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SUPPORT FOR SMALL AND MEDIUM ENTERPRISE ESTABLISHMENT ACT

Wholly Amended by Act No. 8362, Apr. 11, 2007

Amended by Act No. 8466, May 17, 2007

Act No. 8606, Aug. 3, 2007

Act No. 8635, Aug. 3, 2007

Act No. 8819, Dec. 27, 2007

Act No. 8852, Feb. 29, 2008

Act No. 8974, Mar. 21, 2008

Act No. 8976, Mar. 21, 2008

Act No. 9160, Dec. 19, 2008

Act No. 9379, Jan. 30, 2009

Act No. 9401, Jan. 30, 2009

Act No. 9584, Apr. 1, 2009

Act No. 9685, May 21, 2009

Act No. 9758, jun. 9, 2009

Act No. 9770, jun. 9, 2009

Act No. 9774, jun. 9, 2009

Act No. 9889, Dec. 30, 2009

Act No. 10272, Apr. 15, 2010

Act No. 10310, May 25, 2010

Act No. 10331, May 31, 2010

Act No. 10354, jun. 8, 2010

Act No. 10533, Apr. 4, 2011

Act No. 10599, Apr. 14, 2011

Act No. 10892, Jul. 21, 2011

Act No. 11037, Aug. 4, 2011

Act No. 11483, Aug. 13, 2012

Act No. 11655, Mar. 22, 2013

Act No. 11690, Mar. 23, 2013

Act No. 11845, May 28, 2013

Act No. 12009, Aug. 6, 2013

Act No. 12246, Jan. 14, 2014

Act No. 12248, Jan. 14, 2014

Act No. 12310, Jan. 21, 2014

Act No. 12738, jun. 3, 2014

Act No. 12960, Jan. 6, 2015

Act No. 13089, Jan. 28, 2015

Act No. 13093, Jan. 28, 2015

Act No. 13158, Feb. 3, 2015

Act No. 13448, Jul. 24, 2015

Act No. 13453, Jul. 31, 2015

Act No. 13797, Jan. 19, 2016

Act No. 13868, Jan. 27, 2016

Act No. 14273, May 29, 2016

Act No. 14480, Dec. 27, 2016

Act No. 14532, Jan. 17, 2017

Act No. 14839, Jul. 26, 2017

Act No. 15139, Nov. 28, 2017

Act No. 15421, Mar. 2, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to the establishment of a solid industrial structure through sound development of small and medium enterprises by facilitating the establishment of small and medium enterprises and developing a firm basis for their growth.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016>
1. The term "business start-up" means the establishment of a new small and medium enterprise. The scope of business start-up in such cases shall be prescribed by Presidential Decree;
1-2. The term "business re-startup" means the establishment of a new small and medium enterprise after closing an existing small and medium enterprise. The scope of business re-startup in such cases shall be prescribed by Presidential Decree;
2. The term "business starter" means a person who starts up a small and medium enterprise or a person who has been engaged in his/her business for less than seven years since commencing the business. Further details concerning the business commencements in such cases shall be prescribed by Presidential Decree;
2-2. The term "business re-starter" means a person who starts up a new small and medium enterprise again or a person in whose case seven years have not passed since the date on which the person commenced business operations of a small and medium enterprise he/she restarted up. Further details concerning the commencement of business operations in such cases shall be prescribed by Presidential Decree;
2-3. The term "business starter at early stage" means a person in whose case three years have not passed since the date on which the person commenced business operations after starting up a small and medium enterprise;
3. The term "small and medium enterprise" means a small and medium enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises;
4. The term "investment company for the establishment of small and medium enterprise" means a company registered under Article 10, whose main business is to invest in business starters;
4-2. The term "accelerator" means a person registered under Article 19-2 as a person who engages mainly in the selection of business starters at early stage, etc., the investment in business starters at early stage, etc., and the specialized incubation of business starters at early stage, etc. (hereinafter referred to as "accelerator");
5. The term "small and medium enterprise establishment investment association" means an association registered under Article 20, with its main purpose to invest in business starters and distribute benefits therefrom;
6. The term "small and medium enterprise consulting company" means a company registered under Article 31, engaged in the business of assessing and evaluating the business feasibility of small and medium enterprises;
7. The term "business incubator" means a place of business whose main purposes are to provide business starters with facilities and spaces and to assist them in business management and technology in order to enhance the possibility of success in business start-up.
 Article 3 (Scope of Application)
This Act shall apply to business start-up: Provided, That this Act shall not apply to any of the following types of small and medium enterprises: <Amended by Act No. 10533, Apr. 4, 2011; Act No. 14273, May 29, 2016>
