ENFORCEMENT DECREE OF THE SPECIAL ACT ON SUPPORT FOR HUMAN RESOURCES OF SMALL AND MEDIUM ENTERPRISES

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Special Act on Support for Human Resources of Small and Medium Enterprises and matters necessary for the enforcement thereof. <Amended on May 30, 2006; Sep. 30, 2011>

Article 2(Scope of application) #

"Types of business prescribed by Presidential Decree, such as general amusement drinking places" in the proviso of Article 3 of the Special Act on Support for Human Resources of Small and Medium Enterprises (hereinafter referred to as the "Act") means the types of business classified as follows in the Korean Standard Industrial Classification publicly notified by the Minister of Data and Statistics pursuant to Article 22 of the Statistics Act: <Amended on Jun. 8, 2021; Oct. 1, 2025>

1. Deleted; <Jun. 8, 2021>

2. General amusement drinking places;

3. Dancing amusement drinking places;

4. Other drinking places;

5. Other gambling and betting activities;

6. Ballroom operation.

[This Article Wholly Amended on May 22, 2013]

Article 3(Formulation of implementation plans) #

(1) To enable the heads of relevant central administrative agencies to formulate and execute annual implementation plans (hereinafter referred to as "implementation plans") pursuant to Article 5(2) of the Act, the Minister of SMEs and Startups shall determine guidelines for formulating implementation plans for the following year; and notify the heads of the relevant central administrative agencies by November 30 each year. <Amended on Jul. 26, 2017>

(2) Where necessary to determine the guidelines for formulating implementation plans under paragraph (1), the Minister of SMEs and Startups may request the heads of relevant central administrative agencies to submit necessary data. <Amended on Jul. 26, 2017>

(3) Where the head of a relevant central administrative agency formulates an implementation plan for the sector under his or her jurisdiction, he or she shall comply with the guidelines for formulating implementation plans referred to in paragraph (1).

(4) Deleted. <Feb. 29, 2008>

(5) Where the head of a central administrative agency intends to amend any important contents of an implementation plan notified to the Minister of SMEs and Startups, he or she shall notify the Minister of SMEs and Startups of such contents in advance. <Amended on Jul. 26, 2017>

[This Article Wholly Amended on Jan. 31, 2008]

Article 4(Establishment of local councils on support for human resources of small and medium enterprises) #

(1) To facilitate execution of the plans for human resource support to small and medium enterprises formulated under Article 5(1) of the Act and implementation plans formulated under Article 5(2) of the Act, the head of a regional SMEs and Startups office may establish and operate a local council on support for human resources of small and medium enterprises (hereinafter referred to as "local council"), in cooperation with the heads of the competent local government; the competent local employment and labor office; universities, colleges, industrial colleges, junior colleges, technical colleges, etc. defined in Article 2 of the Higher Education Act (including branch schools thereof in Article 24 of the same Act; hereinafter referred to as "colleges"). <Amended on May 30, 2006; Mar. 22, 2007; Jan. 31, 2008; Jul. 12, 2010; Jul. 26, 2017>

(2) Members of a local council shall be appointed or commissioned by the head of the competent regional SMEs and Startups office, from among persons in charge of human resource support in an agency prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>

(3) A local council organized pursuant to paragraph (1) shall deliberate on the matters specified in any subparagraph of Article 5(1) of the Act and the following matters, in districts under the jurisdiction of the head of the competent regional SMEs and Startups office: <Amended on Jul. 26, 2017>

1. Implementation of programs specified in any subparagraph of Article 8(1) through (3) of the Act by region;

2. Schemes to provide human resource support to local small and medium enterprises;

3. Utilization of facilities, equipment, and human resources related to small and medium enterprises within the relevant region;

4. Any other matters for which a local council member requests deliberation.

(4) Except as otherwise provided for in this Decree, matters necessary for the composition and operation of a local council shall be determined by the head of the competent regional SMEs and Startups office, after resolution of the local council. <Amended on Jul. 26, 2017>

Article 5(Fact-finding survey and methods for publication of findings thereof) #

(1) A fact-finding survey shall be conducted by means of either on-site survey or paper-based survey, but may be conducted using information and communications networks such as electronic mail, if necessary.

(2) The Minister of SMEs and Startups shall publish the findings of a fact-finding survey under paragraph (1) on the website of the Ministry of SMEs and Startups.

[This Article Added on Jul. 1, 2025]

Article 6(Support for industry-academia cooperation between small and medium enterprises and colleges) #

(1) The Minister of SMEs and Startups may provide preferential support for industry-academia cooperation programs referred to in any subparagraph of Article 8(1) of the Act, if such programs are promoted through an industry-academia agreement, including the details prescribed by Decree of the Ministry of SMEs and Startups, which has been concluded among a cooperative, etc. defined in subparagraph 2 of Article 2 of the Act (hereinafter referred to as "cooperative, etc."), business entities' organization established under Article 38 of the Industrial Development Act (hereinafter referred to as "business entities' organization"), small and medium enterprises, institutions related to small and medium enterprises, and colleges. <Amended on May 30, 2006; Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>

(2) The Minister of SMEs and Startups may provide on-site training opportunities under Article 8(1)2 of the Act, in the course of promoting industry-academia cooperation programs for research and development. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>

(3) Where small and medium enterprises, cooperatives, etc., or business entities' organizations provide vocational training opportunities, employment information, etc. to unemployed youths in cooperation with colleges or institutions related to small and medium enterprises, the Minister of SMEs and Startups may fully or partially subsidize expenses incurred in such activities. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>

Article 7(Opening specialized regional curriculums) #

Where a local college concludes an agreement with small and medium enterprises to open curriculums meeting manpower demand by small and medium enterprises located in the relevant region in order to facilitate the implementation of programs specified in Article 8(2)1 of the Act, the Minister of SMEs and Startups and the head of the competent local government may provide necessary support. <Amended on Jul. 26, 2017>

Article 8(Providing information on status of research personnel and facilities) #

