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SMALL AND MEDIUM ENTERPRISES PROMOTION ACT

Act No. 9683, May 21, 2009

Amended by Act No. 9758, jun. 9, 2009

Act No. 9774, jun. 9, 2009

Act No. 9888, Dec. 30, 2009

Act No. 10228, Apr. 5, 2010

Act No. 10250, Apr. 12, 2010

Act No. 10252, Apr. 12, 2010

Act No. 10272, Apr. 15, 2010

Act No. 10331, May 31, 2010

Act No. 11178, Jan. 17, 2012

Act No. 11540, Dec. 11, 2012

Act No. 11690, Mar. 23, 2013

Act No. 11846, May 28, 2013

Act No. 12248, Jan. 14, 2014

Act No. 12308, Jan. 21, 2014

Act No. 12309, Jan. 21, 2014

Act No. 12738, jun. 3, 2014

Act No. 13095, Jan. 28, 2015

Act No. 13316, May 18, 2015

Act No. 13867, Jan. 27, 2016

Act No. 14111, Mar. 29, 2016

Act No. 14369, Dec. 2, 2016

Act No. 14476, Dec. 27, 2016

Act No. 14480, Dec. 27, 2016

Act No. 14685, Mar. 21, 2017

Act No. 14839, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to strengthen the competitiveness of small and medium enterprises through their structural advancement, and expand the business sphere for small and medium enterprises, thereby contributing to the balanced development of the national economy. <Amended by Act No. 9683, May 21, 2009>
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 8804, Dec. 27, 2007; Act No. 11540, Dec. 11, 2012; Act No. 13095, Jan. 28, 2015; Act No. 13316, May 18, 2015; Act No. 14111, Mar. 29, 2016>
1. "Small and medium entrepreneur" means:
(a) A small and medium entrepreneur defined in Article 2 of the Framework Act on Small and Medium Enterprises;
(b) A small and medium enterprise cooperative defined in Article 3 of the Small and Medium Enterprise Cooperatives Act;
(c) An industrial technology research cooperative established under the Industrial Technology Research Cooperatives Support Act and determined by Presidential Decree;
(d) Any other organization prescribed by Presidential Decree for promoting small and medium enterprises;
1-2. "Small enterprise" means a small enterprise classified under Article 2 (2) of the Framework Act on Small and Medium Enterprises;
1-3. "Local small and medium enterprise" means any of the following entities, one of the head office, main office, or place of business of which is located within the jurisdiction of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do"):
(a) A small and medium entrepreneur prescribed in Article 2 (1) or (2) of the Framework Act on Small and Medium Enterprises;
(b) A small and medium enterprise cooperative prescribed in Article 3 (1) 1 through 3 of the Small and Medium Enterprise Cooperatives Act;
2. "Automation of a small and medium enterprise" means a small and medium entrepreneur’s endeavor to improve the efficiency of his/her manufacturing process through automation of various equipment and systems, to raise productivity and quality;
3. "Informatization of a small and medium enterprise" means a small and medium entrepreneur’s endeavor to build up an electronic computer network using computers and various control devices, including computerization of business management and distribution management;
4. "Technical development" means:
(a) A small and medium entrepreneur’s research and development of technology for manufacturing, sales, or services;
(b) Utilizing the outcomes from such research and development conducted under item (a), above;
5. "Business conversion" means the business conversion defined in subparagraph 2 of Article 2 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises;
6. "Cooperative movement" means any of the following activities jointly engaged in by several small and medium entrepreneurs:
(a) Clustering their factories or any other business premises together;
(b) Jointly installing and operating facilities and systems for manufacturing, research and development, prevention of environmental pollution, etc.;
(c) Jointly engaging in business activities, including developing products and trademarks, purchasing raw materials, and sales activities;
7. "Logistics modernization" means a small and medium entrepreneur’s activities to install or improve distribution facilities in order to ensure smooth distribution of the products he/she manufactures and to reduce logistics costs;
8. Deleted; <by Act No. 14111, Mar. 29, 2016>
9. "Collaboration" means where a small and medium entrepreneur (applicable only to a small and medium entrepreneur referred to in subparagraph 1 (a); hereafter the same shall apply in this subparagraph) and any of the following entities, each covering a specialized field of the development of products, purchase of raw materials, manufacturing, sales, etc., participate in the development, manufacturing, and sales of products or provide services in a complementary manner:
(a) Any other small and medium entrepreneur;
10. "Family business succession" means where a small or medium enterprise transfers its ownership or management rights in such enterprise to a relative by inheritance or donation, while retaining its identity. In such cases, criteria for maintaining identity, such as types of business, employment, and period for maintaining family business after family business succession, shall be prescribed by Presidential Decree;
10-2. "Prestigious long-lived enterprise" means a small and medium enterprise that has significantly contributed to society through its sound operation for a long period; is expected to continue its growth over several generations; and meets the requirements prescribed in Article 62-4;
11. "Corporate social responsibility management" means the responsibility borne by an enterprise through its transparent and ethical business activities for the impacts on society and the environment caused by its decision making and activities.
CHAPTER II STRUCTURAL ADVANCEMENT OF SMALL AND MEDIUM ENTERPRISES
 Article 3 (Plan for Supporting Structural Advancement, etc.)
(1) Whenever deemed necessary for improving the business scale, management techniques, or manufacturing methods in order to solve the challenges that small and medium enterprises may face in their business management due to changes in economic situations and to enhance their competitiveness, the Government may formulate policies necessary for supporting their efforts for structural advancement, such as conversion of a private business into a corporation, mergers and split-offs of companies, joint ventures, collaboration, business conversion, relocation of business premises, and rationalization of management.
(2) The Special Metropolitan City Mayor, each Metropolitan City Mayor, each Special Self-Governing City Mayor, each Do Governor, or the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall establish and announce a plan for supporting the structural advancement of small and medium enterprises (hereinafter referred to as "plan for supporting structural advancement") within his/her jurisdiction each year to implement supporting policies formulated under paragraph (1). In such cases, a Mayor/Do Governor may request the heads of institutions responsible for supporting small and medium enterprises, including the Small and Medium Business Corporation established under Article 68 (1) (hereinafter referred to as the “Small and Medium Business Corporation”), to submit materials necessary for establishing the plan for supporting structural advancement, and the heads of the institutions in receipt of such request shall cooperate therein. <Amended by Act No. 14111, Mar. 29, 2016>
(3) The plan for supporting structural advancement shall contain the following, reflecting the actual conditions of each local government:
1. Matters concerning budget subsidies for each project;
2. Matters concerning counseling, consulting, guidance for management and technology, provision of information, etc.;
3. Other matters necessary for supporting the structural advancement.
(4) Each Mayor/Do Governor may request necessary support from the heads of the relevant central administrative agencies in order to promote the plan for supporting structural advancement smoothly.
 Article 4 (Projects for Supporting Automation of Small and Medium Enterprises)
(1) The Minister of SMEs and Startups shall perform projects for supporting automation of small and medium enterprises to promote the automation of small and medium enterprises and to foster the business entities specializing in manufacturing and engineering of automated equipment and systems. <Amended by Act No. 10250, Apr. 12, 2010; Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups may promote projects for rendering assistance in the following activities as part of the projects for supporting automation referred to in paragraph (1): <Amended by Act No. 14839, Jul. 26, 2017>
1. Supplying equipment and systems for promoting automation of small and medium enterprises;
2. Executing exemplary projects and standardization for automation of small and medium enterprises;
3. Training experts in automation of small and medium enterprises;
4. Providing financial aids for facilitating automation of small and medium enterprises;
5. Other matters necessary for facilitating automation of small and medium enterprises.
 Article 5 (Projects for Supporting Inter-Industry Exchanges)
(1) The Minister of SMEs and Startups shall perform projects for supporting inter-industry exchanges in order to facilitate exchanges of information and technology between or among small and medium entrepreneurs who engage in different types of business. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups may promote projects for rendering assistance in the following activities as part of the projects for supporting inter-industry exchanges referred to in paragraph (1): <Amended by Act No. 14839, Jul. 26, 2017>
1. Seconding experts for active exchanges of information and technology;
2. Providing financial aids necessary for exchanges of information and technology;
3. Other matters necessary for facilitating exchanges of information and technology.
CHAPTER III (Articles 6 through 27) Deleted.
CHAPTER IV EXPANSION OF BUSINESS SPHERE FOR SMALL AND MEDIUM ENTERPRISES
SECTION 1 Cooperative Movement Projects
 Article 28 (Public Notice of Standards for Cooperative Movement among Small and Medium Enterprises)
(1) The Minister of SMEs and Startups shall establish and publicly notify the standards for cooperative movement among small and medium enterprises, applicable to clustering small and medium entrepreneurs and developing common facilities for them (hereinafter referred to as "standards for cooperative movement"). The foregoing shall also apply to any amendment to the standards for cooperative movement. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups may establish standards for cooperative movement in which any persons, other than small and medium entrepreneurs, may participate, if especially necessary to do so when establishing the standards for cooperative movement under paragraph (1).
(3) Matters to be included in the standards for cooperative movement established under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
(4) The Minister of SMEs and Startups shall pre-consult with the head of the relevant central administrative agencies to establish the standards for cooperative movement under paragraphs (1) and (2). <Amended by Act No. 14839, Jul. 26, 2017>
 Article 29 (Approval of Action Plans for Cooperative Movement)
(1) A person who intends to formulate and implement an action plan for cooperative movement in accordance with the standards for cooperative movement, shall obtain approval from the Minister of SMEs and Startups. The foregoing shall also apply to any modification to matters specified by Ordinance of the Ministry of SMEs and Startups, contained in the approved plan. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) A person who intends to formulate and implement an action plan for cooperative movement in accordance with the standards for cooperative movement, shall obtain approval from the competent Mayor/Do Governor, notwithstanding paragraph (1), if the action plan for cooperative movement includes any project for developing an industrial complex, which entails changes in the form or quality of land, or infrastructure construction works and is on at least an area specified by Presidential Decree (hereinafter referred to as "industrial complex development project"). The foregoing shall also apply to any modification to matters specified by Ordinance of the Ministry of SMEs and Startups, contained in the approved plan. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) The Mayor/Do Governor shall pre-consult with the Minister of SMEs and Startups to approve an action plan or any modification to the action plan pursuant to paragraph (2). <Amended by Act No. 14839, Jul. 26, 2017>
(4) Matters necessary for formulating action plans for cooperative movement under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
 Article 30 (Revocation of Approval of Action Plans for Cooperative Movement)
(1) If any of the following applies to a person who has obtained approval of his/her action plan for cooperative movement, the Minister of SMEs and Startups or a Mayor/Do Governor may revoke approval of the action plan for cooperative movement granted under Article 29 and recover the principal and interest on subsidies: Provided, That the Minister of SMEs and Startups or a Mayor/Do Governor must revoke approval and recover the principal and interest of subsidies if subparagraph 1 applies to the person: <Amended by Act No. 13316, May 18, 2015; Act No. 14839, Jul. 26, 2017>
1. If the person has obtained approval of the action plan for cooperative movement deceitfully or otherwise fraudulently;
2. If the person modifies the action plan for cooperative movement without approval of such modification under Article 29 or suspends his/her implementation of the plan;
3. If it is impracticable for the person to achieve the objectives of the project or the person misappropriates subsidies.
(2) The Minister of SMEs and Startups or the Mayor/Do Governor shall hold a hearing before revoking approval of an action plan for cooperative movement pursuant to paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
 Article 31 (Approval of Execution Plans for Industrial Complex Development Projects)
(1) To execute an industrial complex development project, a person who has obtained approval of his/her action plan for cooperative movement pursuant to Article 29 or the Small and Medium Business Corporation (hereinafter referred to as "small and medium entrepreneur, etc.") shall prepare an execution plan for the industrial complex development project (hereinafter referred to as "execution plan") and obtain approval from the competent Mayor/Do Governor. The foregoing shall also apply to any modification to matters specified by Ordinance of the Ministry of SMEs and Startups, contained in the approved plan. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017>
(2) A small and medium entrepreneur, etc. that intends to obtain approval of his/her execution plan or a modification thereto pursuant to paragraph (1), shall submit the execution plan to the competent Mayor/Do Governor via the head of the competent Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply).
(3) The Mayor/Do Governor shall determine whether to approve an execution plan pursuant to paragraph (1), considering the following matters:
1. Whether the development of an industrial complex is appropriate for the related cooperative movement project and whether its scale is adequate;
