Article 1(Purpose) #
The purpose of this Decree is to provide for the matters mandated by the Framework Act on Small and Medium Enterprises and those necessary for the enforcement thereof.
Article 2(Definitions) #
The terms used in this Decree shall be defined as follows: <Amended on Mar. 25, 2009; Jan. 28, 2011; Dec. 28, 2011; Jun. 28, 2013; Oct 16, 2013; Jun. 28, 2013; Apr. 5, 2016; Oct. 30, 2018>
1. The term "date of establishment" means any of the following dates:
a. For a business entity which is a corporation: The date of registration of its incorporation;
b. For a business entity for which the business registration has been completed in accordance with Article 168 of the Income Tax Act or Article 8 of the Value-Added Tax Act (referring to any business entity, other than a corporation; hereafter in this Article the same shall apply): The date of its business registration;
2. The term "date of merger or demerger" means any of the following dates:
a. For a business entity which is a corporation: The date the incorporation of the corporation established as a result of the merger or demerger, or the change in the corporation surviving such merger or demerger is registered;
b. For a business entity for which the business registration has been completed in accordance with Article 168 of the Income Tax Act or Article 8 of the Value-Added Tax Act: The date the business registration of the common place of business is completed or the date the business registration is completed separately from the common place of business;
3. The term "related corporation" means a group of corporations with which a company subject to external audit under Article 4 of the Act on External Audit of Stock Companies (hereinafter referred to as "company subject to external audit") is in a parent-subsidiary relationship by taking control of other domestic companies, as provided for in Article 3-2;
4. The term "shares, etc." means a total number of shares issued for an incorporated company (excluding shares with no voting rights), or the total investment amount for unincorporated companies;
5. The term "relatives" means spouses (including those in a de facto marital relationship), blood relatives only including relatives no more distant than second cousins, or relatives by marriage only including relatives no more distant than first cousins;
6. The term "executive officers" means any of the following persons:
a. Incorporated companies or limited liability companies: Registered directors (excluding outside directors);
b. Companies except those falling under a: Partners with unlimited liability or business executors.
Article 3(Scope of small and medium enterprises) #
(1) A small and medium enterprise as defined in Article 2(1)1 of the Framework Act on Small and Medium Enterprises (hereinafter referred to as the "Act") shall be a business entity that meets all the standards prescribed in the following subparagraphs: <Amended on Apr. 14, 2014; Jun. 30, 2015; Apr. 5, 2016; Apr. 26, 2016; Oct. 17, 2017; Feb. 17, 2021>
1. A business entity that meets all the standards prescribed in the following items:
a. The main type of business in which the business entity is engaged and its average sales or annual sales (hereinafter referred to as "average sales, etc.") shall meet the standards prescribed in Appendix 1;
b. A corporation with total assets of less than 500 billion won;
2. A business entity whose actual separation of its management and ownership does not fall under any of the following:
a. Deleted; <Jun. 9, 2020>
b. A business entity at least 30/100 of whose shares, etc. are directly or indirectly owned by a corporation having at least 500 billion won in total assets and being its largest shareholder (including a foreign corporation, with the exception of a non-profit corporation and the one falling under any of the subparagraphs of Article 3-2(3)). The largest shareholder referred to in such cases means a corporation or an individual owning the largest share of the relevant company independently or jointly with any of the following, and Article 2(3) of the Enforcement Decree of the Adjustment of International Taxes Act shall apply mutatis mutandis to the calculation of the ratio of indirectly owned outstanding shares, etc.:
1) If the shareholder is a corporation: Executive officers of the corporation;
2) If the shareholder is an individual who does not fall under 1): Blood relatives of such individual;
c. In the case of a corporation belonging to a related company, a corporation whose average sales, etc. calculated according to Article 7-4 does not satisfy the standards under Appendix 1;
d. Deleted. <Dec. 29, 2017>
(2) "A social enterprise prescribed by Presidential Decree" in Article 2(1)2 of the Act means a social enterprise whose primary purpose does not lie in profit-making and which satisfies all the following requirements: <Amended on Apr. 14, 2014; Apr. 26, 2016; Apr. 20, 2021>
1. The social enterprise shall meet all the standards prescribed in each item of paragraph (1)1;
Article 3-2(Parent-subsidiary relationship) #
(1) Parent-subsidiary relationship between related companies means, if a company or individual controls another company as prescribed in any of the following subparagraphs as at the end of the relevant business year, the relationship between the company (hereinafter referred to as "parent company") and the other company (hereinafter referred to as "subsidiary company"); provided, a stock-listed corporation under Article 9(15) of the Financial Investment Services and Capital Markets Act obligated to prepare consolidated financial statements according to subparagraph 3 of Article 2 of the Act on External Audit of Stock Companies and Article 3(1) of the Enforcement Decree of the same Act, and domestic companies included in such consolidated financial statements are considered to be in a parent-subsidiary relationship: <Amended on Dec. 28, 2011; Apr. 14, 2014; Oct. 30, 2018>
1. Where a parent company independently, or jointly with a person who is in any of the following relationships with the parent company, owns at least 30/100 of the shares, etc. of the subsidiary company, and is the largest investor:
a. A person who owns at least 30/100 of the shares, etc. independently or jointly with blood relatives;
b. A relative of the person under a;
2. Where a parent company owns at least 30/100 of the shares, etc. of a subsidiary company jointly with a subsidiary company that falls under subparagraph 1 (hereinafter referred to as a "subsidiary") or jointly with a person who falls under any item of subparagraph 1, and is the largest investor;
3. Where a subsidiary owns at least 30/100 of the shares, etc. of its parent company independently or jointly with another subsidiary, and is the largest investor;
4. Where a person who falls under any item of subparagraph 1 owns at least 30/100 of the shares, etc. of his or her subsidiary company jointly with the subsidiary company, and is the largest investor.
