. The Korea Federation of Small and Medium Enterprises referred to in Article 3(1)4 of the Small and Medium Enterprise Cooperatives Act;
18. The Korea Standards Association referred to in Article 32 of the Industrial Standardization Act;
19. Any of the following persons:
a. Attorneys-at-law whose practices are reported under Article 15 of the Attorney-at-Law Act;
b. Certified public accountants whose offices are established under Article 12 of the Certified Public Accountant Act;
c. Patent attorneys whose practices are reported under Article 6-2(2) of the Patent Attorney Act;
d. Business management consultants or technology consultants registered under Article 8 of the Act on Management Consultants and Technology Consultants;
e. Certified tax accountants whose practices are reported under Article 13 of the Certified Tax Accountant Act;
20. Other persons designated by the Minister of SMEs and Startups, as persons supporting venture businesses.
[This Article Wholly Amended on Nov. 4, 2008]
Article 2-2 #
Deleted. <Jun. 2, 2006>
Article 2-3(Requirements for venture businesses) #
(1) "Standards prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 2-2(1)2a 1) through 8) of the Act means that the aggregate investment made by the persons provided for in Article 2-2(1)2a1) through 8) in the relevant enterprises is at least 50 million won and accounts for at least 10/100 (7/100 if the relevant enterprise is a manufacturer referred to in subparagraph 12 of Article 2 of the Framework Act on the Promotion of Cultural Industries who is a juridical person) of the capital of the enterprises. <Amended on Apr. 20, 2010; Jun. 30, 2014>
(2) "One ... as prescribed by Presidential Decree" in Article 2-2(1)2a7) of the Act means the following: <Amended on May 12, 2020; Oct. 21, 2021; Jul. 3, 2023>
1. A company specializing in the start-up of new technology-based businesses;
2. A private investment association under subparagraph 8 of Article 2 of the Venture Investment Promotion Act;
3. An accelerator under subparagraph 9 of Article 2 of the Venture Investment Promotion Act;
4. The Korea Development Bank established under the Korea Development Bank Act;
5. The Industrial Bank of Korea established under the Industrial Bank of Korea Act;
6. A bank under Article 2(1)2 of the Banking Act;
7. An institutional private equity fund under Article 9(19)1 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "institutional private equity fund");
8. One who invests in equity securities of an enterprise that conducts public offering of securities through crowdfunding brokerage under Article 117-10 of the Financial Investment Services and Capital Markets Act;
9. An agriculture and food investment association under Article 13(1) of the Act on Formation and Operation of Agricultural, Fisheries, and Food Investment Funds;
10. An industry-academia-research cooperation-based technology holding company under subparagraph 8 of Article 2 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act;
11. A public research institute high-tech holding company under subparagraph 10 of Article 2 of the Technology Transfer and Commercialization Promotion Act;
12. The Korea Technology Finance Corporation;
Article 2-4(Business types excluded from venture business) #
"Businesses prescribed by Presidential Decree" in Article 3 of the Act means business types specified in Appendix 1.
[This Article Added on Nov. 18, 2015]
Article 2-5(Data or information necessary for establishment and operation of comprehensive management system) #
"Data or information prescribed by Presidential Decree" in Article 3-4(2)3 of the Act means the following data or information on policies or projects implemented to promote the establishment and growth of venture businesses:
1. The scale of the relevant policy or project;
2. Eligibility for, and details of, support under the relevant policy or project;
3. Other data or information necessary for the establishment of a foundation for cooperation between venture businesses as prescribed by Decree of the Ministry of SMEs and Startups.
[This Article Added on Jul. 2, 2024]
Article 2-6(Types of projects for supporting the growth of venture businesses) #
"Projects prescribed by Presidential Decree" in subparagraph 5 of Article 3-5 of the Act means any of the following projects:
1. Counseling on business management, providing advice, conducting education for venture businesses;
2. Financial support for venture businesses;
3. Other projects deemed necessary by the Minister of SMEs and Startups to promote the innovation and growth of venture businesses.
[This Article Added on Jul. 2, 2024]
Article 2-7(Designation of specialized support institution for venture businesses) #
(1) Where any of the following persons meets the standards prescribed in paragraph (2), the Minister of SMEs and Startups may designate such person as a specialized support institution for venture businesses pursuant to Article 3-6(1) of the Act:
1. A public institution prescribed in Article 4 of the Act on the Management of Public Institutions;
2. A government-funded research institute under Article 2 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes;
3. Any other institution, organization, or corporation that performs projects under the subparagraphs of Article 3-5 of the Act and the subparagraphs of Article 16-10(2) of the Act (hereinafter referred to as "support projects").
(2) "Requirements prescribed by Presidential Decree, such as professional human resources and a dedicated organization" in Article 3-6(1) of the Act means the following:
1. It shall have at least 10 professionals experienced in venture businesses or support for startups;
2. It shall have a dedicated organization capable of conducting support projects;
3. It shall have an exclusive business space and facilities necessary for the performance of support projects.
(3) A person who intends to be designated as a specialized support institution for venture businesses pursuant to paragraph (1) shall submit an application for designation prescribed by Decree of the Ministry of SMEs and Startups to the Minister of SMEs and Startups.
(4) The Minister of SMEs and Startups shall post a list of specialized support institutions for venture businesses designated pursuant to paragraph (1) (hereinafter referred to as "specialized institutions") on the comprehensive management system under Article 3-4 of the Act.
(5) A specialized institution shall submit a business plan for the relevant year and a performance report for the preceding year to the Minister of SMEs and Startups by January 31st each year.
(6) The criteria for revoking the designation of a specialized institution and suspending its business under Article 3-6(4) of the Act shall be as specified in Appendix 1-2.