1. Financial business and insurance business: Provided, That the types of business specified by Presidential Decree, among the types of business of providing financial services by applying information and communications technology, shall be excluded herefrom;
2. Real estate business;
3. Other types of business specified by Presidential Decree.
 Article 4 (Establishment of Plan to Support Business Start-Up)
(1) The Minister of SMEs and Startups shall establish and publicly notify a plan to support starting up a small and medium enterprise for the purposes of facilitating business start-up and helping business starters' growth and development. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Government may provide business starters and persons who are engaged in the business of supporting business start-up prescribed by Presidential Decree, with support as may be necessary, including but not limited to investments, contributions, subsidies and loans.
(3) The Minister of SMEs and Startups may request the head of a relevant central administrative agency or the head of a local government to provide related materials in order to formulate a plan for supporting business start-up referred to in paragraph (1). <Newly Inserted by Act No. 10354, Jun. 8, 2010; Act No. 14839, Jul. 26, 2017>
 Article 4-2 (Implementation, etc. of Projects to Promote Starting Up Business)
(1) The Minister of SMEs and Startups may implement the following projects or develop and execute policies necessary to facilitate starting up small and medium enterprises and to boost the success rate in business start-up for business starters: <Amended by Act No. 12009, Aug. 6, 2013; Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017>
1. Finding and nurturing competent aspiring business starters (referring to persons that intend to establish small and medium enterprises; hereinafter the same shall apply) and supporting them;
2. Supporting the commercialization of outstanding ideas of the business starters;
3. Finding and nurturing aspiring or actual business starters through enterprises, organizations, etc. relating to business start-up;
4. Supporting aspiring or actual business starters to enter overseas markets;
5. Other projects prescribed by Presidential Decree, such as business start-up training and expansion of the infrastructure for business start-up.
(2) Where the Minister of SMEs and Startups promotes projects under paragraph (1), he/she may give preferential treatment to aspiring or actual young business starters prescribed by Presidential Decree. <Newly Inserted by Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups deems it necessary for promoting projects under paragraph (1), he/she may fully or partially contribute or subsidize expenses incurred in conducting the relevant business to universities, research institutes, public institutions, organizations related to business start-up, small and medium enterprises, and aspiring business starters within budgetary limits. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Matters necessary for the procedures and methods, etc. of contribution and subsidization under paragraph (3) shall be prescribed by Presidential Decree. <Amended by Act No. 13158, Feb. 3, 2015>
[This Article Newly Inserted by Act No. 10354, Jun. 8, 2010]
 Article 4-3 (Support for Business Re-Startup and Evaluation of Good Faith Management)
(1) The Minister of SMEs and Startups may formulate a plan for supporting business re-startup of small and medium enterprises, considering special needs of re-starters, in order to promote business re-startup and increase the rate of business success of re-starters. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Pursuant to the plan formulated under paragraph (1), the Minister of SMEs and Startups may implement programs for the following services as necessary for assisting persons who intend to re-start up a business after business closure, bankruptcy, etc. in their business re-startup: <Amended by Act No. 14839, Jul. 26, 2017>
1. Search of entrepreneurs seeking to re-start a new small and medium enterprise with good know-how and experience and education of such persons in business re-startup;
2. Improvement of systems hindering business re-startup by imposing various burdens, regulation, etc.;
3. Consulting service for business re-startup, including consulting on taxation and legal issues;
4. Expansion of facilities for supporting business re-startup, including the designation or operation of educational centers;
5. Financial support necessary for business re-startup and provision of information about financial policies;
6. Training of experts for education in business re-startup and consulting services;
7. Other programs that the Minister of SMEs and Startups deems necessary for supporting business re-startup.
