ENFORCEMENT DECREE OF THE SMALL AND MEDIUM ENTERPRISES PROMOTION ACT

영문법령 불러오는 중…

ENFORCEMENT DECREE OF THE SMALL AND MEDIUM ENTERPRISES PROMOTION ACT — 법갈피

Article 33(Criteria for selection of collaborative enterprises) #

(1) "Requirements prescribed by Presidential Decree, such as establishing a detailed collaboration plan" in Article 39-2(1) of the Act means the following requirements:

1. A small and medium entrepreneur shall have a plan for collaboration containing the following (hereinafter referred to as "collaboration plan"):

a. The purposes of the project plan;

b. The names, addresses, and representatives of the small and medium entrepreneur who intends to conduct collaboration (referring to a small and medium entrepreneur prescribed in subparagraph 9 of Article 2 of the Act; hereinafter referred to as "enterprise conducting collaboration") and a participating enterprise (referring to an entity prescribed in any item of subparagraph 9 of Article 2 of the Act; hereinafter the same shall apply);

c. Details of the project, and execution period;

d. Facilities, technology, human resources, and capital provided by a participating enterprise;

e. Methods of funding;

2. Neither the enterprise conducting collaboration nor the participating enterprise shall:

a. Engage in any type of business referred to in Appendix 1;

b. Have suspended or closed its business;

3. The enterprise conducting collaboration and the participating enterprise shall meet all of the following requirements:

a. They shall have facilities, technology, human resources, and capital necessary to conduct collaboration;

b. They shall have assigned roles for collaboration based on functions;

c. They shall have concluded a fair collaboration contract under agreement reached on equal ground.

(2) A small and medium entrepreneur who intends to be selected as a person eligible for a collaboration support project under Article 39-2(1) of the Act, shall file an application for a collaboration support project with the Minister of SMEs and Startups in the form prescribed by Decree of the Ministry of SMEs and Startups, along with the following documents: <Amended on Jul. 26, 2017>

1. Documents related to the collaboration plan referred to in paragraph (1)1;

2. Documents evidencing that the requirements referred to in paragraph (1)3a are met;

3. A collaboration contract verified by the heads of the enterprise conducting collaboration and the participating enterprise regarding their rights and obligations and the project management plan, or a notarized internal agreement thereon.

(3) Upon receipt of an application filed under paragraph (2), the Minister of SMEs and Startups shall select the applicant as a person eligible for the collaboration support project in accordance with Article 39-2(1) of the Act, taking into account the following. In such cases, he or she shall hear experts' opinions: <Amended on Jul. 26, 2017>

1. Necessity of conducting collaboration and propriety of the composition of the collaborative body;

2. Stability of collaboration;

3. Practicability of the project plan;

4. Capability to execute the project;

5. Other expected effects of collaboration.

(4) The Minister of SMEs and Startups shall issue a certificate of collaborative enterprise in the form prescribed by Decree of the Ministry of SMEs and Startups to an enterprise selected as a person eligible for a collaboration support project under paragraph (3) (hereinafter referred to as "collaborative enterprise"). <Amended on Jul. 26, 2017>

(5) Except as otherwise provided in paragraphs (1) through (4), procedures for the selection of collaborative enterprises, and other necessary matters, shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Wholly Amended on Nov. 18, 2015]

Article 39(Designation of guiding agencies) #

Entities that the Minister of SMEs and Startups may designate as guiding agencies pursuant to Article 44(1) of the Act are as follows: <Amended on Apr. 30, 2009; Nov. 15, 2010; May 31, 2016; Sep. 29, 2016; Jul. 26, 2017; Apr. 2, 2019; Apr. 6, 2021; Apr. 30, 2024>

1. Regional Small and Medium Business Administrations;

2. The Korea SMEs and Startups Agency established under Article 68(1) of the Act (hereinafter referred to as the "Korea SMEs and Startups Agency");

3. The Korea Institute of Advancement of Technology, the Korea Planning & Evaluation Institute of Industrial Technology, the Korea Institute of Ceramic Engineering and Technology, the National Academy of Engineering of Korea, the Korea Testing Laboratory, and the specializing industrial technology research institutes established under the Industrial Technology Innovation Promotion Act.