[This Article Added on Jul. 2, 2024]
Article 3 #
Deleted. <Aug. 11, 2020>
Article 3-2 #
Deleted. <Aug. 11, 2020>
Article 3-3 #
Deleted. <Apr. 30, 2009>
Article 3-4 #
Deleted. <Aug. 11, 2020>
Article 3-5 #
Deleted. <Aug. 11, 2020>
Article 3-6 #
Deleted. <Aug. 11, 2020>
Article 3-7 #
Deleted. <Apr. 26, 2007>
Article 3-8 #
Deleted. <Aug. 11, 2020>
Article 3-9 #
Deleted. <Aug. 11, 2020>
Article 3-10 #
Deleted. <Aug. 11, 2020>
Article 4(Technology appraisal institutions) #
"Technology appraisal institutions as described by Presidential Decree" in Article 6(2) of the Act means the following institutions: <Amended on Apr. 30, 2009; Aug. 18, 2009; Dec. 24, 2009; Oct. 28, 2011; Dec. 11, 2013; May 31, 2016; Jul. 9, 2019; May 12, 2020; Jul. 3, 2023; Apr. 30, 2024>
1. The Korea Institute for Advancement of Technology under Article 38 of the Industrial Technology Innovation Promotion Act (hereinafter referred to as the "Korea Institute for Advancement of Technology");
2. The Korea Technology Finance Corporation;
3. The Korea Planning & Evaluation Institute of Industrial Technology referred to in Article 39 of the Industrial Technology Innovation Promotion Act;
4. The Korea Environment Corporation prescribed in the Korea Environment Corporation Act (limited to evaluation of technology related to environmental technology referred to in subparagraph 1 of Article 2 of the Environmental Technology and Industry Support Act);
5. The Korea Agency for Technology and Standards;
6. The Korea Institute of Science and Technology and the Korea Institute of Science and Technology Information prescribed in the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes;
7. The National IT Industry Promotion Agency;
8. Other organizations or groups with professional staff members necessary to appraise the value of intellectual property rights, etc. under Article 6(1) of the Act, which are determined and publicly notified by the Minister of SMEs and Startups.
[This Article Wholly Amended on Nov. 4, 2008]
Article 4-2(Incorporation of companies specializing in start-up of new technology-based business) #
(1) "Institutes prescribed by Presidential Decree" in Article 11-2(1)4 of the Act means the following institutes:
1. Research institutes specializing in manufacturing technology referred to in Article 42 of the Industrial Technology Innovation Promotion Act (hereinafter referred to as "research institute specializing in manufacturing technology");
2. Research institutes in the areas of science and industrial technology, which are non-profit corporations incorporated under Article 32 of the Civil Act.
(2) Any university or research institute which intends to be registered as a company specializing in start-up of new technology-based business under Article 11-2(2) of the Act shall submit a written application for registration prescribed by Decree of the Ministry of SMEs and Startups to the Minister of SMEs and Startups, accompanied with the following documents. In such cases, the Minister of SMEs and Startups upon receipt of an application shall verify the transcript of the corporate register by sharing administrative information referred to in Article 36(1) of the Electronic Government Act: <Amended on Apr. 20, 2010; May 4, 2010; Mar. 23, 2013; Dec. 5, 2016; Jul. 26, 2017>
1. Articles of association;
2. Business plans (including matters concerning the ratio of investment, details of investment, human resource and facilities held);
3. Resumes of executive officers.
(3) Each company specializing in start-up of new technology-based business shall submit a written application for registration of change prescribed by Decree of the Ministry of SMEs and Startups to the Minister of SMEs and Startups, accompanied with documents evidencing change, within seven days from the date any of the following matters is changed: <Amended on Mar. 23; Dec. 5, 2016; Jul. 26, 2017>
1. Trade name;
2. Location of the main office;
3. Executive officers;
4. Human resource held;
5. Facilities held;
6. Stockholders who hold at least 30/100 of the total number of outstanding voting stocks.
(4) "Standards prescribed by Presidential Decree" in Article 11-2(3)3 of the Act means the following: <Amended on Dec. 5, 2016>
Article 4-3(Restricted Acts of companies specializing in start-up of new technology-based business) #
(1) "Business relations prescribed by Presidential Decree" in Article 11-6(1)2 of the Act means business relations between a company specializing in start-up of new technology-based business and subsidiaries established by the relevant company specializing in start-up of new technology-based business, which fall under the following; provided, business relations with justifiable purposes, such as acquisitions and mergers, shall be excluded: <Amended on Dec. 5, 2016>
1. Guarantee of debts;
2. Provision of security.
(2) "Purposes prescribed by Presidential Decree, such as the proper purpose business or research and development, industry-university cooperation, etc. of the universities or research institutes" in Article 11-6(3) of the Act means the following purposes: <Amended on Dec. 5, 2016>
1. Appropriate purpose business of universities or research institutes;
2. Expenses incurred in research and development, and industry-university cooperation activities;
3. Re-investment in the relevant company specializing in start-up of new technology-based business;
4. Compensation to personnel and divisions that contribute to development and commercialization of technology.
[This Article Wholly Amended on Nov. 4, 2008]
[Title Amended on Dec. 5, 2016]
Article 5 #
Deleted. <Aug. 11, 2020>
Article 5-2 #
Deleted. <Aug. 11, 2020>
Article 5-3 #
Deleted. <Aug. 11, 2020>
Article 6 #
Deleted. <Aug. 11, 2020>
Article 6-2(Verification of stock exchange eligible for tax favors) #
(1) Any person who intends to receive tax favors for stock exchange referred to in Article 15 of the Act or Article 15-4 of the Act under the latter part, with the exception of the subparagraphs, of Article 14(3) of the Act may file an application for confirmation of stock exchange eligible for tax favors with the Minister of SMEs and Startups, accompanied with relevant data. <Amended on Jul. 26, 2017>
(2) Where the Minister of SMEs and Startups receives an application for confirmation of stock exchange under paragraph (1), he or she shall issue written verification of stock exchange if such stock exchange falls into the stock exchange referred to in Article 15 of the Act or Article 15-4 of the Act. <Amended on Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups confirms the fact that a person whose stock exchange is confirmed to be eligible for tax favors under paragraph (2) transfers such stock to a third person within one year from the date of stock exchange, he or she shall inform persons obliged to withhold income tax, etc., tax associations or the heads of tax offices of such fact without delay. <Amended on Jul. 26, 2017>
(4) The Minister of SMEs and Startups shall determine and publicly notify matters concerning methods, procedures, etc. of stock exchange eligible for tax favors. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Nov. 4, 2008]
Article 6-3(Certified assessment agencies) #
"Certified assessment Agency prescribed by Presidential Decree" in the former part of Article 15-4(3) of the Act means the following institutions: <Amended on Apr. 30, 2009; Aug. 27, 2013; May 31, 2016; Jul. 9, 2019>
1. Investment traders and investment brokers referred to in the Financial Investment Services and Capital Markets Act (limited to persons authorized for the acquisition, brokerage, and arrangement of securities or acting as an agent);
2. Credit rating agencies authorized for credit rating business under Article 335-3 of the Financial Investment Services and Capital Markets Act;
3. Accounting corporations prescribed in the Certified Public Accountant Act, which have at least 100 affiliated certified public accountants;
4. The Korea Institute for Advancement of Technology;
5. The Korea Technology Finance Corporation;
6. Other organizations or groups with professional staff members necessary to appraise the value of stocks, which are determined and publicly notified by the Minister of SMEs and Startups.