(2) Notwithstanding the main sentence of paragraph (1), with the exception of its subparagraphs, where falling under any of the following subparagraphs, the parent-subsidiary relationship prescribed in each subparagraph of paragraph (1) may be determined based on the date prescribed in each subparagraph: <Added on Apr. 14, 2014; Oct. 17, 2017>
1. Where a company establishes, merges, divides, or closes its business after the last day of the immediately preceding business year: The date of business establishment, merger, or division or the date of business closure prescribed in Article 7 of the Enforcement Decree of the Value-Added Tax Act;
Article 3-3(Period for Recognition of Small and Medium Enterprises) #
(1) The period for the recognition of small and medium enterprises under Article 3 shall be one year, starting from the date three months elapse after the last day of the immediately preceding business year; provided, where a company which was excluded from small and medium enterprises for falling under Article 3(1)2c experiences any change in its ownership of shares, etc. after the last day of the immediately preceding business year and becomes a small and medium enterprise, the period for the recognition of small and medium enterprises shall be from the date of such change to the date three months elapse after the last day of the immediately preceding business year. <Amended on Apr. 14, 2014; Oct. 17, 2017>
(2) The Minister of SMEs and Startups shall review the appropriateness of the standards set forth in Article 3(1)1 every five years in order to secure effectiveness of the standards. <Amended on Apr. 14, 2014; Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups reviews the appropriateness of the standards pursuant to paragraph (2), he or she may hear from external professionals with extensive knowledge of and experience in small and medium enterprises. <Added on Apr. 14, 2014; Jul. 26, 2017>
(4) Except as provided in paragraphs (1) through (3), details concerning judgment on the recognition of small and medium enterprises, etc. shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Added on Apr. 14, 2014; Jul. 26, 2017>
[This Article Added on Dec. 28, 2011]
[Title Amended on Apr. 14, 2014]
Article 4(Criteria for main business) #
(1) Where a business entity engages in at least two different types of businesses, the business that takes up the largest portion of the average sales, etc. computed in accordance with Article 7 shall be deemed its main business. <Amended on Apr. 14, 2014>
(2) In the case of Article 3(1)2c, the main business of either a parent company or subsidiary whose average sales, etc. are higher shall be considered a main business. <Amended on Apr. 14, 2014>
[This Article Wholly Amended on Dec. 28, 2011]
Article 5 #
Deleted. <Apr. 14, 2014>
Article 6 #
Deleted. <Apr. 14, 2014>
Article 7(Computation of average sales) #
(1) Where the average sales, etc. are calculated pursuant to Articles 3(1)1a and 8(1), the amount of sales shall refer to the sales shown on the income statement, which shall be prepared in compliance with the accounting practice generally deemed fair and appropriate (hereinafter referred to as "accounting practice"); provided, in the case of a business entity that uses operating revenue, which is deemed equivalent to the sales due to the nature of the business, sales refers to the operating revenue. <Amended on Dec. 28, 2011; Apr. 14, 2014; Jun. 30, 2015>
(2) The average sales, etc. shall be computed using any of the following formulas: <Amended on Dec. 28, 2011; Apr. 14, 2014>
1. If the business entity has engaged in its business for at least 36 months during the immediately preceding three business years: Amount of sales calculated by dividing total sales recorded in the immediately preceding three business years by three;
2. Where the total period of business is at least 12 months and shorter than 36 months as of the last day of the immediately preceding business year (excluding cases where the said business was established, merged, or divided during the immediately preceding business year and at least 12 months has elapsed from the date of its business establishment, merger, or division): Amount obtained by dividing the total sales recorded for the business year whose business period is 12 months by the number of business years whose business period is 12 months;
3. If the business entity was established, merged, or divided in the immediately preceding year or the relevant year and does not fall under subparagraph 2: Amount computed in accordance with the following classification and converted into annual sales:
a. Where at least 12 months have passed from the date of establishment, merger, or division of the business entity: The aggregate monthly sales during a period of 12 months, counting retrospectively from the month immediately preceding the month in which the date when a decision is made on whether or not an entity qualifies as a small and medium enterprise under Article 3 (hereinafter referred to as "date of computation") falls;
b. If 12 months have not yet passed from the date of its establishment, merger or division: Amount computed by dividing the aggregate monthly sales during the period, beginning with the month immediately following the month in which the date of establishment, merger or division falls and ending with the month immediately preceding the month in which the date of computation falls, by the corresponding number of months and then multiplying the sum by 12; provided, where the business entity falls under any of the following cases, the sales shall be the amount computed by dividing the aggregate sales earned during the period, beginning with the date of establishment, merger or division and ending with the date of computation, by the corresponding number of days and then multiplying the sum by 365:
Article 7-2(Total assets) #
(1) The total assets under Article 3(1)1b and 2b shall be the total assets shown on the present financial statements on the last day of the immediately preceding business year. <Amended on Apr. 14, 2014>
(2) Notwithstanding paragraph (1), the total assets of a corporation established, merged or divided in the year shall be the total assets as of the date of its establishment, merger or division.
