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ENFORCEMENT DECREE OF THE ACT ON THE PROTECTION OF AND SUPPORT FOR MICRO ENTERPRISES

Wholly Amended by Presidential Decree No. 26248, May 26, 2015

Amended by Presidential Decree No. 26844, Dec. 31, 2015

Presidential Decree No. 26926, Jan. 22, 2016

Presidential Decree No. 27387, Jul. 26, 2016

Presidential Decree No. 27506, Sep. 22, 2016

Presidential Decree No. 27859, Feb. 13, 2017

Presidential Decree No. 28213, Jul. 26, 2017

 Article 1 (Purpose)
The purpose of this Decree is to provide for the matters delegated by the Act on the Protection of and Support for Micro Enterprises and those necessary for the enforcement of the said Act.
 Article 2 (Scope, etc. of Micro Enterprises)
(1) “The standards prescribed by Presidential Decree" referred to in subparagraph 2 of Article 2 of the Act on the Protection of and Support for Micro Enterprises (hereinafter referred to as the "Act") means the number of full-time workers, engaged in his/her/its principal business under the following classifications:
1. In cases of mining business, manufacturing business, construction business, and transportation business: Less than ten persons;
2. In cases of business categories, other than those prescribed in subparagraph 1: Less than five persons.
(2) Articles 4 and 7 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises (excluding paragraph (2) 2) shall apply mutatis mutandis to standards for the principal business provided for in paragraph (1). In such cases, “the average sales, etc” shall be deemed “the sales,” “immediately preceding three business years” shall be deemed “immediately preceding business year,” “36 months” shall be deemed “not less than 12 months,” “amount of sales dividing by three” shall be deemed “amount of sales” in Article 7 (2) 1 of the same Decree, and “subparagraph 2” shall be deemed “subparagraph 1” in subparagraph 3 of paragraph (3) other than each item.
(3) Full-time workers prescribed in paragraph (1) means workers prescribed in Article 2 (1) 1 of the Labor Standards Act, excluding any of the followings: <Amended by Presidential Decree No. 27506, Sep. 22, 2016>
1. Executives and workers employed on a daily basis under Article 20 of the Enforcement Decree of the Income Tax Act;
2. Persons who work for a prescribed period within three months;
3. Personnel exclusively dedicated to research in a research institute annexed to a company or a department exclusively dedicated to research and development recognized under Article 14-2 (1) of the Basic Research Promotion and Technology Development Support Act;
4. Part-time workers prescribed in Article 2 (1) 8 of the Labor Standards Act (hereinafter referred to as “part-time workers”) whose fixed labor hours during a month are less than 60 hours.
(4) The number of full-time workers prescribed in paragraph (1) shall be calculated in accordance with the following methods. In such cases, the number of one part-time worker whose fixed labor hours during a month are at least 60 hours shall be calculated as 0.5:
1. Where the business period of the immediately preceding business year is at least 12 months (excluding cases where the company is founded, merged or divided, and at least 12 months have passed from the date of such foundation, merger or division): the number of persons calculated by dividing the total number of full-time workers as of the last day of each month by 12;
2. Where the company is founded, merged or divided in the immediately preceeding business year or in the relevant business year, not falling under subparagraph 1: the number of persons calculated by converting to the average number of full-time workers per month according to the following classification:
(a) Where the date of calculation belongs to the month of foundation, merger or division: the number of persons as of the date of calculation;
(b) Where it has been less than 12 months since the company was founded, merged or divided (excluding cases falling under item (a)): the number of persons calculated by adding the number of full-time workers as of the last day of each month during the period from the month to which the date of foundation, merger or division belongs to the date of calculation, and dividing it by the number of the relevant month;
(c) Where it has been at least 12 months since the company was founded, merged or divided: the number of persons calculated by adding the number of full-time workers as of the last day of each month during 12 months calculated back from the month to which the date of calculation belongs, and dividing it by 12.