[This Article Wholly Amended on Nov. 4, 2008]
Article 7(Standards for designation of centers for supporting merger and acquisition between small and medium venture businesses) #
(1) Any institution or organization which intends to be designated as a center for supporting merger and acquisition between small and medium venture businesses under Article 15-13(1) of the Act (hereinafter referred to as "support center") shall comply with the following requirements: <Amended on Nov. 20, 2009; Mar. 24, 2014; Jul. 26, 2017; Apr. 6, 2021; Dec. 23, 2025>
1. It shall be a corporation;
2. Affairs concerning the mergers and acquisitions between small and medium venture businesses shall be included among business matters;
3. It shall have a dedicated organization that can support merger and acquisition between small and medium venture businesses;
4. It shall have in place at least 3 professionals falling under any of the following; in such cases, if the representative of a corporation falls under any of the following items, the representative shall be included in the calculation of the number of professionals:
a. A person who has at least three years’ experience in corporate mergers and acquisitions as a certified public accountant under the Certified Public Accountant Act, attorney-at-law under the Attorney-at-Law Act, or certified tax account under the Certified Tax Accountant Act;
b. A person who has at least three years’ experience in corporate mergers and acquisitions as a business management consultant referred to in Article 3 of the Act on Management Consultants and Technology Consultants;
c. A person who has at least three years’ experience in corporate mergers and acquisitions at financial companies, etc. referred to in subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality or at corporate restructuring companies;
d. A person recognized by the Minister of SMEs and Startups as having qualifications equivalent to those of the persons provided for in a through c.
(2) Any institution or organization related to supporting small and medium enterprises which intends to be designated as a support center under Article 15-13 of the Act shall file an application for designation with the Minister of SMEs and Startups as determined and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups designates a support center, he or she shall publicly notify the same. <Amended on Jul. 26, 2017>
Article 8(Cancellation of designation of support centers) #
Where the Minister of SMEs and Startups cancels the designation of a support center under Article 15-14 of the Act, he or she shall publicly notify the same. <Amended on Jul. 26, 2017>
[This Article Added on Apr. 30, 2009]
Article 9 #
Deleted. <Nov. 22, 2001>
Article 10 #
Deleted. <Nov. 22, 2001>
Article 11(Scope of research institutes where researchers are permitted to take leave of absence) #
(1) "Institutions ... as prescribed by Presidential Decree" in Article 16(1)5 of the Act means government-funded institutions designated and publicly notified under Article 5 of the Act on the Operation of Local Government-Invested or -Funded Institutions which the Minister of SMEs and Startups designates and publicly notifies after hearing opinions from the Minister of the Interior and Safety and the head of a relevant local government (referring to the head of a local government under the same Article). <Amended on Jul. 2, 2024>
(2) "Research institutes or research centers prescribed by Presidential Decree" in Article 16(1)6 of the Act means other public institutions designated for the purpose of research and development pursuant to Article 7-2(2) of the Enforcement Decree of the Act on the Management of Public Institutions. <Added on Jul. 2, 2024>
[This Article Added on May 12, 2020]
Article 11-2(Scope of research institutes in which researchers are permitted to hold concurrent offices or positions) #
"Government-funded research institutes prescribed by Presidential Decree" in the main clause of Article 16-2(1) of the Act means the following research institutes:
1. Research institutes established under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes or the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes;
2. The Korea Institute of Radiological and Medical Sciences referred to in Article 13-2 of the Radiation and Radioisotope Use Promotion Act;
3. The Korea Institute of Nuclear Safety under the Korea Institute of Nuclear Safety Act;
4. The Korea Institute for S&T Evaluation and Planning referred to in Article 20 of the Framework Act on Science and Technology.
[This Article Wholly Amended on Nov. 4, 2008]
Article 11-3(Granting stock options of venture businesses) #
(1) Deleted. <Jul. 2, 2024>
(2) Article 60 of the Inheritance Tax and Gift Tax Act and Article 49 of the Enforcement Decree of that Act shall apply mutatis mutandis to the appraisal of the market price of stocks necessary for the establishment (including adjustment of the exercise price after the stock options are granted) of the exercise price (referring to the exercise price under Article 16-3(2)1 of the Act; hereinafter the same shall apply) of the stock options under Article 16-3(1) of the Act (hereinafter referred to as "stock options") and to the appraisal of the market price of stocks as of the date the stock options are exercised. In such cases, "six months before and after the base evaluation date" in Article 49 of the Enforcement Decree of that Act "shall be construed as "six months before the base evaluation date". <Amended on Jul. 2, 2024>
(3) "Person prescribed by Presidential Decree" in Article 16-3(1)1 and 2 of the Act means the persons under Article 30(2) of the Enforcement Decree of the Commercial Act.
(4) "Persons prescribed by Presidential Decree" in Article 16-3(1)1 of the Act means the following persons; provided, the persons under Article 30(2) of the Enforcement Decree of the Commercial Act shall be excluded:
1. Persons with at least 10 years of work experience in a field required by a venture business;
2. Persons with a doctoral degree in a field required by a venture business or persons with at least 5 years of work experience after obtaining a master's degree;
3. Persons with professional qualifications prescribed by Ministerial Decree of the SMEs and Startups such as attorneys-at-law, certified public accountants, and professional engineers;
4. Executive officers or employees of a foreign corporation or researchers of a foreign research institute prescribed by Ministerial Decree of the SMEs and Startups;
5. Research institutes prescribed by Ministerial Decree of the SMEs and Startups, such as national or public research institutes.
