ACT ON FACILITATION OF SMART MANUFACTURING INNOVATION OF SMALL AND MEDIUM ENTERPRISES

Article 1(Purpose) #

The purpose of this Act is to expand the foundation for facilitating smart manufacturing innovation of small and medium enterprises and to formulate and implement policy measures related thereto, with the aim of strengthening the competitiveness of small and medium enterprises in manufacturing on the back of more environment-friendly jobs, a better working environment, and improved productivity, thereby contributing to the national economy.

Article 2(Definitions) #

The terms used in this Act are defined as follows:

1. The term "small and medium enterprise" means the small and medium enterprise referred to in Article 2 of the Framework Act on Small and Medium Enterprises;

2. The term "smart manufacturing innovation" means activities for improving product development, manufacturing process, distribution management, business management practices, etc. through convergence of information and communications technology, artificial intelligence, etc. in order to enhance the manufacturing competitiveness of small and medium enterprises;

3. The term "manufacturing data" means data produced, held, and utilized by enterprises in the manufacturing process encompassing planning, designing, manufacturing, etc. of products and in the process of distribution, marketing, maintenance, management, etc. thereof;

4. The term "smart factory" means an intelligent factory, etc. which controls and improves the manufacturing process of a product based on manufacturing data;

5. The term "manufacturing data platform" means the database and system for the production, collection, processing, analysis, sharing, distribution, etc. of manufacturing data;

6. The term "digital cluster" means a collaborative platform created by enterprises, etc., whose value chains are closely related to each other or which have common purposes or interests, by utilizing digital technology, regardless of business type or region, for purposes of mutual connection and cooperation;

7. The term "corporate supplier for smart factory facilities, etc." means an enterprise that supplies facilities, software, services, etc. necessary to build and operate smart factories (hereinafter referred to as "corporate supplier");

8. The term "public institution" means any of the following:

(a) A public institution under Article 4 of the Act on the Management of Public Institutions;

(b) A local government-invested public corporation or local government public corporation under the Local Public Enterprises Act;

(c) A special-purpose corporation established under a special statute;

(d) Other corporations, institutions and organizations prescribed by Presidential Decree.

Article 3(Responsibilities of the Government) #

(1) The Government shall formulate and implement policy measures necessary to facilitate smart manufacturing innovation in small and medium enterprises.

(2) The heads of local governments and the heads of public institutions shall pro-actively cooperate in policy measures of the Government prescribed in paragraph (1).

Article 4(Relationship to Other Statutes) #

(1) Except as otherwise provided in other statutes, the facilitation of smart manufacturing innovation shall be governed by this Act.

(2) Where manufacturing data include personal information defined in subparagraph 1 of Article 2 of the Personal Information Protection Act, trade secrets defined in subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act, works, etc. defined in subparagraph 7 of Article 2 of the Copyright Act or small and medium enterprise technologies defined in subparagraph 2 of Article 2 of the Act on Support for Protection of Technologies of Small and Medium Enterprises, the respective statute shall apply.

Article 5(Formulation of Master Plan) #

(1) The Minister of SMEs and Startups shall formulate and implement a five-year master plan for facilitating smart manufacturing innovation (hereinafter referred to as "master plan").

(2) A master plan shall include the following:

1. Matters related to the policy objectives and basic direction-setting for facilitating smart manufacturing innovation;

2. Matters related to providing support to facilitate smart manufacturing innovation;

3. Matters related to facilitating the utilization of manufacturing data;

4. Matters related to streamlining relevant laws and systems for the facilitation of smart manufacturing innovation;

5. Other matters prescribed by Presidential Decree as necessary for facilitating smart manufacturing innovation.

(3) The Minister of SMEs and Startups shall finalize a master plan after deliberation thereon by the Small and Medium Enterprises Policy Deliberative Council established under Article 20-4 of the Framework Act on Small and Medium Enterprises (hereinafter referred to as the "Deliberative Council"). The same shall also apply to any modification thereof.

Article 6(Designation of Promotion Agency) #

(1) The Minister of SMEs and Startups may designate a promotion agency to efficiently conduct projects for facilitating smart manufacturing innovation.