(3) When the total assets of a foreign corporation under Article 3(1)2b are converted into Korean won, the average exchange rate for the immediately preceding five business years shall apply to such conversion. <Amended on Apr. 14, 2014>
[This Article Added on Dec. 28, 2011]
[Previous Article 7-2 moved to Article 7-4 <Dec. 28, 2011>]
Article 7-3 #
Deleted. <Apr. 14, 2014>
Article 7-4(Calculation of average sales of related companies) #
(1) The average sales, etc. of a parent company and subsidiary company which belong to related companies shall be calculated as provided for in Appendix 2. In such cases, the average sales, etc. means the respective average sales, etc. of a parent company and subsidiary company calculated pursuant to Article 7. <Amended on Dec. 28, 2011; Apr. 14, 2014>
(2) Where a parent company and subsidiary company under subparagraph 1 own shares, etc. with mutual voting rights, the larger ratio of the owned voting shares, etc. shall be deemed the ratio owned by the parent company.
(3) Deleted. <Apr. 14, 2014>
[This Article Added on Mar. 25, 2009]
[Title Amended on Apr. 14, 2014]
[Moved from Article 7-2 <Dec. 28, 2011>]
Article 8(Classification of small enterprises and medium enterprises) #
(1) A "small enterprise" under Article 2(2) of the Act shall be a business entity from among small and medium enterprises, of which the average sales, etc. of its major lines of business meet the standards specified in Appendix 3.
(2) A "medium enterprise" under Article 2(2) of the Act shall be a business entity, from among small and medium enterprises, which is not a small enterprise under paragraph (1).
[This Article Wholly Amended on Jun. 30, 2015]
Article 9(Dis-entitlement to grace period) #
"Ground as specified by Presidential Decree" in the proviso to Article 2(3) of the Act means any of the following grounds: <Amended on Mar. 25, 2009; Dec. 28, 2011; Oct 16, 2013; Apr. 14, 2014; Apr. 5, 2016; Apr. 26, 2016; Dec. 29, 2017; Jun. 9, 2020; Aug. 20, 2024>
1. Where a small and medium enterprise merges with another business entity that is under the period during which it is deemed a small and medium enterprise pursuant to the main clause of Article 2(3) of the Act, and where five years have passed from the year following the year when the grounds that made the business entity under the period during which it is deemed a small and medium enterprise no longer fits into the category of small and medium enterprises arose;
2. Where a small and medium enterprise falls under the proviso, with the exception of the subparagraphs, of Article 2(1) of the Act;
3. Where a business entity that was previously deemed a small and medium enterprise pursuant to the main sentence of Article 2(3) of the Act becomes a small and medium enterprise under Article 2(1) of the Act and thereafter loses its eligibility as a small and medium enterprise due to an increase in its average sales, etc.;
4. Deleted. <Apr. 14, 2014>
Article 10(Method of identification) #
(1) The Minister of SMEs and Startups may, if considered necessary to identify whether a business entity falls under the scope of small and medium enterprises, prepare separate guidelines for such identification and make public notice thereof. <Amended on Jul. 26, 2017>
(2) Deleted. <Jun. 30, 2015>
(3) Deleted. <Dec. 30, 2015>
[Title Amended on Oct. 16, 2013]
Article 10-2(Establishment of small and medium enterprise foster plan and annual report) #
(1) The Minister of SMEs and Startups shall prepare guidelines to formulate a plan regarding the policies for fostering small and medium enterprises referred to in Article 20(1) of the Act (hereinafter referred to as "foster plan") and shall notify such guidelines to the heads of relevant central administrative agencies by December 31 of every year. <Amended on Jul. 26, 2017>
(2) The heads of relevant central administrative agencies shall submit the budget related to the foster plan according to the guidelines to formulate a foster plan referred to in paragraph (1) by January 31 of every year, and submit the performance and results of the foster plan for the previous year by July 31 of every year, to the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>
[This Article Added on Dec. 28, 2011]
Article 10-3(Establishment and operation of big data platform for smes aid programs) #
(1) The following duties shall be performed by the Minister of SMEs and Startups through the big data platform for SMEs aid programs under Article 20-2(1) of the Act (hereinafter referred to as "SME Big Data Platform"): <Amended on Jul. 26, 2017; Aug. 20, 2024>
1. Management of the status of applications filed for the small and medium enterprise aid programs, receipt of the applications, and the records of the said applications;