2. Whether the plan is in line with the related State plans for national land, industries, the environment, etc.;
3. Other matters specified by Presidential Decree, including making the infrastructure available.
(4) Upon approving an execution plan or a modification thereto pursuant to paragraph (1), the Mayor/Do Governor shall report it to the Minister of Land, Infrastructure and Transport and publicly announce it, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) When a small and medium entrepreneur, etc. seeks to implement a cooperative movement project by acquiring, or leasing, on a long-term basis, a parcel of land for industrial purpose developed in a foreign country, he/she shall prepare an execution plan and obtain approval thereof from the Minister of SMEs and Startups. The foregoing shall also apply to any modification to the matters specified by Ordinance of the Ministry of SMEs and Startups, contained in the approved plan. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
 Article 32 (Authorization of Completion of Industrial Complex Development Projects)
(1) Upon completion of an industrial complex development project, small and medium entrepreneurs, etc. shall obtain authorization from the Mayor/Do Governor on completion of the project, as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) Upon receipt of an application for authorization of completion in accordance with paragraph (1), the Mayor/Do Governor shall issue an authorization letter on completion to the relevant small and medium entrepreneur, etc. after conducting a final inspection, and shall publicly announce such fact, as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) No small and medium entrepreneurs, etc. shall use any industrial area or facilities developed or installed through the industrial complex development project before obtaining authorization of completion in accordance with paragraph (1): Provided, That the foregoing shall not apply where approval for use has been granted by the Mayor/Do Governor.
 Article 33 (Expropriation, etc. of Land)
(1) The Small and Medium Business Corporation may expropriate or use a parcel of land, a building, or a fixture on a parcel of land, any right, other than ownership to a parcel of land, a building, or a fixture on a parcel of land, a mining right, a fishery right, or a right to use water (hereinafter referred to as "land or similar") for the purpose of executing an industrial complex development project under Article 31.
(2) In cases falling under paragraph (1), approval of an execution plan under Article 31 (1) shall be deemed project authorization under Article 20 (1) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects.
(3) Except as otherwise expressly provided for in Article 34 and other provisions of this Act, the provisions of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply to expropriation or use under paragraph (1).
 Article 34 (Access to Land, etc.)
(1) A small and medium entrepreneur, etc. may engage in the following conduct, whenever necessary for executing an industrial complex development project:
1. Entering a third person's land;
2. Using a third person's land temporarily;
3. Moving or removing standing trees, soil, rocks, or any other obstacles in a third person's land.
(2) Articles 130 and 131 of the National Land Planning and Utilization Act shall apply mutatis mutandis to cases set forth in paragraph (1).
 Article 35 (Sale of State-owned and Public Land, etc.)
(1) Notwithstanding the provisions of the State Property Act, the Local Finance Act, and other statutes, the State-owned or public land within the area for which an execution plan has been approved pursuant to Article 31 (1) may be sold to a small and medium entrepreneur, etc. under a negotiated contract.
(2) The State and local governments shall give assistance necessary for land readjustment, opening of access roads, installation of facilities, etc. in the area for which an execution plan has been approved pursuant to Article 31 (1).
 Article 36 (Application Mutatis Mutandis of other Acts)
Articles 20 and 32 of the Industrial Sites and Development Act shall apply mutatis mutandis where a small and medium entrepreneur, etc. executes an industrial complex development project in accordance with Article 31.
SECTION 2 Collaboration Support Projects
 Articles 37 and 38 Deleted. <by Act No. 13316, May 18, 2015>
 Article 39 (Collaboration Support Projects)
The Government may perform a support project relating to the following activities (hereinafter referred to as "collaboration support project") to assist small and medium entrepreneurs in engaging in collaborative activities smoothly: <Amended by Act No. 13316, May 18, 2015; Act No. 14839, Jul. 26, 2017>
1. Providing subsidies for collaboration funds;
2. Training human resources;
3. Contributing to technology development funds;
4. Supporting export and entry into new markets;
5. Advising on the establishment of joint-stock corporations, etc.;
6. Other matters deemed necessary by the Minister of SMEs and Startups to support collaboration of small and medium entrepreneurs.
 Article 39-2 (Selection of Collaborative Enterprises and Revocation of Selection)
(1) Upon receipt of an application from a small and medium entrepreneur who meets requirements prescribed by Presidential Decree, such as establishing a detailed collaboration plan, the Minister of SMEs and Startups may select such small and medium entrepreneur as a person eligible for a collaboration support project. <Amended by Act No. 14839, Jul. 26, 2017>
(2) If any of the following applies to an enterprise selected as eligible for a collaboration support project under paragraph (1) (hereinafter referred to as "collaborative enterprise"), the Minister of SMEs and Startups may revoke selection as a collaborative enterprise: Provided, That he/she must revoke such selection if subparagraph 1 applies to the enterprise: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where the enterprise is selected by fraud or other improper means;
2. Where the enterprise fails to engage in collaboration activities for at least six months due to business suspension, closure, bankruptcy, etc.;
3. Other cases where the Minister of SMEs and Startups acknowledges that it is impracticable for the enterprise to engage in collaboration activities normally.
(3) Criteria and procedures for selecting collaborative enterprises, and for revocating such selection under paragraphs (1) and (2), and other detailed matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13316, May 18, 2015]
 Article 39-3 (Designation of Dedicated Institutions)
(1) To perform collaboration support projects efficiently, the Minister of SMEs and Startups may designate an institution or organization specializing in the affairs related to promoting small and medium enterprises as an institution or organization exclusively in charge of collaboration support (hereinafter referred to as "dedicated institution") to perform some of the collaboration support projects. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups may fully or partially subsidize expenses incurred by a dedicated institution in performing the affairs referred to in paragraph (1), within budgetary limits. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Criteria and procedures for the designation of dedicated institutions, and other detailed matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13316, May 18, 2015]
 Article 39-4 (Revocation of Designation of Dedicated Institutions)
(1) Where any of the following applies to a dedicated institution, the Minister of SMEs and Startups may revoke designation as a dedicated institution, or fully or partially suspend its business for a prescribed period not exceeding six months: Provided, That he/she must revoke such designation if subparagraph 1 applies to the dedicated institution: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where it has obtained designation by fraud or other improper means;
2. Where it fails to meet any of the criteria for designation prescribed under Article 39-3 (3).
(2) Detailed criteria for administrative dispositions prescribed in paragraph (1) shall be prescribed by Presidential Decree, considering the cause and severity of each violation.
[This Article Newly Inserted by Act No. 13316, May 18, 2015]
 Article 40 (Inspections of Outcomes)
(1) The Minister of SMEs and Startups may inspect whether collaborative enterprises have engaged in collaboration activities and the outcomes, etc. of the collaboration activities. <Amended by Act No. 13316, May 18, 2015; Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for inspecting outcomes under paragraph (1), shall be prescribed by Presidential Decree.
SECTION 3 Projects to Support Business Site Development and Reduction of Environmental Pollution
 Article 41 (Projects to Support Business Site Development)
The Minister of SMEs and Startups may authorize the Small and Medium Business Corporation to implement the following projects for site development in accordance with relevant Acts to smoothly supply small and medium enterprises with sites for building factories: <Amended by Act No. 10252, Apr. 12, 2010; Act No. 14839, Jul. 26, 2017>
1. An industrial complex development project executed under the Industrial Sites and Development Act;
2. A project for creating complexes;
3. A project for constructing a knowledge-industry center under the Industrial Cluster Development and Factory Establishment Act;
4. Other projects prescribed by Presidential Decree, among projects related to factory sites under relevant Acts.
 Article 42 (Projects to Support Reduction of Environmental Pollution)
To reduce environmental pollution caused by the business activities of small and medium enterprises, the Minister of SMEs and Startups may implement the projects to support reduction of environmental pollution by improving the manufacturing process to the low-pollution process and installation of facilities for preventing environmental pollution or through any other way. <Amended by Act No. 14839, Jul. 26, 2017>
SECTION 4 Guidance and Training Programs
 Article 43 (Establishment of Guidance Plan)
(1) The Minister of SMEs and Startups shall establish and publicly notify a plan for providing management and technology guidance to small and medium enterprises (hereinafter referred to as "guidance plan"). <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters to be included in the guidance plan shall be prescribed by Presidential Decree.
 Article 44 (Guiding Agencies)
(1) The Minister of SMEs and Startups may designate a guiding agency that provides small and medium enterprises with management and technology guidance pursuant to Article 43 and may subsidize expenses incurred in relation to such guidance, if necessary. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for designating guiding agencies and the payment, use, and management of subsidies under paragraph (1) shall be prescribed by Presidential Decree. <Amended by Act No. 13095, Jan. 28, 2015>
 Article 45 (Preparation of Guidelines for Guidance)
The Minister of SMEs and Startups may establish and publicly announce the guidelines for the following matters necessary to consult on management and technology so that the guidance plan can be implemented efficiently: <Amended by Act No. 14839, Jul. 26, 2017>
1. Businesses eligible for consultation on management and technology;
2. Qualification requirements for persons who will provide consultation on management and technology;
3. Procedure for consultation on management and technology;
4. Measurement and evaluation of the outcomes of consultation on management and technology;
5. Disciplinary actions against insincere or unfair consultation;
6. Other guidelines for promoting sound consultation on management and technology.
 Article 46 (Qualifications, etc. for Consultants)
(1) Each person who passes an examination (referring to a qualification examination on consultation on management or technology; hereinafter the same shall apply) to qualify as a consultant, administered by the Minister of SMEs and Startups regarding consultation for small and medium enterprises on their management or technology, becomes a qualified consultant (referring to a management consultant or technology consultant; hereinafter the same shall apply). <Amended by Act No. 14839, Jul. 26, 2017>
(2) None of the following persons can be a consultant: <Amended by Act No. 12309, Jan. 21, 2014>
1. A person under adult guardianship;
2. A person declared bankrupt and not yet reinstated;
3. A person in whose case two years have not passed since his/her imprisonment without labor or greater punishment declared by a court, was completely executed or exempted;
4. A person subject to a suspended sentence of imprisonment without labor or greater punishment declared by a court;
5. A person in whose case two years have not passed since his/her former registration as a consultant was revoked pursuant to Article 53.
(3) The qualification examination for consultants under paragraph (1) shall consist of a primary test and a secondary test.
(4) The Minister of SMEs and Startups may designate a testing institution responsible for carrying out the affairs relating to the qualification examination for consultants under paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
(5) Qualifications for applying for the qualification examination for consultants under paragraph (3), test subjects, and methods for conducting such examination, the testing institution’s scope of work under paragraph (4), and other necessary matters, shall be prescribed by Presidential Decree.
(6) A person who intends to take a qualification examination for consultants shall pay a fee to a testing institution, as prescribed by Presidential Decree. <Newly Inserted by Act No. 13095, Jan. 28, 2015>
(7) In circumstances prescribed by Presidential Decree where an applicant erroneously pays or over-pays a fee, or withdraws his/her application for an examination, a testing institution shall refund the relevant examination fee to the applicant. <Newly Inserted by Act No. 13095, Jan. 28, 2015>
 Article 46-2 (Sanctions for Cheating in Examination)
The Minister of SMEs and Startups shall take a disposition suspending or nullifying a qualifying examination for consultants in which any of the following persons has taken, or revoke the passing decision of any of the following persons, and shall impose restrictions on his/her eligibility to take a qualifying examination for five years from the date such disposition is taken: <Amended by Act No. 14839, Jul. 26, 2017>
1. A person who engages in cheating during a qualifying examination for consultants;
2. A person who takes a qualifying examination for consultants by improper means.
[This Article Newly Inserted by Act No. 13095, Jan. 28, 2015]
 Article 47 (Consultants' Duties)
(1) Management consultants shall: <Amended by Act No. 13095, Jan. 28, 2015>
1. Comprehensively diagnose and provide guidance on business management;
2. Diagnose and provide guidance on personnel affairs, organization, labor, and office management;
3. Diagnose and provide guidance on financial management and accounting;
4. Diagnose and provide guidance on production and management of distribution;
5. Diagnose and provide guidance on management of sales and business of imports and exports;
6. Provide counseling, suggestions, and advice, and conduct survey, analysis, and confirmation related to the matters referred to in subparagraphs 1 through 5;
