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ENFORCEMENT DECREE OF THE ACT ON SUPPORT FOR FEMALE-OWNED BUSINESSES

Presidential Decree No. 16394, jun. 11, 1999

Amended by Presidential Decree No. 17115, Jan. 29, 2001

Presidential Decree No. 17116, Jan. 29, 2001

Presidential Decree No. 18873, jun. 23, 2005

Presidential Decree No. 19513, jun. 12, 2006

Presidential Decree No. 20087, jun. 11, 2007

Presidential Decree No. 21832, Nov. 19, 2009

Presidential Decree No. 21835, Nov. 20, 2009

Presidential Decree No. 22076, Mar. 15, 2010

Presidential Decree No. 22269, Jul. 12, 2010

Presidential Decree No. 24432, Mar. 23, 2013

Presidential Decree No. 24638, jun. 28, 2013

Presidential Decree No. 26804, Dec. 30, 2015

Presidential Decree No. 26844, Dec. 31, 2015

Presidential Decree No. 27205, May 31, 2016

Presidential Decree No. 27408, Jul. 28, 2016

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Act on Support for Female-Owned Businesses and those necessary for the enforcement of the said Act. <Amended by Presidential Decree No. 20087, Jun. 11, 2007>
 Article 2 (Definition of Female-Owned Business)
(1) “A business which meets the criteria determined by Presidential Decree” in subparagraph 1 of Article 2 of the Act on Support for Female-Owned Businesses (hereinafter referred to as the “Act”) means any of the following businesses, which is primarily managed by a woman: <Amended by Presidential Decree No. 20087, Jun. 11, 2007; Presidential Decree No. 24638, Jun. 28, 2013; Presidential Decree No. 27408, Jul. 28, 2016>
1. A company defined in the Commercial Act, whose largest investor (meaning a person who holds the largest equity stake (excluding non-voting stocks defined in Article 344-3 of the Commercial Act, in cases of a stock company: hereinafter the same shall apply) in the company in his/her own name) is a woman registered as an executive officer with authority to represent the company (hereinafter referred to as “chief executive officer”) (including companies in which at least two women registered as chief executive officers hold the largest aggregate equity stake);
2. A sole proprietor who has registered his/her business prescribed in Article 168 of the Income Tax Act or Article 8 of the Value-Added Tax Act.
(2) Deleted. <by Presidential Decree No. 27408, Jul. 28, 2016>
 Article 3 (Formulation of Basic Plans to Facilitate Activities of Female-Owned Businesses)
In accordance with Article 5 (1) of the Act, the Administrator of the Small and Medium Business Administration shall formulate a basic plan to facilitate the activities of female-owned businesses (hereinafter referred to as "basic plan") by the end of February each year, following deliberation by the Balanced Growth Promotion Committee established under Article 6 of the Act, and shall promote such plan. <Amended by Presidential Decree No. 21832, Nov. 19, 2009>
 Article 4 (Organization of the Balanced Growth Promotion Committee)
(1) The Balanced Growth Promotion Committee established under Article 6 (1) of the Act (hereinafter referred to as the "Committee") shall be comprised of not more than 20 members, including one Chairperson. <Amended by Presidential Decree No. 20087, Jun. 11, 2007; Presidential Decree No. 21832, Nov. 19, 2009>
(2) The office of Chairperson shall be assumed by the Administrator of the Small and Medium Business Administration.
(3) Membership shall be comprised of the following persons: <Amended by Presidential Decree No. 20087, Jun. 11, 2007; Presidential Decree No. 20728, Feb. 29, 2008; Presidential Decree No. 21832, Nov. 19, 2009; Presidential Decree No. 21835, Nov. 20, 2009; Presidential Decree No. 22076, Mar. 15, 2010; Presidential Decree No. 22269, Jul. 12, 2010; Presidential Decree No. 24432, Mar. 23, 2013; Presidential Decree No. 27205, May 31, 2016>
1. One person each nominated by the head of the relevant Ministry, from among members of the Senior Executive Service of the Ministry of Strategy and Finance; the Ministry of Culture, Sports and Tourism; the Ministry of Trade, Industry and Energy; the Ministry of Employment and Labor; the Ministry of Gender Equality and Family; and the Public Procurement Service;
2. Chairperson of the Korean Women Entrepreneurs Association prescribed in Article 13 of the Act;
3. Vice President of the Small and Medium Business Corporation prescribed in Article 72 (1) 2 of the Small and Medium Enterprises Promotion Act;
4. Deputy President of the Korea Credit Guarantee Fund prescribed in Article 14 of the Credit Guarantee Fund Act;
5. Deputy President of the Korea Technology Finance Corporation prescribed in Article 19 of the Korea Technology Finance Corporation Act;