(5) If it is necessary to verify whether the company corresponds to a micro enterprise, the Minister of SMEs and Startups may determine and publicly notify the matters regarding the verification methods and procedures. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 3 (Day of Micro Enterprises)
“The calendar day determined by Presidential Decree” in Article 4 (1) of the Act means November 5 each year. <Amended by Presidential Decree No. 27859, Feb. 13, 2017>
 Article 4 (Submitting Achievements of Supporting Micro Enterprises by Region)
The Special Metropolitan City Mayor, each Metropolitan City Mayor, each Special Self-Governing City Mayor, each Do Governor, and the Governor of the Special Self-Governing Province shall submit records on actual achievements of an action plan for supporting micro enterprises by region to the Minister of SMEs and Startups within one month after the planned year of the action plan ended, pursuant to Article 6 (5) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 4-2 (Subject, etc. of Supporting Establishment and Operation of Common Logistics Centers of Micro Enterprises)
(1) The term “micro enterprises exceeding the number prescribed by Presidential Decree” in Article 11 (2) of the Act means micro enterprises exceeding the number falling under any of the followings, who operate the business type prescribed by Ordinance of the Ministry of SMEs and Startups as main business, among wholesale and retail trade under the attached Table 3 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. At least 10 wholesalers;
2. At least 50 retailers.
(2) The common logistics centers of micro enterprises prescribed in Article 11 (2) of the Act (hereinafter referred to as “common logistics centers”) shall conduct the following businesses to modernize the distribution system of small enterprises:
1. Common distribution business such as storage, shipping, packing, etc. of products;
2. Planning, development and group purchase of products;
3. Display of products;
4. Collecting, processing and providing information using circulation and distribution information system prescribed in the Distribution Industry Development Act;
5. Education and training, etc. to improve service capability of micro enterprises using common logistics centers;
6. Other business necessary to modernize the distribution system of micro enterprises.
(3) Common logistics centers shall be established in accordance with the following standards:
1. Matters regarding operation shall be prescribed by articles of corporation or rules;
2. Representatives, managers, etc. shall be elected;
3. Any micro enterprise shall be allowed to join and use the center.
(4) Common logistics centers shall have the following facilities:
1. Facilities for shipping, storage, and loading and unloading of freight;
2. Facilities for activities such as processing, assembling, classification, repair, packing, attaching trademark, selling, information and communications relevant to shipping, storage, and loading and unloading of freight.
(5) Matters necessary for the establishment, operation and management, etc. of common logistics center shall be determined and publicly notified by the Administrator of the Small and Medium Business Administration. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
[This Article Newly Inserted by Presidential Decree No. 26926, Jan. 22, 2016]
 Article 4-3 (Support for Damage Caused by Disaster, Accident, etc.)
(1) The Administrator of the Small and Medium Business Administration may provide the following support for the restoration of damage to micro enterprises prescribed in Article 12-2 of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Financing;
2. Delay of repaying loan and extension of a repayment period;
3. Expanding support for re-guarantees prescribed in Article 35-5 of the Regional Credit Guarantee Foundation Act.
(2) Matters necessary for the subject of support, procedures for support, etc. under paragraph (1) shall be determined and publicly notified by the Administrator of the Small and Medium Business Administration. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
[This Article Newly Inserted by Presidential Decree No. 27387, Jul. 26, 2016]
 Article 4-4 (Subjects of Support for Employment Insurance Premiums)
The subjects of support for employment insurance premiums prescribed in Article 12-3 (1) of the Act means micro enterprises not using workers prescribed in Article 2 (1) 1 of the Labor Standards Act, based on the last day of the previous month of the month to which the date of applying for the support for employment insurance premium belongs: Provided, That neither of the following persons shall be deemed workers prescribed in Article 2 (1) 1 of the Labor Standards Act:
