ENFORCEMENT DECREE OF THE ACT ON SUPPORT FOR FEMALE-OWNED BUSINESSES

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters delegated by the Act on Support for Female-Owned Businesses and other matters necessary for enforcing said Act. <Amended on Jun. 11, 2007>

Article 2(Definition of Female-Owned Business) #

(1) “Business ... which meets the criteria determined by Presidential Decree” in subparagraph 1 of Article 2 of the Act on Support for Female-Owned Businesses (hereinafter referred to as the “Act”) means any of the following businesses, which is primarily managed by a woman: <Amended on Jun. 11, 2007; Jun. 28, 2013; Jul. 28, 2016; Oct. 22, 2019; Apr. 19, 2022>

1. A company defined in the Commercial Act, whose largest investor (meaning a person who holds the largest equity stake (excluding non-voting stocks defined in Article 344-3 of the Commercial Act, in cases of a stock company: hereinafter the same shall apply) in the company in his or her own name) is a woman registered as an executive officer with authority to represent the company (hereinafter referred to as “chief executive officer”) (including companies in which at least two women registered as chief executive officers hold the largest aggregate equity stake);

2. A sole proprietor who has registered his or her business prescribed in Article 168 of the Income Tax Act or Article 8 of the Value-Added Tax Act.

3. A cooperative that meets all of the following requirements (referring to a cooperative under the Framework Act on Cooperatives or the Consumer Cooperatives Act; hereinafter the same shall apply):

(a) A majority of the total number of members shall be women;

(b) A majority of the total number of equity shares shall be funded by female members;

(c) The president shall be a female member;

(d) A majority of all directors, including the president, shall be women.

(2) Deleted. <Jul. 28, 2016>

Article 2-2(Scope of Institutions or Organizations Requested to Correct Discriminatory Practices) #

"Institution or organization related to small and medium enterprises prescribed by Presidential Decree" in Article 4 (1) of the Act means an institution or organization determined and publicly notified by the Minister of SMEs and Startups, which is funded or subsidized by the State or local governments to perform small and medium enterprise support programs under statutes.

[This Article Newly Inserted on Oct. 22, 2019]

Article 3(Formulation of Basic Plans and Action Plans for Facilitating Activities of Female-Owned Businesses) #

(1) The Minister of SMEs and Startups shall prepare guidelines on formulating a basic plan for facilitating the activities of female-owned businesses under Article 5 (1) of the Act (hereinafter referred to as "basic plan") and notify the heads of the relevant administrative agencies thereof.

(2) The heads of the relevant administrative agencies shall prepare basic plans for the fields under their jurisdiction in accordance with the guidelines on preparing basic plans prescribed in paragraph (1) and submit them to the Minister of SMEs and Startups.

(3) The Minister of SMEs and Startups shall compile the basic plans for the fields under his or her jurisdiction submitted pursuant to paragraph (2), finalize such plans following deliberation by the Balanced Growth Promotion Committee established under Article 6 (1) of the Act, and notify the heads of the relevant administrative agencies thereof.

(4) The heads of the relevant administrative agencies shall prepare annual action plans for the fields under their jurisdiction in accordance with the basic plans and shall submit them to the Minister of SMEs and Startups.

(5) The Minister of SMEs and Startups shall compile the annual action plans for the fields under their jurisdiction submitted under paragraph (4), finalize an annual action plan for facilitating the activities of female-owned businesses under Article 5 (3) of the Act (hereinafter referred to as "action plan") by the end of February each year following deliberation by the Balanced Growth Promotion Committee established under Article 6 (1) of the Act, and notify the heads of the relevant administrative agencies thereof.