(5) "Requirements prescribed by Presidential Decree" in Article 16-3(5) of the Act means cases where a person is granted a stock option at an exercise price below the market price of the stock as of the date on which the stock option is granted or where the sum of the amounts calculated in accordance with the following formula for each stock option already granted or to be granted is 2 billion won or less: <Amended on Dec. 30, 2025>
Article 11-4(Guarantee of Stock Option Exercise Period) #
(1) "Cases prescribed by Presidential Decree" in the main clause of Article 16-5(1) of the Act means cases where the person granted stock options dies or leaves office or retires for reasons not attributable to his or her own actions. In such cases, the resignation or retirement upon reaching a retirement age shall not be considered reasons not attributable to himself or herself.
(2) If venture businesses establish a deadline for exercising stock options on the date the executive officer or employee leaves office or retires, and if such person resigns or retires for reasons not attributable to himself or herself, an additional exercise period of at least three months shall be granted, commencing from the date of the resignation or retirement.
(3) "Requirements prescribed by Presidential Decree" in the proviso of Article 16-5(1) of the Act means cases where a person granted a stock option enters into a service contract related to the stock option grant with a venture business and fulfills the terms of the contract.
(4) For the purposes of applying paragraph (3), if a service contract fails to be fulfilled for reasons not attributable to the person granted stock options such as a unilateral cancellation of the service contract, the service contract under paragraph (3) shall be deemed fulfilled.
[This Article Added on Jul. 3, 2023]
[Previous Article 11-4 moved to Article 11-7 <Jul. 3, 2023>]
Article 11-5(Reporting on Stock Options) #
(1) If a venture business intends to file a report on the granting of a stock option pursuant to Article 16-6(1) of the Act, it shall submit to the Minister of SMEs and Startups a report prescribed by Ministerial Decree of the SMEs and Startups, accompanied by the following documents:
1. The venture business' articles of incorporation;
2. Minutes of general meetings of stockholders;
3. Minutes of meetings of the board of directors (limited to cases where the board of directors determine matters regrading stock option grant pursuant to Article 16-4(3) of the Act).
(2) A venture business that intends to cancel or withdraw stock options pursuant to Article 16-6(1) of the Act shall submit a report prescribed by Ministerial Decree of the SMEs and Startups.
[This Article Added on Jul. 3, 2023]
[Previous Article 11-5 moved to Article 11-8 <Jul. 3, 2023>]
Article 11-6(Contract for Granting Stock Options) #
(1) A venture business that intends to grant stock options shall enter into a contract with the person to receive the stock options and prepare a contract regarding the same within a reasonable period of time. In such cases, if the stock options are granted through a special resolution of the general meeting of stockholders under Article 16-3(1) of the Act, the conclusion and preparation of the contract shall be governed by Article 340-3(3) of the Commercial Act.
(2) Article 340-3(4) of the Commercial Act shall apply mutatis mutandis to the measures necessary for maintaining the contract under the former part of paragraph (1) at the head office and allowing perusal thereof by stockholders.
(3) Article 30(6) of the Enforcement Decree of the Commercial Act shall apply mutatis mutandis to the cancellation of the grant of stock options by venture businesses that have granted stock options.
[This Article Added on Jul. 3, 2023]
[Previous Article 11-6 moved to Article 11-9 <Jul. 3, 2023>]
Article 11-7(Requirements for Social Venture Businesses) #
(1) "Requirements prescribed by Presidential Decree, such social elements and innovative growth potential" in Article 16-10(1) of the Act means the following: <Amended on Jul. 3, 2023>
1. Social values pursued by social venture businesses shall be specific and feasible;
2. The growth potential of social venture businesses shall be sufficient in the light of the innovativeness and market prospects of technologies owned thereby and other factors;
3. Other requirements determined and publicly notified by the Minister of SMEs and Startups shall be met with respect to sociality or innovation-driven growth that a social venture business is required to have.
(2) Specific details regarding the requirements for social venture businesses prescribed in paragraph (1) shall be determined and publicly notified by the Minister of SMEs and Startups.
[This Article Added on Jul. 20, 2021]
[Moved from Article 11-4; previous Article 11-7 moved to Article 11-10 <Jul. 3, 2023>]
Article 11-8(Issuance of Multiple Voting Stocks) #
(1) "Related party prescribed by Presidential Decree" in the former part of Article 17-11(1)1 of the Act means a person in a relationship prescribed in any subparagraph of Article 34(4) of the Enforcement Decree of the Commercial Act with a founder under Article 16-11(5) of the Act (hereinafter referred to as "founder"). In such cases, the determination of whether the person qualifies as a related party shall be made based on the time when the venture business which is a stock company receives investment.
(2) "That prescribed by Presidential Decree" in the former part of Article 16-11(1)1 of the Act means 10 billion won.
(3) "That prescribed by Presidential Decree" in the latter part of Article 16-11(1)1 of the Act means five billion won.
(4) If the founder intends to pay the acquisition price of multiple voting stocks under the provisions, with the exception of the subparagraphs, of Article 16-11(1) of the Act (hereinafter referred to as "multiple voting stocks") with common stocks pursuant to the former part of Article 16-11(8) of the Act, he or she shall implement the following:
1. Submit a payment request specifying the quantity of common stocks to be paid, payment date, etc. to a venture business which is a stock company;
2. Deliver common stocks, the value of which is equivalent to the acquisition price of multiple voting stocks, as resolved at the general meeting of shareholders pursuant to Article 16-11(1) and (3) of the Act to a venture business that is a stock company within the payment due date.
[This Article Added on Nov. 7, 2023]
[Previous Article 11-8 moved to Article 11-12 <Nov. 7, 2023>]
Article 11-9(Conversion of Multiple Voting Stocks) #
(1) "Case prescribed by Presidential Decree" in Article 16-12(1)6 of the Act means cases where a venture business is excluded from the scope of the business group controlled by the same person under Article 5(1) and (2) of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act.
(2) In the case of a venture business that is a stock company, if multiple voting stocks are converted to common stocks pursuant to Article 16-12(1) of the Act or if the same number of common stocks are deemed to have been issued on the date of issuance of multiple voting stocks pursuant to paragraph (2) of that Article, the following matters shall be notified to stockholders in writing or electronically with the consent of each stockholder within two weeks from the date of occurrence; provided, if the venture business which is a stock company is a listed company, a public announcement may be made in lieu of notice through the electronic public disclosure system under Article 31(2) of the Enforcement Decree of the Commercial Act.