To efficiently promote joint utilization programs referred to in Article 8(2)2 of the Act, the Minister of SMEs and Startups may establish and manage computer networks capable of providing information on the status of research personnel, research facilities, and research equipment by region. <Amended on Jul. 26, 2017>

Article 9(Support for connection between small and medium enterprises and large enterprises) #

(1) In order to revitalize cooperative programs specified in each subparagraph of Article 8(3) of the Act, the Minister of SMEs and Startups may collect and provide relevant information to small and medium enterprises, and provide support to facilitate the promotion of such cooperative programs. <Amended on Jul. 26, 2017>

(2) The Minister of SMEs and Startups shall engage in activities to disseminate exemplary cases to small and medium enterprises and large enterprises, such as identifying, and granting rewards for, exemplary cases of cooperative programs promoted pursuant to Article 8(3) of the Act. <Amended on Jul. 26, 2017>

Article 9-2(Persons eligible for programs connected with employment of human resources) #

(1) Persons eligible for programs connected with employment of human resources implemented pursuant to Article 9(1) of the Act shall be selected in the following order: <Amended on Dec. 31, 2008; Jul. 26, 2017; Jun. 8, 2021>

1. Unemployed persons between the ages of 15 and 34 years;

2. Soldiers discharged from long-term service defined in subparagraph 2 of Article 2 of the Support for Discharged Soldiers Act (including soldiers to be discharged);

3. Unemployed persons who are the aged defined in subparagraph 1 of Article 2 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion;

4. Any other unemployed persons prescribed by the Minister of SMEs and Startups, who are deemed to need support.

(2) An unemployed person intending to receive support pursuant to Article 9(1) of the Act shall submit an application to the Minister of SMEs and Startups, along with the following documents: <Amended on Jul. 26, 2017>

1. A document verifying that he or she falls under any subparagraph of paragraph (1);

2. A document verifying that he or she has filed an employment application with an employment security office, job placement services operator, etc. specified in the Employment Security Act.

(3) A program implementer who intends to be granted a subsidy pursuant to Article 9(2) of the Act shall submit an application to the Minister of SMEs and Startups, along with the following documents: <Amended on Jul. 26, 2017>

1. A document on findings of a survey of employment demand by small and medium enterprises;

2. A plan for collective education and on-site training.

(4) Except as provided in paragraphs (1) through (3), details necessary for the selection of and support for unemployed persons shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Jan. 31, 2008]

Article 9-3(Procedures for implementing tailored human resource training programs connected with industry-academia cooperation) #

(1) A school intending to participate in tailored human resource training programs connected with industry-academia cooperation under Article 10(1) of the Act, shall meet all the following requirements: <Amended on Jul. 26, 2017>

1. The relevant school shall have a plan to implement curriculums appropriate for solving manpower shortages of small and medium enterprises and youth unemployment;

2. The relevant school shall have personnel with exclusive responsibility for executing tailored human resource training programs connected with industry-academia cooperation and relevant facilities;

3. The relevant school shall meet other requirements prescribed and publicly notified by the Minister of SMEs and Startups.

(2) The Minister of SMEs and Startups shall select small and medium enterprises and schools meeting the standards he or she has prescribed and publicly notified, from among small and medium enterprises and schools that have applied for participation in tailored human resource training programs connected with industry-academia cooperation. <Amended on Jul. 26, 2017>

(3) Small and medium enterprises and schools selected pursuant to paragraph (2), shall provide education after concluding an agreement on education and training.

(4) Except as otherwise provided for in paragraphs (1) through (3), the standards for selecting participants in tailored human resource training programs connected with industry-academia cooperation, the procedures and method for applying for such programs, and other details necessary therefor, shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Jan. 31, 2008]

Article 10(Designation of joint educational and training facilities of small and medium enterprises) #

(1) In order to vitalize joint education and training of small and medium enterprises, the Minister of SMEs and Startups may designate colleges, institutions related to small and medium enterprises, small and medium enterprises, etc. as joint educational and training facilities of small and medium enterprises referred to in Article 20-2(1) of the Act. <Amended on Jan. 31, 2008; Jul. 26, 2017>

(2) The requirements for designation of joint educational and training facilities of small and medium enterprises under paragraph (1) shall be as follows: <Amended on May 30, 2006; Jul. 12, 2010; Jul. 26, 2017>

1. To have teachers and employees in charge of education and training for each type of business publicly notified by the Minister of SMEs and Startups after consultation with the Minister of Employment and Labor;

2. To be capable of educating at least 2,000 persons annually;

3. To possess or rent facilities for joint education and training of small and medium enterprises;

4. To satisfy other matters publicly notified by the Minister of SMEs and Startups after consultation with the Minister of Employment and Labor, which are necessary to facilitate education and training.

(3) The Minister of SMEs and Startups may conduct a survey on demand for joint educational and training facilities of small and medium enterprises by type of business and by region; and provide findings of the survey to central administrative agencies, local governments, colleges, etc. <Amended on Jul. 26, 2017>

(4) The Minister of Employment and Labor may subsidize expenses incurred in establishing and operating joint educational and training facilities in an area where small and medium enterprises are clustered, as prescribed after consultation with the Minister of SMEs and Startups. <Amended on Jul. 12, 2010; Jul. 26, 2017>

Article 11(Plans for programs for experience in small and medium enterprises) #

The Minister of SMEs and Startups shall formulate and publicly announce a plan for programs for experience in small and medium enterprises referred to in Article 11(1) of the Act, which includes the following matters: <Amended on Jul. 26, 2017>

1. Procedures and methods for promoting the programs;

2. Details of support for participants in the programs;

3. Any other matters deemed by the Minister of SMEs and Startups necessary to promote the programs.

Article 12(Preferential support for schools that recognize participation results as credits) #

The Minister of SMEs and Startups may provide support specified in Article 11(2) of the Act, preferentially to schools that recognize the results of participation in relevant programs as credits or units pursuant to Article 11(3) of the Act. <Amended on Jul. 26, 2017>

