ACT ON THE PROTECTION OF THE BUSINESS SPHERE OF SMALL AND MEDIUM ENTERPRISES AND PROMOTION OF THEIR COOPERATION

CHAPTER Ⅰ GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to maintain stability in the management of small and medium enterprise, derive mutual benefits through the division of work between industries, and achieve industrial competitiveness and balanced growth of national economy by securing business opportunities for small and medium enterprise owners.

Article 2(Definitions) #

The definitions of terms as used in this Act shall be as follows: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 5786, Feb. 5, 1999>

1. The term “small and medium enterprises” and “small and medium enterprise owners” mean small and medium enterprises, and small and medium business owners under Article 2 of the Framework Act on Small and Medium Business;

2. The term “large enterprise owner” means one who runs an enterprise other than small and medium enterprises;

3. The term “affiliation” means a form of reciprocal work-sharing cooperative relationship in which manufacturers, processors, repairmen, or sellers consign small and medium enterprise owners to manufacture, process or repair (hereinafter referred to as “manufacture”) goods, components, semi-finished products and raw materials (hereinafter referred to as “goods and others”), and then the consigned small and medium enterprise owners are specialized in the manufacture of the goods and others;

4. The term “consignment transactions” means the activities of consignment under the provisions of subparagraph 3;

5. The term “consigning company” means a consigning party under the provisions of subparagraph 3;

6. The term “consignee company” means a consigned party under the provisions of subparagraph 3; and

7. The term “small and medium enterprise associations” means small and medium enterprise cooperatives under the provisions of Article 3 of the Small and Medium Enterprise Cooperatives Act, and small and medium business-related associations under the provisons of the Ordinance of the Ministry of Commerce, Industry and Energy.

CHAPTER Ⅱ PROTECTION OF BUSINESS SECTOR FOR SMALL AND MEDIU

ACT ON THE PROTECTION OF THE BUSINESS SPHERE OF SMALL AND MEDIUM ENTERPRISES AND PROMOTION OF THEIR COOPERATION

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Business Sectors Designated for Small and Medium Enterprises) #

Article 4(Entry Restrictions of Large Enterprise Owners and Others into Designated Business Sectors) #

Article 5(Small and Medium Business Adjustment Council) #

Article 6(Petition and Others for Business Adjustment) #

Article 7(Recommendation and Order) #

Article 8(Temporary Suspension and Revocation of Adjustment Order) #

Article 9(Transfer of Business of Large Enterprise to Small and Medium Enterprise) #

Article 10(Assistance to Small and Medium Enterprises to which Businesses of Large Enterprises are Transferred) #

Article 11(Assistance to Large Enterprisers and Others Who Have Transferred Businesses) #

Article 12(Designated Affiliated Business Sectors and Others) #

Article 13(Signing of Long-Term Consigning Contract) #

Article 14(Assistance of Consigning Companies to Consignee Companies) #

Article 15(Joint Research and Development) #

Article 16(Small and Medium Enterprise Affiliation Promotion Council) #

Article 17(Consignee Companies Council) #

Article 18(Assistance with Funds and Others) #

Article 19(Delivery of Letter of Agreement) #

Article 20(Payment of Accounts for Supply of Goods and Others) #

Article 21(Rationalization of Inspection) #

Article 22(Guarantee of Qualities and Others) #

Article 23(Compliance Rule) #

Article 24(Request for Remedies to Fair Trade Commission) #

Article 25(Dispute Adjustment) #

Article 26(Keeping of Documents) #

Article 27(Presentation of Relevant Data and Others) #

Article 28(Delegation of Authority) #

Article 29(Penal Provisons) #

Article 30(Joint Penal Provisons) #

Article 31(Fine for Negligence) #