2. Persons who work for a prescribed period of within three months;
3. Short-time workers whose fixed work hours during a month are less than 60 hours.
[This Article Newly Inserted by Presidential Decree No. 27387, Jul. 26, 2016]
 Article 5 (Scope of Materials Necessary for Establishment and Operation of Commercial Districts Information System)
“Materials or information prescribed by Presidential Decree” in Article 13 (2) 2 of the Act means any of the following materials or information:
1. Materials or information regarding a place of business of authorization or permission by region;
2. Materials or information regarding population, such as population and the number of households by region;
3. Materials or information regarding transportation, such as the number of users of subway and the number of registered cars by region;
4. Materials or information regarding real estate, such as status of lease of commercial buildings by region;
5. Materials or information regarding businesses by region;
6. Materials or information regarding the amount of sales in commercial districts by region.
 Article 6 (Establishment and Operation of Small Enterprise Support Centers)
(1) The Chairperson of the Small Enterprise and Market Service prescribed in Article 17 (1) (hereinafter referred to as the “Small Enterprise and Market Service”) shall establish and operate a small enterprise support center by region under Article 17 (4) of the Act (hereinafter referred to as a "support center") based upon the management stability and growth of micro enterprises and the demand for support services to revitalization project of traditional markets, shopping districts, and commercial districts revitalization zones (hereinafter referred to as “markets, etc.”) under subparagraphs 1, 2, and 4 of Article 2 of the Special Act on the Development of Traditional Markets and Shopping Districts by region.
(2) Each support center shall perform the following duties:
1. Providing information, education, and consulting for establishing micro enterprises or for improving management of micro enterprises;
2. Investigating and analysing regional trading areas;
3. Investigating actual status of micro enterprises and collecting information related thereto;
4. Providing information, education, and consulting for modernizing facilities and management of markets, etc.;
5. Collecting relevant information for the evaluation of the effects of support provided under Article 8 of the Special Act on the Development of Traditional Markets and Shopping Districts;
6. Other support services for the management stability and growth of micro enterprises and the revitalization of markets, etc. that the Chairperson of the Small Enterprise and Market Service deems necessary.
(3) Other necessary matters for the establishment and operation of support centers prescribed in paragraphs (1) and (2) shall be determined by the Chairperson of the Small Enterprise and Market Service, in consultation with the Administrator of the Small and Medium Business Administration. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 7 (Guidance and Supervision concerning Affairs of the Small Enterprise and Market Service)
The Minister of SMEs and Startups may have the Small Enterprise and Market Service report matters necessary for services, accounting and property or have public officials belong to the Small Enterprise and Market Service inspect ledgers and documents of the Small Enterprise and Market Service or other articles pursuant to Article 18 (1) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 8 (Payment of Subsidies from Fund)
Payment of subsidies prescribed in Article 21 (2) of the Act shall be governed by the Subsidy Management Act.
 Article 9 (Grounds for Recovery of Fund)
“Where any person uses the Fund for any purpose other than the relevant payment, and other similar cases prescribed by Presidential Decree” in Article 21 (3) of the Act means any of the following cases:
1. Where the Market Promotion Fund for Small Businesses (hereinafter referred to as the “Fund”) prescribed in Article 19 of the Act was used for any purpose other than the relevant payment;
2. Where the Fund was supported by a false application or other fraudulent methods.
 Article 10 (Entrustment, etc. of Affairs concerning Operation and Management of Fund)
(1) The Minister of SMEs and Startups shall entrust the Small Enterprise and Market Service with the following affairs, among affairs concerning operation and management of the Fund pursuant to Article 22 (2) of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Preparation of a draft plan for fund operation and a written report on the settlement of accounts of the Fund;
2. Accounting affairs concerning operation and management of the Fund;
3. Operation of surplus money of the Fund;
4. Other such affairs concerning operation and management of the Fund as determined and publicly announced by the Minister of SMEs and Startups.