1. If multiple voting stocks are converted to common stocks pursuant to Article 16-12(1) of the Act, the following matters:
a. Date of conversion to common stock and the converted quantity;
b. Reasons for conversion to common stock;
2. If multiple voting stocks are deemed to have been issued as common stocks pursuant to Article 16-12(2) of the Act, the following matters:
a. Issue date and quantity of multiple voting shares;
b. Where multiple voting stocks are issued by fraud or other improper means, the equivalent number of common stocks shall be deemed issued on the date of issuance of such multiple voting stocks.
[This Article Added on Nov. 7, 2023]
[Previous Article 11-9 moved to Article 11-13 <Nov. 7, 2023>]
Article 11-10(Reporting on Issuance of Multiple Voting Stocks) #
(1) "Matters prescribed by Presidential Decree, such as an amendment to the articles of incorporation," in the former part of Article 16-14(1) of the Act refers to the following matters:
1. Matters prescribed by the articles of incorporation under Article 16-11(2) of the Act;
2. The names of persons granted multiple voting stocks;
3. Issue date and quantity of multiple voting stocks.
(2) "Important matters prescribed by Presidential Decree" in the latter part of Article 16-4(1) of the Act means the following:
1. Changes among matters prescribed by the articles of incorporation under paragraph (1)1;
2. The names of persons granted multiple voting stocks;
3. Issue date and quantity of multiple voting stocks.
4. In the case of conversion of multiple voting stocks into common stocks, matters regarding the conversion.
(3) If a venture business that is a stock company intends to report or report on changes to important matters among reported matters pursuant to Article 16-14(1) of the Act (hereinafter referred to as "report on changes"), it shall submit the report prescribed by Ministerial Decree of the SMEs and Startups, along with the following documents, to the Minister of SMEs and Startups:
1. Articles of association;
2. Minutes of general meetings of stockholders;
3. List of stockholders.
(4) "Matters prescribed by Presidential Decree, such as the details of issuance of multiple voting stocks" in Article 16-14(2) of the Act refers to the following matters:
1. Details of the issuance of multiple voting stocks;
2. Matters under the subparagraphs of paragraph (1).
(5) Reports and reports on changes under Article 16-14(1) of the Act, as well as the maintenance and disclosure under paragraph (2) of that Article, shall be submitted within one month from the occurrence of circumstances requiring such actions. In such cases, the deadline for maintenance shall align with the expiration date of the period during which multiple voting stocks are exercisable.
[This Article Added on Nov. 7, 2023]
Article 11-11(Recognition of and Reporting on Violations) #
(1) When the Minister of SMEs and Startups recognizes a suspicion of violation of the regulations on multiple voting stocks pursuant to Article 16-16(1) of the Act, the Minister of SMEs and Startups has a venture business that issued the multiple voting stocks report related matters, or has a public official of the Ministry enter the office, place of business, or other necessary places and investigate necessary matters, such as the examination of books and documents.
(2) A person who intends to file a report pursuant to Article 16-16(2) of the Act shall submit documents containing the following matters to the Minister of SMEs and Startups:
1. Name and address of the reporting person;
2. Trade name and address of the person reported, and the name of its representative;
3. Details of the offense committed by the reported person;
4. Other matters that clarify the details of the offense.
[This Article Added on Nov. 7, 2023]
[Previous Article 11-11 moved to Article 11-15 <Nov. 7, 2023>]
Article 11-12(Conclusion of RSU Agreement by venture businesses) #
(1) A Restricted Stock Unit Agreement under Article 16-17(1) of the Act (hereinafter referred to as "RSU Agreement") shall be concluded by any of the following methods:
1. Advance grant of treasury stocks: A method by which a venture business which is a stock company distributes treasury stocks, the transfer of which is restricted, to executive officers and employees of a venture business under Article 16-3(1)1 of the Act (hereinafter referred to as "executive officers and employees") and lifts restrictions on transfer or recovers the stocks already delivered depending on whether or not the conditions prescribed in Article 16-17(3)3 of the Act (hereinafter referred to as "performance conditions") are satisfied;
2. Post grant of treasury stocks: A method by which a venture business which is a stock company presents performance conditions to its executive officers and employees and delivers treasury stocks when they satisfy such conditions.
(2) Where a venture business which is a stock company terminates or cancels an RSU Agreement concluded pursuant to paragraph (1)1 in accordance with the articles of incorporation under Article 16-17(2)5 of the Act, it may recover the stocks already delivered.
(3) Where a venture business which is a stock company intends to report the details thereof because it falls under any subparagraph of Article 16-19(1) of the Act, it shall submit to the Minister of SMEs and Startups a report prescribed by Decree of the Ministry of SMEs and Startups, accompanied the following documents; provided, where it files a report because of falling under Article 16-19(1)2 of the Act, the following documents may not be attached:
1. The venture business' articles of incorporation;
2. Minutes of general meetings of stockholders;
[This Article Added on Jul. 2, 2024]
[Previous Article 11-12 moved to Article 11-13 <Jul. 2, 2024>]
Article 11-13(Designation of areas for clustering new technology-based businesses) #
(1) "Matters prescribed by Presidential Decree, such as the name of, area designated, etc. in, the clustering area" in Article 17-2(2) of the Act means the following: <Amended on Jul. 20, 2021>
1. Names and locations of areas for clustering new technology-based businesses (hereinafter referred to as "clustering area") and area designated therein;
2. Sites of schools held by the relevant institution or total floor area of such sites;
3. Plans for placement of major facilities.
(2) Where the Minister of SMEs and Startups intends to designate an area as a clustering area under Article 17-2(3) of the Act, he or she shall consult with the head of the relevant Si/Gun/Gu (referring to the head of the autonomous Gus; hereinafter the same shall apply). <Amended on Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups designates an area as a clustering area under Article 17-2(3) of the Act, he or she shall give public notice of the name and location of, and area designated in, such clustering area in the Official Gazette. <Amended on Jul. 26, 2017>
(4) "Area prescribed by Presidential Decree" in Article 17-2(4) of the Act means 10,000 square meters.