(3) If necessary to formulate the plan prescribed in paragraph (1), the Minister of SMEs and Startups may request the head of any related central administrative agency or the head of any local government to provide relevant data. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Minister of SMEs and Startups may evaluate the performance of a person who intends to re-start up a business or has re-started up a business (hereinafter referred to as "evaluation of good faith management") to find whether the person has managed his/her business before re-starting up a new business without perpetrating accounting fraud, intentional default on payment, wrongful dismissal of employees, or any similar wrong and may use the outcomes of the evaluation for restricting financial support, such as contribution, subsidization, and loans, or for selecting persons eligible for support. <Amended by Act No. 14839, Jul. 26, 2017>
(5) If necessary for the evaluation of good faith management, the Minister of SMEs and Startups may request the head of any related administrative agency to provide the following data, with the consent of the person in question: <Amended by Act No. 14839, Jul. 26, 2017>
1. Past criminal records and past criminal investigation records made under Article 5-2 (2) of the Act on the Lapse of Criminal Sentences (limited to past criminal records and past criminal investigation records related to business management);
2. Records regarding violations of labor-related statutes, including the Labor Standards Act;
3. Other data specified by Presidential Decree as those necessary for examination.
(6) The Minister of SMEs and Startups may determine and publicly announce the guidelines necessary for the evaluation of good faith management. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 13868, Jan. 27, 2016]
 Article 4-4 (Support for Business Start-Up of Local Specialized Industry)
(1) The Minister of SMEs and Startups may establish a plan to promote business start-up in the business categories belonging to local specialized industries for the purpose of creating jobs in the relevant region and boosting a regional economy. <Amended by Act No. 14839, Jul. 26, 2017>
(2) A head of a local government may promote projects of identifying, nurturing, and supporting aspiring or actual business starters who own skills and experiences related to local specialized industries of the relevant local government based on the plan under Paragraph (1).
(3) The Minister of SMEs and Startups may request a head of a local government to submit relevant materials to establish a plan under Paragraph (1), if he/she deems it necessary. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 13158, Feb. 3, 2015]
 Article 5 (Furnishing Information about business start-up)
The Government shall take measures necessary for providing information about funds, human resources, technology, marketing channels, conditions of business locations, etc. required for business start-up and the growth and development of small and medium enterprises.
 Article 6 (Designation, etc. of Operators of Business Incubators)
(1) A person that establishes and runs a business incubator (including a person that intends to establish and run such business incubator; hereinafter referred to as "operator of a business incubator") and intends to receive the various support under this Act shall meet the following requirements and obtain designation from the Minister of SMEs and Startups: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. He/she shall have the following facilities and equipment:
(a) Equipment, such as testing or measuring instruments available for the use of business starters;
(b) Facilities with an area of 500 square meters available for the use of at least 10 business starters;
2. He/she shall have at least two experts, each of whom shall be a holder of a doctorate degree in business administration, an attorney under the Attorney-at-Law Act, or any other professional specified by Presidential Decree;
3. A business plan, etc. for implementing projects of the business incubator shall meet standards prescribed by Ordinance of the Ministry of SMEs and Startups.
(2) Notwithstanding the provisions of the State Property Act and other statutes, the State may grant a person who has moved into a business incubator (hereinafter referred to as “incubator tenant”) a reduction in or exemption from rent on a state-owned property, if necessary to enhance the possibility of success of their business start-up. <Amended by Act No. 12009, Aug. 6, 2013>
(3) Where the State grants a reduction in or exemption from rent on a state-owned property pursuant to paragraph (2), an annual rent on a state-owned property payable by the incubator tenant shall be as prescribed by Presidential Decree, not exceeding the property value multiplied by at least 1/100. <Newly Inserted by Act No. 12009, Aug. 6, 2013>
(4) In granting permission for the use of state-owned property, the period for permission for use thereof shall be prescribed in Article 35 of the State Property Act. <Newly Inserted by Act No. 12009, Aug. 6, 2013>