(2) A promotion agency shall perform the following business affairs:

1. Assistance in the formulation of policies for smart manufacturing innovation;

2. Assistance in projects for smart manufacturing innovation;

3. Establishment of a cooperation system involving enterprises, public institutions, and other entities for promoting smart manufacturing innovation;

4. Assistance in the establishment of digital clusters;

5. Business affairs entrusted by the Minister of SMEs and Startups to facilitate smart manufacturing innovation;

6. Other business affairs prescribed by Presidential Decree as necessary to achieve the objectives for designating a promotion agency.

(3) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the expenses incurred in the conduct of the business affairs prescribed in the subparagraphs of paragraph (2) and the operation of a promotion agency.

(4) If a promotion agency falls under any of the following cases, the Minister of SMEs and Startups may either revoke the designation thereof or issue an order for the suspension of all or part of its business operations for up to six months: Provided, That such designation shall be revoked if it falls under subparagraph 1:

1. Where it was designated by fraud or other improper means;

2. Where it no longer meets the designation standards under paragraph (5).

(5) Matters necessary for the standards for designation of a promotion agency, operation thereof, revocation of designation, suspension of business operations, and other matters shall be prescribed by Presidential Decree.

Article 7(Fact-Finding Surveys and Statistics Preparation) #

(1) The Minister of SMEs and Startups may conduct fact-finding surveys on the field of smart manufacturing innovation and may prepare and manage relevant statistics in order to formulate and efficiently implement policies related to smart manufacturing innovation and manufacturing data.

(2) The scope and method of those subject to fact-finding surveys and statistics preparation under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.

Article 8(Facilitation of Smart Manufacturing Innovation) #

(1) The Minister of SMEs and Startups may promote the following support projects to facilitate smart manufacturing innovation:

1. Providing support for the supply, expansion, and follow-up management of smart factories;

2. Enhancing technological competitiveness in smart manufacturing innovation;

3. Facilitating cooperation among small and medium enterprises, middle-standing enterprises, and large enterprises related to smart manufacturing innovation;

4. Providing support for smart manufacturing innovation promoted by an industry-academia-research network;

5. Facilitating the utilization of manufacturing data;

6. Providing support for the establishment of digital clusters;

7. Fostering corporate suppliers;

8. Training and supplying human resources specialized in smart manufacturing innovation;

9. Providing education and conducting public relations activities related to smart manufacturing innovation;

10. Developing domestic and overseas markets for enterprises related to smart manufacturing innovation;

11. Other projects prescribed by Presidential Decree as being necessary to facilitate smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the support projects under paragraph (1).

Article 9(Enhancement of Technological Competitiveness) #

(1) The Minister of SMEs and Startups may conduct the following projects for enhancing technological competitiveness of small and medium enterprises in smart manufacturing innovation:

1. Research and development necessary for smart manufacturing innovation;

2. Establishment of a demonstration base to ensure efficiency of technology development;

3. Transfer and commercialization of developed technologies;

4. Other projects prescribed by Presidential Decree as necessary to enhance technological competitiveness in smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 10(Support for Smart Manufacturing Innovation by Industry-Academia-Research Network) #

(1) To facilitate smart manufacturing innovation, the Minister of SMEs and Startups may support projects for academic-industrial cooperation performed by the following schools, institutions, or organizations jointly with small and medium enterprises and projects for providing education and guidance to small and medium enterprises:

1. Universities, colleges, industrial colleges, junior colleges, or technical colleges under the Higher Education Act;

2. Specific research institutes under the Specific Research Institutes Support Act;

3. Research institutes under Article 8 of the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes;

4. National or public research institutes;

5. The Korea SMEs and Startups Agency established under Article 68 of the Small and Medium Enterprises Promotion Act;

6. The Korea Technology and Information Promotion Agency for SMEs established under Article 20 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises;

7. Other corporations or organizations designated by the Minister of SMEs and Startups as being deemed necessary to facilitate smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the support projects under paragraph (1).

Article 11(Verification of Levels of Smart Factories) #

(1) The Minister of SMEs and Startups may verify the levels of smart factories to facilitate smart manufacturing innovation.

(2) Smart factories subject to verification under paragraph (1), standards for verification, methods for verification, and other matters shall be prescribed by Presidential Decree.

Article 12(Support for Utilization of Manufacturing Data) #

(1) The Minister of SMEs and Startups may formulate and implement policy measures necessary for the utilization of manufacturing data by small and medium enterprises.

(2) The Minister of SMEs and Startups may promote support projects for facilitating the production, collection, processing, analysis, sharing and distribution of manufacturing data by small and medium enterprises.

