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

Presidential Decree No. 18203, Dec. 30, 2003

Amended by Presidential Decree No. 19496, May 30, 2006

Presidential Decree No. 19939, Mar. 22, 2007

Presidential Decree No. 20261, Sep. 10, 2007

Presidential Decree No. 20580, Jan. 31, 2008

Presidential Decree No. 20728, Feb. 29, 2008

Presidential Decree No. 21230, Dec. 31, 2008

Presidential Decree No. 21445, Apr. 21, 2009

Presidential Decree No. 21744, Sep. 21, 2009

Presidential Decree No. 21773, Oct. 7, 2009

Presidential Decree No. 21835, Nov. 20, 2009

Presidential Decree No. 22236, jun. 29, 2010

Presidential Decree No. 22269, Jul. 12, 2010

Presidential Decree No. 23183, Sep. 30, 2011

Presidential Decree No. 24432, Mar. 23, 2013

Presidential Decree No. 24540, May 22, 2013

Presidential Decree No. 25339, Apr. 29, 2014

Presidential Decree No. 25483, Jul. 16, 2014

Presidential Decree No. 25494, Jul. 21, 2014

Presidential Decree No. 26248, May 26, 2015

Presidential Decree No. 26763, Dec. 28, 2015

Presidential Decree No. 26762, Dec. 28, 2015

Presidential Decree No. 26804, Dec. 30, 2015

Presidential Decree No. 27444, Aug. 11, 2016

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Special Act on Support for Human Resources of Small and Medium Enterprises and matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 23183, Sep. 30, 2011>
 Article 2 (Scope of Application)
"Types of business prescribed by Presidential Decree, such as real estate business" referred to in the proviso to 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 Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act:
1. Real estate activities;
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 by Presidential Decree No. 24540, 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 SME Minister of the Small and Medium Business Administration (SMBA) 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.
(2) Where necessary to determine the guidelines for formulating implementation plans under paragraph (1), the SME Minister of the SMBA may request the heads of relevant central administrative agencies to submit necessary data.
(3) Where the head of a relevant central administrative agency formulates an implementation plan for the sector under his/her jurisdiction, he/she shall comply with the guidelines for formulating implementation plans referred to in paragraph (1).
(4) Deleted. <by Presidential Decree No. 20728, 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 SME Minister of the SMBA, he/she shall notify the SME Minister of the SMBA of such contents in advance.
[This Article Wholly Amended by Presidential Decree No. 20580, Jan. 31, 2008]
 Article 4 (Establishment, etc. 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 local SMBA 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 by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 19939, Mar. 22, 2007; Presidential Decree No. 20580, Jan. 31, 2008; Presidential Decree No. 22269, Jul. 12, 2010>
(2) Members of a local council shall be appointed or commissioned by the head of the competent local SMBA, from among persons in charge of human resource support in an agency prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 20728, Feb. 29, 2008; Presidential Decree No. 24432, Mar. 23, 2013>
(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 local SMBA:
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 expressly 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 SMBA, after a resolution of the local council.
 Article 5 Deleted. <by Presidential Decree No. 20728, Feb. 29, 2008>
 Article 6 (Support for Industry-Academia Cooperation between Small and Medium Enterprises and Colleges)
(1) The Minister of Trade, Industry and Energy and the SME Minister of the SMBA 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 Ordinance of the Ministry of Trade, Industry and Energy, 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 by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 20728, Feb. 29, 2008; Presidential Decree No. 24432, Mar. 23, 2013>
(2) The Minister of Trade, Industry and Energy and the SME Minister of the SMBA 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 by Presidential Decree No. 20728, Feb. 29, 2008; Presidential Decree No. 24432, Mar. 23, 2013>
(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 Trade, Industry and Energy and the SME Minister of the SMBA may fully or partially subsidize expenses incurred in such activities. <Amended by Presidential Decree No. 20728, Feb. 29, 2008; Presidential Decree No. 24432, Mar. 23, 2013>
 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 SME Minister of the SMBA and the head of the competent local government may provide necessary support.
 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 SME Minister of the SMBA may establish and manage computer networks capable of providing information on the status of research personnel, research facilities, and research equipment by region.
 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 SME Minister of the SMBA may collect and provide relevant information to small and medium enterprises, and provide support to facilitate the promotion of such cooperative programs.
(2) The SME Minister of the SMBA 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.
 Article 9-2 (Persons Eligible for Programs Connected with Employment of Human Resources, etc.)
(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 by Presidential Decree No. 21230, Dec. 31, 2008>
1. Unemployed persons between the ages of 15 and 29 years;
2. Ex-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 SME Minister of the SMBA, 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 SME Minister of the SMBA, along with the following documents:
1. A document verifying that he/she falls under any subparagraph of paragraph (1);