(5) Notwithstanding the provisions of the Public Property and Commodity Management Act and other statutes, each local government may grant incubator tenants a reduction in or exemption from rent on a public property, as prescribed by Presidential Decree. <Newly Inserted by Act No. 12009, Aug. 6, 2013>
 Article 7 (Business Start-Up Training)
The Minister of SMEs and Startups may provide business start-up training courses to youths, students in universities and colleges, business starters, etc. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 7-2 (Establishment, Operation, etc. of On-Campus Organizations Dedicated to Supporting Business Start-Up)
(1) Universities and colleges may have organizations exclusively dedicated to business start-up support (hereinafter referred to as “specialized business start-up support organizations”), as prescribed by the school regulations, to perform projects to promote on-campus business start-up.
(2) The Minister of SMEs and Startups may provide specialized business start-up support organizations with contributions to cover expenses incurred in operating those organizations or other necessary support. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Any specialized business start-up support organization that intends to receive support under this Act shall keep its account separate from other accounts of the relevant university or college to ensure clarity in its revenue and expenditure.
(4) Matters necessary for the affairs of specialized business start-up support organizations and for the operation of their accounts under paragraph (3) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
 Article 8 (Designation, etc. of Entrepreneur Graduate Schools)
(1) The Minister of SMEs and Startups may designate a graduate school of entrepreneurship (hereinafter referred to as "graduate school of entrepreneurship"), which aims at raising professionals in business start-up, among the graduate schools under Article 29 (1) of the Higher Education Act to contribute to the expenses incurred in their operation, etc. within budgetary limits or provide any other support as may be necessary. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups shall give a public notice of the matters necessary for the designation, support, etc., of graduate schools of entrepreneurship. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 9 (Preferential Funding Support)
In granting a subsidy from the Fund for the Promotion of Small and Medium Enterprises and the Development of Industrial Infrastructure Therefor under Article 63 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as "Small and Medium Business Establishment and Promotion Fund"), a person who is responsible for the management of such Fund may preferentially grant a subsidy from the Fund to any investment company for the establishment of a small and medium enterprise or any small and medium enterprise establishment investment association which meets the standards for the investment results, etc. prescribed by Presidential Decree. <Amended by Act No. 9160, Dec. 19, 2008; Act No. 9685, May 21, 2009>
 Article 9-2 (Business Start-up Policy Council)
(1) The Business Start-up Policy Council shall be formed as an organization affiliated to the Ministry of SMEs and Startups in order to consult with related central administrative agencies and institutions supporting business start-up on matters necessary for policies on support for business startup. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The composition, functions, and operation of the Business Start-up Policy Council prescribed in paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 13868, Jan. 27, 2016]
 Article 9-3 (Training, etc. of Specialized Human Resources for Investment Companies for Establishment of Small and Medium Enterprise)
In order to promote efficient operation of investment companies for the establishment of small and medium enterprises and their investments in business starters and venture businesses, the Minister of SMEs and Startups may assist such companies in the following business activities: <Amended by Act No. 14839, Jul. 26, 2017>
1. Training of specialized human resources for the investment companies for the establishment of small and medium enterprises prescribed in Article 10 (2) 3;
2. Attraction of foreign investments;
3. Other business activities specified by Presidential Decree for promoting investment in business starters and venture businesses.
[This Article Newly Inserted by Act No. 13868, Jan. 27, 2016]
CHAPTER II INVESTMENT COMPANIES FOR THE ESTABLISHMENT OF SMALL AND MEDIUM ENTERPRISES
 Article 10 (Registration)