7. Perform affairs related to subparagraph 1, 2, 4 and 5 as an agency (including acting as an agency for declarations, applications, statements, reporting, etc. to be filed with institutions in accordance with the statutes related to small and medium enterprises).
(2) Technology consultants shall: <Amended by Act No. 13095, Jan. 28, 2015>
1. Comprehensively diagnose and provide guidance on technologies;
2. Diagnose and provide guidance on factory automation technology and process innovation technology;
3. Diagnose and provide guidance on industry-based technologies;
4. Diagnose and provide guidance on development of new technologies, including development of components, materials, and test products;
5. Diagnose and provide guidance on industrial experiments, analyses, and measurement;
6. Diagnose and provide guidance on information processing;
7. Diagnose and provide guidance on design technology, production technology, quality control technology, and design and packaging technology;
8. Diagnose and provide guidance on energy-saving technology, clean production technology, and facility management technology;
9. Diagnose and provide guidance on environment management;
10. Perform other duties incidental to those specified in subparagraphs 1 through 9, and provide counseling, suggestions and advice, conduct surveys, analyses, evaluation, verification, and act as agency (including acting as an agency for declarations, applications, statements, reporting, etc. to be filed with institutions in accordance with the statutes related to small and medium enterprises).
(3) The statutes related to small and medium enterprises in paragraph (1) 7 and (2) 10 refer to the statutes related to the management or technology of small and medium enterprises, including those under the jurisdiction of the Ministry of SMEs and Startups, and the detailed scope thereof shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 13867, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017>
 Article 48 (Exemption from Primary Tests)
(1) Any of the following persons shall be entitled to exemption from a primary test. In such case, the career provided for in subparagraphs 1 through 5 means the career in the relevant field after acquisition of an academic degree or qualification:
1. A professional engineer or a master craftsman defined in the National Technical Qualifications Act;
2. A holder of a doctor’s degree in business administration, economics, or natural science, with at least three years of lecturing experience in his/her major at a school specified in any subparagraph of Article 2 of the Higher Education Act or with at least three years of work experience at a guidance institution under Article 44 in relation to consultation on management or technology;
3. A holder of a master’s degree in the relevant field from a university or college offering courses related to small and medium enterprises, with at least five years of relevant experience;
4. A person who has worked at the field as an engineer defined in the National Technical Qualifications Act for at least seven years and as an industrial engineer for at least nine years;
5. A certified public accountant defined in the Certified Public Accountant Act with a career of working at the field for at least five years.
(2) A person who successfully passes the primary test under Article 46 (3) shall be exempted from the primary test for the immediately following examination, while a person who finishes the training course under Article 49 shall be exempted from the primary test conducted in the corresponding year and the following year.
 Article 49 (Training Courses for Consultants)
(1) If deemed necessary for training consultants, the Minister of SMEs and Startups may designate an institution responsible for operating and managing training courses for consultants, taking demand for consultants and other factors into account. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Criteria for designating institutions responsible for operating and managing training courses under paragraph (1), the qualification requirements for trainees eligible to take such training courses, and other matters necessary to operate the training courses shall be prescribed by Presidential Decree.
 Article 50 (Registration of Consultants)
(1) When a qualified consultant intends to commence providing his/her services as a consultant under Article 47, he/she shall first complete in-service training, as prescribed by Presidential Decree, and be registered with the Minister of SMEs and Startups. He/she shall file a report on alteration of any registered matter, as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 13095, Jan. 28, 2015; Act No. 14839, Jul. 26, 2017>
(2) Every consultant registered under paragraph (1) shall renew his/her registration every five years, as prescribed by Presidential Decree: Provided, That in the event of a natural disaster, or where the relevant consultant resides overseas for a long period, or in extenuating circumstances, he/she may apply for renewal of his/her registration within 30 days from the date the relevant ground ceases to exist. <Amended by Act No. 13095, Jan. 28, 2015>
(3) To renew the registration of a consultant under paragraph (2), the consultant shall have a record of actual performance as a consultant, as prescribed by Ordinance of the Ministry of SMEs and Startups. In such case, if a consultant fails to meet the standards prescribed by Ordinance of the Ministry of SMEs and Startups in terms of a record of actual performance, he/she shall attend a refresher-training course prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(4) No person who fails to be registered or to renew his/her registration under paragraph (1) or (2) shall represent that he/she is a consultant qualified under Article 46 (1), nor use any title similar thereto.
(5) A consultant registered under paragraph (1) may establish an office necessary for providing his/her services as a consultant.
 Article 51 (Consultants' Duty of Integrity)
(1) Every consultant shall perform his/her duties sincerely and shall keep his/her dignity.
(2) No consultant shall intentionally hide truth while carrying out his/her duties, or make a false report.
 Article 52 (Restrictions on Services for Specific Affairs)
No consultant shall provide any certification incidental to inspecting business management and technology to any of the following persons: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 13095, Jan. 28, 2015>
1. A person (including a company; hereafter the same shall apply in this Article) for which the consultant him/herself or his/her spouse serves as an executive officer or is in similar position, or works in a position responsible for financial affairs, or who has been in such position within the preceding year;
2. A person who him/herself is a current or former employer during the preceding year;
3. A person in whose case the relevant consultant or his/her spouse holds stocks or investment shares of at least 1/100 of the total number of issued stocks or investment shares;
4. A person who is liable to the relevant consultant or his/her spouse at least 100 million won;
5. A person who provides a relevant consultant with a consultant office, either free of charge or at a price substantially lower than an arm’s length price;
6. A person who pays remuneration continuously, or provides other special economic benefits, to the relevant consultant for any of his/her services, other than as a consultant.
 Article 53 (Revocation of Registration and Suspension of Business)
(1) If any consultant registered under Article 50 falls under any of the following cases, the Minister of SMEs and Startups may revoke his/her registration: Provided, That the Minister of SMEs and Startups must revoke the registration as a consultant who falls under subparagraph 1 or 2: <Amended by Act No. 13095, Jan. 28, 2015; Act No. 14839, Jul. 26, 2017>
1. If he/she has been registered or has renewed his/her registration by fraud or other improper means;
2. If he/she becomes disqualified prescribed in Article 46 (2);
3. If he/she discloses any confidential information he/she has become aware of in connection with his/her consulting services, to any third person;
4. If he/she lends his/her registration certificate to any third person;
5. If he/she engages in misconduct, or inflicts a serious loss upon any third person, either by intention or gross negligence, in connection with his/her consulting services.
(2) Any consultant who fails to renew his/her registration under Article 50 (2) shall cease to provide his/her services. In such case, such consultant may resume his/her services only after attending the refresher-training course referred to in the latter part of Article 50 (3) and obtaining the renewal of his/her registration.
 Article 53-2 (Notice, etc. of Revocation of Registration or Disposition Ordering Business Suspension)
When the Minister of SMEs and Startups revokes the registration of a consultant or imposes a disposition ordering business suspension thereon under Article 53, he/she shall give written notice thereof to the relevant consultant or his/her representative: Provided, That where it is impracticable to give such written notice due to reasons, such as unknown whereabouts of the relevant consultant or his/her representative, the Minister shall publicly announce the details thereof in the Official Gazette. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 13095, Jan. 28, 2015]
 Article 54 (Hearings)
The Minister of SMEs and Startups shall hold a hearing to revoke registration pursuant to Article 53 (1). <Amended by Act No. 14839, Jul. 26, 2017>
 Article 55 (Applications for Consultation, etc.)
(1) A small and medium entrepreneur who wants to receive consulting services on business management and technology may file an application with a person designated by the Minister of SMEs and Startups according to the guidance plan established under Article 43 or with a consultant registered under Article 50 (1). <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for filing applications for consulting services on business management and technology under paragraph (1) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(3) If deemed necessary to provide support as a result of guidance given in accordance with the guidance plan under Article 43, the Minister of SMEs and Startups may take necessary measures to give priority to providing such support. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 56 (Establishment of Training Plans)
(1) The Minister of SMEs and Startups shall establish a training plan (hereinafter referred to as "training plan"), which shall be implemented for small and medium entrepreneurs, their employees, and those for whom the Minister of SMEs and Startups deems necessary to provide training on business management and technology for small and medium enterprises to improve the managerial capability or technological level of small and medium entrepreneurs. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for establishing training plans under paragraph (1), shall be prescribed by Presidential Decree.
 Article 57 (Training Institutions)
(1) An institution responsible for conducting training in accordance with the training plan shall be the Small and Medium Business Corporation, or an institution or an organization designated by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for designating institutions or organizations under paragraph (1), shall be prescribed by Presidential Decree.
SECTION 5 Projects to Support Internationalization, etc.
 Article 58 (Projects to Support Internationalization)
(1) The Minister of SMEs and Startups shall implement projects to support creation of a foundation necessary for internationalizing small and medium enterprises and for their industrial technical ability to cooperate with foreign countries. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary concerning the projects to support internationalization under paragraph (1), shall be prescribed by Presidential Decree.
 Article 59 (Aids for Relocation of Manufacturing Facilities to Overseas)
When a small and medium entrepreneur intends to relocate his/her manufacturing facilities overseas, the Government may grant the following aids or take measures necessary for supporting such relocation: <Amended by Act No. 9160, Dec. 19, 2008; Act No. 10228, Apr. 5, 2010>
1. Granting a loan for exportation and overseas investment provided for in Article 18 of the Export-Import Bank of Korea Act;
2. Making investment or granting a loan from the Foreign Economic Cooperation Fund under Article 3 of the Economic Development Cooperation Fund Act;
3. Providing support from the overseas investment insurance provided for in the Trade Insurance Act;
4. Granting a loan from the Fund for the Establishment and Promotion of Small and Medium Enterprises provided for in Article 63;
5. Implementing preferential credit guarantee services necessary for providing supports set forth in subparagraphs 1 through 4;
6. Providing information for relocation of manufacturing facilities to overseas.
SECTION 6 Supports for Stable Business Management of Small and Medium Enterprises, etc.
 Article 60 (Assistance in Business Normalization)
(1) If a substantial number of small and medium entrepreneurs suffer, or are likely to suffer, hardship in their business management on any of the following grounds, the Minister of SMEs and Startups may take measures necessary for assisting them in normalizing their business: <Amended by Act No. 14839, Jul. 26, 2017>
1. If they suffer serious hardship in their business due to downfall in sales, temporary financial stringency, shortage of human resources, etc.;
2. If it is difficult for them to secure raw materials;
3. If there occurs such an event as temporary shutdown, permanent closure, suspension of operation due to a labor dispute in a related company.
(2) The Minister of SMEs and Startups may request the heads of related administrative agencies to take measures for assisting small and medium enterprises in normalizing their business, where deemed necessary in any case prescribed in paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
 Article 60-2 (Operation of System to Support Management Soundness of Small and Medium Enterprises)
(1) To strengthen the management soundness of small and medium enterprises and to prevent their management crisis, the Minister of SMEs and Startups may operate a system to support the management soundness of small and medium enterprises (hereinafter referred to as "support system"), which is a customized problem-solving system to assist enterprises in their growth and development. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The operation of the support system and other necessary matters shall be prescribed by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61 (Preparation and Implementation of Emergency Aid Plan for Business Stabilization)
(1) If the number of small and medium enterprises that temporarily suspend or permanently close their business or suspend operation increases or is likely to increase due to the occurrence of a natural disaster or calamity at a specific area, a drastic change in economic situations or any other similar cause or event, the Minister of SMEs and Startups may prepare and implement an emergency aid plan for business stabilization to assist the small and medium enterprises in stabilizing their business management. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The emergency aid plan for business stabilization referred to in paragraph (1) shall include the following matters: <Amended by Act No. 14839, Jul. 26, 2017>