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-12; previous Article 11-13 moved to Article 11-14 <Jul. 2, 2024>]
Article 11-14(Ratio of designated area in clustering areas to total floor area) #
"Ratio prescribed by Presidential Decree" in subparagraph 1 of Article 17-3 of the Act means 30/100.
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-13; previous Article 11-14 moved to Article 11-15 <Jul. 2, 2024>]
Article 11-15(Areas excluded from designation of clustering areas) #
(1) "Areas prescribed by Presidential Decree" in Article 17-4(1) of the Act means the following areas: <Amended on Apr. 30, 2009>
1. Preservation and management areas, agricultural and forest areas, and natural environmental preservation areas among the special-purpose areas referred to in Article 36(1) of the National Land Planning and Utilization Act;
2. Class I exclusive residential areas, class II exclusive residential areas, distribution and commercial areas, and green conservation areas among the special-purpose areas referred to in Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act.
(2) "Urban-type factories prescribed by Presidential Decree" in the former part of Article 17-4(2) of the Act means factories referred to in subparagraph 1 of Article 34 of the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act.
(3) The Minister of SMEs and Startups may formulate and publicly notify guidelines necessary for handling affairs concerning approval of urban-type factories referred to in the former part of Article 17-4(2) of the Act. <Added on Apr. 20, 2010; Jul. 26, 2017>
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-14; Previous Article 11-15 moved to Article 11-16 <Jul. 2, 2024>]
Article 11-16(Rental fee for clustering areas) #
(1) Article 13(1) and (2) shall apply mutatis mutandis to the rental fee referred to in Article 17-4(7) of the Act.
(2) Article 13(3) and (4) shall apply mutatis mutandis to the lease period referred to in Article 17-4(7) of the Act.
[This Article Added on Apr. 26, 2007]
[Moved from Article 11-15; Previous Article 11-16 moved to Article 11-17 <Jul. 2, 2024>]
Article 11-17(Requirements for designation of facilities for clustering venture businesses) #
(1) "Total floor area prescribed by Presidential Decree" in the former part of Article 18(1) of the Act means that the total floor area (referring to exclusive-use areas; hereafter in this Article the same shall apply) of a building is at least 600 square meters; provided, where it is intended to obtain designation for part of a building, at least 50/100 of total floor area of each floor shall be included in the area subject to be designation. <Amended on Nov. 18, 2015>
(2) "Businesses prescribed by Presidential Decree, such as venture businesses" in Article 18(2)1 of the Act means any of the following enterprises: <Amended on Mar. 24, 2014; Nov. 18, 2015; Dec. 27, 2022>
1. Enterprises that remain as an occupant under Article 24(2) of the Act;
2. Enterprises confirmed as venture businesses under Article 25 of the Act;
3. Small and medium enterprises engaged in knowledge-based business referred to in Article 6(6) of the Enforcement Decree of the Restriction of Special Taxation Act;
4. Small and medium enterprises engaged in the knowledge industry referred to in Article 6(2) of the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act or small and medium enterprises engaged in the information and communications industry referred to in paragraph (3) of that Article;
5. Small and medium enterprises that had been the occupants of business incubators for at least three years;
6. Enterprises operating in the business types that are determined and publicly notified by the Minister of SMEs and Startups in consideration of the current status of development and distribution of new technologies, such as artificial intelligence, Internet of Things (referring to intelligent technology that connects all things based on the Internet to mutually share and communicate information between people and things or things and things), or autonomous vehicles, etc. under the Act on Promotion of and Support for Commercialization of Autonomous Vehicles.
(3) "Businesses prescribed by Presidential Decree" in Article 18(2)2 of the Act means enterprises falling under the subparagraphs of paragraph (2).
(4) "Facilities prescribed by Presidential Decree, such as facilities for clustering venture businesses" in Article 18(2)3 of the Act means the following facilities:
1. Support facilities referred to in Article 2;
Article 11-18(Application for designation of facilities for clustering venture business) #
(1) A person who intends to have a facility designated as a facility for clustering venture businesses under Article 18(1) of the Act shall file an application for designation of facilities for clustering venture businesses, with the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or Jeju Special Self-Governing Province Governor (in cases of large cities 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(1) of the Local Autonomy Act, referring to the Mayor; hereinafter referred to as "Mayor/Do Governor"), as prescribed by Decree of the Ministry of SMEs and Startups. The same shall also apply to changes to any designated matters. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jul. 9, 2019; Dec. 16, 2021>
(2) Where a building for which an application for designation of facilities for clustering venture businesses is filed under paragraph (1) meets the requirement prescribed in Article 11-17(1), the Mayor/Do Governor shall designate such building as a facility for clustering venture businesses and issue a certificate of designation of facilities for clustering venture businesses, as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jul. 20, 2021; Jul. 3, 2023; Nov. 7, 2023; Jul. 2, 2024>
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-17; Previous Article 11-18 moved to Article 11-19 <Jul. 2, 2024>]
Article 11-19(Installation of laboratory factories) #
(1) Any person who intends to install a laboratory factory under the former part of Article 18-2(1) of the Act shall file an application for approval for such installation with the head of the institution to which he or she belongs, accompanied by the documents prescribed by Decree of the Ministry of SMEs and Startups. The same shall also apply to changes to any approved matters. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(2) Where a student referred to in Article 18-2(1)1 of the Act files an application for approval under paragraph (1), he or she shall obtain consent to the installation from the person responsible for the management of the laboratory, etc. in which the laboratory factory is to be installed. <Added on Apr. 20, 2010>
(3) "Institute prescribed by Presidential Decree" in Article 18-2(1)3 of the Act means the following research institutes: <Amended on Apr. 20, 2010; Jul. 26, 2012; Nov. 72023>
1. Research institutes specializing in manufacturing technology;
2. Institutes which are relocated into special research and development zones referred to in subparagraph 1 of Article 2 of the Special Act on Promotion of Special Research and Development Zones.