Article 13(Public notice of payment of employment subsidies) #

Where the Minister of Employment and Labor determines public notice of the payment of employment subsidies referred to in Article 12(2) of the Act or subsidization for job creation programs referred to in Article 21(2) of the Act, he or she shall consult with the Minister of SMEs and Startups thereon. <Amended on Jul. 12, 2010; Jul. 26, 2017>

Article 14(Assistance in issuing visas to foreign experts) #

Where small and medium enterprises intend to hire foreign experts, the Minister of SMEs and Startups may issue a letter of recommendation under Article 7(3) of the Enforcement Decree of the Immigration Act in order to assist in issuing visas under Article 7(1) of the Immigration Act. <Amended on May 30, 2006; Jul. 26, 2017>

Article 15(Assistance in utilizing foreign experts) #

The Minister of SMEs and Startups shall publicly announce the details of assistance, such as information and expenses, required when small and medium enterprises utilize foreign experts, as well as the procedures for providing such assistance. <Amended on Jul. 26, 2017>

Article 16(Matters subject to consultation regarding technical research personnel system) #

(1) In requesting consultation under Article 14 of the Act, the Minister of SMEs and Startups shall actively reflect opinions presented by small and medium enterprises to make improvements in relation to support for human resources of small and medium enterprises. <Amended on Jul. 26, 2017>

(2) The Commissioner of the Military Manpower Administration shall review measures to improve matters for which the Minister of SMEs and Startups has requested consultation pursuant to Article 14 of the Act; and notify the Minister of SMEs and Startups of the results of the review. <Amended on Jul. 26, 2017>

Article 17(Management of concurrent positions or offices) #

Where a faculty member referred to in Article 15(1)1 of the Act (hereinafter referred to "faculty member") or a researcher referred to in subparagraph 2 through 4 of the same paragraph (hereinafter referred to as "researcher") concurrently holds the office or position of an executive officer or employee of a small and medium enterprise, he or she shall serve in compliance with the regulations determined by the head of an organization to which he or she belongs; and the head of the organization shall not give any disadvantage to the faculty member or researcher permitted to concurrently hold the position or office, on the grounds that he or she concurrently holds the position or office. <Amended on Jun. 29, 2010>

Article 17-2(Standards and procedures for designating small and medium enterprises that develop talent) #

(1) An enterprise intending to be designated as a small and medium enterprise that develops talent pursuant to Article 18-2(1) of the Act shall meet the criteria determined and publicly notified by the Minister of SMEs and Startups as a result of an evaluation of the following: <Amended on Sep. 11, 2018; Mar. 12, 2024>

1. Endeavors of the relevant enterprise to develop talent, such as making investments in education and training or hiring distinguished talent;

2. Results of the relevant enterprise obtained by developing talent, such as an increase in sales or wages and job creation, and rewards therefor;

3. Efforts of the relevant enterprise to improve working conditions, such as reducing working hours and strengthening job security;

4. Other matters regarding support and management by the relevant enterprise to develop talent.

(2) An enterprise intending to be designated as a small and medium enterprise that develops talent shall submit an application to the Minister of SMEs and Startups, along with a document verifying that it satisfies all the requirements specified in paragraph (1), as determined by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017; Sep. 11, 2018>

(3) Upon receipt of documents under paragraph (2), the Minister of SMEs and Startups shall issue a certificate of designation of a small and medium enterprise that develops talent determined by the Minister of SMEs and Startups, if the relevant enterprise is deemed appropriate for such designation. <Amended on Jul. 26, 2017>

(4) Where the Minister of SMEs and Startups issues a certificate of designation pursuant to paragraph (3), he or she shall notify, without delay, the heads of relevant central administrative agencies and the head of the competent local government of such fact; and publish such fact on the website of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017>

(5) Details regarding the standards, procedures, etc. for designating small and medium enterprises that develop talent shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Wholly Amended on Jul. 21, 2014]

Article 17-3(Revocation of designation of small and medium enterprises that develop talent) #

Where the Minister of SMEs and Startups revokes the designation of a small and medium enterprise that develops talent pursuant to Article 18-3(1) of the Act, he or she shall notify, without delay, the representative of the small and medium enterprise, the heads of relevant central administrative agencies or the head of the competent local government of such fact, specifying the grounds for the revocation; and publish such fact on the website of the Ministry of SMEs and Startups. <Amended on Jul. 21, 2014; Jul. 26, 2017>

[This Article Added on Sep. 30, 2011]

[Title Amended on Jul. 21, 2014]

Article 18(Requirements for plans for upgrading structure of human resources) #

"Requirements prescribed by Presidential Decree" in Article 19(2) of the Act means the following: <Amended on Jan. 31, 2008; May 22, 2013; Jul. 26, 2017>

1. The objectives and details of a plan for upgrading the structure of human resources referred to in Article 19(1) of the Act (hereinafter referred to as "plan for upgrading human resources"), shall contribute to facilitating the securing of human resources for small and medium enterprises and to upgrading the structure of human resources;

2. At least 20 small and medium enterprises shall receive support;

3. The relevant plan for upgrading human resources shall begin to be implemented in the relevant year;

4. The relevant plan shall satisfy other requirements prescribed and publicly announced by the Minister of SMEs and Startups to facilitate the implementation of such plan.