1. Area eligible for the aid;
2. Businesses eligible for the aid;
3. Period for which the aid is provided;
4. Details of aids granted by each central administrative agency, including financial aids, business site development, human resources support, and technical guidance;
5. Other matters deemed necessary by the Minister of SMEs and Startups for providing emergency aids for business stabilization.
(3) Where the Minister of SMEs and Startups intends to prepare an emergency aid plan for business stabilization, he/she shall consult with the heads of relevant central administrative agencies, and may request the heads of the relevant central administrative agencies to present the outcomes of implementing the aid plans. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 61-2 (Opening of Account of Insurance for Trade Receivables of Small and Medium Enterprises)
(1) The Government may open an account of insurance for trade receivables of small and medium enterprises in the Korea Credit Guarantee Fund established under the Credit Guarantee Fund Act (hereinafter referred to as the "Credit Guarantee Fund") to avoid a chain reaction of bankruptcies caused by default on promissory notes or bills of exchange held by small and medium entrepreneurs defined in subparagraph 1 (a) and (b) of Article 2 in connection with commercial transactions, and by default on debts by debtors for trade receivables. <Amended by Act No. 14111, Mar. 29, 2016>
(2) Except as otherwise expressly prescribed in Articles 61-3 through 61-9, necessary matters regarding the receipts, operation, and management of contributions, insurance premiums, etc., for the account of insurance for trade receivables of small and medium enterprises, the scope of insurance policy holders, shall be prescribed by Presidential Decree. <Amended by Act No. 14111, Mar. 29, 2016>
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 61-3 (Financial Resources, Purposes, and Operation of Account)
(1) The account of insurance for trade receivables of small and medium enterprises (hereinafter referred to as "Account"), shall be created with the following financial resources:
1. Contributions from the Government, policyholders of insurance for trade receivables of small and medium enterprises, and other persons;
2. Insurance premiums;
3. Earnings from the operation of Accounts;
4. Other incidental income.
(2) The Account shall be managed for the following purposes:
1. Payment of insurance money for trade receivables of small and medium enterprises;
2. Expenses incurred in relation to the operation and management of assets of the Account.
(3) The surplus money placed to the Account shall be managed in the following manner:
1. Depositing at a financial institution;
2. Purchasing the State bonds, local government bonds, or bonds whose payment is guaranteed by the Government, a local government or a financial institution.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61-4 (Accounting and Settlement of Accounts)
(1) The fiscal year of the Account shall coincide with the fiscal year of the Government.
(2) The Credit Guarantee Fund shall manage the Account separately from other accounts.
(3) The Credit Guarantee Fund shall prepare a plan to manage the total revenues and total expenditures of the Account each fiscal year and submit the plan to the Minister of SMEs and Startups at least one month before the commencement of a fiscal year; and the Minister of SMEs and Startups shall approve it before the commencement of a fiscal year. The same shall also apply to the modification of such plan. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Credit Guarantee Fund shall prepare a statement of final account, a statement of financial position, and a statement of profit or loss of the Account each fiscal year and submit them to the Minister of SMEs and Startups by the end of February of the following year. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61-5 (Accumulation of Liability Reserves, etc.)
(1) The Credit Guarantee Fund shall set aside a liability reserve and a contingency reserve, respectively, in each term for settlement of accounts.
(2) Matters necessary for setting aside the liability reserve and the contingency reserve under paragraph (1), shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61-6 (Accounting of Profits and Losses)
(1) Where any profit accrues at the settlement of accounts of the Account, it shall be fully earmarked as the reserve.
(2) When any loss incurs at the settlement of accounts, it shall be offset with the reserve earmarked under paragraph (1), and if the reserve is insufficient to offset the loss, the shortage may be covered by the Government within budgetary limits.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61-7 (Operating Manual)
The Credit Guarantee Fund shall prepare an operating manual stating the following matters and obtain approval from the Minister of SMEs and Startups. The same shall also apply where it intends to modify the operating manual: <Amended by Act No. 14839, Jul. 26, 2017>
1. Matters concerning insurance premium rates;
2. Matters concerning the conclusion of insurance contracts;
3. Matters concerning the methods of operating insurance;
4. Matters concerning the payment of insurance money and subrogation of insurance;
5. Other matters necessary to provide insurance services.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61-8 (Supervision and Orders)
The Minister of SMEs and Startups shall supervise administrative affairs related to the operation and management of the Account and may issue necessary orders. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 61-9 (Maximum Amount of Insurance for Trade Receivables of Small and Medium Enterprises)
The maximum amount deposited in the account of insurance for trade receivables of small and medium enterprises by the Account, shall not exceed 17 times the aggregate of the contribution made under Article 61-3 (1) 1 and the reserve set side under Article 61-6.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62 (Support for Traditional Crafts Industry)
The Government and local governments may provide support to small and medium entrepreneurs who engage in the traditional crafts industry for their business stabilization, as prescribed by Presidential Decree.
SECTION 7 Support for Small and Medium Enterprises’ Family Business Succession
 Article 62-2 (Support for Family Business Succession)
The Government may provide necessary support to help facilitate family business succession by small and medium enterprises, including tax benefits as prescribed by tax-related Acts.
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 62-3 (Designation of Centers for Supporting Small and Medium Enterprises in Family Business Succession)
(1) The Minister of SMEs and Startups and a Mayor/Do Governor may designate an institution or an organization involved in supporting small and medium enterprises as a center for supporting small and medium enterprises in family business succession, in order to efficiently support smooth family business succession by small and medium enterprises. <Amended by Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017>
(2) The functions of the center for supporting small and medium enterprises in family business succession designated under paragraph (1) (hereafter in this Article referred to as a "support center") are as follows: <Amended by Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017>
1. Supporting formulation of plans for family business succession;
2. Providing information, education, and consulting services necessary for family business succession;
3. Certifying exemplary succession enterprises and rewarding such enterprises;
4. Identifying the best practices to facilitate smooth family business succession, including overseas cases;
5. Other functions entrusted by the Minister of SMEs and Startups or a Mayor/Do Governor to assist small and medium enterprises in their smooth family business succession, including raising awareness of family business succession.
(3) The Government and a local government may fully or partially subsidize expenses incurred in operating support centers. <Amended by Act No. 14111, Mar. 29, 2016>
(4) Criteria and procedures for designating support centers, the operation of the support centers, and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 62-4 (Requirements for Prestigious Long-Lived Enterprises)
A prestigious long-lived enterprise shall not engage in any type of business prescribed by Presidential Decree, such as construction business, real estate business, finance business, insurance and annuity business, and finance and insurance-related service business, and shall meet all of the following requirements:
1. It shall have continuously engaged in business for at least 45 years from the date of commencement of the business without changing its main type of business. In such case, details concerning the commencement of business and continuous engagement in business, shall be prescribed by Presidential Decree;
2. It shall be an enterprise meeting criteria prescribed by Presidential Decree in terms of its economic and social contributions;
3. It shall be an enterprise meeting criteria prescribed by Presidential Decree in terms of its brand value, level of patents it holds, superiority of its products, etc.;
4. It shall be an enterprise meeting criteria prescribed by Presidential Decree in terms of the ratio of its research and development costs to its gross sales.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-5 (Certification of Prestigious Long-Lived Enterprises)
(1) A small and medium enterprise that seeks certification as a prestigious long-lived enterprise, shall file an application for certification with the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Where an enterprise that has filed an application under paragraph (1) qualifies as a prestigious long-lived enterprise, the Minister of SMEs and Startups shall issue a certificate of prestigious long-lived enterprise, specifying the term of validity of the certificate, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(3) A small and medium enterprise certified under paragraph (2) may indicate the certification of a prestigious long-lived enterprise, as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(4) No person who fails to be certified as prescribed in paragraph (2) shall use the certification mark or any mark similar thereto, or use "prestigious long-lived enterprise" in his/her title.
(5) Matters necessary for certifying prestigious long-lived enterprises under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-6 (Revocation of Certification of Prestigious Long-Lived Enterprises)
(1) The Minister of SMEs and Startups may revoke the certification of a small and medium enterprise as a prestigious long-lived enterprise under Article 62-5, if any of the following applies to the small and medium enterprise: Provided, That he/she must revoke the certification, if subparagraph 1 applies to such enterprise: <Amended by Act No. 14839, Jul. 26, 2017>
1. Where it has obtained the certification by fraud or other improper means;
2. Where it fails to meet any of the requirements for prestigious long-lived enterprises prescribed in Article 62-4;
3. Where it is found unable to continue its business activities due to bankruptcy, closure, suspension of business or on other grounds;
4. Other cases prescribed by Presidential Decree, such as causing a social controversy.
(2) The Minister of SMEs and Startups shall hold a hearing to revoke certification of a prestigious long-lived enterprise pursuant to paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
(3) Upon revoking the certification of a prestigious long-lived enterprise, the Minister of SMEs and Startups shall promptly notify the heads of related central administrative agencies and the head of the competent local government of such revocation. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Specific criteria and detailed procedures for revocation of certification under paragraph (1) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
SECTION 8 Corporate Social Responsibility Management of Small and Medium Enterprises
 Article 62-7 (Support for Corporate Social Responsibility Management)
(1) Small and medium enterprises shall endeavor to engage in business activities, giving due consideration to their social responsibilities towards their employees, clients, customers, the local community, etc.
(2) The State and local governments may provide small and medium enterprises with necessary support for their business management in the area of corporate social responsibility
[This Article Newly Inserted by Act No. 11540, Dec. 11, 2012]
 Article 62-8 (Formulation of Master Plans for Fostering Small and Medium Enterprises that Integrate Corporate Social Responsibility into their Business)
(1) To foster small and medium enterprises that integrated corporate social responsibility into their business and to support them systematically, the Minister of SMEs and Startups shall formulate and implement a master plan for fostering small and medium enterprises that integrate corporate social responsibility into their business (hereinafter referred to as "master plan") every five years: Provided, That the Minister of SMEs and Startups may implement such master plan by including it in the comprehensive policies for sustainable management formulated under Article 19 of the Industrial Development Act. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Master plans shall include the following:
1. Basic direction-setting for, and objectives of, policies for promoting corporate social responsibility management of small and medium enterprises;
2. Matters concerning vitalizing corporate social responsibility management of small and medium enterprises;
3. Matters concerning supporting small and medium enterprises’ corporate social responsibility management;
4. Matters concerning a fact-finding survey of small and medium enterprises that integrate corporate social responsibility into their business;
5. Other matters prescribed by Presidential Decree for fostering and supporting small and medium enterprises that integrate corporate social responsibility into their business.
(3) The Minister of SMEs and Startups shall formulate and implement an annual implementation plan according to the relevant master plan. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Other matters necessary for formulating and implementing master plans and implementation plans shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 11540, Dec. 11, 2012]
 Article 62-9 (Designation of Support Centers for Small and Medium Enterprises that Integrate Corporate Social Responsibility into their Business)
(1) To support efficiently small and medium enterprises that integrate corporate social responsibility into their business, the Minister of SMEs and Startups may designate an institution or an organization involved in supporting small and medium enterprises, as a support center for small and medium enterprises that integrate corporate social responsibility into their business (hereafter in this Article referred to as "support center for corporate social responsibility management"). <Amended by Act No. 14839, Jul. 26, 2017>