(2) The Small Enterprise and Market Service shall report to the Minister of SMEs and Startups on detailed results of monthly operation of the Fund, including current status of operation of the Fund entrusted pursuant to paragraph (1), selection of persons entitled to support from the Fund and details of support by the 20th of the month immediately after the last month of every quarter. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(3) The Small Enterprise and Market Service shall submit a written report on the settlement of accounts of the Fund of every fiscal year, attaching the following documents, to the Minister of SMEs and Startups by no later than February 20 of the immediately following fiscal year: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Documents on the outline, status, and analysis of the Fund;
2. Balance sheet;
3. Profit and loss statement;
4. Statement of revenues and expenditures;
5. Other documents necessary for clarifying the contents of a written report on the settlement of accounts.
(4) The expenses paid by the Small Enterprise and Market Service for performing the affairs entrusted pursuant to paragraph (1) shall be borne by the Fund.
 Article 11 (Organization and Operation, etc. of the Fund Operation Committee)
(1) The Fund Operation Committee established under Article 23 (1) of the Act (hereinafter referred to as “Fund Operation Committee”) shall be comprised of ten members, including one Chairperson.
(2) The Vice-Minister of SMEs and Startups shall be the Chairperson of the Fund Operation Committee (hereinafter referred to as “chairperson”), and the members shall be commissioned or appointed by the Minister of SMEs and Startups, from among the following persons, in consideration of their gender: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Public officials in charge of affairs of the Fund, who belong to the senior civil service corps under the jurisdiction of the Ministry of SMEs and Startups;
2. Persons deemed to have abundant expertise and experience in the field of micro business entities, markets, etc.;
3. Other persons deemed to have abundant expertise and experience in the operation and management of the Fund.
(3) The term of office of the members provided for in paragraph (2) 2 and 3 shall be two years.
(4) The Chairperson shall represent the Fund Operation Committee and be in charge of the overall duties of the Fund Operation Committee.
(5) The Chairperson shall convene the meeting of Fund Operation Committee and become the Chairperson thereof.
(6) Where the Chairperson is unable to perform his/her duties due to unavoidable circumstances, the member appointed by the Chairperson in advance shall perform his/her duties on his/her behalf.
(7) A meeting of the Fund Operation Committee shall be held by attendance of the majority of the incumbent members and its resolutions shall be made with the consent of the majority of the members present.
(8) The Fund Operation Committee shall have one assistant administrator who handles the affairs of the Fund Operation Committee, and the assistant administrator shall be appointed by the Minister of SMEs and Startups among the public officials belonging to the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(9) Allowances and travel expenses may be paid to members, who attend a meeting of the Fund Operation Committee, within budgetary limits: Provided, That this shall not apply where a member, who is a public official, attends a meeting in direct connection with his/her affairs.
(10) Matters necessary for the operation of the Fund Operation Committee, other than those prescribed by this Decree, shall be determined by the Chairperson of the Committee through a resolution by the Fund Operation Committee.
 Article 11-2 (Dismissal of Members of Deliberative Committee)
Where the members of the Fund Operation Committee pursuant to Article 11 (2) 2 or 3 fall under any of the following, the Minister of SMEs and Startups may dismiss the relevant member: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. If a member is unable to perform his/her duties due to any mental or physical disorder;
2. If any wrongdoing is found relating to a member’s duties;
3. If it is deemed inappropriate for a member to remain in his/her position due to his/her neglect of duty, injury of dignity, etc.;