2. Management of the progress of the small and medium enterprise aid programs;
3. Creation and management of the statistics on the small and medium business enterprise programs;
4. Provision of information on the small and medium enterprise aid programs;
5. Other affairs necessary to ensure the efficient performance of the small and medium enterprise aid programs.
(2) The Minister of SMEs and Startups shall annually determine the scope of the small and medium enterprise aid programs to be managed through the SME Big Data Platform, in consultation with the heads of the central administrative agencies and local governments in charge of the small and medium enterprise aid programs, by no later than March 31st of each year. <Amended on Jul. 26, 2017; Aug. 20, 2024>
(3) Where the Minister of SMEs and Startups requests the heads of central administrative agencies, local governments, general credit information collection agencies under Article 25(2)1 of the Credit Information Use and Protection Act, or other relevant agencies and organizations (hereinafter referred to as "heads of central administrative agencies, etc.") to provide the data or information falling under each subparagraph of Article 20-2(2) of the Act, he or she may request that the aforementioned data or information be provided by means of linking the information system related to the requested data or information to the SME Big Data Platform. In this case, the heads of central administrative agencies, etc. so requested shall comply unless there is a good reason not to do so. <Amended on Jul. 26, 2017; Aug. 20, 2024>
(4) If deemed necessary to keep the data or information received pursuant to Article 20-2(2) of the Act up-to-date and accurate, the Minister of SMEs and Startups may submit his or her opinion to the heads of central administrative agencies, etc. <Amended on Jul. 26, 2017>
(5) A person who intends to possess or use the data or information in the Big Data Platform shall, in advance, consult with the Minister of SMEs and Startups about the scope of possession or use of the data or information. In such cases, the person may do so within the scope of consultation conducted with the Minister of SMEs and Startups. <Amended on Jul. 26, 2017; Aug. 20, 2024>
Article 10-4(Designation and operation of organization dedicated to big data platform for SMEs aid programs) #
(1) The Minister of SMEs and Startups may designate a person satisfying all the requirements in the following subparagraphs as a manager of the SME Big Data Platform in accordance with Article 20-2 (7) of the Act (hereinafter referred to as "management agency"): <Amended on Jul. 26, 2017; Aug. 20, 2024; Dec. 23, 2025>
1. Personnel: At least one person falling under each of the following subparagraphs shall be employed. In such cases, if the representative of an institution, corporation, or organization, or a sole proprietor falls under any of the following subparagraphs, the representative or sole proprietor shall be included in the calculation of the number of personnel:
a. A doctorate degree holder who has served at least five years as a full-time researcher on small and medium enterprises at corporations prescribed in Article 16(1)2;
b. A person engaged in the development, management, and operation of an information system for at least three years;
2. Facilities: Required to have the facilities satisfying the standards determined by the Minister of SMEs and Startups, with regard to the operation of an information system, statistic analysis thereof, and its information security.
(2) A person designated as a management agency shall perform each of the following duties: <Amended on Jul. 26, 2017; Aug. 20, 2024>
1. Improvement and management of the functions of the Big Data Platform;
2. Management and provision of the data or information collected by the Big Data Platform;
3. Creation and analysis of the information and statistical data that are necessary to operate the small and medium enterprise aid programs;
4. Other duties that the Minister of SMEs and Startups deems necessary to maintain and manage the Big Data Platform.
(3) The Minister of SMEs and Startups may grant subsidies to help cover all or some of the costs necessary to operate the management agency. <Amended on Jul. 26, 2017>
(4) Except as provided for in paragraphs (1) through (3), further details concerning designation and supervision, etc. of the management agency shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>
[This Article Added on Apr. 14, 2014]
Article 10-5(Formulating measures for improving efficiency of small and medium enterprise aid programs) #
Where the Minister of SMEs and Startups formulates measures for improving the efficiency of small and medium enterprise aid programs under Article 20-3(3) of the Act, he or she shall notify them to the heads of central administrative agencies, etc. without delay.
[This Article Added on Dec. 11, 2018]
Article 10-6(Matters subject to deliberation by small and medium enterprises policy deliberative council) #
"Matters prescribed by Presidential Decree" in Article 20-4(2)8 of the Act means matters for which the head of a relevant central administrative agency requests deliberation regarding policies for protecting and fostering small and medium enterprises.
