Article 1(Purpose) #
The purpose of this Decree is to prescribe the matters delegated by the Act on Special Measures for Supporting of Structural Improvement and Managerial Stabilization of Small and Medium Enterprises (hereinafter referred to as the “Act”) and those necessary for enforcement of the Act.
Article 2(Support Plan for Structural Improvement of Small and Medium Enterprises) #
The Seoul Special Metropolitan City Mayor, Metropolitan City Mayor or Do governor (hereinafter referred to as the “Mayor/Do governor”) shall, in divising the support plan for structural improvement as prescribed in Article 3 of the Act, include the matters concerning organization and operation of a consultative council with membership of institutions supporting small and medium enterprises and of other institutions and organizations related to small and medium enterprises, which are located in his competent district.
Article 3(Emergency Support Plan for Managerial Stabilization of Small and Medium Enterprise) #
(1) The head of the central administrative agency concerned shall establish the emergency support plan for managerial stabilization of small and medium enterprise as prescribed in Article 4 of the Act after consulting the heads of the central administrative agencies related.
(2) The emergency support plan for managerial stabilization under paragraph (1) shall include the following matters:
1. The districts to be supported;
2. The enterprises to be supported;
3. The period of support;
4. Details of support from each central administrative agency such as funds, taxes, land, manpower, and technical advice, which are deemed necessary for the emergency support plan for managerial stability; and
5. Other matters necessary for emergency support for managerial stability.
(3) The circumstances under which an emergency support plan for managerial stability may be established and carried out as prescribed in Article 4 of the Act shall be when the number of small and medium enterprises, which shut down their business temporarily or for good, or stop their operation for reasons of bankruptcy of related enterprises, natural disaster, decreasing export or increasing import, increases remarkably compared with in other districts.
(4) In case an emergency support plan for managerial stability as prescribed in Article 4 of the Act is implemented, the head of the central administrative agency concerned may request the heads of the central administrative agencies concerned to submit the results of implementation of the support plan.
Article 4(Conversion of Business Category for Support) #
Businesses eligible for preferential support for conversion as prescribed in Article 5 (2) of the Act shall be ones which fall under any of the following subparagraphs:
1. Business with little chance of growth as a result of decreasing demand in domestic and foreign markets;
2. Business with little chance of recovering competitiveness as a result of aggravated conditions of international competition;
3. Business of low production technology with huge international competitive disadvantage in wages;
4. Business heavily depending on imported raw materials, prices of which have risen continuously;
5. Business which produces pollution excessively and has difficulty in converting into an environmentally-friendly one;
6. Business which needs reasonable adjustment of its production facilities as a result of excessive facility investment;
7. Labor-intensive business which suffers acute manpower shortage and has difficulty in increasing manpower supply; and
8. Other businesses which the Administrator of Small and Medium Enterprise Administration recognizes to need conversion owing to their structural difficulties in securing their competitiveness.
Article 5(Recommendation and Designation of Project Areas of Redevelopment or Reconstruction of Market Places) #
(1) Project areas of redevelopment or reconstruction of market places pursuant to the provisions of Article 6 (1) of the Act shall be construed to mean market places as falling under any the following subparagraphs save for those market places with the authorization of implementation of redevelopment projects according to the provisions of Article 22 of the Urban Redevelopment Act, building permission pursuant to the provisions of Article 8 of the Building Act or approval of project plans pursuant to the provisions of Article 33 of the Housing Construction Promotion Act:
1. A market in urgent need of redevelopment or reconstruction of its buildings due to loss of competitiveness caused by ageing of the buildings and shortage of facilities;
2. A market in urgent need of extension of its buildings and enlargement of its facilities because of the concentration of population, industry, etc.;
3. A market in urgent need of redevelopment or reconstruction of its buildings due to their damages by fire or flood disaster;
4. A market in urgent need of redevelopment or reconstruction of its buildings due to their safety problems; and
5. Other markets which the Administrator of Small and Medium Business Administration deems in urgent need of redevelopment or reconstruction of its buildings in view of opening of the distribution industry to foreigners, etc.
(2) Subject to paragraph (1) above, where it is recognized that areas close to a market place need to be developed together with the market place for the efficient use of the lands thereof, and all the owners of the lands or buildings in the those areas agree to the joint redevelopment or reconstruction of the market place, the areas consisting of the market place and nearby areas thereof may be designated as project areas of redevelopment or reconstruction of the market place.