4. The Korea Institute of Design Promotion established under the Industrial Design Promotion Act;

5. The Industrial Bank of Korea established under the Industrial Bank of Korea Act;

6. The Korea Credit Guarantee Fund established under the Credit Guarantee Fund Act (hereinafter referred to as the "Credit Guarantee Fund");

7. The Korea Technology Finance Corporation incorporated under the Korea Technology Finance Corporation Act;

8. Banks established under the Banking Act;

9. Universities, colleges, polytechnic colleges, and junior colleges established under the Higher Education Act;

10. National or public research institutes and Government-funded research institutes established under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes and the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes;

11. A consultant who has established an office under Article 15(1) of the Act on Management Consultants and Technology Consultants;

12. Credit guarantee foundations and the Korea Federation of Credit Guarantee Foundations established under the Regional Credit Guarantee Foundation Act;

13. Other institutions designated by the Minister of SMEs and Startups, among specialized institutions that have human resources and ability to provide guidance for business management and technology to small and medium enterprises.

Article 54-2(Criteria for designation of center for supporting small and medium enterprises in family business succession) #

(1) An institution or an organization that intends to be designated as a center for supporting small and medium enterprises in family business succession under Article 62-3(1) of the Act (hereinafter referred to as "support center") shall file an application with 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>

(2) An institution or an organization that intends to be designated as a support center under paragraph (1) shall satisfy all of the following requirements: <Amended on Apr. 6, 2021>

1. It shall be a legal entity;

2. The scope of the business of the legal entity shall include business activities for supporting family business succession;

3. It shall have a dedicated organization capable of supporting small and medium enterprises in family business succession;

4. It shall have at least three of the following experts, specialized in supporting small and medium enterprises in family business succession:

a. A management consultant under Article 3 of the Act on Management Consultants and Technology Consultants who has been engaged in business related to his or her qualification for at least three years; -----

b. A certified public accountant under the Certified Public Accountant Act or a certified tax accountant under Certified Tax Accountant Act, with at least three years’ work experience in affairs related to such qualification;

c. Any other person whose work experience is recognized as equivalent to that of a person referred to in item a or b.

(3) Upon designating a support center, the Minister of SMEs and Startups shall issue public notice thereof through the Official Gazette or the website of the Small and Medium Business Administration. <Amended on Jul. 26, 2017>

(4) An entity designated as a support center shall report its business plan for the pertinent year and the outcomes of business performance during the previous year to the Minister of SMEs and Startups, by no later than January 31 annually. <Amended on Jul. 26, 2017>

[This Article Added on Apr. 10, 2008]

Article 54-3(Requirements for prestigious long-lived enterprises) #

(1) "Type of business prescribed by Presidential Decree, such as construction business, real estate business, finance business, insurance and annuity business, and finance and insurance-related service business" in Article 62-4 of the Act means any of the following types of business. In such cases, the classification of types of business shall be based on the divisions of the Korea Standard Industrial Classification, except for subparagraph 1, the classification of which shall be based on sectors:

1. Construction business;

2. Real estate business;

3. Finance business;

4. Insurance and annuity business;

5. Finance and insurance-related service business.

(2) The commencement date of business referred to in Article 62-4(1) of the Act shall be the date classified as follows:

1. If the founder is a corporation: The registration date of the establishment of the corporation;

2. If the founder is an individual: The commencement date of business referred to in Article 8(1) of the Value-Added Tax Act.

(3) If an individual business is converted into a corporation, the commencement date of the individual business shall be construed as the commencement date of business of the corporation, if all of the following requirements are fulfilled:

1. The main type of business of the individual business and that of the corporation shall be the same;

2. The major production facilities of the individual business shall have been invested in the corporation in kind, and the corporation shall have acquired all liabilities related to the business of the individual business operator.

(4) The changes in the main type of business under subparagraph 1 of Article 62-4 of the Act shall be based on the subclasses of the Korea Standard Industrial Classification. In such cases, the companies that perform business by adding any other type of business to the existing type of business shall be construed as having no change in the main type of business only if the sales of the added type of business are less than 50/100 of the total sales.