[This Article Added on Dec. 11, 2018]
Article 10-7(Members of small and medium enterprises policy deliberative council) #
(1) "Vice Ministers of relevant central administrative agencies prescribed by Presidential Decree or vice minister-level officials" in Article 20-4(4)1 of the Act means the persons prescribed in each of the following subparagraphs. In such cases, if several Vice Ministers exist in an agency, it means the Vice Minister designated by the head of the central administrative agency: <Amended on Oct. 1, 2025; Dec. 30, 2025>
1. Vice Minister of Economy and Finance; Vice Minister of Science and ICT; Vice Minister of Justice; Vice Minister of the Interior and Safety; Vice Minister of Culture, Sports and Tourism; Vice Minister of Agriculture, Food and Rural Affairs; Vice Minister of Trade, Industry and Resources; Vice Minister of Climate, Energy and Environment; Vice Minister of Employment and Labor; Vice Minister of Gender Equality and Family; Vice Minister of Land, Infrastructure and Transport; Vice Minister of Oceans and Fisheries; Vice Chairperson of the Korea Fair Trade Commission; and Vice Chairperson of the Financial Services Commission;
2. Other than those prescribed in subparagraph 1, Vice Ministers of such relevant central administrative agencies as deemed necessary by the chairperson of the small and medium enterprises policy deliberative council (hereinafter referred to as "Deliberative Council") stipulated in Article 20-4(1) of the Act to deliberate on agenda items, or public officials ranked equivalent thereto;
(2) Members under paragraph 1 (2) shall be qualified as members only regarding matters designated for deliberation by the chairperson of the Deliberative Council.
(3) The term of office for the members commissioned under Article 20-4(4)2 of the Act shall be two years, which may be renewed only once.
[This Article Added on Dec. 11, 2018]
Article 10-8(Operation of Deliberative Council) #
(1) The chairperson shall call meetings of the Deliberative Council, and chair the meeting.
(2) When the chairperson is unable to perform his or her duties due to any unavoidable reasons, a member predesignated by the chairperson shall act on his or her behalf.
(3) Where the chairperson intends to convoke a meeting of the Deliberative Council, he or she shall notify each member of the time, venue, and agenda items for the meeting at least seven days before the date the meeting is to be held; provided, this shall not apply in urgent or unavoidable circumstances.
(4) A majority of all incumbent members of the Deliberative Council shall constitute a quorum; and any resolution thereby shall be adopted upon the concurring votes of at least a majority of those present.
(5) The Deliberative Council shall have one administrative secretary, who shall be appointed by the chairperson from among public officials affiliated with the Ministry of SMEs and Startups.
(6) Members who attend meetings of the Deliberative Council may be paid allowances within budgetary limits; provided, this shall not apply where members who are public officials attend a meeting in direct connection with their duties.
(7) The Deliberative Council shall prepare and keep minutes.
(8) Other than those prescribed in paragraphs (1) through (7), matters necessary for operating the Deliberative Council shall be determined by the chairperson subject to resolution by the Deliberative Council.
[This Article Added on Dec. 11, 2018]
Article 10-9(Composition and operation of working-level coordination committee) #
(1) The working-level coordination committee under Article 20-4(6) of the Act (hereinafter referred to as "working-level coordination committee") shall be comprised of up to 20 members, including a chairperson.
(2) The working-level coordination committee shall be chaired by the 1st Vice Minister of SMEs and Startups; and shall be comprised of persons appointed by the head of the relevant agency, from among members in general service of the Senior Executive Service of the central administrative agency to which members stipulated in each subparagraph of Article 10-7(1) belong. <Amended on Oct. 1, 2025>
(3) The chairperson of the working-level coordination committee may have members in general service of the Senior Executive Service of the central administrative agency attend a meeting of the committee to state their opinions, where he or she deems it necessary.
(4) The working-level coordination committee shall consult on and coordinate the following:
1. Matters that require a working-level preconsultation and coordination regarding agenda items of the Deliberative Council;
2. Other matters on which a working-level coordination is requested by the chairperson of the Deliberative Council.
(5) Article 10-8 shall apply mutatis mutandis to the operation of the working-level coordination committee. In such cases, the "Deliberative Council" shall be construed as the "working-level coordination committee," the "chairperson" as the "chairperson of the working-level coordination committee."
[This Article Added on Dec. 11, 2018]
Article 10-10(Composition and operation of subcommittees) #
(1) Each respective subcommittee established under the working-level coordination committee in accordance with Article 20-4(7) of the Act (hereinafter referred to as "subcommittee") shall consist of up to 15 members, including one chairperson. The chairperson of such subcommittee shall be elected from among and by the members stipulated in paragraph 2 (1).