Article 19(Conclusion and management of agreement) #

(1) Where the Minister of SMEs and Startups intends to partially subsidize expenses incurred in implementing a plan for upgrading human resources pursuant to Article 19(2) of the Act, he or she shall conclude an agreement, which includes the following matters, with an organization, cooperative, etc. related to small and medium enterprises to be subsidized: <Amended on Jan. 31, 2008; Jul. 26, 2017>

1. Details of the relevant activities;

2. Use of subsidies and management plans therefor;

3. Expected results of the relevant activities;

4. Amendment to the agreement;

5. Measures to be taken if a person granted a subsidy is in breach of the agreement;

6. Any other matters deemed by the Minister of SMEs and Startups necessary to manage the relevant activities.

(2) The Minister of SMEs and Startups may pay subsidies referred to in paragraph (1) in a lump sum or in installments, taking account of the details, implementation time, etc. of the relevant activities. <Amended on Jul. 26, 2017>

Article 20 #

Deleted. <Jan. 31, 2008>

Article 21(Preferential support for cooperative movement projects) #

The Minister of SMEs and Startups shall seek measures to encourage persons who intend to obtain approval for an action plan for cooperative movement pursuant to Article 29 of the Small and Medium Enterprises Promotion Act, to include the establishment of common welfare facilities specified in each subparagraph of Article 24 of the Act in such action plan for cooperative movement. <Amended on May 30, 2006; Sep. 10, 2007; Nov. 20, 2009; Jul. 26, 2017>

Article 22 #

Deleted. <Jan. 31, 2008>

Article 23 #

Deleted. <Jan. 31, 2008>

Article 23-2(Persons eligible to receive support for cultural life) #

(1) Persons eligible to receive support for the improvement of cultural life, etc. under Article 24-2 of the Act shall be those who have worked for small and medium enterprises for at least five years and have been identified as professional technical or skilled personnel pursuant to Article 29 of the Act.

(2) The Minister of SMEs and Startups may partially subsidize expenses incurred in improving cultural lives of workers of small and medium enterprises and their health under paragraph (1), within the budget. <Amended on Jul. 26, 2017>

(3) The amount of subsidies, application for and payment of subsidies referred to in paragraph (2), and other necessary matters shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Jan. 31, 2008]

Article 23-3(Small and medium enterprises subject to job evaluation and procedures therefor) #

(1) Pursuant to Article 25(1) of the Act, the Minister of SMEs and Startups may conduct an evaluation of small and medium enterprises that meet all of the following requirements to participate in SME support projects, in terms of an increase or decrease in jobs, the quality of employment, and other factors (hereinafter referred to as "SME job evaluation"): <Amended on Aug. 20, 2024>

1. SMEs support projects managed through the big data platform for SMEs support projects referred to in Article 20-2(1) of the Framework Act on Small and Medium Enterprises;

2. Projects that provide at least 50 percent of the total project costs to small and medium enterprises or to their workers, as determined and publicly notified by the Minister of SMEs and Startups;

3. Projects selected by the Minister of SMEs and Startups after consultation with the heads of central administrative agencies conducting SME support projects, in consideration of the scale of an SME support project, methods of selecting eligible enterprises, need to reflect the results of SME job evaluation.

(2) The items of SME job evaluation shall be as follows:

1. An increase or decrease in jobs;

2. Performance sharing to improve workers' wages or welfare levels;

3. Promotion of a work-life balance and creation of childcare-friendly working enviornments;

4. Development and utilization of human resources, including education and training to improve workers' capabilities and merit-based personnel management.

(3) The Minister of SMEs and Startups may establish and operate an information system in order to efficiently conduct SME job evaluations (hereinafter referred to as "job evaluation system").

(4) The Minister of SMEs and Startups may request that the heads of relevant administrative agencies submit data or provide information necessary for the establishment and operation of the job evaluation system.

(5) The head of a central administrative agency conducting a project for supporting SMEs that meet all the requirements specified in the subparagraphs of paragraph (1) shall register in the job evaluation system such information as the name of the SME support project, the name of the SME which intends to participate in the support project, and its business registration number.

Article 24(Awareness improvement programs for small and medium enterprises and identification of excellent small and medium enterprises) #

(1) In executing various policies to support small and medium enterprises, the Minister of SMEs and Startups may give priority to small and medium enterprises which have been granted a prize pursuant to Article 26(2) of the Act. <Amended on Jul. 26, 2017>

(2) The Minister of SMEs and Startups may provide training opportunities to improve awareness of small and medium enterprises or conduct publicity activities, for educational officials defined in Article 2(1) of the Educational Officials Act, teachers at private schools defined in Article 2(1) of the Private School Act, or persons in charge of employment counselling at colleges. <Amended on May 30, 2006; Jul. 26, 2017>

(3) In order to identify excellent small and medium enterprises under Article 26(2) of the Act, the Minister of SMEs and Startups may receive recommendations from organizations and cooperatives related to small and medium enterprises. <Added on Jan. 31, 2008; Jul. 26, 2017>

(4) Matters regarding the procedures for recommending excellent small and medium enterprises and the standards for selecting them shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Added on Jan. 31, 2008; Jul. 26, 2017>

Article 25(Facilitating support for reduction of working hours) #

In order to facilitate the reduction of working hours of small and medium enterprises pursuant to Article 27 of the Act, the Minister of SMEs and Startups may give priority to promoting the following matters: <Amended on Jul. 26, 2017>

1. Fact-finding surveys on the status, effects, etc. of the reduction of working hours of small and medium enterprises;

2. Education and publicity to reduce working hours at small and medium enterprises;

3. Support for small and medium enterprises that have adopted the 40-hour weekly work hours early.

Article 26(Support to improve productivity) #

(1) The Minister of SMEs and Startups may provide preferential support to small and medium enterprises which intend to introduce facilities to improve productivity pursuant to subparagraph 3 of Article 27 of the Act, in connection with projects for supporting automation of small and medium enterprises referred to in Article 4(1) of the Small and Medium Enterprises Promotion Act. <Amended on May 30, 2006; Sep. 10, 2007; Nov. 20, 2009; Jul. 26, 2017>

(2) The Minister of SMEs and Startups may provide information necessary to utilize professional manpower to small and medium enterprises which have introduced facilities to improve productivity pursuant to subparagraph 3 of Article 27 of the Act, so as to enhance results of the introduction of such facilities; and may partially subsidize expenses incurred therein. <Amended on Jul. 26, 2017>

Article 26-2(Types of achievement sharing and validation of achievement-sharing enterprises) #

(1) "Achievement sharing types determined by Presidential Decree" in Article 27-2(1) of the Act means the following: <Amended on May 28, 2019; Jul. 2, 2024>