(5) "Enterprise meeting criteria prescribed by Presidential Decree" in subparagraph 2 of Article 62-4 of the Act means an enterprise which has received a score higher than the score determined and publicly notified by the Minister of SMEs and Startups for the following items as a result of an evaluation performed according to the scoring standards determined and publicly notified by the Minister of SMEs and Startups: <Amended on Jul. 26, 2017>

1. Degree of economic contribution, including long-term employment, sales amount, operating profit, and payment of corporate tax;

2. Degree of social contribution, including compliance with related laws, such as human rights, labor, environment, fair competition, and contribution to the society.

(6) "Enterprise meeting criteria prescribed by Presidential Decree" in subparagraph 3 of Article 62-4 of the Act means an enterprise which has received a score higher than the one determined and publicly notified by the Minister of SMEs and Startups for the following items as a result of an evaluation performed according to the scoring standards determined and publicly notified by the Minister of SMEs and Startups: <Amended on Jul. 26, 2017>

1. Degree of awareness on the enterprise;

2. Degree of marketability, technicality, and reliability of patents held by the enterprise;

3. Domestic and overseas market share of its products or services;

4. Certification of new technology and new product, and the record on the receipt of awards related to technology and quality.

(7) "Enterprise meeting criteria prescribed by Presidential Decree" in subparagraph 4 of Article 62-4 of the Act means an enterprise whose share of research and development expenditure in the total sales during the last five years is not less than the average of that of the same type of business (based on the divisions of the Korea Standard Industrial Classification).

(8) Except as otherwise provided in subparagraphs 1 through 7, detailed standards for the requirements for prestigious long-lived enterprises shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Sep. 29, 2016]

[Previous Article 54-3 moved to Article 54-6 <Sep. 29, 2016>]

Article 54-4(Procedures for certification of prestigious long-lived enterprises) #

(1) A small and medium enterprise that intends to obtain certification as a prestigious long-lived enterprise shall submit an application form prescribed by Decree of the Ministry of SMEs and Startups to the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

(2) Upon receipt of an application for certification under paragraph (1), the Minister of SMEs and Startups shall evaluate whether the relevant small and medium enterprise fulfills all the requirements for a prestigious long-lived enterprise set forth in Article 62-4 of the Act and notify the applicant of the result. <Amended on Jul. 26, 2017>

(3) The Minister of SMEs and Startups shall issue a certificate of prestigious long-lived enterprise prescribed by the Decree of the Ministry of SMEs and Startups to a small and medium enterprise that fulfills all the requirements for a prestigious long-lived enterprise as a result of an evaluation conducted pursuant to paragraph (2) and post such fact on the website of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017>

(4) The term of validity of a certification of prestigious long-lived enterprise issued under Article 62-5(2) of the Act shall be ten years.

(5) If a person who has received a certificate of prestigious long-lived enterprise pursuant to Article 62-5(2) of the Act falls under any of the following cases, he or she may apply for the re-issuance of a certificate of prestigious long-lived enterprise as prescribed by the Decree of the Ministry of SMEs and Startups: <Amended on Jul. 26, 2017>

1. Where it is impracticable to use the certificate of prestigious long-lived enterprise because it is lost or worn out;

2. Where any matter stated in the certificate of prestigious long-lived enterprise is changed.

(6) Except as otherwise provided in paragraphs (1) through (5), matters necessary for the certification of prestigious long-lived enterprises shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Sep. 29, 2016]

[Previous Article 54-4 moved to Article 54-7 <Sep. 29, 2017>]

Article 54-8(Designation of support centers for small and medium enterprises which integrate corporate social responsibility into their business) #

(1) An institution or an organization that intends to be designated as a support center for small and medium enterprises that integrate corporate social responsibility into their business (hereinafter referred to as "support center for corporate social responsibility management") pursuant to Article 62-9 of the Act, shall meet each of the following criteria: <Amended on Sep. 29, 2016; Dec. 23, 2025>

1. It shall be a non-profit corporation;

2. It shall have a dedicated organization capable of providing support for corporate social responsibility in small and medium enterprises;

3. The affairs related to consulting and education about corporate social responsibility shall have been included in its business affairs;