(2) The members of a subcommittee shall be the following persons:
1. Persons commissioned by the chairperson of the working-level coordination committee in consideration of their expertise and of gender equality, from among persons who have extensive experience and knowledge relating to small and medium enterprises;
2. Persons appointed by the head of the relevant agency, from among public officials of at least Grade IV in general service at the Ministry of SMEs and Startups or at a central administrative agency relating to operating each respective subcommittee;
(3) The term of office for the members commissioned under paragraph (2)1 of the Act shall be two years, which may be renewed only once.
(4) A meeting of a subcommittee shall be convoked at the request of the chairperson of the working-level coordination committee; or when deemed necessary by the chairperson of the subcommittee.
(5) The chairperson of a subcommittee shall report matters deliberated on or resolved by the subcommittee to the chairperson of the working-level coordination committee.
(6) Article 10-8 shall apply mutatis mutandis to matters regarding the operation of a subcommittee, other than those prescribed in paragraphs (4) and (5). In such cases, the "Deliberative Council" shall be construed as the "subcommittee," the "chairperson" as the "chairperson of the subcommittee," respectively.
[This Article Added on Dec. 11, 2018]
Article 10-11(Decommissioning members) #
(1) The Minister of SMEs and Startups may decommission a member prescribed in Article 20-4(4)2 of the Act, if the member falls under any of the following subparagraphs:
1. If he or she is unable to perform any of his or her duties due to mental or physical disability;
2. If he or she engages in misconduct in connection with his or her duties;
3. If he or she is deemed unfit as a member due to neglecting any of duties, losing dignity or similar reason;
4. If a member expresses that he or she has difficulty conducting his or her duties.
(2) The chairperson of the working-level coordination committee may decommission a member commissioned under Article 10-10(2)1, if the member falls under any subparagraph of paragraph (1):
[This Article Added on Dec. 11, 2018]
Article 10-12(Request for cooperation) #
The Deliberative Council, working-level coordination committee or subcommittee may request a relevant administrative agency or group to submit materials, or may have relevant officials, experts or others attend a meeting to state their opinions where necessary for deliberating on an agenda item.
[This Article Added on Dec. 11, 2018]
Article 10-13(Operation plans for consultation on establishment or amendment of small and medium enterprise aid programs) #
To facilitate consultation under Article 20-5 of the Act regarding establishing or changing small and medium enterprise aid programs, the Minister of SMEs and Startups shall determine detailed operation plans such as criteria for programs subject to consultation and consultation procedures; and shall notify them to the heads of central administrative agencies and the heads of local governments.
[This Article Added on Dec. 11, 2018]
Article 10-14(Consultation procedures for establishment or amendment) #
(1) Where the head of a central administrative agency or the head of a local government intends to establish or amend a small and medium enterprise aid program under 20-5(1) of the Act, he or she shall submit to the Minister of SMEs and Startups a written request for cooperation stating the following:
1. Detailed program plans relating to establishing or amending the small and medium enterprise aid program such as beneficiaries of support, purposes and details of support and delivery systems;
2. Grounds for establishing or amending the small and medium enterprise program;
3. Expected outcomes of establishing or amending the small and medium enterprise aid program;
4. Budget necessary for establishing or amending the small and medium enterprise aid program;
5. Other matters requiring consultation for establishing or amending the small and medium enterprise aid program.
(2) Where any omission is found in materials necessary for consultation or where there is a need to supplement such materials, the Minister of SMEs and Startups may require the head of the relevant central administrative agency or the head of a local government to submit necessary materials or to rectify or supplement them within a specified period; and the head of the relevant central administrative agency or the head of a local government in receipt of such request shall comply therewith unless there is a good reason not to do so.
(3) When conducting the consultation required under Article 20-5(1) of the Act, the Minister of SMEs and Startups may seek opinions from the head of the relevant central administrative agency or the head of a local government relating to establishing or amending a small and medium enterprise aid program.
[This Article Added on Dec. 11, 2018]
Article 10-15(Processing outcomes of consultation) #
(1) Upon completing consultation required under Article 20-5(1) of the Act, the Minister of SMEs and Startups shall report the outcomes of consultation to the Deliberative Council and shall notify them to the heads of relevant central administrative agencies, the Minister of Economy and Finance, the Minister of the Interior and Safety, the Minister of Planning and Budget and the head of the relevant local government. <Amended on Dec. 30, 2025>
(2) Where consultation required under Article 20-5(1) of the Act has not been conducted, the Minister of SMEs and Startups shall refer it to the Deliberative Council for coordination under paragraph (2) of the same Article; and shall notify the results of coordination by the Deliberative Council to the heads of relevant central administrative agencies, the Minister of Economy and Finance, the Minister of the Interior and Safety, the Minister of Planning and Budget and the head of the relevant local government. <Amended on Dec. 30, 2025>
[This Article Added on Dec. 11, 2018]
Article 11(Scope of consolidated status survey) #
"Status surveys prescribed by Presidential Decree" in Article 21(1)5 of the Act means surveys specified in any of the following subparagraphs: <Amended on Jul. 26, 2017>
1. Surveys to learn the status of business conversion under Article 7 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises;
2. Surveys to compile statistics on technology of small and medium enterprises under Article 8 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises;
3. Other surveys conducted by the Minister of SMEs and Startups in order to learn the status of the activities, funds, human resources, and management of small and medium enterprises.