6. Vice President of the Korea Federation of Credit Guarantee Foundations prescribed in Article 35-3 (1) of the Regional Credit Guarantee Foundation Act;
7. Other persons commissioned by the Administrator of the Small and Medium Business Administration, from among persons who have abundant knowledge and experience in economics, small and medium enterprises, or women’s policies.
(4) The term of the members commissioned under paragraph (3) 7 shall be two years, and may be consecutively renewed twice. <Amended by Presidential Decree No. 20087, Jun. 11, 2007>
 Article 4-2 (Withdrawal of Nomination and Removal of Members)
(1) A person who has nominated a member of the Committee pursuant to Article 4 (3) 1 may withdraw the nomination if the relevant member falls under any of the following:
1. If he/she cannot perform duties due to a mental disorder;
2. If he/she is involved in a crime;
3. If it is acknowledged that he/she is not eligible to become a member due to neglecting duties, losing dignity, or other grounds;
4. If he/she declares that he/she is unable to perform duties.
(2) If a member of the Committee defined in Article 4 (3) 7 falls under any subparagraph of paragraph (1), the Administrator of the Small and Medium Business Administration may dismiss the relevant member from office.
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
 Article 5 (Functions of the Committee)
The Committee shall review the following matters:
1. Matters on correcting discriminatory practices prescribed in Article 4 of the Act;
2. Matters on basic plans prescribed in Article 5 of the Act;
3. Matters on supporting women in establishing businesses prescribed in Article 8 of the Act;
4. Matters on facilitating public institutions’ purchasing products manufactured by female-owned businesses prescribed in Article 9 of the Act;
5. Matters on preferential financial support prescribed in Article 10 of the Act;
6. Matters on support for improving business management capabilities and design development prescribed in Articles 11 and 12 of the Act;
7. Matters on supporting the Integrated Support Center for Female-Owned Businesses prescribed in Article 15 of the Act;
8. Other matters necessary for promoting activities of female-owned businesses, which are referred to the Committee by the Administrator of the Small and Medium Business Administration or the Chairperson.
 Article 6 (Operation of the Committee)
(1) The Chairperson shall convene and preside over meetings of the Committee.
(2) A majority of the members of the Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.
(3) Members attending meetings of the Committee may be reimbursed allowances within its budgetary limits: Provided, That this shall not apply where public official members attend such meetings in direct relationship to their official duties.
(4) The Committee shall have one secretary to implement its administrative affairs, who shall be appointed by the Chairperson from among public officials of the Small and Medium Business Administration.
(5) The secretary shall record and manage minutes of each meeting. <Newly Inserted by Presidential Decree No. 20087, Jun. 11, 2007>
(6) Matters necessary for operating the Committee, other than those provided for in this Decree, shall be determined by the Chairperson following a resolution by the Committee.
 Article 7 (Increasing Purchase of Female-Owned Business-Manufactured Products)
(1) “The percentage determined by Presidential Decree” in the main sentence of Article 9 (3) of the Act means five percent of total purchases of goods or services defined in Article 4 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets; and three percent of total purchases in cases of construction works: Provided, That the head of a public institution which finds it impracticable to establish the goal for purchase with at least the percentage set in the main sentence due to the characteristics of the relevant institution, may determine a separate percentage as the purchase goal, in consultation with the Administrator of the Small and Medium Business Administration.
(2) Cases where the Administrator of the Small and Medium Business Administration may advise the head of a public institution to improve purchase plans prescribed in Article 9 (4) of the Act shall be as follows:
1. If the target for purchasing female business-manufactured products defined in Article 9 (1) of the Act (hereinafter referred to as "female business-manufactured products“) included in the purchase plans that the relevant public institution has notified to the Administrator of the Small and Medium Business Administration in accordance with Article 9 (5) of the Act, is lower than the percentage set in the main sentence of paragraph (1);