2. A document verifying that he/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 subsidized pursuant to Article 9 (2) of the Act shall submit an application to the SME Minister of the SMBA, along with the following documents:
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 otherwise expressly provided for in paragraphs (1) through (3), details necessary for the selection of and support for unemployed persons shall be prescribed and publicly notified by the SME Minister of the SMBA.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 Article 9-3 (Procedures, etc. 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:
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 SME Minister of the SMBA.
(2) The SME Minister of the SMBA shall select small and medium enterprises and schools meeting the standards he/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.
(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 expressly 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 SME Minister of the SMBA.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 Article 10 (Designation, etc. 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 SME Minister of the SMBA 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 by Presidential Decree No. 20580, Jan. 31, 2008>
(2) The requirements for designation of joint educational and training facilities of small and medium enterprises under paragraph (1) shall be as follows: <Amended by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 22269, Jul. 12, 2010>
1. To have teachers and employees in charge of education and training for each type of business publicly notified by the SME Minister of the SMBA 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 SME Minister of the SMBA after consultation with the Minister of Employment and Labor, which are necessary to facilitate education and training.
(3) The SME Minister of the SMBA may survey 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.
(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 SME Minister of the SMBA. <Amended by Presidential Decree No. 22269, Jul. 12, 2010>
 Article 11 (Plans for Programs for Experience in Small and Medium Enterprises)
The SME Minister of the SMBA 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:
1. Procedures and methods for promoting the programs;
2. Details of support for participants in the programs;
3. Any other matters deemed by the SME Minister of the SMBA necessary to promote the programs.
 Article 12 (Preferential Support for Schools That Recognize Participation Results as Credits)
The SME Minister of the SMBA 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.
 Article 13 (Public Notice of Payment of Employment Subsidies, etc.)
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/she shall consult with the SME Minister of the SMBA thereon. <Amended by Presidential Decree No. 22269, Jul. 12, 2010>
 Article 14 (Assistance in Issuing Visas to Foreign Experts)
Where small and medium enterprises intend to hire foreign experts, the SME Minister of the SMBA 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 by Presidential Decree No. 19496, May 30, 2006>
 Article 15 (Assistance in Utilizing Foreign Experts)
The SME Minister of the SMBA 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.
 Article 16 (Matters, etc. subject to Consultation about Technical Research Personnel System, etc.)
(1) In requesting consultation under Article 14 of the Act, the SME Minister of the SMBA 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.
(2) The Commissioner of the Military Manpower Administration shall review measures to improve matters for which the SME Minister of the SMBA has requested consultation pursuant to Article 14 of the Act; and notify the SME Minister of the SMBA of the results of the review.
 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/she shall serve in compliance with the regulations determined by the head of an organization to which he/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/she concurrently holds the position or office. <Amended by Presidential Decree No. 22236, 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 (hereinafter referred to as "small and medium enterprise that develops talent") shall meet all the following requirements:
1. Three years must elapse after the relevant enterprise has commenced business through business start-up (referring to business start-up defined in subparagraph 1 of Article 2 of the Support for Small and Medium Enterprise Establishment Act; hereinafter the same shall apply);
2. Results of evaluation of the following matters shall meet the standards prescribed and publicly notified by the SME Minister of the SMBA:
(a) Endeavors of the relevant enterprise to develop talent, such as making investments in education and training or hiring distinguished talent;
(b) Results obtained by the relevant enterprise by developing talent or rewards therefor, such as an increase in sales or wages;
(c) Any other matters concerning the relevant enterprise's support and management 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 SME Minister of the SMBA, along with a document verifying that it satisfies all the requirements specified in paragraph (1), as determined by the SME Minister of the SMBA.
(3) Upon receipt of documents under paragraph (2), the SME Minister of the SMBA shall issue a certificate of designation of a small and medium enterprise that develops talent determined by the SME Minister of the SMBA, if the relevant enterprise is deemed appropriate for such designation.
(4) Where the SME Minister of the SMBA issues a certificate of designation pursuant to paragraph (3), he/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 SMBA.