4. If a member declares he/she cannot perform his/her duties.
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
 Article 12 (Entrustment of Affairs)
(1) The Minister of SMEs and Startups shall entrust the following affairs to the Chairperson of the Small Enterprise and Market Service pursuant to Article 28 (2) 1 of the Act: <Amended by Presidential Decree No. 26926, Jan. 22, 2016; Presidential Decree No. 27387, Jul. 26, 2016; Presidential Decree No. 28213, Jul. 26, 2017>
1. Implementation of projects to support the start-up of micro enterprises pursuant to Article 8 of the Act;
2. Implementation of projects to support the management stability and growth of micro enterprises pursuant to Article 9 of the Act;
3. Implementation of projects to support the structural sophistication of micro enterprises pursuant to Article 10 of the Act;
4. Implementation of projects to support organizing of and collaboration among micro enterprises pursuant to Article 11 (1) of the Act;
5. Implementation of projects to support micro enterprises who have closed a business pursuant to Article 12 of the Act;
6. Establishment and operation of a consultation center to protect and support micro enterprises suffering from losses caused by any unfair transaction pursuant to Article 15 of the Act;
7. Affairs regarding support for restoration of damage prescribed in subparagraph 1 or 2 of Article 4-3.
(2) Deleted. <by Presidential Decree No. 26926, Jan. 22, 2016>
 Article 13 (Handling of Personally Identifiable Information)
Where the Minister of SMEs and Startups (including a person to whom the authority of the Minister of SMEs and Startups is entrusted pursuant to Article 12) deems it inevitable in performing the following affairs, he/she may handle data containing a resident registration number or a foreigner registration number prescribed in subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Affairs regarding the projects to support the start-up of micro enterprises pursuant to Article 8 of the Act;
2. Affairs regarding the projects to support the management stability and growth of micro enterprises pursuant to Article 9 of the Act;
3. Affairs regarding the projects to support the structural sophistication of micro enterprises pursuant to Article 10 of the Act;
4. Affairs regarding the projects to support organizing of and collaboration among micro enterprises pursuant to Article 11 (1) of the Act;
5. Affairs regarding the projects to support micro enterprises who have closed a business pursuant to Article 12 of the Act;
6. Affairs regarding the operation of a consultation center to protect and support micro enterprises suffering from losses caused by any unfair transaction pursuant to Article 15 of the Act.
 Article 14 (Criteria for Imposition of Administrative Fines)
Criteria for imposition of administrative fines prescribed in Article 30 (1) and (2) of the Act shall be as listed in attached Table.
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on May 28, 2015.
Article 2 (Applicability concerning Redemption of Fund)
The amended provision of subparagraph 2 of Article 9 shall apply, beginning with the fund spent after this Decree enters into force.
Article 3 (Transitional Measures concerning Micro Enterprise Development Center)
A micro enterprise development center established under Article 8 of the previous Enforcement Decree of the Act on Special Measures for Development of Small and Micro Enterprises as at the time this Decree enters into force shall be deemed a micro enterprise development center established under the amended provision of Article 6.
Article 4 (Transitional Measures concerning Fund Operation Committee)
A person who was commissioned or appointed as the member of the Fund Operation Committee pursuant to Article 11 (2) of the previous Enforcement Decree of the Act on Special Measures for Development of Small and Micro Enterprises as at the time this Decree enters into force shall be deemed a person commissioned or appointed as the member of the Fund Operation Committee under the amended provision of Article 11 (2).
Article 5 (Transitional Measures concerning Administrative Fines)
No measures of imposing administrative fines against violations before this Decree enters into force shall be included in the calculation of the number of violations under the amended provision of the attached Table.
Article 6 Omitted.
Article 7 (Relationship to other Statutes)
Any citation of the former Enforcement Decree of the Act on Special Measures for Development of Small and Micro Enterprises or any provision thereof, in any statute in force as at the time this Decree enters into force, shall be deemed a citation of this Decree or the relevant provision hereof, in lieu of the former Enforcement Decree of the Act on Special Measures for Development of Small and Micro Enterprises, or any provision thereof, if such relevant provisions exist herein.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 26926, Jan. 22, 2016>
This Decree shall enter into force on January 29, 2016.
ADDENDUM <Presidential Decree No. 27387, Jul. 26, 2016>
This Decree shall enter into force on July 28, 2016.
ADDENDA <Presidential Decree No. 27506, Sep. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2016.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 27859, Feb. 13, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 28213, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.