4. It shall have at least one lecture room for collective education and counseling room.

(2) An institution or an organization that intends to be designated as a support center for corporate social responsibility management shall file an application for designation with the Minister of SMEs and Startups, along with the following documents evidencing that the applicant meets each of the criteria prescribed in subparagraphs of paragraph (1): <Amended on Jul. 26, 2017>

1. Articles of incorporation or regulations on business operations corresponding thereto;

2. A business plan;

3. Status of professional human resources it has employed;

4. A detailed statement of facilities.

(3) Upon designating a support center for corporate social responsibility management, the Minister of SMEs and Startups shall publicly announce the name and seat of the designated agency, date of designation, etc. through the Official Gazette or the website of the Small and Medium Business Administration. <Amended on Jul. 26, 2017>

(4) An institution or an organization designated as a support center for corporate social responsibility management shall report its business plan for the pertinent year and the outcomes of business performance during the previous year to the Minister of SMEs and Startups, by no later than January 31 annually. <Amended on Jul. 26, 2017>

(5) Except as otherwise provided in paragraphs (1) through (4), the criteria and procedures for designating support centers for corporate social responsibility management, operation thereof, and other necessary matters, shall be prescribed and publicly announced by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Jul. 8, 2013]

[Moved from Article 54-5; previous Article 54-8 moved to Article 54-11 <Sep. 29, 2016>]

Article 54-10(Small enterprises eligible for special cases concerning establishment of factories) #

(1) The building area of a factory referred to in Article 62-10(1) or (2) of the Act or the area of a place of work equivalent thereto, shall be any of the following areas of a manufacturing plant (limited to where the whole building is a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act), among the Class II neighborhood living facilities referred to in Article 2(2)4 of the Building Act, or a factory, the construction or extension of which, or changing the type of business engaged in which, is or deemed to be, approved under Article 13 of the Industrial Cluster Development and Factory Establishment Act: <Amended on Jun. 30, 2016; Sep. 29, 2016>

1. In the Seoul Metropolitan Area defined under the Seoul Metropolitan Area Readjustment Planning Act, the aggregate of the floor area of each floor of a building where machinery or equipment used as manufacturing facilities is installed, the horizontal projected area of outdoor structures used as manufacturing facilities, and the floor area of each floor of offices and warehouses;

2. In an area outside the Seoul Metropolitan Area, the aggregate of the floor area of each floor of a building where machinery or equipment used as manufacturing facilities is installed, and the horizontal projected area of outdoor structures used as manufacturing facilities.

(2) "Certificate prescribed by Presidential Decree, such as a document verifying that its factory has been registered under Article 16 of the Industrial Cluster Development and Factory Establishment Act" in Article 62-10(1) of the Act means a document verifying that a factory has been registered under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Amended on Sep. 29, 2016>

[This Article Added on May 26, 2015]

[Moved from Article 54-7; previous Article 54-10 moved to Article 54-13 <Sep. 29, 2016>]

Article 54-12(Establishment and and composition of Committee) #

(1) A Financial Support Committee (hereinafter referred to as the "Committee") shall be established under the jurisdiction of the Small and Medium Business Administration in order to deliberate on matters concerning formulating and implementing measures to assist small enterprises in obtaining credit guarantees under Article 62-11 of the Act. <Amended on Sep. 29, 2016; Jul. 26, 2017>

(2) The Minister of SMEs and Startups shall serve as the chairperson of the Committee, and the members of the Committee shall be comprised of the following persons: <Amended on May 31, 2016; Sep. 29, 2016; Jul. 26, 2017; Apr. 2, 2019; Aug. 6, 2021; Oct. 1, 2025; Dec. 30, 2025>

1. The Vice Minister of Economy and Finance designated by the Minister of Economy and Finance;

2. The Vice Minister of Trade, Industry and Resources;

2-2. The Vice Minister of Planning and Budget;

3. The Vice Chairperson of the Financial Services Commission;

4. The President of the Korea SMEs and Startups Agency;

5. The Chairperson of the Korea Federation of Small and Medium Business established under the Small and Medium Enterprise Cooperatives Act (hereinafter referred to as the "Korea Federation of Small and Medium Business");

6. The President of the Industrial Bank of Korea established under the Industrial Bank of Korea Act;

7. The President of the Credit Guarantee Fund;

8. The President of the Korea Technology Finance Corporation established under the Korea Technology Finance Corporation Act;