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

Article 4(Organization of the Balanced Growth Promotion Committee) #

(1) The Balanced Growth Promotion Committee established under Article 6 (1) of the Act (hereinafter referred to as the "Committee") shall be comprised of not more than 20 members, including one Chairperson. <Amended on Jun. 11, 2007; Nov. 19, 2009>

(2) The office of Chairperson shall be assumed by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

(3) The following persons shall be members: <Amended on Jul. 26, 2017; Apr. 2, 2019; Aug. 6, 2021>

1. Vice Minister of Economy and Finance designated by the Minister of Economy and Finance; Vice Minister of Culture, Sports and Tourism designated by the Minister of Culture, Sports and Tourism; Vice Minister of Trade, Industry and Energy designated by the Minister of Trade, Industry and Energy; Vice Minister of Employment and Labor; Vice Minister of Gender Equality and Family; and the Administrator of Public Procurement Service;

2. Chairperson of the Korean Women Entrepreneurs Association prescribed in Article 13 of the Act;

3. President of the Korea SMEs and Startup Agency prescribed in subparagraph 1 of Article 72 of the Small and Medium Enterprises Promotion Act;

4. President of the Korea Credit Guarantee Fund prescribed in Article 14 of the Credit Guarantee Fund Act;

5. President of the Korea Technology Finance Corporation prescribed in Article 19 of the Korea Technology Finance Corporation Act;

6. President of the Korea Federation of Credit Guarantee Foundations prescribed in Article 35-3 (1) of the Regional Credit Guarantee Foundation Act;

7. Other persons commissioned by the Minister of SMEs and Startups, from among persons who have abundant knowledge and experience in economics, small and medium enterprises, or women’s policies.

(4) The term of the members commissioned under paragraph (3) 7 shall be two years, and may be consecutively renewed twice. <Amended on Jun. 11, 2007>

[Title Amended on Nov. 19, 2009]

Article 4-2(Withdrawal of Nomination and Removal of Members) #

(1) A person who has nominated a member of the Committee pursuant to Article 4 (3) 1 may withdraw the nomination if the relevant member falls under any of the following cases:

1. Where he or she cannot perform duties due to a mental disorder;

2. Where he or she is involved in a crime in relation to duties;

3. Where it is acknowledged that he or she is not eligible to become a member due to neglecting duties, losing dignity, or other grounds;

4. Where he or she declares that he or she is unable to perform duties.

(2) Where a member of the Committee defined in Article 4 (3) 7 falls under any subparagraph of paragraph (1), the Minister of SMEs and Startups may dismiss the relevant member from office. <Amended on Jul. 26, 2017>

[This Article Newly Inserted on Dec. 31, 2015]

Article 5(Functions of the Committee) #

The Committee shall review the following matters: <Amended on Jul. 26, 2017; Aug. 11, 2020; Jan. 5, 2021>

1. Matters on correcting discriminatory practices prescribed in Article 4 of the Act;

2. Matters on basic plans and action plans;

3. Matters on supporting women in establishing businesses prescribed in Article 8 of the Act;

4. Matters on facilitating public institutions’ purchasing products manufactured by female-owned businesses prescribed in Article 9 of the Act;

5. Matters on preferential financial support prescribed in Article 10 of the Act;

6. Matters on support for improving business management capabilities and design development prescribed in Articles 11 and 12 of the Act;

7. Matters on supporting the Integrated Support Center for Female-Owned Businesses prescribed in Article 15 of the Act;

8. Other matters necessary for promoting activities of female-owned businesses, which are referred to the Committee by the Minister of SMEs and Startups or the Chairperson.

Article 6(Operation of the Committee) #

(1) The Chairperson shall convene and preside over meetings of the Committee.

(2) A majority of the members of the Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.

(3) Members attending meetings of the Committee may be reimbursed allowances within its budgetary limits: Provided, That this shall not apply where public official members attend such meetings in direct relationship to their official duties.

(4) The Committee shall have one secretary to implement its administrative affairs, who shall be appointed by the Chairperson from among public officials of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017>

(5) The secretary shall record and manage minutes of each meeting. <Newly Inserted on Jun. 11, 2007>

(6) Matters necessary for operating the Committee, other than those provided for in this Decree, shall be determined by the Chairperson following a resolution by the Committee. <Amended on Jun. 11, 2007>

Article 6-2(Details of and Procedures for Fact-Finding Surveys, and Preparation and Management of Statistics) #

(1) A fact-finding survey under Article 7 (1) of the Act (hereinafter referred to as "fact-finding survey") shall be conducted on the following:

1. Matters concerning the current status of capital, human resources, and management;

2. Matters concerning the factors hindering growth;

3. Matters concerning the current status of utilization of support programs;

4. Other matters deemed necessary by the Minister of SMEs and Startups to ascertain the current status and actual conditions of the activities of female-owned businesses.