(3) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the support projects under paragraph (2).

(4) Matters necessary for promoting the support projects under paragraph (2), such as the standards and methods for providing support for the utilization of manufacturing data, shall be prescribed by Presidential Decree.

Article 13(Establishment and Operation of Manufacturing Data Platform) #

(1) The Minister of SMEs and Startups may provide support to enable enterprises, public institutions, etc. to build and operate a manufacturing data platform, to facilitate the utilization of manufacturing data by small and medium enterprises.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the support projects under paragraph (1).

Article 14(Designation of Specialized Institution) #

(1) The Minister of SMEs and Startups may designate an institution specialized in manufacturing data (hereinafter referred to as "specialized institution") to efficiently perform support projects prescribed in Articles 12 and 13 as well as business affairs related to manufacturing data, such as the facilitation of the utilization of manufacturing data.

(2) A specialized institution shall perform the following:

1. Business affairs entrusted by the Minister of SMEs and Startups with respect to the matters prescribed in Articles 12 and 13;

2. Providing technical consulting services related to manufacturing data of small and medium enterprises and other support;

3. Other business affairs prescribed by Presidential Decree as necessary to promote projects related to manufacturing data under this Act.

(3) The Minister of SMEs and Startups may fully or partially contribute to or subsidize expenses incurred in the conduct of the business affairs prescribed in the subparagraphs of paragraph (2) and operation of a specialized institution.

(4) If a specialized institution falls under any of the following cases, the Minister of SMEs and Startups may either revoke the designation thereof or issue an order for the suspension of all or part of its business operations for up to six months: Provided, That such designation shall be revoked if it falls under subparagraph 1:

1. Where it was designated by fraud or other improper means;

2. Where it no longer meets the designation standards under paragraph (5).

(5) Matters necessary for the standards for the designation of a specialized institution, operation thereof, revocation of designation, suspension of business operations, and other matters shall be prescribed by Presidential Decree.

Article 15(Support for Establishment of Digital Cluster) #

(1) The Minister of SMEs and Startups may conduct the following projects to build digital clusters:

1. Building digital clusters and fostering participating enterprises;

2. Supporting the activities conducted jointly by enterprises and institutions participating in digital clusters;

3. Enhancing the capabilities of enterprises and institutions participating in digital clusters;

4. Supporting the activities aimed to strengthen collaboration among enterprises in different types of business or areas and facilities for the support thereof;

5. Other projects prescribed by Presidential Decree as necessary for the establishment of digital clusters.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 16(Fostering of Corporate Suppliers) #

(1) The Minister of SMEs and Startups may conduct the following projects to foster corporate suppliers:

1. Providing support for the starting up of corporate suppliers;

2. Supporting corporate suppliers in their research and development;

3. Developing domestic and overseas markets for corporate suppliers;

4. Other projects prescribed by Presidential Decree as necessary for fostering corporate suppliers.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 17(Sharing and Dissemination of Standards) #

(1) The Minister of SMEs and Startups may support the development, sharing and dissemination of standards for facilitating smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the support projects under paragraph (1).

Article 18(Enhancement of Security) #

(1) The Minister of SMEs and Startups may conduct the following projects to strengthen security relating to smart manufacturing innovation:

1. Establishment of security systems;

2. Security diagnosis and consulting;

3. Provision of technology protection control services;

4. Other projects prescribed by Presidential Decree as necessary for the security of smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 19(Training and Supply of Specialized Human Resources) #

(1) The Minister of SMEs and Startups may conduct the following projects to train and supply human resources specialized in smart manufacturing innovation:

1. Learning the current status and actual conditions of specialized human resources;

2. Providing support for the training and supply of specialized human resources;

3. Development of specialized skills of employees of small and medium enterprises;

4. Other matters prescribed by Presidential Decree for the training and supply of specialized human resources.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 20(Education and Public Relations) #

(1) The Minister of SMEs and Startups may promote public relations projects for sharing the achievements of educational and support projects related to smart manufacturing innovation and for expanding such projects.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 21(Improvement of Working Environment) #

(1) The Minister of SMEs and Startups may promote the following projects to improve the quality of the working environment in conjunction with smart manufacturing innovation:

1. Developing programs, providing consulting, and funding for improving the working environment of small and medium enterprises that have built smart factories;

2. Promoting cooperation projects for improving working environment between small and medium enterprises, middle-standing enterprises, and large enterprises;

3. Building a network with relevant domestic and foreign institutions for improving working environment;

4. Other projects prescribed by Presidential Decree as necessary for improving working environment.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 22(Selection of and Support for Exemplary Enterprises) #

(1) The Minister of SMEs and Startups may formulate policy measures for support, such as selecting and awarding exemplary enterprises in terms of smart manufacturing innovation and persons who have contributed to smart manufacturing innovation by enterprises (hereinafter referred to as "exemplary enterprises, etc. in smart manufacturing innovation") to facilitate smart manufacturing innovation.