(3) Where a head of Si/Gun/Gu (referring to the head of autonomous Gu. The same shall also apply hereinafter.) intends to recommend a market redevelopment or reconstruction project implementation district in accordance with the provisions of Article 6 (1) of the Act, he shall submit, through the Mayor/Do governor, to the Administrator of the Small or Medium Business Administration an application accompanied by each document falling under the following subparagraphs:
1. Documents with indication of the current state of market place including the name and place thereof, the area number and size of the market site, the floor space of buildings, the size of business places, etc.;
Article 6(Examples of Special Procedural Application) #
Project areas of redevelopment or reconstruction of market places designated by the Administrator of the Small or Medium Business Administration pursuant to Article 6 (1) of the Act shall be treated as redevelopment areas designated under the provisions of Article 4 of the Urban Redevelopment Act.
[This Article Wholly Amended by Presidential Decree No. 15378, May 24, 1997]
Article 7(Subsidy for Reconstruction) #
When the Administrator of Small and Medium Business Administration provides support to the redevelopment or reconstruction as prescribed in Article 6 (1) of the Act, he may do so through the fund as prescribed in subparagraph 1 of Article 43 of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act.
Article 7-2(Requirements for Exclusion of Project Plans Subject to Approval under Housing Construction Promotion Act) #
Reference in Article 6 (7) of the Act to “where requirements under the Presidential Decree are satisfied” shall be construed to include all the cases in which each requirement as set out in Article 32 (1) of the Enforcement Decree of the Housing Construction Promotion Act is satisfied.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 7-3(Detailed Service Guidelines) #
The Administrator of the Small and Medium Business Administration, where he regards necessary, shall determine detailed guidelines necessary forthe recommendation or designation of a market redevelopment or reconstruction project implementation district, and give public notice thereof.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 8(Utilization of Surplus of Fund) #
(1) When the Administrator of Small and Medium Business Administration deems it necessary to utilize surplus of the small and medium enterprise mutual aid project fund (hereinafter referred to as the “Fund”) as the funds to carry out the emergency support plan for managerial stabilization as referred to in Article 7 of the Act, he shall decide on the scale, methods, conditions of support, and details of special support to the members of the Fund, etc., and shall notify it to the manager of the Fund. In this case, the plan for employment and management of the Fund authorized under the provisions of Article 20 (2) of Enforcement Decree of the Small and Medium Enterprise Cooperatives Act shall be considered as changed according to the details of the notification.
(2) When the manager of the Fund receives the notification as prescribed in paragraph (1), he shall prepare detailed procedures for expending the emergency funds for managerial stabilization in the form of principles for expending the emergency funds for managerial stabilization and obtain the approval of the Administrator of Small and Medium Business Administration therefor. This provision shall also apply in case he changes such principles.
(3) When the manager of the Fund desires to obtain the approval of payment guarantee as prescribed in Article 7 (3) of the Act, he shall submit to the Administrator of Small and Medium Business Administration a plan for payment guarantee specifying the necessary matters such as total amount, conditions, and limit of the guarantee, etc.
(4) When the Administrator of Small and Medium Business Administration intends to approve the payment guarantee as prescribed in Article 7 (3) of the Act, he shall consult with the Minister of Planning and Budget. <Amended by Presidential Decree No. 15729, Feb. 28, 1998; Presidential Decree No. 16326, May 24, 1999>
Article 8-2(Appointment or Removal of Chief-Officer of Mutual Benefit Association) #
(1) The chief-officer of the mutual benefit association for small and medium enterprises (hereinafter referred to as the “Mutual Benefit Association”) in the provisions of Article 7-2 (1) of the Act (hereinafter referred to as the “Chief-Officer of the Mutual Benefit Association”) shall be appointed or removed from his office by the Chairman of the Federation of Small or Medium Enterprise Cooperatives (hereinafter referred to as the “National Cooperatives Federation”) with the approval of the Administrator of the Small or Medium Business Administration.
(2) The term of the Chief-Officer of the Mutual Benefit Association shall be 3 years and renewable.