(5) Details about the standards, procedures, etc. for designating small and medium enterprises that develop talent, shall be prescribed and publicly notified by the SME Minister of the SMBA.
[This Article Wholly Amended by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 17-3 (Revocation of Designation of Small and Medium Enterprises That Develop Talent)
Where the SME Minister of the SMBA revokes the designation of a small and medium enterprise that develops talent pursuant to Article 18-3 (1) of the Act, he/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, expressly specifying the grounds for the revocation; and publish such fact on the website of the SMBA. <Amended by Presidential Decree No. 25494, Jul. 21, 2014>
[This Article Newly Inserted by Presidential Decree No. 23183, Sep. 30, 2011]
 Article 18 (Requirements for Plans for Upgrading the Structure of Human Resources)
"Requirements prescribed by Presidential Decree" referred to in Article 19 (2) of the Act means the following: <Amended by Presidential Decree No. 20580, Jan. 31, 2008; Presidential Decree No. 24540, May 22, 2013>
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 SME Minister of the SMBA to facilitate the implementation of such plan.
 Article 19 (Conclusion and Management of Agreement)
(1) Where the SME Minister of the SMBA intends to partially subsidize expenses incurred in implementing a plan for upgrading human resources pursuant to Article 19 (2) of the Act, he/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 by Presidential Decree No. 20580, Jan. 31, 2008>
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 subsidized violates the agreement;
6. Any other matters deemed by the SME Minister of the SMBA necessary to manage the relevant activities.
(2) The SME Minister of the SMBA 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.
 Article 20 Deleted. <by Presidential Decree No. 20580, Jan. 31, 2008>
 Article 21 (Preferential Support for Cooperative Movement Projects)
The SME Minister of the SMBA 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 by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 20261, Sep. 10, 2007; Presidential Decree No. 21835, Nov. 20, 2009>
 Articles 22 and 23 Deleted. <by Presidential Decree No. 20580, Jan. 31, 2008>
 Article 23-2 (Persons Eligible to Receive Support for Cultural Life, etc.)
(1) Persons eligible to receive support for the improvement of cultural life, etc. under Article 24-2 of the Act, shall be workers 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 SME Minister of the SMBA may partially subsidize expenses incurred in improving cultural lives of workers of small and medium enterprises and their health under paragraph (1), within budgetary limits.
(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 SME Minister of the SMBA.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 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 SME Minister of the SMBA may give priority to small and medium enterprises which have been granted a prize pursuant to Article 26 (2) of the Act.
(2) The SME Minister of the SMBA 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 by Presidential Decree No. 19496, May 30, 2006>
(3) In order to identify excellent small and medium enterprises under Article 26 (2) of the Act, the SME Minister of the SMBA may receive recommendations from organizations and cooperatives related to small and medium enterprises. <Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008>
(4) Matters necessary for the procedures for recommending excellent small and medium enterprises and the standards for selecting them, shall be prescribed and publicly notified by the SME Minister of the SMBA. <Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008>
 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 SME Minister of the SMBA may give priority to promoting the following matters:
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 SME Minister of the SMBA 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 by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 20261, Sep. 10, 2007; Presidential Decree No. 21835, Nov. 20, 2009>
(2) The SME Minister of the SMBA 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.
 Article 26-2 (Support for Sharing Achievements between Employers and Workers)
(1) The SME Minister of the SMBA may provide the following support to small and medium enterprises that intend to adopt an achievement sharing system between employers and workers pursuant to Article 27-2 of the Act:
1. Gratuitously disseminating a standard achievement sharing system developed by the SMBA;
2. Subsidizing relevant expenses, such as consulting expenses relating to adopting the achievement sharing system;
3. Subsiding expenses deemed necessary by the SME Minister of the SMBA for activities to facilitate utilization of the achievement sharing system.
(2) The method of applying for small and medium enterprises to be supported under paragraph (1), standards for selecting them, etc. shall be prescribed and publicly notified by the SME Minister of the SMBA.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 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 SME Minister of the SMBA shall preferentially select him/her as a person eligible for subsidies for business start-up expenses granted by the SME Minister of the SMBA; and may subsidize service fees to such person under Article 32 of the Support for Small and Medium Enterprise Establishment Act. <Amended by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 20580, Jan. 31, 2008>
 Article 27-2 (Identifying, etc. Professional Technical or Skilled Personnel)
(1) In order to identify professional technical or skilled personnel under Article 29 (2) of the Act, the SME Minister of the SMBA may receive recommendations on excellent workers working for small and medium enterprises, from organizations, cooperatives, etc. related to small and medium enterprises.