(2) Matters necessary for the methods and procedures for selecting exemplary enterprises, policy measures for support and other matters shall be prescribed by Presidential Decree.

Article 23(International Cooperation) #

(1) The Minister of SMEs and Startups may promote the following projects to facilitate international cooperation in smart manufacturing innovation:

1. Conducting surveys and research for international cooperation;

2. Holding international exhibitions or academic conferences;

3. Providing support in export or entry into overseas markets;

4. Building a cooperation system for facilitating the utilization of manufacturing data;

5. Other projects prescribed by Presidential Decree as necessary for facilitating international cooperation in smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 24(Development of Overseas Cooperation Model) #

(1) The Minister of SMEs and Startups may promote the following projects for facilitating the development of a cooperation model with overseas enterprises, institutions, or other entities to assist small and medium enterprises related to smart manufacturing innovation in their development of advanced technologies and entry into overseas markets:

1. Joint technology development;

2. Joint market development;

3. Building joint infrastructure and improving logistics and storage systems;

4. Investment for technology transfer, research and development, production, etc.;

5. Other projects prescribed by Presidential Decree as necessary for facilitating the development of an overseas cooperation model related to smart manufacturing innovation.

(2) The Minister of SMEs and Startups may fully or partially contribute to or subsidize the associated expenses for universities, research institutes, public institutions, small and medium enterprises, etc. involved in the projects under paragraph (1).

Article 25(Financial Support) #

The Minister of SMEs and Startups may implement policy measures necessary for facilitating smart manufacturing innovation, including fiscal and financial support.

Article 26(Application for Regulatory Improvement) #

(1) Enterprises, etc. participating in any support project prescribed in Article 8 may file with the Minister of SMEs and Startups an application for regulatory improvement where it is required for their smart manufacturing innovation activities (hereinafter referred to as "regulatory improvement").

(2) Upon receipt of an application under paragraph (1), the Minister of SMEs and Startups shall notify the head of a relevant administrative agency of the details of such application, and the head of the relevant administrative agency shall examine such details and notify, in writing, the Minister of SMEs and Startups of the examination results within 30 days. In such cases, the head of the relevant administrative agency shall pro-actively process the details of the application, which do not require streamlining of statutes or regulations.

(3) Where the head of the relevant administrative agency requests that the enterprise, etc. which has filed an application under paragraph (1) supplement the data in order to examine whether to make any regulatory improvement, the period of time taken to supplement the relevant data shall not be included in the reply period under paragraph (2): Provided, That even in such cases, the examination results shall be delivered within 45 days, and where it is impracticable to do so, an application for a maximum 30-day extension of the reply period may be filed only once.

(4) At the request of the Minister of SMEs and Startups, the Deliberative Council shall deliberate on the details of an application under paragraph (1), the results of an examination conducted by the head of the relevant administrative agency, the results of the processing of the application, whether to make regulatory improvement, and other matters. In such cases, the head of the relevant administrative agency may attend a meeting of the Deliberative Council and submit his or her opinions.

(5) The Minister of SMEs and Startups may notify the results of deliberation under paragraph (4) to the head of the relevant administrative agency and make a request for regulatory improvement. In such cases, the head of the relevant administrative agency shall respect the results of deliberation by the Deliberative Council and make improvements to the relevant regulation, unless there is a compelling reason not to do so.

(6) Where it is necessary to streamline statutes or regulations based on the results of deliberation under paragraph (4), the head of the relevant administrative agency shall examine whether to do so and promptly proceed to streamline the relevant statutes or regulations.

Article 27(Request for Dispatch of Public Officials) #

The Minister of SMEs and Startups may make a request for the dispatch of public officials belonging to the relevant administrative agency or executive officers and employees of relevant agencies, corporations, and organizations where deemed necessary for the performance of business affairs related to smart manufacturing innovation.