(1) Any person that intends to receive support prescribed in this Act as a company engaged in any of the following businesses shall, as prescribed by Ordinance of the Ministry of SMEs and Startups, be registered as an investment company for the establishment of small and medium enterprises with the Minister of SMEs and Startups. The same shall also apply where the investment company for the establishment of small and medium enterprises intends to change important matters prescribed by Ordinance of the Ministry of SMEs and Startups, such as the name and seat of the company, among the entries registered: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 13093, Jan. 28, 2015; Act No. 14839, Jul. 26, 2017>
1. Investment in business starters;
2. Investment in venture business prescribed in the Act on Special Measures for the Promotion of Venture Businesses;
2-2. Investment in small and medium enterprises for technological innovation or management innovation prescribed in Articles 15 and 15-3 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises;
3. Organization and business of a small and medium enterprise establishment investment association and of the Korea Venture Fund prescribed in Article 4-3 of the Act on Special Measures for the Promotion of Venture Businesses;
4. Overseas investment by methods determined by the Minister of SMEs and Startups, such as acquisition of stocks of or stakes in foreign companies;
5. Investment in projects developed or designed by small and medium enterprises and operated in a way that their accounts are kept separate from other project accounts;
6. Business determined by the Minister of SMEs and Startups as businesses incidental to those under subparagraphs 1, 2, 2-2, 3 through 5.
(2) Any investment company for the establishment of small and medium enterprises shall meet all the following requirements: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9889, Dec. 30, 2009; Act No. 12009, Aug. 6, 2013; Act No. 12310, Jan. 21, 2014; Act No. 13868, Jan. 27, 2016>
1. It shall be a stock company prescribed in the Commercial Act and shall meet the criteria prescribed by Presidential Decree with regard to the amount of paid-in capital and the ratio of borrowed loans;
2. Its executive officer shall not fall under any of the following items. In such cases, items (g) and (h) shall apply to its representative director only:
(a) A minor, a person under adult guardianship, or a person under limited guardianship;
(b) A person that was declared bankrupt but has not been reinstated;
(c) A person in whose case five years have not passed since his/her imprisonment without labor or heavier punishment, as declared by a court, was completely executed (including cases where it is deemed that execution has been completed) or exempted.;
(d) A person that is under the suspension of the execution of imprisonment without labor or heavier punishment as declared by a court;
(e) A person in whose case five years have not passed since his/her punishment by a fine or a heavier punishment, as declared by a court for violating the Act on the Regulation of Conducting Fund-Raising Business without Permission or any other statutes related to finance prescribed by Presidential Decree, was completely executed (including cases where it is deemed that execution has been completed) or exempted;
(f) A person that was an executive officer of an investment company in establishment of small and medium enterprises as at the time the registration of the company was revoked by this Act and in whose case five years have not passed since the revocation of such registration (only applicable to a person that was directly responsible for occurrence of a reason of such revocation of registration or correspondingly responsible, or a person that was found unsuitable for affairs of investment in establishment of business, as a person prescribed respectively by Presidential Decree);
(g) A person that has failed to repay debts within a due date in commercial transactions, such as financial transactions, as a person prescribed by Presidential Decree;
(h) A large stockholder (referring to an investor prescribed by Presidential Decree; hereinafter the same shall apply in this Article) or an executive officer or employee of any other investment company for the establishment of small and medium enterprises;
(i) Where a reason of revocation prescribed in Article 43 arose before cancellation pursuant to Article 12, a person that was an executive officer as at the time of the cancellation of registration (only applicable to a person that was directly responsible for a reason of revocation of registration made under Article 43 or correspondingly responsible as a person prescribed by Presidential Decree) and was notified of such a reason and in whose case five years (seven years from the cancellation date of registration, where it exceeds seven years from the cancellation date of registration) have not passed from the date when such notification was received;
(j) A person in whose case five years have not passed since his/her dismissal or release from office prescribed in Article 42 (1) 1;
2-2. Its large stockholders shall have social credit prescribed by Presidential Decree;
3. It shall have full-time specialized human resources and facilities meeting the standards prescribed by Presidential Decree;