(2) The SME Minister of the SMBA shall select persons satisfying the selection standards prescribed and publicly notified by the SME Minister of the SMBA, among workers recommended pursuant to paragraph (1), as professional technical or skilled personnel.
(3) The SME Minister of the SMBA 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.
(4) Matters necessary for 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 SME Minister of the SMBA.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 Article 27-3 (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 SME Minister of the SMBA, after consultation with the heads of relevant central administrative agencies and the heads of local governments.
(2) Professional technical or skilled personnel intending to receive preferential treatment under paragraph (1) shall present the certificate referred to in Article 27-2 (3) to the manager of the relevant facility.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 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: <Newly Inserted by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 20580, Jan. 31, 2008; Presidential Decree No. 21445, Apr. 21, 2009; Presidential Decree No. 21744, Sep. 21, 2009; Presidential Decree No. 24540, May 22, 2013; Presidential Decree No. 25339, Apr. 29, 2014; Presidential Decree No. 25483, Jul. 16, 2014; Presidential Decree No. 26762, Dec. 28, 2015; Presidential Decree No. 26763, Dec. 28, 2015; Presidential Decree No. 27444, 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, 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 SME Minister of the SMBA, after consultation with the business entity constructing such housing units. <Amended by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 20580, Jan. 31, 2008>
 Article 29 (Preferential Support for Human Resources of Small Enterprises)
“Enterprises prescribed by Presidential Decree" referred to in Article 33 of the Act means small enterprises engaging in manufacturing business.
 Article 30 (Consultation on Preferential Support for Small Enterprises)
The SME Minister of the SMBA 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 by Presidential Decree No. 19496, May 30, 2006; Presidential Decree No. 26248, May 26, 2015>
 Article 30-2 (Management and Operation of Performance Compensation Fund)
(1) To efficiently manage and operate the Performance Compensation Fund for 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 core personnel of small and medium enterprise shall be established in Small and Medium Business Corporation founded under Article 68 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as "Small and Medium Business Corporation").
(2) The President of Small and Medium Business Corporation shall determine fund management guidelines on details about the management and operation of the Performance Compensation Fund, and obtain approval therefor from the SME Minister of the SMBA. The same shall also apply to any amendment to the guidelines.
(3) To clarify the management and operation of the Performance Compensation Fund, Small and Medium Business Corporation shall keep accounts of the Performance Compensation Fund separately from other accounts thereof.
[This Article Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 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 comprised of not more than 11 members, including one chairperson, with consideration given to their gender.
(2) The President of Small and Medium Business Corporation shall serve as the Chairperson of the Committee, and the following persons shall be members of the Committee:
1. One person designated by the SME Minister of the SMBA, from among public officials in general service belonging to the Senior Executive Service of the SMBA who are in charge of support for human resources of small and medium enterprises;
2. One person designated by the President of Small and Medium Business Corporation, from among its executives 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 each member of the Committee referred to in paragraph (2) 3 shall be two years.
[Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-4 (Functions of Committee)
(1) 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 Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-5 (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/her duties due to extenuating circumstances, the member referred to in Article 30-3 (2) 2 shall act on his/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 expressly 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 Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-6 (Preparation of and Reporting on Fund Management Plans)
(1) The SME Minister of the SMBA shall notify the President of Small and Medium Business Corporation of guidelines for preparing fund management plans (hereinafter referred to as "preparation guidelines"), by October 31 each year.
(2) The President of Small and Medium Business Corporation shall prepare a fund management plan for the following fiscal year in compliance with the preparation guidelines, and report it to the SME Minister of the SMBA, 20 days before the beginning of such fiscal year.
(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 Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-7 (Accumulation and Management of Legal Reserves)
(1) Small and Medium Business Corporation 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 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").
(2) Small and Medium Business Corporation shall efficiently manage legal reserves accumulated pursuant to paragraph (1), taking account of stability, liquidity, and profitability.
[This Article Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-8 (Regulations on Mutual Aid)