9. The Chairperson of the Korean Federation of Credit Guarantee Foundations established under Article 35 of the Regional Credit Guarantee Foundation Act;

10. Five persons commissioned by the Minister of SMEs and Startups, giving due consideration to their gender, from among the heads of banks established under the Banking Act;

11. Not more than ten persons commissioned by the Minister of SMEs and Startups, giving due consideration to their gender, from among the following persons:

a. Persons recommended by non-profit, non-governmental organizations defined in Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act;

b. Heads of organizations or institutions, members of which are small enterprises;

c. Persons who serve, or have served, as at least associate professors in a department related to small and medium enterprises or finance at universities or colleges established under the Higher Education Act;

d. Heads of institutions or organizations that perform research on the field related to small and medium enterprises or finance;

e. Other persons with abundant knowledge on and experience specialized in small and medium enterprises or finance.

(3) The term of office of a member commissioned under paragraph (2)10 or 11 shall be two years; and may be consecutively renewed twice only.

[This Article Added on May 26, 2015]

[Moved from Article 54-9; previous Article 54-12 moved to Article 54-15 <Sep. 29, 2016>]

ENFORCEMENT DECREE OF THE SMALL AND MEDIUM ENTERPRISES PROMOTION ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3 #

Article 4 #

Article 5 #

Article 6 #

Article 7 #

Article 8 #

Article 9 #

Article 10 #

Article 11 #

Article 12 #

Article 13 #

Article 14 #

Article 15 #

Article 16 #

Article 17 #

Article 18 #

Article 19 #

Article 20 #

Article 21 #

Article 22 #

Article 23 #

Article 24 #

Article 25 #

Article 26 #

Article 27 #

Article 28(Standards for cooperative movement) #

Article 29(Matters contained in action plan for cooperative movement) #

Article 30(Approval of action plans for cooperative movement) #

Article 31(Approval of execution plans for industrial complex development projects) #

Article 32(Service by public notice) #

Article 33(Criteria for selection of collaborative enterprises) #

Article 34(Designation of dedicated institutions) #

Article 34-2(Criteria for administrative dispositions) #

Article 35(Inspections of outcomes) #

Article 36(Projects to support business site development) #

Article 37(Projects to support reduction of environmental pollution) #

Article 38(Matters included in guidance plan) #

Article 39(Designation of guiding agencies) #

Article 40(Contributions to guiding agencies) #

Article 41 #

Article 41-2 #

Article 42 #

Article 43 #

Article 44 #

Article 45 #

Article 46 #

Article 46-2 #

Article 47(Guidance by foreign experts) #

Article 48(Referral for guidance) #

Article 49(Support for entities recommended after guidance) #

Article 50(Matters included in training plans) #

Article 51(Designation of training institutions) #

Article 52(Projects to support internationalization) #

Article 52-2(Coverage of insurance account for trade receivables of small and medium enterprises) #

Article 52-3(Appropriation of liability reserve) #

Article 52-4 #

Article 52-5 #

Article 52-6 #

Article 52-7(Business activities) #

Article 52-8 #

Article 52-9(Insurance premium rate) #

Article 52-10(Termination of contract) #

Article 52-11 #

Article 53(Traditional handicraft industry) #

Article 54(Support for traditional handicraft industry) #

Article 54-2(Criteria for designation of center for supporting small and medium enterprises in family business succession) #

Article 54-3(Requirements for prestigious long-lived enterprises) #

Article 54-4(Procedures for certification of prestigious long-lived enterprises) #

Article 54-5(Revocation of certification of prestigious long-lived enterprises) #

Article 54-6(Matters to be included in master plans for promoting corporate social responsibility in small and medium enterprises) #

Article 54-7(Requests for provision of information and data) #

Article 54-8(Designation of support centers for small and medium enterprises which integrate corporate social responsibility into their business) #

Article 54-9(Revocation of designation and suspension of business of support center for corporate social responsibility management) #

Article 54-10(Small enterprises eligible for special cases concerning establishment of factories) #

Article 54-11(Areas of factory sites exempt from farmland preservation charges) #

Article 54-12(Establishment and and composition of Committee) #

Article 54-13(Operation of Committee) #