[This Article Added on Mar. 25, 2009]
Article 12(Methods and procedures for status survey) #
(1) Status surveys on small and medium enterprises under Article 21(1) of the Act shall include the following:
1. Matters concerning the general management of small and medium enterprises by region, characteristics of business type, and scope;
2. Matters concerning whether a small and medium enterprise has its own plant, its procurement of materials, investment in facilities, and financial structure;
3. Matters concerning sales of products, commissioning transactions, entrusting transactions, employment, and informatization of small and medium enterprises;
4. Other matters necessary to understand the status of small and medium enterprises.
(2) When conducting a consolidated survey on the status of small and medium enterprises under the latter part of Article 21(1) of the Act, the Government shall devise an annual implementation plan for consolidated status surveys on small and medium enterprises and conduct them accordingly after hearing from small and medium entrepreneurs, organizations and institutions related to small and medium enterprises, relevant central administrative agencies, and experts in statistics.
(3) When devising a plan for consolidated status survey on small and medium enterprises under paragraph (2), the Government shall take the following into overall consideration:
1. Objective, characteristics, details, methods, and frequencies, etc. of the survey;
2. Matters concerning mutual utilization of the survey’s subject matter, simplification of survey items, uniformity of survey timing, representation and reliability of survey results and notification of survey results, etc.;
3. Matters concerning human resources and expenses necessary for survey planning, sample design, and result analysis, etc.;
4. Matters concerning designation of a survey agency;
5. Other matters necessary to reduce the burden of small and medium enterprises subject to survey.
[This Article Added on Mar. 25, 2009]
Article 13(Term of office and qualification of Ombudsman for small and medium enterprises) #
(1) The term of office for the Ombudsman under Article 22(1) of the Act shall be three years, and he or she may be recommissioned only once.
(2) "Persons with extensive knowledge of and experience in" in Article 22(3) of the Act means any of the following persons: <Amended on Apr. 14, 2014; Jul. 26, 2017>>
1. A person who served or has been serving as a representative or standing executive officer for a small and medium enterprise for at least five years;
2. A person who has worked for an organization related to small and medium enterprises or administrative regulations for at least 10 years;
3. A person who has been or was in the position of the head of a central government agency under the Article 2 of the Government Organization Act, the head of a local government under Article 2(1)1 of the Local Autonomy Act, or in an equivalent or higher position;
4. A person who has been or was in the position of an associate professor or in an equivalent or higher position at a school under Article 2 of the Higher Education Act (excluding subparagraph 7 of the same Article) or officially accredited research institute;
5. A person who served or has been serving as a judge, prosecutor, or lawyer for at least 10 years;
6. Any other person deemed to have extensive knowledge of and experience in such sectors as small and medium enterprises and regulations by the Minister of SMEs and Startups.
(3) No Ombudsman for small and medium enterprises shall be discharged from his or her duties against his or her will except for any of the following cases:
1. Where the fact that an Ombudsman has received money and any other article or entertainment related to his or her duties is ascertained;
2. Where an Ombudsman has been sentenced to imprisonment without labor or heavier punishment;
3. Where an Ombudsman is unable to perform his or her duties due to long-term mental or physical weakness;
4. Where there are other material reasons that prevent an Ombudsman from performing his or her duties, such as intentionally neglecting or avoiding his or her duties.
(4) No Ombudsman for a small and medium enterprise may concurrently hold the position of a member of the National Assembly or a local council.
Article 14(Duties of Ombudsman for small and medium enterprises) #
(1) An Ombudsman for small and medium enterprises shall independently perform the following duties in accordance with Article 22(2) of the Act: <Amended on Apr. 14, 2014>
1. Resolution of grievances arising from unreasonable regulations, etc. raised by a small and medium enterprise;
2. Suggestion and recommendation made to the central and local governments, public institutions prescribed in Article 4 of the Act on the Management of Public Institutions, or a policy funds management agency for small and medium enterprises for the purpose of improving regulations and resolving the difficulties facing small and medium enterprises;
3. Investigation and analysis of the regulations and difficulties related to small and medium enterprises;
4. Assessment and analysis of deregulation and settlement of difficulties for small and medium enterprises;
5. Preparation of a report on the improvement of current regulations and settlement of difficulties influencing small and medium enterprises, and reporting thereof;
6. A case study and research on regulations, systems, and grievance settlement regarding regulation and difficulties related to small and medium enterprises;
7. Other matters necessary to improve regulations and address difficulties related to small and medium enterprises.
(2) Any Ombudsman for small and medium enterprises may publicly announce the details of his or her duties performed under paragraph (1) and the results thereof; provided, this shall not apply where the case concerns information subject to non-disclosure as provided for in Article 9 of the Official Information Disclosure Act.