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-18; Previous Article 11-19 moved to Article 11-20 <Jul. 2, 2024>]
Article 11-20(Installation of factories by venture business or founder moved into business incubator) #
The Minister of SMEs and Startups may formulate and publicly notify guidelines necessary for handling affairs concerning approval of urban-type factories referred to in the former part of Article 18-3(1) of the Act. <Amended on Jul. 26, 2017>
[This Article Added on Apr. 20, 2010]
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-19; Previous Article 11-20 moved to Article 11-21 <Jul. 2, 2024>]
Article 11-21(Designation of venture business development and promotion zones) #
(1) Each venture business development and promotion zone referred to in Article 18-4 of the Act (hereinafter referred to as "promotion zone") shall comply with all of the following requirements: <Amended on May 26, 2015; Feb. 2, 2021>
1. The number of venture businesses in the relevant area shall be at least 10/100 of the total number of small and medium enterprises referred to in Article 2 of the Framework Act on Small and Medium Enterprises (excluding micro enterprises under the Framework Act on Micro Enterprises);
2. A university or research institute shall be located in the relevant area;
3. The relevant area shall be furnished with infrastructure, such as facilities for transport, communication and finance.
(2) Where a Mayor/Do Governor requests designation of a promotion zone under Article 18-4(1) of the Act, he or she shall submit a written request for designation and a plan for the development of a promotion zone to the Minister of SMEs and Startups, as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017>
(3) The Minister of SMEs and Startups shall designate promotion zones in consultation with the heads of relevant central administrative agencies, and upon completing designation of a promotion zone, shall publicly notify the following matters under Article 18-4(2) of the Act: <Amended on Jul. 26, 2017>
1. Name of the promotion zone;
2. Location and area of the promotion zone;
3. The outline of the plan for the development of the promotion zone.
(4) Except as provided in this Decree, matters necessary for designation of promotion zones shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Nov. 4, 2008]
[Moved from Article 11-20 <Jul. 2, 2024>]
Article 12(Disposal of State property) #
Selling prices of State property referred to in Article 19(2) of the Act shall be the arithmetic mean of the values appraised by at least two appraisal corporations, etc. (referring to appraisal corporations, etc. under the Act on Appraisal and Certified Appraisers). <Amended on Aug. 31, 2016; Dec. 5, 2016; Jan. 21, 2022>
[This Article Wholly Amended on Nov. 4, 2008]
Article 13(Lease of State property) #
(1) Annual rental fee on State property referred to in Article 19(1) of the Act shall, notwithstanding Article 29(1) of the Enforcement Decree of the State Property Act, be computed by multiplying the amounts calculated under paragraph (2) of the same Article by at least 10/1,000, on condition that such rental fee may be paid in monthly installments. <Amended on Jul. 27, 2009>
(2) Where the annual rental fee on State property calculated under paragraph (1) rises by at least 10/100 of the charge in the preceding year under the circumstance that the state property is leased for at least two consecutive years, the amount calculated under Article 31 of the Enforcement Decree of the State Property Act shall become the rental fee for the lease thereof. <Amended on Jul. 27, 2009>
(3) The term of lease of state property referred to in Article 19(1) of the Act shall deemed not to exceed 20 years.
(4) Terms of lease referred to in paragraph (3) may be renewed. In such cases, no term renewed shall exceed the period referred to in paragraph (3) upon renewal.
[This Article Wholly Amended on Nov. 4, 2008]
Article 14(Areas excluded from building permission) #
(1) "Areas prescribed by Presidential Decree, such as green belt areas" in Article 21(2) of the Act means exclusive residential areas, class I general residential areas, and green belt zones, among the areas referred to in Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act.
(2) "Factories prescribed by Presidential Decree" in the former part of Article 21(3) of the Act means urban-type factories, the factory building area (referring to the sum of floor areas of each floor of building and horizontally projected areas of outdoor structures) of which does not exceed 2,000 square meters among urban-type factories in subparagraph 1 of Article 34 of the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act.
(3) Where a person who moves into a facility for clustering venture businesses constructs a factory in the facility for clustering venture businesses under Article 21(3) of the Act (excluding where the superimposed load of the factory intended to be constructed does not exceed the superimposed load of the building designated as a facility for clustering venture businesses), the person who constructs and operates the facility for clustering venture businesses shall obtain verification as to the structural safety of the relevant building from the head of the Si/Gun/Gu in advance. In such cases, the head of the Si/Gun/Gu may, if necessary, have certified architects referred to in subparagraph 1 of Article 2 of the Certified Architects Act or professional engineers of building structure under the National Technical Qualifications Act review matters concerning structural safety. <Amended on Mar. 24, 2014>
[This Article Wholly Amended on Nov. 4, 2008]
Article 15 #
Deleted. <Feb. 29, 2008>
Article 16 #
Deleted. <Feb. 29, 2008>
Article 17 #
Deleted. <Feb. 29, 2008>
Article 18 #
Deleted. <Feb. 29, 2008>
Article 18-2 #
Deleted. <Feb. 29, 2008>
Article 18-3 #
Deleted. <May 12, 2020>
Article 18-4(Valid period of certificate of venture business) #
The valid period of certificate of venture business referred to in the latter part of Article 25(2) of the Act shall be three years from the date of confirmation. <Amended on May 12, 2020>
[This Article Wholly Amended on Apr. 20, 2010]
Article 18-5(Publication on venture business) #
(1) When confirming a venture business under Article 25(2) of the Act, the head of each institution in charge of confirming venture businesses designated under Article 25-3(1) of the Act (hereinafter referred to as an "institution in charge of confirming venture businesses") shall make public the following information on such venture business through the comprehensive management system under Article 3-4(1) of the Act pursuant to Article 25(3) of the Act: <Amended on Apr. 20, 2010; Jun. 30, 2014; May 12, 2020; Jul. 2, 2024>
1. General information: Trade names, business types, and corporate registration numbers, addresses, telephone numbers, and major products recorded in the register, and matters concerning changing the same;
2. Financial information: Balance sheets and statements of profit and loss;
3. Information on investment: In cases of venture businesses referred to in Article 2-2(1)2a of the Act, the amount and timing of investment made by the persons provided for in subitems 1) through 8) of the same item and matters concerning changing the same;