2. If the relevant public institution adopts methods or procedures unfavorable to female-owned businesses in purchasing products.
[This Article Wholly Amended by Presidential Decree No. 21832, Nov. 19, 2009]
 Article 8 (Public Notification of Support Procedures, etc.)
If necessary for preferentially purchasing female business-manufactured products or providing funds for female-owned businesses prescribed in Article 9 or 10, the Administrator of the Small and Medium Business Administration may determine and publicly notify the scope of female-owned businesses subject to such preferential purchase or funding, support procedures, etc. in advance. <Amended by Presidential Decree No. 21832, Nov. 19, 2009>
 Article 9 (Procedures for Establishment of the Association)
(1) In order to establish the Korean Women Entrepreneurs Association prescribed in Article 13 of the Act (hereinafter referred to as the "Association"), at least five promoters who are businesswomen shall hold an inaugural meeting, with consent of at least 200 businesswomen.
(2) The representative of the promoters shall apply for approval for the establishment of the Association to the Administrator of the Small and Medium Business Administration with the following documents:
1. Written application for approval for establishment;
2. Articles of association;
3. List of promoters and consenters;
4. Business plans and budgetary documents;
5. Property lists and certificates concerning the fundamental property including real estate, deposits and securities, which are issued by a registration office, financial institution, etc.;
6. Minutes of the inaugural meeting.
(3) Where the Administrator of the Small and Medium Business Administration grants approval to establish the Association, he/she shall publicly notify such fact.
(4) The promoters shall perform necessary administrative affairs until executive officers are appointed following the establishment of the Association.
 Article 10 (Articles of Association)
The articles of association of the Association shall indicate the following:
1. Objectives;
2. Name;
3. Location of the principal office;
4. Details of business;
5. Eligibility requirements for membership;
6. Matters regarding executive officers;
7. Matters regarding organization and operation of the general meeting and the board of directors;
8. Matters regarding assets and accounting;
9. Matters regarding amending the articles of association;
10. Matters on the Integrated Support Center for Female-Owned Businesses.
 Article 11 (Submission of Business Plans)
By no later than the end of each February, the Association shall file the business performance report and balance sheets for the previous year and business plan and budgetary statements for the current year with the Administrator of the Small and Medium Business Administration.
 Article 12 (Establishment of the Support Center and Its Functions)
(1) The Integrated Support Center for Female-Owned Businesses prescribed in Article 15 of the Act (hereinafter referred to as the "Support Center") may be established as an incorporated foundation defined in the Civil Act.
(2) The Support Center shall perform the following functions:
1. Providing information and materials on female-owned businesses;
2. Assisting women in starting businesses;
3. Providing businesswomen with education and training;
4. Assisting female-owned businesses with business operation and market building;
5. Operating counseling centers to deal with challenges experienced by female-owned businesses;
6. Conducting research and investigations to foster female-owned businesses;
7. Engaging in business acknowledged by the Administrator of the Small and Medium Business Administration as necessary for promoting female-owned businesses;
8. Conducting other affairs outsourced by the Administrator of the Small and Medium Business Administration, the head of a local government, or the Chairperson of the Association to promote female-owned businesses.
 Article 13 (Operation of the Support Center)
(1) The representative of the Support Center shall be appointed by the board of directors, with approval from the Administrator of the Small and Medium Business Administration, as prescribed by the articles of association. <Amended by Presidential Decree No. 20087, Jun. 11, 2007>
(2) Matters necessary for the organization and operation of the Support Center shall be prescribed by the articles of association or by-laws of the Support Center.
(3) If the Administrator of the Small and Medium Business Administration intends to provide financial support prescribed in Article 15 (2) of the Act, he/she shall earmark funds for the relevant budget.
 Article 14 (Outsourcing Costs)