(1) Regulations on mutual aid enacted by Small and Medium Business Corporation pursuant to Article 35-6 (1) of the Act shall include the following matters:
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 SME Minister of the SMBA may publish all or some of the regulations on mutual aid on the website of the SMBA if necessary to operate mutual aid programs, such as for inviting participants in mutual aid programs.
[This Article Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-9 (Management of Personally Identifiable Information)
The SME Minister of the SMBA or the President of Small and Medium Business Corporation may manage 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 it is inevitable to conduct the following affairs:
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 Newly Inserted by Presidential Decree No. 25494, Jul. 21, 2014]
 Article 30-10 (Designation, etc. of Organizations Exclusively Responsible for Human Resource Support)
(1) The SME Minister of the SMBA 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:
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:
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 SME Minister of the SMBA.
(3) The head of an organization with exclusive responsibility shall report to the SME Minister of the SMBA on annual business plans and performance record of business for the preceding year, as prescribed by the SME Minister of the SMBA.
(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 SME Minister of the SMBA.
[This Article Newly Inserted by Presidential Decree No. 20580, Jan. 31, 2008]
 Article 31 (Entrustment of Duties)
(1) Pursuant to Article 38 of the Act, the SME Minister of the SMBA 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, Small and Medium Business Corporation, or 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: <Amended by Presidential Decree No. 23183, Sep. 30, 2011; Presidential Decree No. 24540, May 22, 2013; Presidential Decree No. 25494, Jul. 21, 2014>
1. Fact-finding surveys on human resources of small and medium enterprises referred to in Article 7 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. Verifying whether three years have elapsed since business start-up under Article 17-2 (1) 1;
6-2. Conducting evaluations under Article 17-2 (1) 2;
6-3. Receipt of 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;
9. Subsidizing the improvement of workers' cultual lives and health under Article 24-2 of the Act;
10. Implementing awareness improvement programs for small and medium enterprises; identifying excellent small and medium enterprises; and disseminating and proliferating exemplary cases under Article 26 of the Act;
11. Developing and disseminating an achievement sharing system under Article 27-2 of the Act;
12. Selecting excellent workers under Article 29 (1) of the Act.
(2) Where the SME Minister of the SMBA entrusts his/her duties pursuant to paragraph (1), he/she shall publicly notify both agencies entrusted with such duties and the duties entrusted. <Newly Inserted by Presidential Decree No. 24540, May 22, 2013>
[This Article Wholly Amended by Presidential Decree No. 20580, Jan. 31, 2008]
 Article 32 (Review of Regulation)
The SME Minister of the SMBA shall review 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.
[This Article Newly Inserted by Presidential Decree No. 26804, Dec. 30, 2015]
ADDENDUM
This Decree shall enter into force on January 1, 2004.
ADDENDUM <Presidential Decree No. 19496, May 30, 2006>
This Decree shall enter into force on June 4, 2006.
ADDENDA <Presidential Decree No. 19939, Mar. 22, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20261, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 20580, Jan. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2008.
Article 2 (Transitional Measures concerning Guidelines for Formulating Implementation Plans)
The guidelines for formulating implementation plans notified by the SME Minister of the SMBA to the heads of relevant central administrative agencies before this Decree enters into force, shall be deemed notified under the amended provisions of Article 3.
ADDENDA <Presidential Decree 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 <Presidential Decree No. 21230, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21445, Apr. 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21744, Sep. 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 1, 2009.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 21773, Oct. 7, 2009>
This Decree shall enter into force on January 1, 2010.
ADDENDA <Presidential Decree No. 21835, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 22236, Jun. 29, 2010>
This Decree shall enter into force on July 6, 2010.
ADDENDA <Presidential Decree 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.
ADDENDUM <Presidential Decree No. 23183, Sep. 30, 2011>
This Decree shall enter into force on October 5, 2011.
ADDENDA <Presidential Decree 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.
ADDENDUM <Presidential Decree No. 24540, May 22, 2013>
This Decree shall enter into force on June 12, 2013.
ADDENDA <Presidential Decree No. 25339, Apr. 29, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25483, Jul. 16, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 25494, Jul. 21, 2014>
This Decree shall enter into force on July 22, 2014.
ADDENDA <Presidential Decree No. 26248, May 26, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 28, 2015.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 26762, Dec. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 29, 2015.
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 26763, Dec. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 29, 2015.
Articles 2 through 10 Omitted.
ADDENDUM <Presidential Decree No. 26804, Dec. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.