(2) A fact-finding survey shall be conducted by means of a field survey, written survey, etc., and may be conducted using the information and communications network or electronic means such as e-mail.

(3) The Minister of SMEs and Startups shall publish the results of a fact-finding survey on the website of the Ministry of SMEs and Startups.

(4) Where the Minister of SMEs and Startups prepares statistics on female-owned businesses pursuant to Article 7 (2) of the Act, he or she may utilize statistics or other data surveyed or prepared pursuant to other statutes or regulations.

[This Article Newly Inserted on Sep. 29, 2021]

Article 7(Increasing Purchase of Female-Owned Business-Manufactured Products) #

(1) “Percentage determined by Presidential Decree” in the main clause of Article 9 (3) of the Act means five percent of total purchases of goods or services defined in Article 4 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets; and three percent of total purchases in cases of construction works: Provided, That the head of a public institution which finds it impracticable to propose a purchase target percentage at or above that set in the main clause due to the characteristics of the relevant institution, may determine a separate percentage as the purchase goal, in consultation with the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

(2) Cases where the Minister of SMEs and Startups may advise the head of a public institution to improve purchase plans prescribed in Article 9 (4) of the Act shall be as follows: <Amended on Jul. 26, 2017>

1. Where the purchase target percentage of female business-manufactured products defined in Article 9 (1) of the Act (hereinafter referred to as “female business-manufactured products”) included in the purchase plans that the relevant public institution has notified to the Minister of SMEs and Startups in accordance with Article 9 (5) of the Act, is lower than the percentage set in the main clause of paragraph (1);

2. Where the relevant public institution adopts methods or procedures unfavorable to female-owned businesses in purchasing products.

[This Article Wholly Amended on Nov. 19, 2009]

Article 8(Public Notice of Support Procedures) #

If necessary for preferentially purchasing female business-manufactured products or providing funds for female-owned businesses prescribed in Article 9 or 10, the Minister of SMEs and Startups may determine and publicly notify the scope of female-owned businesses subject to such preferential purchase or funding, support procedures, etc. in advance. <Amended on Nov. 19, 2009; Jul. 26, 2017>

[Title Amended on Nov. 19, 2009]

Article 8-2(Events during Female-Owned Business Week) #

(1) The first week of July each year shall be the Female-Owned Business Week under Article 12-3 (1) of the Act.

(2) The State and a local government may hold the following events during the Female-Owned Business Week:

1. An event to commemorate the Female-Owned Business Week;

2. Granting an award under subparagraph 1 of Article 12-2 of the Act;

3. Conducting publicity activities regarding the roles and contribution of female-owned businesses under subparagraph 2 of Article 12-2 of the Act;

4. Other events to facilitate business activities of female-owned businesses and to enhance their competitiveness.

[This Article Newly Inserted on Apr. 19, 2022]

Article 9(Procedures for Establishment of the Association) #

(1) In order to establish the Korean Women Entrepreneurs Association prescribed in Article 13 of the Act (hereinafter referred to as the "Association"), at least five promoters who are businesswomen shall hold an inaugural meeting, with consent of at least 200 businesswomen.

(2) The representative of the promoters shall apply for approval for the establishment of the Association to the Minister of SMEs and Startups with the following documents: <Amended on Jul. 26, 2017>

1. Written application for approval for establishment;

2. Articles of association;

3. List of promoters and consenters;

4. Business plans and budgetary documents;

5. Property lists and certificates concerning the fundamental property including real estate, deposits and securities, which are issued by a registration office, financial institution, etc.;

6. Minutes of the inaugural meeting.

(3) Where the Minister of SMEs and Startups grants approval to establish the Association, he or she shall publicly notify such fact. <Amended on Jul. 26, 2017>

(4) The promoters shall perform necessary administrative affairs until executive officers are appointed following the establishment of the Association.