1. Operating a system for performance-based wages (including employee stock ownership under which workers receive performance-based wages through an employee stock ownership association) whereby small and medium enterprises and workers agree in advance in writing on matters concerning the setting of business goals and the payment of performance-based wages linked to the attainment of such goals;

2. Signing up for performance compensation mutual aid programs for the youth workers and core personnel of small and medium enterprises under subparagraph 1 of Article 35-5 of the Act;

3. Increasing wage levels to meet either of the following requirements:

a. A worker’s average rate of wage increase for a relevant year shall be greater than the average rate of wage increase for the three years immediately preceding that year;

b. A worker’s average rate of wage increase for a relevant year shall be greater than the one determined and publicly notified by the Minister of SMEs and Startups based on the wage increase rate in all small and medium enterprises;

4. Operating an employee stock ownership program, intra-company labor-welfare fund or joint labor-welfare fund under Article 32, 50 or 86-2 of the Framework Act on Labor Welfare;

5. Granting stock options under Article 340-2 or 542-3 of the Commercial Act or Article 16-3 of the Special Act on the Promotion of Venture Businesses;

6. Other types determined and publicly notified by the Minister of SMEs and Startups to revitalize achievement sharing.

(2) A small and medium enterprise which intends to receive validation as an enterprise sharing achievements with its workers under Article 27-2(1) of the Act (hereinafter referred to as "achievement-sharing enterprise") shall file with the Minister of SMEs and Startups an application for validation, accompanied by a document proving that it meets any of the requirements referred to in the subparagraphs of paragraph (1), as determined and publicly notified by the Minister of SMEs and Startups.

(3) Upon receiving an application for validation under paragraph (2), the Minister of SMEs and Startups may issue a written validation as an achievement-sharing enterprise to the relevant small and medium enterprise which is validated as such.

Article 26-3(Support for achievement-sharing enterprises) #

(1) The Minister of SMEs and Startups may provide achievement-sharing enterprises and the small and medium enterprises which intend to receive such validation under Article 27-2(1) and (2) of the Act, with the following support:

1. Disseminating a standard achievement sharing plan;

2. Subsidizing relevant expenses, such as expenses for education and consultation on achievement sharing;

3. Giving priority to supporting small and medium enterprise aid programs under the Framework Act on Small and Medium Enterprises (limited to achievement-sharing enterprises);

4. Subsidizing other expenses the Minister of SMEs and Startups deems necessary to facilitate achievement sharing.

(2) The procedures and methods for selecting small and medium enterprises eligible for support under paragraph (1) and other necessary matters shall be determined and publicly notified by the Minister of SMEs and Startups.

[This Article Added on Sep. 11, 2018]

Article 27(Support for business start-up of workers) #

Where a person specified in any subparagraph of Article 28 of the Act intends to start a business, the Minister of SMEs and Startups shall preferentially select him or her as a person eligible for subsidies for business start-up expenses granted by the Minister of SMEs and Startups; and may subsidize service fees payable by such person under Article 54(3) of the Support for Small and Medium Enterprise Establishment Act. <Amended on May 30, 2006; Jan. 31, 2008; Jul. 26, 2017; Jun. 28, 2022>

Article 27-2(Selection of excellent workers) #

(1) The head of a central administrative agency shall annually select workers with excellent job performance under Article 29(1) of the Act from among workers who have worked for the same small and medium enterprise for at least five years, evaluating the importance of the tasks they are responsible for, the excellence of their job performance, etc.

(2) When selecting workers with excellent job performance under paragraph (1), a selection plan including selection procedures and evaluation criteria shall be formulated and publicly announced in advance on the relevant institution's website, etc.

(3) The head of a central administrative agency shall support domestic and overseas job training for workers with excellent job performance selected under paragraph (1) to enhance job performance skills and acquire new technologies, management techniques, etc.

(4) Except as provided in paragraphs (1) through (3), details necessary for the criteria and procedures for selecting excellent workers, and support therefor shall be determined and publicly notified by the Minister of SMEs and Startups.

[This Article Wholly Amended on Apr. 11, 2023]

Article 27-3(Identifying professional technical or skilled personnel) #

(1) In order to identify professional technical or skilled personnel under Article 29(2) of the Act, the Minister of SMEs and Startups may receive recommendations on excellent workers working for small and medium enterprises, from organizations, cooperatives, etc. related to small and medium enterprises. <Amended on Jul. 26, 2017>

(2) The Minister of SMEs and Startups shall select persons satisfying the selection standards prescribed and publicly notified by the Minister of SMEs and Startups, from among workers recommended pursuant to paragraph (1), as professional technical or skilled personnel. <Amended on Jul. 26, 2017>

(3) The Minister of SMEs and Startups may deliver to professional technical or skilled personnel identified under paragraph (2) a certificate verifying that they are professional technical or skilled personnel for each relevant type of business or field. <Amended on Jul. 26, 2017>

(4) Matters regarding the procedures for recommending professional technical or skilled personnel, standards for selecting them, delivery of certificates, etc. shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Jan. 31, 2008]

[Moved from Article 27-2; previous Article 27-3 moved to Article 27-4 <Jun. 8, 2021>]

Article 27-4(Preferential treatment for use of public facilities by professional technical or skilled personnel) #

(1) The types of public facilities subject to preferential treatment provided to professional technical or skilled personnel when they use such facilities pursuant to Article 29(3) of the Act, and the details of preferential treatment shall be prescribed and publicly notified by the Minister of SMEs and Startups, after consultation with the heads of relevant central administrative agencies, the heads of local governments, and the heads of public institutions. <Amended on Jul. 26, 2017>

(2) Professional technical or skilled personnel intending to receive preferential treatment under paragraph (1) shall present the certificate referred to in Article 27-3(3) to the manager of the relevant facility. <Amended on Jun. 8, 2021>

[This Article Added on Jan. 31, 2008]

[Moved from Article 27-3 <Jun. 8, 2021>]