(2) The support center for corporate social responsibility management shall perform the following functions: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. Providing guidelines for corporate social responsibility management of small and medium enterprises;
2. Training experts in corporate social responsibility management of small and medium enterprises;
3. Education and training for raising awareness of corporate social responsibility management of small and medium enterprises;
4. Providing information and consulting services necessary for corporate social responsibility management of small and medium enterprises;
5. Other services prescribed by Ordinance of the Ministry of SMEs and Startups as necessary to vitalize corporate social responsibility management of small and medium enterprises.
(3) The Minister of SMEs and Startups may provide a contribution or subsidy for support centers for corporate social responsibility management to cover expenses incurred in performing the functions prescribed in the subparagraphs of paragraph (2), within budgetary limits. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Minister of SMEs and Startups may revoke designation of a support center for corporate social responsibility management, if it fails to meet any of the criteria for designation prescribed under paragraph (5). <Amended by Act No. 14839, Jul. 26, 2017>
(5) Criteria and procedures for the designation of support centers for corporate social responsibility management, for the revocation thereof, and matters necessary for operating the support centers for corporate social responsibility management, shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 11540, Dec. 11, 2012]
SECTION 9 Support for Small Enterprises
 Article 62-10 (Special Cases concerning Establishment of Factories by Small Enterprises)
(1) If a small enterprise builds a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act or a place of work equivalent thereto, of less than 500 square meters, its business registration certificate issued under Article 8 of the Value-Added Tax Act shall be deemed a certificate prescribed by Presidential Decree, such as a document verifying that its factory has been registered under Article 16 of the Industrial Cluster Development and Factory Establishment Act.
(2) Where a small enterprise that has built a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act or a place of work equivalent thereto, of less than 1,000 square meters, intends to build a new factory, extends or relocates its factory (limited to where the aggregate of the building area of the factory and the area of its place of work equivalent thereto, does not exceed 1,000 square meters after building a new factory or extending or relocating its factory) in or to an area outside the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act (hereafter in this Article referred to as "area outside the Seoul Metropolitan area”), it is entitled to exemption from the following charges and expenses:
1. Farmland preservation charges levied under Article 38 of the Farmland Act;
2. Expenses incurred in creating forest replacement resources under Article 19 of the Mountainous Districts Management Act;
3. Development charges levied under Article 5 of the Restitution of Development Gains Act.
(3) Where a person who intends to develop a national industrial complex, general industrial complex, urban high-tech industrial complex, or agricultural and industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act, develops a national industrial complex, a general industrial complex, an urban high-tech industrial complex, or an agricultural and industrial complex within which at least 50/100 of all enterprises are small enterprises, in an area outside the Seoul Metropolitan area, the person is entitled to exemption from the charges and expenses referred to in the subparagraphs of paragraph (2).
(4) Methods of computing the building area of a factory or a place of work equivalent thereto under paragraphs (1) and (2), and other relevant matters, shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13095, Jan. 28, 2015]
 Article 62-11 (Formulation and Implementation of Measures to Assist Small Enterprises in Obtaining Credit Guarantees)
In order to support small enterprises efficiently as prescribed in this Act, the Government shall formulate and implement measures to assist small enterprises in obtaining credit guarantees.
[This Article Newly Inserted by Act No. 13095, Jan. 28, 2015]
 Article 62-12 (Support for Incorporation, etc. of Stock Companies by Small Enterprises)
The Minister of SMEs and Startups may assist a small enterprise in finance, business management, etc., if: <Amended by Act No. 14839, Jul. 26, 2017>
1. The small enterprise intends to incorporate a stock company;
2. The small enterprise intends to restructure from a limited company into a stock company.
[This Article Newly Inserted by Act No. 13095, Jan. 28, 2015]
 Article 62-13 (Support for Stable Business Management of Small Enterprises)
To support small enterprises in their stable business management, the Minister of SMEs and Startups may perform the following projects: <Amended by Act No. 14839, Jul. 26, 2017>
1. Counseling on business management, providing advice, and education of small enterprises;
2. Sales promotion of products of small enterprises;
3. Supporting small enterprises in their location;
4. Other matters necessary for stabilizing the business management of small enterprises.
[This Article Newly Inserted by Act No. 13095, Jan. 28, 2015]
SECTION 10 Promotion of Local Small and Medium Enterprises
 Article 62-14 (Basic Guidelines)
(1) The Minister of SMEs and Startups shall prepare basic guidelines to promote small and medium enterprises in each region (hereinafter referred to as "basic guidelines") for the following year, based on the comprehensive plan for fostering small and medium enterprises formulated under Article 19-2 of the Framework Act on Small and Medium Enterprises and the plan regarding the policies for fostering small and medium enterprises formulated under Article 20 of the same Act. <Amended by Act No. 14369, Dec. 2, 2016; Act No. 14839, Jul. 26, 2017>
(2) In preparing basic guidelines, the Minister of SMEs and Startups shall pre-consult with the heads of the relevant local governments. <Newly Inserted by Act No. 14369, Dec. 2, 2016; Act No. 14839, Jul. 26, 2017>
(3) The Minister of SMEs and Startups shall forward the basic guidelines to the Mayors/Do Governors by October 31 each year. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-15 (Formulation of Promotion Plans)
(1) A Mayor/Do Governor shall formulate a plan to promote local small and medium enterprises within his/her jurisdiction (hereinafter referred to as "promotion plan") for the following year and submit it to the Minister of SMEs and Startups by December 31 each year. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The promotion plan to be established by a Mayor/Do Governor shall contain the following, as prescribed by Presidential Decree: <Amended by Act No. 14839, Jul. 26, 2017>
1. Matters concerning agglomerating small and medium enterprises in each region and for each type of business by relocating enterprises or building new factories, and smooth supply of sites for places of work;
2. Matters concerning the supply of and demand for technical and skilled human resources;
3. Matters concerning creating an environment, making it possible for local small and medium enterprises to make smooth investments in facilities and to stabilize their management;
4. Matters concerning streamlining local small and medium enterprises that support manufacturing business;
5. Matters concerning the sale of products and services produced by local small and medium enterprises;
6. Matters concerning obtaining and managing funds from local government finance to implement the promotion plan;
7. Matters the Minister of SMEs and Startups requests to each City/Do regarding the matters prescribed in subparagraphs 1 through 5;
8. Other matters prescribed by Presidential Decree.
(3) Before formulating a promotion plan, a Mayor/Do Governor shall ascertain the status of enterprises within his/her jurisdiction and the status of their operation, including the number of enterprises, workers, etc., by type of business and by size, in cooperation with related institutions.
(4) To ascertain the status of enterprises and the status of their operation under paragraph (3), a Mayor/Do Governor may request the head of a specific local administrative agency, such as a regional tax office, regional employment and labor office, or regional environmental office, or the head of a related institution or organization to send or allow inspection of necessary materials, and the head of the specific local administrative agency or the head of the related institution or organization in receipt of such request shall comply therewith, unless any good cause exists.
(5) No Mayor/Do Governor shall use materials obtained under paragraph (4) for any purpose other than for formulating a promotion plan.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-16 (Adjustment of Promotion Plans)
(1) If a promotion plan submitted by a Mayor/Do Governor conflicts with the Government’s policies to promote small and medium enterprises, or if a promotion plan of a City/Do contains any content overlapping or conflicting with a promotion plan of any other City/Do as a result of examination, the Minister of SMEs and Startups may request the relevant Mayor/Do Governor to adjust the promotion plan. <Amended by Act No. 14839, Jul. 26, 2017>
(2) A Mayor/Do Governor in receipt of a request made by the Minister of SMEs and Startups under paragraph (1) shall comply therewith, unless any good cause exists. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-17 (Implementation of Promotion Plans and Support therefor)
(1) The head of a local government may take the following measures, if deemed necessary to implement a promotion plan smoothly: <Amended by Act No. 14476, Dec. 27, 2016>
1. Establishing and utilizing the fund for promoting local small and medium enterprises under the Local Autonomy Act;
2. Issuing local government bonds as prescribed by the Local Finance Act;
3. Deferring the collection of local taxes as prescribed by the Local Tax Collection Act.
(2) The Government may provide administrative support for a Mayor/Do Governor to implement a promotion plan smoothly, and the Minister of SMEs and Startups may provide support in raising the fund referred to in paragraph (1) 1. <Amended by Act No. 14839, Jul. 26, 2017>
(3) A Mayor/Do Governor shall use subsidies provided by the Minister of SMEs and Startups to raise the fund under paragraph (2) for implementing a promotion plan. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Minister of SMEs and Startups may establish necessary measures or request the head of a related central administrative agency to establish necessary measures, if deemed necessary to implement a promotion plan smoothly or if requested by a Mayor/Do Governor. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-18 (Analysis of Outcomes of Promotion Plans)
(1) Each Mayor/Do Governor shall analysis the outcomes of implementing a promotion plan each year and submit the findings from the analysis to the Minister of SMEs and Startups by the end of February of the following year. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups shall reflect the findings from analysis of outcomes of implementing promotion plans submitted by Mayors/Do Governors under paragraph (1), in the basic guidelines. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-19 (Support for Establishment of Factories)
(1) The Minister of SMEs and Startups may allow the Small and Medium Business Corporation to perform the following functions in order to support local small and medium enterprises in building factories smoothly in respective regions: <Amended by Act No. 14839, Jul. 26, 2017>
1. Establishing or acquiring factories; transferring or leasing factories owned by it to local small and medium enterprises under a long-term agreement;
2. Acting as an agent for establishing factories for local small and medium enterprises that intend to build factories;
3. Collecting and providing information on the relocation of local small and medium enterprises, and consulting thereon;
4. Connecting local small and medium enterprises that intend to relocate, with local governments that intend to induce them;
5. Other functions prescribed by Presidential Decree.
(2) Where the Small and Medium Business Corporation transfers a factory to a local small and medium enterprise under paragraph (1), it may collect the price for the transfer in long-term installments within a period prescribed by Presidential Decree.
(3) In performing the functions prescribed in paragraph (1), the Small and Medium Business Corporation shall endeavor to reduce costs necessary for local small and medium enterprises to establish factories, such as by developing the types of standard factories for each type of business, or by region or size.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-20 (Technology Improvement through Regional Collaboration)
(1) A local small and medium enterprise may engage in activities to improve technology (hereinafter referred to as "activities to improve technology through regional collaboration") in collaboration with any of the following institutions: <Amended by Act No. 14839, Jul. 26, 2017>
1. A local government;
2. A national or a public research institute;
3. A university, a college, or a junior college established under the Higher Education Act;
4. A specific research institute established under the Specific Research Institutes Support Act;
5. Other institutions prescribed by Ordinance of the Ministry of SMEs and Startups.
(2) To support activities to improve technology through regional collaboration, the Minister of SMEs and Startups may establish a regional collaborative technology support center under a national or public research institute specializing in industries prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Regional collaborative technology support centers shall provide the following services:
1. Cooperating with a local government to facilitate activities to improve technology through regional collaboration;
2. Identifying and analyzing technical challenges that local small and medium enterprises are facing at the field of production;
3. Ascertaining and analyzing the capability of the institutions referred to in the subparagraphs of paragraph (1) to support activities to improve technology through regional collaboration;
4. Connecting local small and medium enterprises that intend to engage in activities to improve technology through regional collaboration with the institutions referred to in the subparagraphs of paragraph (1);
5. Analyzing the status of activities to improve technology through regional collaboration engaged in by local small and medium enterprises.
(4) The Minister of SMEs and Startups may select an institution that actively develops technology by engaging in activities to improve technology through regional collaboration, as a model institution engaging in activities to improve technology through regional collaboration (hereinafter referred to as "model institution"), from among the institutions referred to in the subparagraphs of paragraph (1), and fully or partially subsidize expenses incurred in relation to activities to improve technology through regional collaboration engaged in by the model institution. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-21 (Development of Human Resources and Settling down in Region)