Article 10(Articles of Association) #

The articles of association of the Association shall indicate the following:

1. Objectives;

2. Name;

3. Location of the principal office;

4. Details of business;

5. Eligibility requirements for membership;

6. Matters regarding executive officers;

7. Matters regarding organization and operation of the general meeting and the board of directors;

8. Matters regarding assets and accounting;

9. Matters regarding amending the articles of association;

10. Matters on the Integrated Support Center for Female-Owned Businesses.

Article 11(Submission of Business Plans) #

By no later than the end of each February, the Association shall file the business performance report and balance sheets for the previous year and business plan and budgetary statements for the current year with the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

Article 12(Establishment of the Support Center and Its Functions) #

(1) The Integrated Support Center for Female-Owned Businesses prescribed in Article 15 of the Act (hereinafter referred to as the "Support Center") may be established as an incorporated foundation defined in the Civil Act.

(2) The Support Center shall perform the following functions: <Amended on Jul. 26, 2017>

1. Providing information and materials on female-owned businesses;

2. Assisting women in starting businesses;

3. Providing businesswomen with education and training;

4. Assisting female-owned businesses with business operation and market building;

5. Operating counseling centers to deal with challenges experienced by female-owned businesses;

6. Conducting research and investigations to foster female-owned businesses;

7. Engaging in business acknowledged by the Minister of SMEs and Startups as necessary for promoting female-owned businesses;

8. Conducting other affairs outsourced by the Minister of SMEs and Startups, the head of a local government, or the Chairperson of the Association to promote female-owned businesses.

Article 13(Operation of the Support Center) #

(1) The representative of the Support Center shall be appointed by the board of directors, with approval from the Minister of SMEs and Startups, as prescribed by the articles of association. <Amended on Jun. 11, 2007; Jul. 26, 2017>

(2) Matters necessary for the organization and operation of the Support Center shall be prescribed by the articles of association or by-laws of the Support Center.

(3) If the Minister of SMEs and Startups intends to provide financial support prescribed in Article 15 (2) of the Act, he or she shall earmark funds for the relevant budget. <Amended on Jul. 26, 2017>

Article 14(Outsourcing Costs) #

Where the Minister of SMEs and Startups outsources any project to the Association (including the Support Center; hereinafter the same shall apply) or a relevant institution or organization prescribed in Article 7 (4) of the Act, subparagraph 7 of Article 14 of the Act, or Article 12 (2) 8 of this Decree, he or she may subsidize the costs incurred by the Association, institution or organization in performing the relevant projects. <Amended on Jul. 26, 2017; Sep. 29, 2021>

Article 15(Verification of Female-Owned Businesses) #

(1) Any person who intends to apply for verification of the eligibility of a female-owned business prescribed in Article 20-2 (1) of the Act shall file an application for verification as a female-owned business in attached Form 1 with the Minister of SMEs and Startups, using the comprehensive information network for public procurement of products of small and medium business proprietors prescribed in Article 25 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets (hereinafter referred to as “purchase information network”), along with the following documents: <Amended on Jul. 26, 2017; Oct. 22, 2019>

1. In cases of companies incorporated under the Commercial Act:

(a) One copy of a list of shareholders;

(b) One copy of an employee roster;

(c) One copy of the articles of incorporation;

2. In cases of sole proprietors: One copy of a partnership agreement (applicable to a joint business operator only);

3. In cases of cooperatives:

(a) One copy of a list of members;

(b) One copy of a list of investors;

(c) One copy of a list of executive officers.

(2) The Minister of SMEs and Startups, in receipt of an application filed under paragraph (1), shall verify the corporation registration certificate (applicable to a corporation only) and the business registration certificate of the relevant business, by data matching under Article 36 (1) of the Electronic Government Act: Provided, That the Administrator may accept a copy of the business registration certificate, if the applicant does not consent to such verification. <Amended on Jul. 26, 2017>

(3) The Minister of SMEs and Startups, in receipt of an application filed under paragraph (1), may conduct a documentary audit and site investigation to ascertain whether the applicant meets the eligibility criteria for a female-owned business, and request relevant materials or data, if necessary. <Amended on Jul. 26, 2017>

(4) If an investigation or examination conducted under the former part of Article 20-2 (2) of the Act finds that the relevant business does not constitute a female-owned business, the Minister of SMEs and Startups shall notify the applicant of such findings and grounds therefor. <Amended on Jul. 26, 2017>

Article 16(Issuance of Certificates of Female-Owned Business) #

(1) The valid period for verification as a female-owned business prescribed in Article 20-2 (2) of the Act shall be three years.