Article 28(Preferential sale of housing in lots) #

(1) "Housing prescribed by Presidential Decree, including national housing" in the former part of Article 30(1) of the Act means any of the following housing units: <Added on May 30, 2006; Jan. 31, 2008; Apr. 21, 2009; Sep. 21, 2009; May 22, 2013; Apr. 29, 2014; Jul. 16, 2014; Dec. 28, 2015; Dec. 28, 2015; Aug. 11, 2016>

1. A national housing unit defined in subparagraph 5 of Article 2 of the Housing Act;

2. A housing unit used only for residential purposes (hereinafter referred to as "area for residential use only"), the area of which does not exceed 85 square meters, among the following housing units:

a. Housing units constructed by the State, local governments, Korea Land and Housing Corporation incorporated under the Korea Land and Housing Corporation Act, or local public corporations incorporated to implement housing projects pursuant to Article 49 of the Local Public Enterprises Act;

b. Public rental housing units defined in subparagraph 1-2 of the Article 2 of the Special Act on Public Housing;

3. A public housing unit defined in subparagraph 1 of Article 2 of the Special Act on Public Housing;

4. A private housing unit prescribed in housing-related statutes and regulations, where the area for residential use only does not exceed 85 square meters.

(2) With regard to preferential occupancy of national housing units by workers of small and medium enterprises in the former part of Article 30(1) of the Act, the number of housing units to be sold, the standards, etc. for selecting persons entitled to occupy the housing units shall be determined by the Minister of SMEs and Startups, after consultation with the business entity constructing such housing units. <Amended on May 30, 2006; Jan. 31, 2008; Jul. 26, 2017>

Article 28-2(Persons eligible for financial support for housing expenses) #

(1) Persons eligible for financial support under Article 30(2) of the Act shall be as follows:

1. Where a worker finds a place to live in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereafter in this subparagraph referred to as "City/Do" and including a City/Do adjacent to the relevant City/Do) where the place of business of the small and medium enterprise that he or she works for is located;

2. Where a small or medium enterprise constructs or purchases a dormitory referred to in subparagraph 2d of Appendix 1 of the Enforcement Decree of the Building Act to support the residential facilities of its workers.

(2) Standards for providing financial support to workers of small and medium enterprises under paragraph (1)1 shall be as follows:

1. Workers’ income level;

2. Types of housing in which workers are to live;

3. Other standards determined by the Minister of SMEs and Startups, which are deemed necessary to encourage the long-term employment of workers.

(3) Standards for providing financial support to small and medium enterprises under paragraph (1)2 shall be as follows:

1. Technological levels of small and medium enterprises;

2. Managerial capabilities of small and medium enterprises;

3. Other standards determined by the Minister of SMEs and Startups, which are deemed necessary to promote the inflow of human resources into small and medium enterprises.

(4) A person who intends to receive financial support under Article 30(2) of the Act shall submit an application for financial support to the Minister of SMEs and Startups or the head of a local government.

(5) Except as provided in paragraphs (1) through (4), detailed matters necessary to provide financial support shall be determined and publicly notified by the Minister of SMEs and Startups; provided, the part of support to be provided by a local government shall be prescribed by ordinance of the relevant local government.

[This Article Added on Jun. 8, 2021]

Article 29(Preferential support for human resources of small enterprises) #

"Enterprises prescribed by Presidential Decree" in Article 33 of the Act means small enterprises engaging in manufacturing business.

Article 30(Consultation on preferential support for small enterprises) #

The Minister of SMEs and Startups shall consult with the heads of relevant central administrative agencies on measures to provide preferential support to small enterprises under Articles 34 and 35 of the Act. <Amended on May 30, 2006; May 26, 2015; Jul. 26, 2017>

Article 30-2(Management and operation of performance compensation fund) #

(1) To efficiently manage and operate the Performance Compensation Fund for Youth Workers and Core Personnel of Small and Medium Enterprises in Article 35-2 of the Act (hereinafter referred to as the "Performance Compensation Fund"), an organization in charge of performance compensation for the youth workers and core personnel of small and medium enterprise shall be established in the Korea SMEs and Startups Agency under Article 68 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as the "Korea SMEs and Startups Agency"). <Amended on Apr. 2, 2019; May 28, 2019>

(2) The President of the Korea SMEs and Startups Agency shall determine fund management guidelines on details about the management and operation of the Performance Compensation Fund, and obtain approval therefor from the Minister of SMEs and Startups. The same shall also apply to any amendment to the guidelines. <Amended on Jul. 26, 2017; Apr. 2, 2019>

(3) To clarify the management and operation of the Performance Compensation Fund, the Korea SMEs and Startups Agency shall keep accounts of the Performance Compensation Fund separately from other accounts thereof. <Amended on Apr. 2, 2019>

[This Article Added on Jul. 21, 2014]

[Previous Article 30-2 moved to Article 30-10 <Jul. 21, 2011>]

Article 30-3(Composition of Fund Management Committee) #

(1) The Fund Management Committee established under Article 35-4(2) of the Act (hereinafter referred to as the "Committee") shall be composed of not more than 12 members, including one chairperson, with consideration given to their gender. <Amended on May 28, 2019>

(2) The President of the Korea SMEs and Startups Agency shall serve as the Chairperson of the Committee, and the following persons shall be members of the Committee: <Amended on Jul. 26, 2017; Apr. 2, 2019; May 28, 2019>

1. One person each nominated by the head of the agency to which he or she belongs, from among the members in general service of the Senior Executive Service of the Ministry of Employment and Labor and the Ministry of SMEs and Startups and who are also in charge of support for human resources of small and medium enterprises;

2. One person nominated by the President of the Korea SMEs and Startups Agency, from among its executive officers who are directors in charge of business on the Performance Compensation Fund;

3. A person commissioned by the Chairperson from among the following persons:

a. Not more than two persons representing small and medium enterprises who are recommended by an organization, cooperative, etc. related to small and medium enterprises;

b. Not more than six persons who have at least three years of experience in the field of mutual aid, insurance, finance, or law.