(3) If deemed necessary to ensure the efficient performance of an Ombudsman's duties for small and medium enterprises under paragraph (1), the Minister of SMEs and Startups may allow public officials under his or her control or public officials or staff dispatched under Article 24(1) to assist the Ombudsman in performing his or her duties, or may provide the Ombudsman with allowances, travel expenses, any other necessary expenses and office within budget limits. <Amended on Jul. 26, 2017>
[This Article Added on Mar. 25, 2009]
Article 15(Management of expert advisors) #
(1) The Minister of SMEs and Startups may employ experts from academics, organizations and institutions, etc. related to small and medium enterprises as expert advisors to support a specialized survey and study necessary to help the Ombudsmen for small and medium enterprises to better perform their duties under Article 14(1). <Amended on Dec. 28, 2011; Jul. 26, 2017>
(2) The Minister of SMEs and Startups shall appoint or commission an expert advisor under paragraph (1) after hearing from the Ombudsman for small and medium enterprises. <Amended on Jul. 26, 2017>
(3) The Minister of SMEs and Startups may, within budget limits, support expert advisors under paragraph (1) with necessary expenses including allowances, travel expenses, costs for research and investigation, which would allow them to better perform their work. <Amended on Dec. 28, 2011; Jul. 26, 2017>>
[This Article Added on Mar. 25, 2009]
[Title Amended on Dec. 28, 2011]
Article 16(Criteria for designation of specialized research and assessment institute) #
(1) Any institute which wishes to be designated as a specialized research and assessment institute pursuant to Article 25(1) of the Act (hereinafter referred to as a "specialized research and assessment institute") shall satisfy all the following requirements: <Amended on Dec. 11, 2018>
1. It shall be a corporation;
2. The primary purpose of its establishment is to conduct research and assessment on small and medium enterprises and such purpose shall be specified in its articles of incorporation;
3. It shall have at least 15 specialized researchers (doctorate degree holders who have engaged in research for at least five years’ full-time on small and medium enterprises, in a corporation which falls under subparagraph 2);
4. It shall have a department and personnel dedicated to assessing small and medium enterprise aid programs.
(2) Any organization that wishes to be designated as a specialized research and assessment institute shall prepare documents stating the following and submit them to the Minister of SMEs and Startups: <Amended on Jul. 26, 2017; Dec. 11, 2018; Jan. 5, 2021>
1. Performance in research and assessment related to small and medium enterprises over the last three years (if any);
2. The number of specialized researchers;
3. The current status of an organ and personnel dedicated to assessing small and medium enterprise aid programs;
4. Other matters necessary to conduct research and assessment on policies for small and medium enterprises.
(3) Upon receipt of an application under paragraph (2), the Minister of SMEs and Startups shall examine whether the application meets all the requirements under the subparagraphs of paragraph (1) and determine whether to grant designation. <Added on Jan. 5, 2021>
(4) When the Minister of SMEs and Startups determines whether to grant designation pursuant to paragraph (3), he or she may take into account the performance of research and evaluation related to small and medium enterprises over the last three years. <Added on Jan. 5, 2021>
(5) If a specialized research and assessment institute is designated, the Minister of SMEs and Startups shall announce such designation on the web-site of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017; Dec. 11, 2018; Jan. 5, 2021>
Article 17(Designation of small and medium enterprises week) #
(1) The third week of every May shall be the small and medium enterprises week pursuant to Article 26 of the Act.
(2) The following events may be held during the small and medium enterprises week:
1. Commendation of small and medium enterprises of merit;
2. Commemorative events regarding small and medium enterprises;
3. Other events for the promotion of small and medium enterprises.
(3) The Minister of SMEs and Startups may, where deemed necessary, support the events under paragraph (2) within budgetary limits. <Amended on Jul. 26, 2017>
[This Article Added on Dec. 28, 2011]
Article 17-2(Re-examination of regulation) #
The Minister of SMEs and Startups shall examine the appropriateness of the grounds for dis-entitlement to the grace period under Article 9, once every five years from January 1, 2014 (referring to the period that ends on the day before January 1st of every fifth year), and shall take measures for improvement, etc. <Amended on Jul. 26, 2017>
[This Article Added on Dec. 30, 2013]
Article 18(Administrative fines) #
Criteria for imposing administrative fines under Article 28(1) and (2) of the Act shall be as specified in Appendix 4. <Amended on Jun. 30, 2015; Jun. 8, 2021>
[This Article Added on Dec. 28, 2011]