Article 28(Reporting and Inspection) #

(1) The Minister of SMEs and Startups may require a promotion agency or a specialized institution under Article 6 (1) to submit data on the status of the conduct of its business affairs, etc. or to file a report thereon, as prescribed by Presidential Decree, or may authorize public officials of the Ministry to visit its place of location or office for inspection.

(2) When an inspection is conducted pursuant to paragraph (1), an inspection plan including the date and time, purposes, details, etc. of the inspection shall be notified to the person subject to inspection by no later than seven days before the date of inspection: Provided, That this shall not apply where it is urgently required or where it is deemed impracticable to achieve the purposes of the inspection due to destruction of evidence, etc.

(3) A public official who visits the relevant place and conducts an inspection pursuant to paragraph (1) shall carry identification indicating his or her authority and present it to relevant persons, and shall deliver them a document stating his or her name, the time and purpose of visit, and other matters at the time of such visit.

Article 29(Hearings) #

Where the Minister of SMEs and Startups intends to revoke the designation of a promotion agency or a specialized institution or issue an order for the suspension of business operations pursuant to Article 6 (4) or 14 (4), he or she shall hold a hearing.

Article 30(Request for Data) #

The Minister of SMEs and Startups may request the head of a relevant central administrative agency, the head of a local government, the head of a public institution, or the head of an institution or organization related to support for smart manufacturing innovation, to submit necessary data or information or to state opinions in order to formulate and implement a master plan under Article 5 and prepare a fact-finding survey and statistics thereon under Article 7. In such cases, the person so requested shall cooperate, unless there is a compelling reason not to do so.

Article 31(Restriction on Participation in Support Projects) #

(1) Where universities, research institutes, public institutions, small and medium enterprises, etc. which have participated in a support project for smart manufacturing innovation under Article 8 (1) or executive officers or employees thereof fall under any of the following, the Minister of SMEs and Startups may place restriction on their participation in a support project for smart manufacturing innovation for up to five years and may notify the head of the relevant central administrative agency of such restriction: Provided, That the period of restriction may be shortened if they fall under subparagraph 2 and are deemed to have faithfully performed the project:

1. Where they are granted subsidies or participate in and perform the support project by fraud or other improper means;

2. Where they give up performing the project without good cause;

3. Where they use subsidies for purposes other than the intended purposes;

4. Where they submit data or reports on the project outcomes, which contain false or plagiarized content;

5. Where they fail to make repayment under Article 32 (1) without good cause;

6. Other cases where they are unfit to perform the project as prescribed by Presidential Decree.

(2) Where the Minister of SMEs and Startups determines to restrict participation under paragraph (1), he or she shall notify a person subject to the restriction on participation of such fact without delay.

(3) Matters necessary for the detailed standards and period of restriction for each ground for restriction on participation under the main clause of paragraph (1), the recognition of the fact of faithfully performing a project under the proviso of that paragraph, and the standards for the reduction of or exemption from the period of restriction on participation shall be prescribed by Presidential Decree.

Article 32(Recovery of Project Costs) #

(1) Where universities, research institutes, public institutions, small and medium enterprises, etc. which have participated in a support project for smart manufacturing innovation under Article 8 (1) or an executive officers or employees thereof fall under any subparagraph of Article 31 (1) (excluding subparagraph 5), the Minister of SMEs and Startups may recover all or part of the project costs or subsidies already contributed or granted: Provided, That the amount of recovery may be reduced if they fall under subparagraph 2 of Article 31 (1) and are deemed to have faithfully performed the project.

(2) Where a person subject to disposition of the recovery of project costs under paragraph (1) fails to make repayment within the specified period, the Minister of SMEs and Startups shall set another date and urge payment thereof; and where the person again fails to make repayment within such period, the costs may be collected in the same manner as delinquent national taxes are collected.

(3) Matters necessary for the standards and procedures for recovery under the main clause of paragraph (1), the standards for reduction of or exemption from the recovery of project costs under the proviso of that paragraph shall be prescribed by Presidential Decree.

Article 33(Delegation of Authority and Entrustment) #

(1) The Minister of SMEs and Startups may delegate part of his or her authority under this Act to the head of an affiliated agency or the head of a local government, as prescribed by Presidential Decree.

(2) The Minister of SMEs and Startups may entrust part of the business affairs under this Act to relevant agencies or organizations, as prescribed by Presidential Decree.