(3) The term of office of a member referred to in paragraph (2)3 shall be two years, and the member shall not serve a consecutive term. <Amended on Mar. 12, 2024>

[This Article Added on Jul. 21, 2014]

Article 30-4(Exclusion of, challenge to, and recusal by members) #

(1) A member of the Committee (hereinafter referred to as "member") who falls under any of the following shall be excluded from deliberation and resolution by the Committee:

1. Where the member or his or her current or former spouse becomes a party to the relevant agenda item (where a party is a corporation, organization, etc., including the party's director; the same shall apply hereafter in this subparagraph and subparagraph 2) or a joint holder of rights or a joint obligor together with the party to the agenda item;

2. Where the member is, or was, a relative of a party to such agenda item;

3. Where the member has provided any testimony, statement, advice or services, or has conducted any survey, research or appraisal in relation to the relevant agenda item;

4. Where any advice, survey, research, service, or appraisal has been provided or conducted for the agenda item by a corporation, organization, etc. where the member is serving as an executive officer or employee or served as one in the latest one year;

5. The member or any corporation, organization, etc. to which he or she belongs is acting, or acted, as an agent of a party to the relevant agenda item.

(2) Where any of the grounds for exclusion prescribed in paragraph (1) exists or where the circumstances indicate that it would be difficult to expect impartial deliberation and resolution from a member, a party to the relevant agenda item may file with the Committee a request for challenge to the member, and the Committee shall make a determination thereon by resolution. In such cases, no member subject to such request shall participate in the resolution.

(3) Where a member falls under any of the grounds specified in paragraph (1) or (2), the member shall voluntarily recuse oneself from the deliberation and resolution on the relevant agenda item.

[This Article Added on Mar. 12, 2024]

[Previous Article 30-4 moved to Article 30-6 <Mar. 12, 2024>]

Article 30-5(Dismissal of Members) #

A person who has nominated or commissioned a member pursuant to the subparagraphs of Article 30-3(2) may withdraw the nomination of the relevant member or dismiss the member if he or she falls under any of the following cases:

1. Where the member becomes unable to perform his or her duties due to a mental or physical weakness;

2. Where the member engages in any misconduct in relation to his or her duties;

3. Where the member is deemed unfit for office due to neglect of duties, indecent conduct or on any other grounds;

4. Where the member fails to recuse oneself despite falling under any subparagraph of Article 30-4(1) or (2);

5. The member voluntarily manifests his or her unfitness to perform the duties of his or her office.

[This Article Added on Mar. 12, 2024]

[Previous Article 30-5 moved to Article 30-7 <Mar. 12, 2024>]

Article 30-6(Functions of Committee) #

The Committee shall deliberate and decide on the following matters:

1. Preparation and amendment of a fund management plan referred to in Article 35-4(3) of the Act (hereinafter referred to as "fund management plan");

2. Settlement of accounts of the Performance Compensation Fund;

3. Preparation and amendment of the fund management guidelines referred to in Article 30-2(2);

4. Enactment and amendment of the regulations on mutual aid referred to in Article 35-6(1) of the Act (hereinafter referred to as "regulations on mutual aid");

5. Any other matters brought to the Committee by the Chairperson, in relation to the management and operation of the Performance Compensation Fund.

[This Article Added on Jul. 21, 2014]

[Moved from Article 30-4; previous Article 30-6 moved to Article 30-8 <Mar. 12, 2024>]

Article 30-7(Operation of Committee) #

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

(2) Where the Chairperson is unable to perform his or her duties due to extenuating circumstances, the member referred to in Article 30-3(2)2 shall act on his or her behalf.

(3) Meetings of the Committee shall be held with the attendance of a majority of all incumbent members, and resolutions shall be adopted with the consent of a majority of the members present.

(4) Except as otherwise provided for in paragraphs (1) through (3), matters necessary for the operation of the Committee shall be determined by the Chairperson after deliberation by or a resolution of the Committee.

[This Article Added on Jul. 21, 2014]

[Moved from Article 30-5; previous Article 30-7 moved to Article 30-9 <Mar. 12, 2024>]

Article 30-8(Preparation of and reporting on fund management plans) #

(1) The Minister of SMEs and Startups shall notify the President of the Korea SMEs and Startups Agency of guidelines for preparing fund management plans (hereinafter referred to as "preparation guidelines"), by October 31 each year. <Amended on Jul. 26, 2017; Apr. 2, 2019>

(2) The President of the Korea SMEs and Startups Agency shall prepare a fund management plan for the following fiscal year in compliance with the preparation guidelines, and report it to the Minister of SMEs and Startups, 20 days before the beginning of such fiscal year. <Amended on Jul. 26, 2017; Apr. 2, 2019>

(3) A fund management plan prepared pursuant to paragraph (2) shall include the following matters:

1. A revenue plan for the Performance Compensation Fund;

2. An expenditure plan for the Performance Compensation Fund;

3. Any other matters deliberated and decided on by the Committee as necessary for the management of the Performance Compensation Fund.

[This Article Added on Jul. 21, 2014]

[Moved from Article 30-6; previous Article 30-8 moved to Article 30-10 <Mar. 12, 2024>]

Article 30-9(Accumulation and management of legal reserves) #

(1) The Korea SMEs and Startups Agency shall appropriate legal reserves for each fiscal year and separately accumulate the reserves in order to use them as mutual aid money for performance compensation mutual aid programs for the youth workers and core personnel of small and medium enterprises referred to in subparagraph 1 of Article 35-5 of the Act (hereinafter referred to as "mutual aid programs"). <Amended on Apr. 2, 2019; May 28, 2019>

(2) The Korea SMEs and Startups Agency shall efficiently manage legal reserves accumulated pursuant to paragraph (1), taking into account stability, liquidity, and profitability. <Amended on Apr. 2, 2019>

[This Article Added on Jul. 21, 2014]

[Moved from Article 30-7; previous Article 30-9 moved to Article 30-11 <Mar. 12, 2024>]