(1) The State and a local government may provide support for the Small and Medium Business Corporation or the Korea Industrial Complex Corporation established under the Industrial Cluster Development and Factory Establishment Act (hereafter in this Article referred to as the "Korea Industrial Complex Corporation") as follows, if it intends to conduct vocational training for workers of local small and medium enterprises or for persons who intend to work for local small and medium enterprises:
1. Transferring State-owned land or public land necessary for building a training establishment at a cost or under a long-term lease agreement;
2. Other matters prescribed by Presidential Decree.
(2) The State or a local government that transfers or leases State-owned land or public land to the Small and Medium Business Corporation or to the Korea Industrial Complex Corporation under paragraph (1) 1 may do so under a negotiated contract, notwithstanding the State Property Act, the Public Property and Commodity Management Act, and other statutes.
(3) In order to support residential stability of employees of local small and medium enterprises, the Government may grant a long-term, low-interest loans for settlement to persons who meet requirements prescribed by Presidential Decree, among the persons who intend to settle down in the region after finding jobs at the places of work of local small and medium enterprises.
(4) The Government may select a local small and medium enterprise that meet requirements prescribed by Presidential Decree, from among local small and medium enterprises that intend to develop technology continuously engaging in activities to improve technology through regional collaboration with a model institution, as a designated entity under Article 36 of the Military Service Act.
(5) The Government may select a person hired by a local small and medium enterprise selected as a designated entity under paragraph (4), who intends to continuously conduct research on the development of technology necessary for the local small and medium enterprises, in collaboration with a model institution, as expert research personnel under Article 37 of the Military Service Act.
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-22 (Administrative Support for Local Small and Medium Enterprises)
To efficiently perform the duties providing on-site support for local small and medium enterprises, the Minister of SMEs and Startups may render support to ensure that local organs of institutions prescribed by Presidential Decree that perform duties supporting local small and medium enterprises, are placed at specific locations in each region. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
 Article 62-23 (Designation of Areas in Need of Special Support for Local Small and Medium Enterprises)
(1) The Minister of SMEs and Startups may designate an industrial complex in a City/Do where the status of industrial clustering and industrial production substantially falls below the targets prescribed in the master plan for promoting industrial clustering formulated under Article 3 of the Industrial Cluster Development and Factory Establishment Act, as an area in need of special support for local small and medium enterprises. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Upon designating an area in need of special support for local small and medium enterprises, the Minister of SMEs and Startups shall publicly notify such designation. In such case, the valid term of designation shall be five years from the date of public notice. <Amended by Act No. 14839, Jul. 26, 2017>
(3) The Minister of SMEs and Startups and each Mayor/Do Governor shall give priority to developing local small and medium enterprises located in areas in need of special support for local small and medium enterprises when establishing and implementing promotion plans and when executing policies for creating an environment for business management of small and medium enterprises in each region. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14111, Mar. 29, 2016]
CHAPTER V FUND FOR ESTABLISHMENT AND PROMOTION OF SMALL AND MEDIUM ENTERPRISES
 Article 63 (Establishment of Fund for Establishment and Promotion of Small and Medium Enterprises)
With an aim of securing financial resources necessary for facilitating startup of new small and medium enterprises, balanced development of industries, establishment of industrial infrastructure, expansion of business sphere, and structural advancement, the Government shall establish the Fund for the Establishment and Promotion of Small and Medium Enterprises (hereinafter referred to as the "Fund"). <Amended by Act No. 9160, Dec. 19, 2008>
 Article 64 (Raising Fund)
(1) The Fund shall be raised from the following sources:
1. Capital contribution and loan from the Government or local governments;
2. Capital contribution and loan from those other than the Government or local governments;
3. Funds raised by issuing bonds pursuant to Article 65 and revenue from lottery tickets allocated pursuant to Article 23 (1) of the Lottery Tickets and Lottery Fund Act;
4. Deposits received from the Public Capital Management Fund under the Public Capital Management Fund Act;
5. Revenue accruing from the management of the Fund;
6. Other revenues prescribed by Presidential Decree.
(2) The Government shall include the capital contribution and loan into its estimated expenditures each fiscal year, within its budget limit.
 Article 65 (Issuance of Bonds)
(1) The Small and Medium Business Corporation may issue bonds on the account of the Fund with approval from the Minister of SMEs and Startups, subject to resolution by its board of directors. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups shall consult with the Minister of Strategy and Finance before approving the issuance of bonds pursuant to paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 14839, Jul. 26, 2017>
(3) The amount of bonds to be issued shall not exceed 20 times the Fund reserved. <Amended by Act No. 9888, Dec. 30, 2009>
(4) The Government may guarantee the redemption of the principal and interest of bonds issued by the Small and Medium Business Corporation.
(5) The extinctive prescription of bonds shall complete at the lapse of five years for principal and at the lapse of two years for interest, respectively, counting from the due date for redemption.
(6) Except as otherwise expressly prescribed in paragraphs (1) through (5), matters necessary to issue bonds shall be prescribed by Presidential Decree.
 Article 66 (Operation and Management of Fund)
(1) The Fund shall be operated and managed by the Small and Medium Business Corporation.
(2) through (4) Deleted. <by Act No. 9160, Dec. 19, 2008>
(5) A person responsible for management of the Fund may operate the Fund by granting loans, etc. in accordance with the plan for the operation of the Fund under Article 66-2. <Amended by Act No. 8804, Dec. 27, 2007; Act No. 9160, Dec. 19, 2008>
 Article 66-2 (Formulation of Draft Fund Management Plan and Settlement of Accounts of Fund)
(1) The Small and Medium Business Corporation shall undergo deliberations by the operating committee established under Article 71 and obtain approval from the Minister of SMEs and Startups in order to formulate a draft Fund management plan under Article 66 of the National Finance Act. The same shall apply where it seeks to amend the draft Fund management plan during the relevant fiscal year after such plan is confirmed by the National Assembly. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9160, Dec. 19, 2008; Act No. 14839, Jul. 26, 2017>
(2) The Small and Medium Business Corporation shall prepare a report on settlement of accounts of the Fund under Article 73 of the National Finance Act and submit the report to the Minister of SMEs and Startups within two months after the end of each fiscal year, after undergoing deliberations by the operating committee referred to in paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
(3) The Small and Medium Business Corporation shall allocate profits accruing at the settlement of accounts of the Fund in each fiscal year, to offset the loss carried forward, and set aside the balance thereof in the Fund.
(4) Where losses incur at the settlement of accounts of the Fund, the money set aside under paragraph (3) shall be allocated to offset such losses, and where the money set aside is insufficient, the Government shall cover the shortage. <Newly Inserted by Act No. 9888, Dec. 30, 2009>
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 67 (Use of Fund, etc.)
(1) The Fund may be used for the following purposes: <Amended by Act No. 9160, Dec. 19, 2008: Act No. 11178, Jan. 17, 2012; Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017>
1. Financial support to the operators of business incubators designated under Article 6 (1) of the Support for Small and Medium Enterprise Establishment Act, and to resident companies therein;
2. Investments in, or loans to, small and medium business start-up investment companies registered under Article 10 of the Support for Small and Medium Enterprise Establishment Act;
3. Investments in small and medium business start-up investment funds registered under Article 20 of the Support for Small and Medium Enterprise Establishment Act;
4. Financial support to small and medium business consulting companies under Article 31 of the Support for Small and Medium Enterprise Establishment Act;
5. Projects entrusted by the Minister of SMEs and Startups to provide support for small and medium business startups;
6. Support for automation of small and medium enterprises;
7. Support for informatization of small and medium enterprises;
8. Support for small and medium enterprises’ technology development and inter-industry exchanges;
9. Support for small and medium enterprises’ business conversion;
10. Support for small and medium enterprises’ endeavors to enter into new markets locally and internationally to sell their products and support for collaborative production;
11. Support for small and medium enterprises’ logistics modernization;
12. Support for small and medium enterprises’ cooperative projects;
13. Support for small and medium enterprises’ collaborative projects;
14. Support for small and medium enterprises’ site location and endeavors to reduce environmental pollution;
15. Guidance and training programs for small and medium enterprises and training of technical experts;
16. Support for small and medium enterprises’ internationalization;
17. Support for small and medium enterprises’ normalization of management;
18. Underwriting of stocks or debentures held by small and medium enterprises;
19. Installation and operation of facilities for the Small and Medium Business Corporation;
20. Projects entrusted by the Minister of SMEs and Startups to promote small and medium enterprises;
21. Leasing necessary facilities to small and medium enterprises, and collecting, disseminating, surveying, and researching related information;
22. Nurturing local small and medium enterprises, including support for creating the fund for promoting local small and medium enterprises under Article 62-17;
22-2. Projects prescribed in the subparagraphs of Article 28 of the Industrial Development Act;
22-3. Deleted; <by Act No. 11846, May 28, 2013>
23. Investments in or contributions to projects referred to in subparagraphs 6 through 21;
24. Projects incidental to those referred to in subparagraphs 1 through 21.
(2) Deleted. <by Act No. 9160, Dec. 19, 2008>
(3) Subsidies may be provided to small and medium entrepreneurs, organizations, etc., from the Fund, if necessary for performing projects referred to in the subparagraphs of paragraph (1). <Amended by Act No. 9160, Dec. 19, 2008>
(4) Matters necessary for the operation and management of the Fund, and subsidies that may be disbursed from the Fund, shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 8804, Dec. 27, 2007]
CHAPTER VI SMALL AND MEDIUM BUSINESS CORPORATION
 Article 68 (Establishment, etc. of Small and Medium Business Corporation)
(1) The Small and Medium Business Corporation shall be established to efficiently execute the projects for promoting small and medium enterprises.
(2) The Small and Medium Business Corporation shall be a legal entity, and shall be duly formed when it completes the registration for its incorporation at the registry office having jurisdiction over its principal place of business.
(3) The location of the principal place of business referred to in paragraph (2) shall be stipulated in the articles of incorporation, and the Small and Medium Business Corporation may have training centers, regional or branch offices, and other offices at any place as may be necessary in accordance with its articles of incorporation.
(4) The Small and Medium Business Corporation may establish and operate the automation support center and the informatization support center, as prescribed by Presidential Decree, in order to facilitate automation and informatization of small and medium enterprises.
(5) No one, other than the Small and Medium Business Corporation, may use a name that includes “the Small and Medium Business Corporation” or any similar name.
(6) The Government or any person may contribute funds as may be required for incorporating the Small and Medium Business Corporation.
(7) Any local government may grant a concession for any public property to the Small and Medium Business Corporation, as prescribed by Presidential Decree, if necessary for incorporating and operating the Small and Medium Business Corporation.
(8) Except as otherwise expressly prescribed by this Act, the provisions of the Civil Act applicable to the incorporated foundations shall apply mutatis mutandis to the Small and Medium Business Corporation.
 Article 69 (Establishment of Companies for Distributing Products of Small and Medium Enterprises)
(1) If deemed necessary for performing the business affairs prescribed in Article 74 (1) 5 and 19 efficiently, the Small and Medium Business Corporation may establish a company for assisting small and medium enterprises in finding new markets for their products, subject to approval from the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups shall consult with the competent Mayor/Do Governor before granting approval pursuant to paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
(3) A company established pursuant to paragraph (1) shall be deemed registered as a superstore defined in Article 8 of the Distribution Industry Development Act.
 Article 70 (Articles of Incorporation)
(1) The articles of incorporation of the Small and Medium Business Corporation shall include the following:
1. Objectives;
2. Name;
3. Matters concerning its principal place of business, training centers, regional or branch offices, and other offices;
4. Matters concerning executive officers and employees;
5. Matters concerning the operating committee and the board of directors;
6. Matters concerning the business affairs and the execution thereof;
7. Matters concerning the property and the accounts thereof;
8. Matters concerning the amendment to the articles of incorporation;