4. Deleted; <May 12, 2020>
5. Certificate of venture business: Date of issuance, valid period and matters concerning the change thereof.
(2) The Minister of SMEs and Startups shall determine and publicly notify detailed methods of publication referred to in paragraph (1). <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Nov. 4, 2008]
Article 18-6(Requirements for cancellation of confirmation of venture business) #
(1) "Period prescribed by Presidential Decree" in Article 25-2(1)3 of the Act means six months. <Amended on Mar. 24, 2014>
(2) "Cases prescribed by Presidential Decree, such as causing loss to stockholders, members, or interested parties in connection with the business management" in Article 25-2(1)4 of the Act means where a corporation incorporated with approval from the Minister of SMEs and Startups under Article 32 of the Civil Act and whose members are venture businesses requests the head of the institution in charge of confirming venture businesses to cancel the confirmation of venture businesses under the circumstance that the representative, largest stockholders, largest investing members, etc. of the enterprise inflict damage to the stockholders, members or interested persons in connection with the business management by misappropriating or concealing the business property. <Amended on Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Nov. 4, 2008]
Article 18-7(Requirements for designation as institution in charge of confirming venture business) #
"Requirements prescribed by Presidential Decree, such as professional human resources and a dedicated organization" in Article 25-3(1) of the Act means the following:
1. It shall be a non-profit-making juristic person under Article 32 of the Civil Act;
2. It shall have an organization dedicated to supporting venture businesses and have performed business related to supporting venture businesses at least for the past three years;
3. It shall have at least 20 full-time workers; in such cases, there shall be at least five professionals with at least ten years of combined experience falling under any of the following:
a. Experience in investment review in any institution or organization falling under Article 2-2(1)2a 1) through 4) of the Act or Article 2-3(2)1 through 7, or 9 through 14 of this Decree.
b. Experience in assisting with venture businesses or founders at enterprises, institutions, or organizations with such main business as discovery, fostering, investing in, or nurturing venture businesses or founders.
c. Experience recognized and publicly notified by the Minister of SMEs and Startups as equivalent to or higher than the experience under item a or b.
[This Article Added on May 12, 2020]
Article 18-8(Quorum of Venture Business Confirmation Committee) #
"Number ... prescribed by Presidential Decree" in Article 25-4(2) of the Act means seven persons.
[This Article Added on May 12, 2020]
Article 19(Delegation or entrustment of authority) #
(1) Pursuant to Article 27 of the Act, the Minister of SMEs and Startups shall delegate his or her authority over the following matters to the heads of regional SMEs and Startups offices: <Amended on Nov. 18, 2015; Dec. 5, 2016; Jul. 26, 2017; Aug. 11, 2020; Jul. 3, 2023; Nov. 7, 2023>
1. Matters regarding reporting on stock options under Article 16-6 of the Act;
2. Provision of information, etc. on investment values of venture businesses referred to in Article 16-7(3) of the Act;
3. Matters concerning inspection referred to in Article 26(4) of the Act.
(2) Deleted. <Aug. 11, 2020>
(3) Deleted. <Aug. 11, 2020>
(4) Pursuant to Article 27 of the Act, the Minister of SMEs and Startups shall entrust business regarding the fact-finding surveys under Article 3-3 of the Act and the receipt of reports and verification of reported matters under Article 26(4) of the Act to the Korea Venture Business Association established with the approval of the Minister of SMEs and Startups under Article 32 of the Civil Act (hereinafter referred to as the "Korea Venture Business Association"). <Added on Nov. 18, 2015; Dec. 5, 2016; Jul. 26, 2017; Dec. 27, 2022>
(5) Deleted. <Aug. 11, 2020>
(6) Pursuant to Article 27 of the Act, the Minister of SMEs and Startups shall entrust the following business to institutions in charge of confirming venture businesses: <Added on May 12, 2020>
1. Operation of a comprehensive management system under Article 3-4(1) of the Act;
2. Request for the provision of data or information under Article 3-4(2) of the Act.
[This Article Wholly Amended on Nov. 4, 2008]
Article 20(Adjustment following entrustment of business) #
(1) Deleted. <Aug. 11, 2020>
(2) The Minister of SMEs and Startups may request the Korea Venture Business Association to submit data related to the business under Article 19(4). <Added on Nov. 18, 2015; Jul. 26, 2017>
(3) Deleted. <Aug. 11, 2020>
(4) The Minister of SMEs and Startups may request an institution in charge of confirming venture businesses to submit data related to the business under each subparagraph of Article 19(6). <Added on May 12, 2020>
(5) The Korea Venture Business Association shall neither compel any person to join the Association while performing the business under Article 19(4) nor commit any other unfair transactions. <Amended on May 12, 2020; Aug. 11, 2020>
[This Article Wholly Amended on Nov. 4, 2008]
[Title Amended on Dec. 5, 2016]
Article 20-2 #
Deleted. <Aug. 11, 2020>
Article 20-3(Re-examination of regulation) #
The Minister of SMEs and Startups shall examine the appropriateness of the following matters every three years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended on Nov. 30, 2014; Dec. 5, 2014; Dec. 26, 2017; Jul. 2, 2018; Jul. 20, 2021; Jul. 3, 2023; Nov. 7, 2023; Jul. 2, 2024>
1. Requirements for venture businesses referred to in Article 2-3: January 1, 2014;
1-2. Business types excluded from venture business under Article 2-4: January 1, 2019;
2. Deleted; <Aug. 11, 2020>
2-2. Deleted; <Dec. 24, 2018>
3. Institutions eligible to establish companies specializing in start-up of new technology-based business referred to in Article 4-2 and Appendix 2 and requirements and procedures for the registration thereof: January 1, 2014;
3-2. Restriction on acts of companies specializing in start-up of new technology-based business and restriction on purpose of use of dividend, etc. of universities or research institutes under Article 4-3: January 1, 2016;
4. Deleted; <Aug. 11, 2020>
5. Deleted; <Mar. 3, 2023>
6. Deleted; <Dec. 30, 2016>
6-2. Ratio of designated area in clustering areas to total floor area under Article 11-14: January 1, 2016;
6-3. Areas excluded from designation of clustering areas, scope of urban-type factories that can be established in clustering areas, and the guidelines necessary for handing affairs concerning the approval thereof under Article 11-15: January 1, 2016;
7. Requirements for designating facilities for clustering venture businesses under Article 11-17: January 1, 2014;
8. Deleted. <Mar. 3, 2020>
[This Article Added on Dec. 30, 2013]
Article 21(Administrative Fines) #
The Criteria for imposing administrative fines under Article 33(1) and (2) of the Act shall be as specified in Appendix 3.
[This Article Added on Nov. 7, 2023]