(2) If a business obtains verification as a female-owned business prescribed in Article 20-2 (2) of the Act, the Minister of SMEs and Startups shall issue a certificate of female-owned business provided for in attached Form 2 to the applicant. <Amended on Jul. 26, 2017>

(3) A person who has obtained a certificate of female-owned business prescribed in paragraph (2) may, in either of the following cases, have his or her certificate reissued through the purchase information network:

1. If the certificate is destroyed and unusable;

2. If the certificate is lost.

(4) A person who has obtained a certificate of female-owned business prescribed in paragraph (2) may, if any change occurs in the address or details of branch offices stated in the certificate, file an application to update information on the certificate of female-owned business with the Minister of SMEs and Startups, with documents evidencing the relevant change attached thereto. <Amended on Jul. 26, 2017>

[This Article Newly Inserted on Jul. 28, 2016]

Article 17(Grace Period for Filing Application for Verification of Female-Owned Business) #

“Period which is prescribed by Presidential Decree” in the provisions, with the exception of the subparagraphs, of Article 20-2 (3) of the Act means any of the following periods:

1. In cases falling under Article 20-2 (3) 1 of the Act:

(a) If an investigation or examination finds that the relevant business does not constitute a female-owned business: Three months from the date notice is given under Article 15 (4);

(b) If an investigation or examination finds on at least two occasions that the relevant business does not constitute a female-owned business: Six months from the date notice is given under Article 15 (4);

2. In cases falling under Article 20-2 (3) 2 of the Act: One year from the date the verification is cancelled under the proviso of Article 20-3 (1) of the Act.

[This Article Newly Inserted on Jul. 28, 2016]

Article 18(Delegation and Entrustment of Authority) #

(1) In accordance with Article 20-5 (1) of the Act, the Minister of SMEs and Startups shall delegate the following authority to the head of a regional SMEs and Startups office: <Amended on Jul. 26, 2017>

1. Verifying a female-owned business prescribed in Article 20-2 (2) of the Act;

2. Revoking verification of a female-owned business and holding a hearing prescribed in Article 20-3 of the Act;

3. Reporting and inspection conducted under Article 20-4 of the Act;

4. Imposing and collecting administrative fines prescribed in Article 21 of the Act.

(2) In accordance with Article 20-5 (2) of the Act, the Minister of SMEs and Startups shall entrust the following functions to the Association: <Amended on Jul. 26, 2017>

1. Receiving applications filed under Article 15 (1);

2. Conducting documentary audits and site investigations and requesting relevant materials or data to determine eligibility of a female-owned business prescribed in Article 15 (3).

[This Article Newly Inserted on Jul. 28, 2016]

Article 19(Processing Personally Identifiable Information) #

Where essential for performing the following tasks, the Minister of SMEs and Startups (if his or her authority has been delegated or entrusted to a third person, including such other person) may process materials or data that contain a resident registration number, passport number, driver’s license number, or alien registration number specified in the subparagraphs of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Jul. 26, 2017>

1. Tasks relating to guiding and supervising affairs of the Association prescribed in Article 20 of the Act;

2. Tasks relating to verifying female-owned businesses prescribed in Article 20-2 of the Act;

3. Tasks relating to revoking verification of a female-owned business and holding hearings prescribed in Article 20-3 of the Act;

4. Tasks relating to imposing and collecting administrative fines prescribed in Article 21 of the Act.

[This Article Newly Inserted on Jul. 28, 2016]

Article 20(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 January 1 of every third year), and shall take measures, such as making improvements: <Amended on Jul. 26, 2017; Mar. 8, 2022>

1. The purchase target percentage of female business-manufactured products made by a public institution under Article 7 (1): January 1, 2022;

2. The grace period for filing an application for verification of a female-owned business under Article 17: January 1, 2022.

[This Article Newly Inserted on Dec. 30, 2015]

[Moved from Article 15 <Jul. 28, 2016>]