9. Method of giving public notice;
10. Matters concerning the establishment, amendment, and repeal of the regulations and rules.
(2) The Small and Medium Business Corporation shall obtain authorization of the Minister of SMEs and Startups to amend its articles of incorporation. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 71 (Operating Committee)
(1) The Small and Medium Business Corporation shall have an operating committee.
(2) The operating committee shall be comprised of one chairperson and not more than 20 committee members.
(3) The President of the Small and Medium Business Corporation shall serve as the chairperson, and the committee members shall be commissioned by the Minister of SMEs and Startups from among public officials of related administrative agencies and the persons who have abundant knowledge and experience in small and medium enterprises. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Committee members shall be non-standing.
(5) Matters necessary for the administration of the operating committee shall be prescribed by Presidential Decree.
 Article 72 (Executive Officers)
The Small and Medium Business Corporation shall have the following executive officers:
1. One president;
2. One vice-president;
3. Not more than five directors;
4. One auditor.
[This Article Wholly Amended by Act No. 13095, Jan. 28, 2015]
 Article 73 (Board of Directors)
(1) The Small and Medium Business Corporation shall have the board of directors to pass resolutions on important matters of the Small and Medium Business Corporation.
(2) The board of directors shall be comprised of the president, vice-president, and directors.
(3) Matters necessary for operating the board of directors shall be stipulated by the articles of incorporation.
 Article 73-2 (Restrictions on Representation by President of Small and Medium Business Corporation)
For matters for which interests of the Small and Medium Business Corporation conflict with interests of its president, the president of the Small and Medium Business Corporation shall not represent the Small and Medium Business Corporation, and the auditor shall represent the Small and Medium Business Corporation.
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 73-3 (Appointment of Proxy)
The President may appoint a proxy authorized to engage in all judicial or extrajudicial activities regarding the business affairs of the Small and Medium Business Corporation from among executive officers and employees.
[This Article Newly Inserted by Act No. 11540, Dec. 11, 2012]
 Article 73-4 (Prohibition against Divulging Confidential Information)
No current or former executive officer or employee of the Small and Medium Business Corporation shall divulge any confidential information he/she becomes aware of in the course of performing his/her duties to any third person, or misappropriate the confidential information.
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 74 (Business Affairs)
(1) The Small and Medium Business Corporation may perform the following business affairs regarding small and medium enterprises or provide support for such business affairs: <Amended by Act No. 12308, Jan. 21, 2014; Act No. 14839, Jul. 26, 2017>
1. Support for automation;
2. Support for informatization;
3. Support for technology development and inter-industry exchanges;
4. Support for business conversion;
5. Support for small and medium enterprises’ endeavors to enter into new markets locally and internationally and support for collaborative production;
6. Support for logistics modernization;
7. Promotion of cooperative projects, acquisition of land, buildings, facilities, etc., for cooperative projects, development of industrial complexes, or installation, leases, and transfer of common facilities;
8. Support for collaborative projects;
9. Support for site location;
10. Support for small and medium business startups;
11. Support for small and medium enterprises taking occupancy in agricultural and industrial complexes;
12. Support for reducing environmental pollution;
13. Diagnosis of and consultation on business management and technology, nurturing of professionals therefor, fostering private institutions, organizations, and business entities specializing in consultation on business management and technology, and the introduction and dissemination of technology;
14. Training for small and medium entrepreneurs, their employees, and consultants on business management and technology for small and medium enterprises, and nurturing of technical experts;
14-2. Projects designed to provide incentives in the form of monthly reserve accumulations to core human resources of small and medium enterprises, and other projects regarding support for human resources of small and medium enterprises;
15. Support for overseas investment and internationalization, including entry into overseas markets and cooperation in industrial technology with foreign countries;
16. Support for business normalization;
17. Underwriting of stocks and debentures held by small and medium enterprises;
18. Operation and management of the Fund;
19. Establishment and operation of exhibition centers and ancillary facilities in Korea and overseas, for supporting the sale of small and medium enterprises’ products;
20. Business affairs entrusted by the Minister of SMEs and Startups for promoting small and medium enterprises;
21. Collecting, disseminating, surveying, and researching information relating to small and medium enterprises;
22. Leasing facilities necessary for the projects and business affairs prescribed in subparagraphs 1 through 12, 15 and 20;
23. Projects and business affairs incidental to those prescribed in subparagraphs 1 through 21.
(2) In performing the projects and business affairs prescribed in paragraph (1), the Small and Medium Business Corporation may cooperate with local governments to provide support for small and medium enterprises.
(3) Matters necessary for cooperating with local governments under paragraph (2) shall be prescribed by Presidential Decree.
 Article 74-2 (Mitigation of or Exemption from Joint-Guaranteed Debt)
Notwithstanding Articles 250 (2), 567, 625 (3) of the Debtor Rehabilitation and Bankruptcy Act, where the Small and Medium Business Corporation is a creditor (limited to the business performed by granting loans under Article 66 (5) of this Act), joint-guaranteed debt of a small and medium enterprise shall also become mitigated or exempt, if the main debt becomes mitigated or exempt at the time it receives the decision for approval of its rehabilitation plan or the decision for immunity after being declared bankrupt.
[This Article Newly Inserted by Act No. 11540, Dec. 11, 2012]
 Article 75 (Funding)
(1) If required for the projects and business affairs prescribed in Article 74, the Small and Medium Business Corporation may obtain a loan locally or overseas, subject to approval from the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
(2) If deemed necessary for assisting the Small and Medium Business Corporation in performing the projects and business affairs prescribed in Article 74, the Government may grant contributions to the Corporation.
 Article 76 (Burden of Expenses)
The Small and Medium Business Corporation may require those who benefit from the projects and business affairs referred to in the subparagraphs of Article 74 (1) to bear the cost and expenses incurred in relation to such projects and business affairs.
 Article 76-2 (Requests for Data)
(1) The Small and Medium Business Corporation may request the State, a local government, the National Pension Service under the National Pension Act, the National Health Insurance Service under the National Health Insurance Act, the Korea Workers' Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act, and other public organizations prescribed by Presidential Decree to provide data necessary to perform the business affairs prescribed in subparagraphs of Article 74 (1).
(2) Any person requested to provide data under paragraph (1) shall comply with such request, except in extenuating circumstances.
[This Article Newly Inserted by Act No. 11540, Dec. 11, 2012]
 Article 77 (Budgeting and Settlement of Accounts)
(1) The Small and Medium Business Corporation shall formulate the budget for gross revenue and gross expenditure each business year, undergo deliberation by its operating committee and obtain approval from the Minister of SMEs and Startups. The foregoing shall also apply to any intended revision thereto. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Small and Medium Business Corporation shall submit the draft budget prepared to the Minister of SMEs and Startups by 20 days before the commencement of the relevant fiscal year to obtain approval from the Minister of SMEs and Startups in accordance with paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017>
(3) The Small and Medium Business Corporation shall prepare a report on the settlement of accounts and submit it to the Minister of SMEs and Startups after deliberation by its operating committee, within two months after the end of each fiscal year. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Small and Medium Business Corporation shall allocate profits accruing at the settlement of accounts in each fiscal year to offset losses carried forward and set aside the balance as prescribed by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 78 (Guidance on and Supervision of Business Affairs)
(1) The Minister of SMEs and Startups shall guide and supervise over the business affairs of the Small and Medium Business Corporation, and may give any directive or order for such affairs to the Corporation, if necessary. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for the Minister of SMEs and Startups to guide and supervise the Small and Medium Business Corporation, shall be prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
CHAPTER VII SUPPLEMENTARY PROVISIONS
 Article 79 (Reporting and Inspection)
(1) If deemed necessary for enforcing this Act, the Minister of SMEs and Startups may order any person involved in performing any project or business affair prescribed in Chapters II and IV to submit a report on the relevant project or business affair, or assign subordinate public officials to have access to the relevant office or business premises to inspect account books, documents, and other articles. <Amended by Act No. 9683, May 21, 2009; Act No. 14839, Jul. 26, 2017>
(2) Public officials assigned to conduct an inspection pursuant to paragraph (1), shall carry an identification indicating his/her authority and present it to interested persons.
 Article 79-2 (Operation of Information System on Policies for Small and Medium Enterprises)
(1) The Minister of SMEs and Startups may operate an information system on policies for small and medium enterprises, which provides information on policies by sector so that small and medium enterprise proprietors may conveniently use information on support policies for small and medium enterprises. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 14839, Jul. 26, 2017>
(2) Whenever relevant central administrative agencies, local governments, and corporations or organizations related to small and medium enterprises produce or change information related to paragraph (1), they shall take necessary measures to promptly register or renew such information in the information system on policies for small and medium enterprises.
(3) The Minister of SMEs and Startups may fully or partially subsidize expenses incurred in operating the information system on policies for small and medium enterprises, within budgetary limits. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 79-3 (Operation of Current Information System for Small and Medium Enterprises)
(1) The Minister of SMEs and Startups may operate a current information system for small and medium enterprises that collects and uses information on general status, such as types of business, regions and numbers of employees of individual small and medium enterprises, and information related to support, such as supporting institutions and details of support, and the relevant central administrative agencies, local governments, and corporations or organizations related to small and medium enterprises shall provide information related thereto. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups shall determine necessary matters, including institutions providing information under paragraph (1), information to be provided, methods of providing information, and control and use of information provided. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 8804, Dec. 27, 2007]
 Article 80 (Tax Support)
(1) The Government may provide tax support for small and medium enterprises, as prescribed by the tax-related Acts, in order to encourage startup of small and medium enterprises, to expand a foundation for business management, and to make structural advancement. <Amended by Act No. 14111, Mar. 29, 2016>
(2) The State and a local government may, if necessary, grant a tax reduction or exemption to small and medium enterprises located in an area in need of special support for local small and medium enterprises designated under Article 62-23, as prescribed by the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act. <Newly Inserted by Act No. 14111, Mar. 29, 2016>
 Article 81 (Relations to other Acts)
(1) Approval of an execution plan for an industrial complex development project that a small and medium entrepreneur, etc. has obtained under Article 31 (1) shall be deemed any of the following permission, decision, authorization, license, agreement, consent, approval, release, disposition, etc. (hereinafter referred to as "authorization or permission"), while a public announcement of the approval of an execution plan under Article 31 paragraph (4) shall be deemed a public notice or public announcement of authorization or permission under the following relevant Acts: <Amended by Act No. 8819, Dec. 27, 2007; Act No. 8976, Mar. 21, 2008; Act Nos. 9758 & 9774, Jun. 9, 2009; Act No. 10272, Apr. 15, 2010; Act No. 10331, May 31, 2010; Act No. 12248, Jan. 14, 2014; Act No. 12728, Jun. 3, 2014; Act No. 14480, Dec. 27, 2016>
1. Permission to partition a parcel of land and to alter the shape and quality thereof under Article 56 of the National Land Planning and Utilization Act, designation of an executor of an urban planning facility project under Article 86 of the same Act, and authorization of an execution plan under Article 88 of the same Act;
2. Authorization for waterworks business under Articles 17 and 49 of the Water Supply and Waterworks Installation Act, and authorization for installation of private-use waterworks under Articles 52 and 54 of the same Act;
3. Permission to execute a public sewerage construction project under Article 16 of the Sewerage Act;
4. Permission to occupy and use public waters under Article 8 of the Public Waters Management and Reclamation Act and approval for or reporting on an implementation plan for occupation and use under Article 17 of the same Act;
5. Permission to execute a harbor construction project under Article 9 (2) of the Harbor Act and approval of an execution plan under Article 10 (2) of the same Act;
6. Permission to execute river works under Article 30 of the River Act, permission to occupy and use a river under Article 33 of the same Act;
7. Permission to execute a road construction project under Article 36 of the Road Act or permission to occupy and use a road under Article 61 of the same Act;