Article 30-10(Regulations on mutual aid) #

(1) Regulations on mutual aid enacted by the Korea SMEs and Startups Agency pursuant to Article 35-6(1) of the Act shall include the following matters: <Amended on Apr. 2, 2019>

1. Scope of mutual aid programs and persons eligible to join the programs;

2. Matters concerning a mutual aid contract, such as payment of the surrender value upon cancellation of the mutual aid contract;

3. Accounting standards for mutual aid, and the accumulation rate of legal reserves;

4. Settlement of disputes relating to mutual aid programs;

5. Any other matters necessary to operate mutual aid programs, such as inviting participants in mutual aid programs.

(2) The Minister of SMEs and Startups may publish all or some of the regulations on mutual aid on the website of the Ministry of SMEs and Startups if necessary to operate mutual aid programs, such as for inviting participants in mutual aid programs. <Amended on Jul. 26, 2017>

[This Article Added on Jul. 21, 2014]

[Moved from Article 30-8; previous Article 30-10 moved to Article 30-12 <Mar. 12, 2024>]

Article 30-11(Corporations Subject to Special Cases concerning Performance Compensation Fund) #

"Corporations prescribed by Presidential Decree" in Article 35-7 of the Act means corporations that meet the size standards for the health and social welfare services business under subparagraph 37 of Appendix 1 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises.

[This Article Added on Aug. 24, 2021]

[Moved from Article 30-9; previous Article 30-11 moved to Article 30-13 <Mar. 12, 2024>]

Article 30-12(Processing of personally identifiable information) #

The Minister of SMEs and Startups or the President of the Korea SMEs and Startups Agency may process data which include resident registration numbers referred to in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if unavoidable to conduct the following affairs: <Amended on Jul. 26, 2017; Apr. 2, 2019>

1. Management and operation of the Performance Compensation Fund under Article 35-4 of the Act;

2. Use for purposes of the Performance Compensation Fund under Article 35-5 of the Act;

3. Management of mutual aid programs under Article 35-6 of the Act.

[This Article Added on Jul. 21, 2014]

[Moved from Article 30-10 <Mar. 12, 2024>]

Article 30-13(Designation of organizations exclusively responsible for human resource support) #

(1) The Minister of SMEs and Startups may establish an organization exclusively responsible for human resource support under Article 36(1) of the Act (hereinafter referred to as "organization with exclusive responsibility"), upon receipt of applications from public corporations that meet the following requirements: <Amended on Jul. 26, 2017>

1. The relevant public corporation shall have facilities necessary to provide human resource support to small and medium enterprises;

2. The relevant public corporation shall have professional manpower necessary to provide human resource support to small and medium enterprises;

3. The relevant public corporation shall have business plans suitable for performing its duties as an organization with exclusive responsibility.

(2) An organization with exclusive responsibility shall perform the following duties: <Amended on Jul. 26, 2017>

1. Assisting in training and supplying human resources necessary for small and medium enterprises;

2. Conducting surveys and research on support for human resources of small and medium enterprises; and assisting in identifying projects for institutional improvement;

3. Providing information on support for human resources of small and medium enterprises;

4. Any other business entrusted by the Minister of SMEs and Startups.

(3) The head of an organization with exclusive responsibility shall report to the Minister of SMEs and Startups on annual business plans and performance record of business for the preceding year, as prescribed by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

(4) Facilities of an organization with exclusive responsibility, the standards for professional manpower, and other matters necessary for the operation thereof, shall be prescribed and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Added on Jan. 31, 2008]

[Moved from Article 30-11 <Mar. 12, 2024>]

Article 31(Entrustment of duties) #

(1) Pursuant to Article 38 of the Act, the Minister of SMEs and Startups may entrust the following duties to an organization with exclusive responsibility, the Korea Federation of Small and Medium Business referred to in Article 3(1)4 of the Small and Medium Enterprise Cooperatives Act, the Korea SMEs and Startups Agency, the Korea Technology and Information Promotion Agency for Small and Medium Enterprises established under Article 20 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises, the Large and Small Business, Agriculture, and Fisheries Cooperation Foundation established under Article 20 of the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises, the Korea Chamber of Commerce and Industry under Article 34 of the Chambers of Commerce and Industry Act, or the Korea SMEs and Startups Institute under Article 25-2 of the Framework Act on Small and Medium Enterprises: <Amended on Sep. 30, 2011; May 22, 2013; Jul. 21, 2014; Jul. 26, 2017; Sep. 11, 2018; Apr. 2, 2019; Jul. 14, 2020; Apr. 11, 2023; Mar. 12, 2024>

1. Fact-finding surveys on human resources of small and medium enterprises referred to in Article 7 of the Act;

1-2. Support for cooperative programs promoted jointly by small and medium enterprises and large enterprises under Article 8(3) of the Act;

2. Supporting the utilization of retired or transferred human resources under Article 8(4) of the Act;

3. Implementing and subsidizing programs connected with employment of human resources under Article 9 of the Act;

4. Implementing and subsidizing tailored human resource training programs connected with industry-academia cooperation under Article 10 of the Act;

5. Implementing and subsidizing programs for experience in small and medium enterprises under Article 11 of the Act;

5-2. Support for stable utilization of foreign experts under Article 13 of the Act;

6. Deleted; <Apr. 11, 2023>

6-2. Conducting evaluations under Article 17-2(1);

6-3. Receiving applications under Article 17-2(2);

6-4. Issuing certificates of designation under Article 17-2(3);

7. Subsidizing the implementation of plans for upgrading human resources under Article 19(2) of the Act;

8. Managing the implementation of plans for upgrading human resources under Article 20 of the Act;

Article 32(Re-examination of regulation) #

The Minister of SMEs and Startups shall examine the appropriateness of the standards and procedures for designating small and medium enterprises that develop talent under Article 17-2 every three years (referring to the day before January 1 of every third year), counting from January 1, 2016; and shall take measures, such as making improvements. <Amended on Jul. 26, 2017>

[This Article Added on Dec. 30, 2015]