(3) The Chief-Officer of the Mutual Benefit Association shall represent the Mutual Benefit Association and take charge of general functions and duties thereof.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 8-3(Appointment or Removal of Officers Belonging to Mutual Benefit Association) #
Officers belonging to the Mutual Benefit Association shall be appointed or removed from their offices by the Chairman of the National Cooperatives Federation with recommendation from the Chief-Officer of the Mutual Benefit Association.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 8-4(Accounting of Fund for Mutual Benefit Association) #
The accounting of the Fund shall be distinct from that of the National Cooperatives Federation, and be administered by the Mutual Benefit Association.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 8-5(Establishment of Administrative Committee) #
(1) The chairman of the Fund Operation Committee according to the provisions of Article 7-2 (2) of the Act (hereinafter referred to as the “Operation Committee”) shall be the Chairman of the National Cooperatives Federation, and its members shall be persons falling under any of the following subparagraphs: <Amended by Presidential Decree No. 15729, Feb. 28, 1998; Presidential Decree No. 16326, May 24, 1999>
1. A deputy-director general of the Ministry of Planning and Budget responsible for the budgets involving the Fund;
2. Deleted; <by Presidential Decree No. 15729, Feb. 28, 1998>
3. A director general of the Small or Medium Business Administration responsible for the Fund;
4. The Chief-Officer of the Mutual Benefit Association;
5. A director of the Small and Medium Enterprise Promotion Corporation responsible for projects involving the Fund in accordance with the provisions of Article 47 of the Promotion of Small or Medium Enterprises and Encouragement of Purchase of their Products Act;
6. A vice-president of the Industrial Bank of Korea under the Industrial Bank of Korea Act;
7. An executive director of the Credit Guarantee Fund under the Credit Guarantee Fund Act; and
8. Three persons or less commissioned by the Administrator of the Small and Medium Enterprises Administration with the recommendation from the Chairman of the National Cooperatives Federation from among those who are knowledgeable and experienced in respect of small or medium enterprises.
(2) The terms of members commissioned pursuance to the provisions of paragraph (1) 8 above shall be two years and renewable.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 8-6(Functions) #
The Operation Committee shall deliver and decide each content of the following subparagraphs with regard to the operation and management of the Fund:
1. Matters as to the formation and amendment of relevant rules and regulations involving the outline of operation of the Fund;
2. Matters as to the plans for the operation or management of the Fund, and settlements of accounts thereof; and
3. Other matters relating to the basic rules of the operation or management of the Fund which are referred to by the Chairman of the National Cooperatives Federation.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 8-7(Operation of Operation Committee) #
(1) The chairman shall convene the meetings of the Operation Committee and preside over them.
(2) Where the chairman is unable to carry out his functions and duties for unavoidable causes, the Chief-Officer of the Mutual Benefit Association shall act for him.
(3) The Operation Committee shall make a decision by a majority vote of the members attending who count more than the majority of all the members.
(4) Matters necessary for the operation or management of the Operation Committee other than prescribed by this Decree shall be determined by the Chairman of the National Cooperatives Federation.
[This Article Newly Inserted by Presidential Decree No. 15378, May 24, 1997]
Article 9(Investigation of Conditions of Payment for Commodities, etc.) #
(1) In case the Administrator of Small and Medium Business Administration deems it necessary for the investigation as prescribed in Article 8 (1) of the Act, he may request any company belonging to a large size business conglomerate to submit to him documents indicated in the following subparagraphs:
1. The method of payment for commodities;
2. The period of payment for commodities;
3. The face amount per commercial bill; and
4. Other matters concerning conditions of payment for commodities which the Administrator of Small and Medium Business Administration deems necessary.
(2) The Administrator of Small and Medium Business Administration may entrust with any agency specializing in investigation or the Federation of Small and Medium Enterprise Cooperatives the request for and collection of materials on behalf of him.
(3) In case the conditions of payment for commodities such as the method and period thereof are deemed to need improving as they do not conform to the provisions of the Fair Transactions in Subcontracting Act, the Act on the Protection of Business Sphere of Small and Medium Enterprises and Promotion of their Cooperation, and other Acts and subordinate statutes, the Administrator of Small and Medium Business Administration may request the company belonging to a large size conglomerate to improve the conditions of payment for commodities as referred to in Article 8 (1) and (2) of the Act.
Article 10(Scope of Small and Medium Enterprises Subject to Inspection) #
The term “small and medium enterprises larger than those determined by Presidential Decree” as prescribed in Article 8 (2) of the Act refers to medium enterprises as prescribed in Article 2 (2) of the Framework Act on the Small and Medium Enterprises.
Article 11(Maximum Issue Amount per Bill) #
The term “amount determined by Presidential Decree” in Article 8 (4) of the Act refers to thirty million won.