8. Permission for, or consultation for conversion of farmland under Article 34 of the Farmland Act;
9. Permission for, or reporting on conversion of mountainous districts under Articles 14 and 15 of the Mountainous Districts Management Act, the permission for, or reporting on temporary use of mountainous districts under Article 15-2 of the same Act, and permission for, or reporting on lumbering standing trees, etc. under Articles 36 (1) and (4), and 45 (1) and (2) of the Creation and Management of Forest Resources Act;
10. Permission for lumbering, etc. under Article 14 of the Erosion Control Work Act, and revocation of designation of an erosion control area under Article 20 of the same Act;
11. Permission for conversion of grassland under Article 23 of the Grassland Act;
12. Permission for opening a private road under Article 4 of the Private Road Act;
13. Examination of request for publication of maps, etc. under Article 15 (3) of the Act on the Establishment, Management, etc. of Spatial Data;
14. Non-approval disposition under Article 24 of the Mining Industry Act, and a disposition of reducing a mining area or revoking mining rights under Article 34 of the same Act;
15. Permission for re-burial of a grave in which an unclaimed body is buried under Article 23 of the Act on Funeral Services, etc.;
16. Approval for using an agricultural production infrastructure under Article 23 of the Rearrangement of Agricultural and Fishing Villages Act.
(2) Where a Mayor/Do Governor intends to grant approval of an execution plan that contains the matters set forth in any subparagraph of paragraph (1), he/she shall pre-consult with the head of a relevant administrative agency.
(3) Any area covered by an approved execution plan shall be deemed designated as a promotional zone under Article 23 of the Industrial Cluster Development and Factory Establishment Act.
(4) Authorization that a small and medium entrepreneur, etc. has obtained for completion of an industrial complex development project in accordance with Article 32 shall be deemed a final inspection or completion approval of the project that is granted with the permission, authorization, license, agreement, consent, approval, or release which is deemed approval for the execution plan pursuant to paragraph (1).
(5) A small and medium entrepreneur who has taken a training course for industrial standardization and quality control at a training institution under Article 57 (1) shall be deemed to have completed a training course under Article 28 of the Industrial Standardization Act. <Amended by Act No. 13084, Jan. 28, 2015>
 Article 82 Deleted. <by Act No. 9683, May 21, 2009>
 Article 83 (Delegation or Entrustment of Authority)
(1) The Minister of SMEs and Startups may partially delegate his/her authority prescribed in this Act to the heads of its subordinate agencies or the Mayors/Do Governors, or may partially entrust his/her authority to the heads of other administrative agencies, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The business affairs over which the Minister of SMEs and Startups has control pursuant to Articles 29, 62-5 and 62-6 may be entrusted to the Korea Federation of Small and Medium Business or the Small and Medium Business Corporation, as prescribed by Presidential Decree. <Amended by Act No. 9683, May 21, 2009; Act No. 13316, May 18, 2015; Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017>
(3) Any of the following persons shall be deemed public officials for the purposes of Articles 129 through 132 of the Criminal Act: <Amended by Act No. 13316, May 18, 2015>
1. Executive officers or employees of the Korea Federation of Small and Medium Business or the Small and Medium Business Corporation performing the business affairs entrusted pursuant to paragraph (2);
2. Executive officers or employees performing the affairs regarding collaboration support projects at a dedicated institution.
 Article 83-2 (Re-Examination of Regulation)
The Minister of SMEs and Startups shall examine the appropriateness of the requirements for revocation of approval of action plans for cooperative movement under Article 30 (1) every three years, counting from January 1, 2015 (referring to a date before January 1 of every third year), and shall take measures, such as making improvements. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 13316, May 18, 2015]
CHAPTER VIII PENALTY PROVISIONS
 Article 84 (Penalty Provisions)
(1) Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended by Act No. 8804, Dec. 27, 2007; Act No. 11540, Dec. 11, 2012; Act No. 14685, Mar. 21, 2017>
1. Deleted; <by Act No. 9683, May 21, 2009>
2. A consultant who conceals truth or files a false report by intention in violation of Article 51 (2);
3. A person who, in violation of Article 73-4, divulges or steals confidential information which he/she learned in the course of performing his/her duties.
(2) Deleted. <by Act No. 9683, May 21, 2009>
 Article 85 (Joint Penalty Provisions)
(1) If the representative of a juristic person, or an agent, employee of, or any other person employed by the juristic person or an individual commits any violation under Article 84 in connection with the business affairs of the juristic person or individual, the juristic person or individual shall, in addition to punishing the violator accordingly, be subject to a fine under the relevant provisions: Provided, That this shall not apply where such juristic person or individual has not neglected to exercise reasonable care and supervision with respect to the relevant business affairs in order to prevent such violation. <Amended by Act No. 9160, Dec. 19, 2008>
(2) Deleted. <by Act No. 9160, Dec. 19, 2008>
 Article 86 (Administrative Fines)
(1) A person who uses the certification mark of a prestigious long-lived enterprise or any mark similar thereto, or a person who uses "prestigious long-lived enterprise" in his/her title, in violation of Article 62-5 (4), shall be subject to an administrative fine not exceeding ten million won. <Newly Inserted by Act No. 14111, Mar. 29, 2016>
(2) Any of the following persons shall be subject to an administrative fine not exceeding three million won: <Amended by Act No. 9160, Dec. 19, 2008; Act No. 14111, Mar. 29, 2016>
1. A person who represents himself/herself as a consultant under Article 46 (1) or uses any title similar thereto, in violation of Article 50 (4);
2. A person who performs the affairs pertaining to certification, in violation of Article 52;
3. A person who uses a name that includes “Small and Medium Business Corporation” or any similar name, in violation of Article 68 (5);
4. A person who fails to file a report under Article 79 or files a false report, or refuses, interferes with, or evades an inspection.
(3) Administrative fines referred to in paragraph (1) and (2) shall be levied and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017>
(4) through (5) Deleted. <by Act No. 9160, Dec. 19, 2008>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended subparagraph 8 (f) of Article 2, subparagraph 9 of Article 2, Articles 3 (1), 17 (4), and 18 (2), 19 through 23, 26, 29 (2), and 30, 31 (3) and (4), and 33 (3), Chapter IV Section 2 (Articles 37 through 40), Articles 44, 45, 46, 48, 49, 50 (2), 52, 57, 61, 67, 74 (1), 81 (1) (excluding subparagraph 3), 82, 83 (2), and 84 of this Act and Article 9 (5) of the Addenda shall enter into force on April 27, 2007; the amended Article 9 (7) of the Addenda shall enter into force on July 1, 2007; and the amended Article 81 (1) 3 shall enter into force on September 28, 2007.
Article 2 (Transitional Measures concerning Enforcement Date)
Until before the amended Articles 3 (1), 17 (4), 18 (2), 19, 22, 23, 26, 29 (2), 31 (4), 33 (3), 45, 46, 50 (2), 52, 57, 61, 67, 74 (1), 81 (1), 82, 83 (2), and 84 enter into force pursuant to the proviso to Article 1 of the Addenda, the former corresponding provisions of Articles 3 (1), 11-2 through 11-4, 14 (4), 14-2 (2), 16, 19 (2), 20 (3), 22 (3), 30, 31, 32 (2), 32-3, 36, 39-2, 46, 52 (1), 59 (1), 59-2, 60 (2), and 61 shall remain in force.
Article 3 (Period of Validity)
The amended Article 8 shall be effective until December 31, 2010.
Article 4 (General Transitional Measures concerning Dispositions, etc.)
An act done by, or against, an administrative agency as at the time this Act enters into force pursuant to the former provisions shall be deemed an act done by, or against, an administrative agency pursuant to the corresponding provisions of this Act.
Article 5 (Transitional Measures concerning Qualification Requirements for Consultants)
Any person qualified as a consultant pursuant to the former Article 31 (1) as at June 23, 2004, on which the Amendment to the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act (Act No. 7208) enters into force, shall be deemed qualified as a consultant pursuant to this Act.
Article 6 (Transitional Measures concerning Effective Period of Quality Certificate)
A quality certification that a person obtains from the SME Minister of the SMBA pursuant to the former Article 11-2 before April 27, 2007, on which the Partial Amendment to the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act (Act No. 8287) enters into force, shall be deemed effective until the end of the term of the quality certificate.
Article 7 (Transitional Measures concerning Qualifying Examination for Consultants)
The persons who has completed the training course under the former provisions before April 27, 2007, on which the Partial Amendment to the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act (Act No. 8287) enters into force, shall be exempt from the first primary tests conducted after the said Act enters into force, and also from the primary tests conducted as part of the next round of assessments.
Articles 8 (Transitional Measures for Penalty Provisions and Administrative Fines)
The former provisions shall govern when the penalty provisions and provisions concerning administrative fines applies to violations committed before this Act enters into force.
Article 9 Omitted.
Article 10 (Relationship to Other Statutes)
A citation of the former Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act or any provision thereof by any other statutes as at the time this Act enters into force, shall be deemed a citation of this Act or corresponding provisions hereof in lieu of the former provisions, if such corresponding provisions exist herein.
ADDENDA <Act No. 8367, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8486, May 25, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8804, Dec. 27, 2007>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) Omitted.
(3) (Relations to Other Statutes) In cases where other statutes cite the funds for supporting start-up small and medium enterprises, the funds for structural advancement of small and medium enterprises and the funds for fostering local small and medium enterprises, the funds for promoting small and medium enterprises under this Act shall be deemed to have been cited.
ADDENDA <Act No. 8819, Dec. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8976, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 9160, Dec. 19, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009.
Article 2 Omitted.
ADDENDUM <Act No. 9683, May 21, 2009>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 9758, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA <Act No. 9774, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 19 Omitted.
ADDENDUM <Act No. 9888, Dec. 30, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10228, Apr. 5, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10250, Apr. 12, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10252, Apr. 12, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 10272, Apr. 15, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 10331, May 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDUM <Act No. 11178, Jan. 17, 2012>
This Act shall enter into force on January 1, 2013.
ADDENDUM <Act No. 11540, Dec. 11, 2012>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11846, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 12248, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 25 Omitted.
ADDENDA <Act No. 12308, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 Omitted.
ADDENDA <Act No. 12309, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetents, Etc.)
Any person under adult guardianship pursuant to the amended provisions of Article 46 (2) 1 shall be deemed to include persons who have been declared and is currently incompetent or quasi-incompetent under Article 2 of the Addenda to the amended Civil Act (Act No. 10429).
ADDENDA <Act No. 12738, Jun. 3, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 13084, Jan. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Act No. 13095, Jan. 28, 2015>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of subparagraph 1-2 of Article 2, and Articles 62-8 through 62-10 shall enter into force on May 28, 2015, and the amended provisions of Articles 44 (2), 62-7 and 72 on the date of its promulgation.
ADDENDA <Act No. 13316, May 18, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended subparagraph 9 of Article 2, Articles 30 (1) and 83-2, shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Revocation of Approval of Collaborative Project Plans)
Notwithstanding the amended Articles 37, 38 and 40 (1), the former provisions shall apply where a collaborative project plan was approved by the SME Minister of the SMBA under the former provisions before this Act enters into force, and the implementation period of such collaborative project plan has not lapsed, as at the time this Act enters into force, until the implementation period of such collaborative projects lapses.
ADDENDUM <Act No. 13867, Jan. 27, 2016>
This Act shall enter into force one year after the date of its promulgation.
ADDENDA <Act No. 14111, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Areas in Need of Special Support for Local Small and Medium Enterprises)
An area in need of special support for local small and medium enterprises designated under Article 50 of the former Balanced Regional Development and Support for Local Small and Medium Enterprises Act as at the time this Act enters into force, shall be deemed an area in need of special support for local small and medium enterprises designated under this Act until the term of its designation.
Article 3 (Repeal of Other Statutes)
Article 4 Omitted.
Article 5 (Relationship with Other Statutes)
A citation of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act or any provisions thereof in other statutes as at the time this Act enters into force, shall be deemed a citation of this Act or the corresponding provisions of this Act in lieu of the former provisions, if such corresponding provisions exist herein.
ADDENDUM <Act No. 14369, Dec. 2, 2016>
This Act shall enter into force on January 1, 2017.
ADDENDA <Act No. 14476, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14480, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 14685, Mar. 21, 2017>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended parts of the Acts which were promulgated before this Act enters into force but the enforcement dates of which have not arrived yet among the Acts amended pursuant to Article 5 of the Addenda shall enter into force on the enforcement dates of respective Acts.
Articles 2 through 6 Omitted.