CHAPTER I GENERAL PROVISIONS
Article 1(Purpose) #
The purpose of this Act is to promote the business conversion of small and medium enterprises that have suffered, or are likely to suffer difficulties due to changes in the economic environment, which will enhance the competitiveness of small and medium enterprises and upgrade the industrial structure, thereby contributing to the healthy development of the national economy. <Amended on May 16, 2023>
Article 2(Definitions) #
The terms used in this Act are defined as follows: <Amended on Mar. 22, 2013; May 16, 2023>
1. The term "small and medium business operator" means the operator of a small and medium business under Article 2 of the Framework Act on Small and Medium Enterprises;
2. The term "business conversion" means cases falling under any of the following items:
a. Where a small and medium business operator discontinues his or her current type of business to operate a new type of business;
b. Where a small and medium business operator reduces or maintains the size of his or her current type of business, and the weight of a new type of business increases to a level higher than the one prescribed by Presidential Decree;
c. Where a small and medium business operator maintains his or her existing business but adds new products or services, differentiated from from the existing ones, or introduces a new method of providing them in the new business field, and where the ratio of the relevant new business falls under the criteria prescribed by Presidential Decree;
3. The term "new business field" means any of the following fields expected to enhance the competitiveness of small and medium enterprises and contribute to upgrading the industrial structure, such as promising business types:
a. A field to be developed through a regional innovative growth project defined in subparagraph 12a of Article 2 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development;
b. A business field to provide innovative financial services defined in subparagraph 4 of Article 2 of the Special Act on Support for Financial Innovation;