If the Administrator of the Small and Medium Business Administration outsources any projects to the Association (including the Support Center; hereinafter the same shall apply) or a relevant institution or organization prescribed in Article 7 (2) of the Act, subparagraph 7 of Article 14 of the Act, or Article 12 (2) of this Decree, he/she may subsidize the costs incurred by the Association, institution or organization in performing the relevant projects.
 Article 15 (Verification of Female-Owned Businesses, etc.)
(1) Any person who intends to apply for verification of the eligibility of a female-owned business prescribed in Article 20-2 (1) of the Act shall file an application for verification as a female-owned business in attached Form 1 with the Administrator of the Small and Medium Business Administration, using the comprehensive information network for public procurement of products of small and medium business proprietors prescribed in Article 25 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets (hereinafter referred to as the “purchase information network”), along with the following documents:
1. In cases of a corporation:
(a) One transcript of shareholders;
(b) One copy of an employee roster;
(c) One copy of a capitalization table indicating equity shares, etc.;
2. In cases of a sole proprietor: One copy of a partnership agreement (applicable to a joint business operator only).
(2) The Administrator of the Small and Medium Business Administration, in receipt of an application filed under paragraph (1), shall verify the corporation registration certificate (applicable to a corporation only) and the business registration certificate of the relevant business, by data matching under Article 36 (1) of the Electronic Government Act: Provided, That the Administrator may accept a copy of the business registration certificate, if the applicant does not consent to such verification.
(3) The Administrator of the Small and Medium Business Administration, in receipt of an application filed under paragraph (1), may conduct a documentary audit and site investigation to ascertain whether the applicant meets the eligibility criteria for a female-owned business, and request relevant materials or data, if necessary.
(4) If an investigation or examination conducted under the former part of Article 20-2 (2) of the Act finds that the relevant business does not constitute a female-owned business, the Administrator of the Small and Medium Business Administration shall notify the applicant of such findings and grounds therefor.
(5) Other matters necessary for verification of a female-owned business, other than those provided for in paragraphs (1) through (4), shall be determined and publicly notified by the Administrator of the Small and Medium Business Administration.
[This Article Newly Inserted by Presidential Decree No. 27408, Jul. 28, 2016]
 Article 16 (Issuance of Certificates of Female-Owned Business, etc.)
(1) The valid period for verification as a female-owned business prescribed in Article 20-2 (2) of the Act shall be three years.
(2) If a business obtains verification as a female-owned business prescribed in Article 20-2 (2) of the Act, the Administrator of the Small and Medium Business Administration shall issue a certificate of female-owned business provided for in attached Form 2 to the applicant.
(3) A person who has obtained a certificate of female-owned business prescribed in paragraph (2) may, in either of the following cases, have his/her certificate reissued through the purchase information network:
1. If the certificate is destroyed and unusable;
2. If the certificate is lost.
(4) A person who has obtained a certificate of female-owned business prescribed in paragraph (2) may, if any change occurs in the address or details of branch offices stated in the certificate, file an application to update information on the certificate of female-owned business with the Administrator of the Small and Medium Business Administration, with documents evidencing the relevant change attached thereto.
[This Article Newly Inserted by Presidential Decree No. 27408, Jul. 28, 2016]
 Article 17 (Grace Period for Filing Application for Verification of Female-Owned Business)
“A period which is prescribed by Presidential Decree” in the main sentence of Article 20-2 (3) of the Act means any of the following periods:
1. In cases falling under Article 20-2 (3) 1 of the Act;
(a) If an investigation or examination finds that the relevant business does not constitute a female-owned business: Three months from the date notice is given under Article 15 (4);
(b) If an investigation or examination finds on at least two occasions that the relevant business does not constitute a female-owned business: Six months from the date notice is given under Article 15 (4);
2. In cases falling under Article 20-2 (3) 2 of the Act: One year from the date the verification is cancelled under the proviso to Article 20-3 (1) of the Act.
[This Article Newly Inserted by Presidential Decree No. 27408, Jul. 28, 2016]
 Article 18 (Delegation and Entrustment of Authority)
(1) In accordance with Article 20-5 (1) of the Act, the Administrator of the Small and Medium Business Administration shall delegate the following authority to the administrator of each regional small and medium business administration:
1. Verifying a female-owned business prescribed in Article 20-2 (2) of the Act;
2. Cancelling verification of a female-owned business and holding a hearing prescribed in Article 20-3 of the Act;
3. Reporting and inspection conducted under Article 20-4 of the Act;
4. Imposing and collecting administrative fines prescribed in Article 21 of the Act.
(2) In accordance with Article 20-5 (2) of the Act, the Administrator of the Small and Medium Business Administration shall entrust the following functions to the Association:
1. Receiving applications filed under Article 15 (1);
2. Conducting documentary audits and site investigations and requesting relevant materials or data to determine eligibility of a female-owned business prescribed in Article 15 (3).
[This Article Newly Inserted by Presidential Decree No. 27408, Jul. 28, 2016]
 Article 19 (Handling Personally Identifiable Information)
If essential for performing the following tasks, the Administrator of the Small and Medium Business Administration (if his/her authority has been delegated or entrusted to a third person, including such other person) may process materials or data that contain a resident registration number, passport number, driver’s license number, or alien registration number specified in the subparagraphs of Article 19 of the Enforcement Decree of the Personal Information Protection Act:
1. Tasks relating to guiding and supervising affairs of the Association prescribed in Article 20 of the Act;
2. Tasks relating to verifying female-owned businesses prescribed in Article 20-2 of the Act;
3. Tasks relating to cancelling verification of a female-owned business and holding hearings prescribed in Article 20-3 of the Act;
4. Tasks relating to imposing and collecting administrative fines prescribed in Article 21 of the Act.
[This Article Newly Inserted by Presidential Decree No. 27408, Jul. 28, 2016]
 Article 20 (Re-examination of Regulations)
The Administrator of the Small and Medium Business Administration shall re-examine the feasibility of the objectives for purchasing female-owned business-manufactured products prescribed in Article 7 (1) every three years from January 1, 2016 (meaning the period that ends on the day before January 1 of every third year), and take measures for improvement, etc.
[This Article Newly Inserted by Presidential Decree No. 26804, Dec. 30, 2015]
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Act No. 17115, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 17116, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 18873, Jun. 23, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 20087, Jun. 11, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability of Provisions on Consecutive Appointment)
When applying the amended provisions of Article 4 (4) to the members of the Committee on Promotion of Female-Owned Businesses as at the time this Act enters into force, the term of office as at the time this Decree enters into force shall be deemed the first term.
ADDENDA <Act No. 20728, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 21832, Nov. 19, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 21, 2009: Provided, That the amended provisions of Article 7 shall enter into force on November 22, 2009.
Article 2 (Provisions on Enforcement of the Act on Support for Female-Owned Businesses)
The Act on Support for Female-Owned Businesses as partially amended by Act No. 9684 shall enter into force on November 21, 2009.
ADDENDA <Act No. 21835, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 22076, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Act No. 24432, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on Jul 1, 2013. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDUM <Act No. 26804, Dec. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Act No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 27408, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Grace Period for Filing an Application for Verification of Female-Owned Business)
The amended provisions of Article 17 shall apply, beginning with the first case where it is found the relevant business does not constitute a female-owned business or the verification of female-owned business is revoked.