4. It shall have the system preventing conflicts of interests between business start-up investment companies and investors, specific investors and other investors.
(3) Where a person that fails to meet the conditions required under paragraph (2) 2-2 becomes a large stockholder by newly acquiring stocks, he/she may not exercise his/her voting rights to the newly-acquired stocks. <Newly Inserted by Act No. 12009, Aug. 6, 2013>
(4) Where a person that fails to meet the conditions required under paragraph (2) 2-2 becomes a large stockholder by newly acquiring stocks, the Minister of SMEs and Startups may direct him/her to dispose of the newly-acquired stocks within a period of up to six months. <Newly Inserted by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017>
 Article 11 (Succession to Rights and Obligations)
(1) When an investment company for the establishment of small and medium enterprise transfers its business or is merged or consolidated with another company, a transferee of the business or the corporation surviving the merger or resulting from the consolidation shall succeed to the status as an investment company for the establishment of small and medium enterprise under this Act: Provided, That the foregoing shall not apply where such transferee of the business, the corporation surviving the merger or resulting from the consolidation fails to meet the requirements prescribed in the subparagraphs of Article 10 (2).
(2) The person that succeeds to the status as an investment company for the establishment of small and medium enterprise under this Act shall report thereon to the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups, by no later than 30 days after the date of succession. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
 Article 12 (Deletion of Registration upon Application)
(1) An investment company for the establishment of small and medium enterprise may, if it is impossible or difficult for the company to continue the business prescribed in the subparagraphs of Article 10 (1), file an application to have the registration deleted 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) The Minister of SMEs and Startups shall, upon receipt of an application to have the registration deleted in accordance with paragraph (1), delete the registration without delay. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 13 (Publication of Registration, etc.)
The Minister of SMEs and Startups shall, if an investment company for the establishment of small and medium enterprise falls under any of the following subparagraphs, publish such fact through the Official Gazette, and inform the general public thereof via a computer communication network, etc. without delay: <Amended by Act No. 14839, Jul. 26, 2017>
1. When it has completed the registration under Article 10 (1);
2. When its registration is deleted pursuant to Article 12 (2);
3. When its registration is revoked pursuant to Article 43 (1).
 Article 14 (Public Disclosure of Investment Companies for Establishment of Small and Medium Enterprises)
(1) Each investment company for the establishment of small and medium enterprises shall make public disclosure of the following matters: <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14273, May 29, 2016>
1. Matters concerning its organization and human resources;
2. Matters concerning finance and profits and losses;
3. Matters concerning organization and performance of a small and medium enterprise establishment investment association;
4. Matters concerning measures to be taken where any measure for the improvement of business management is required under Article 42-2 (3) and where an order to suspend business operations or corrective order is issued, or a warning is given under Article 43 (6).
(2) Matters necessary for the timing and methods of the public disclosure prescribed in paragraph (1) shall be prescribed by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 15 (Restrictions on Activities of Investment Company for Establishment of Small and Medium Enterprises)
(1) No investment company for the establishment of small and medium enterprise shall engage in any of the following activities: Provided, That the foregoing shall not apply where such activity is unlikely to undermine the soundness of asset management by the investment company for the establishment of small and medium enterprise, as prescribed by Presidential Decree:
1. Investing in a company engaged in a type of business prescribed in the proviso to Article 3;
2. Investing in a company affiliated to an enterprise group subject to the limitations on mutual investments pursuant to Article 9 of the Monopoly Regulation and Fair Trade Act;
3. Acquiring or owning stocks of a financial institution specified by Presidential Decree;
4. Acquiring or owning any real property other than that for business purposes within the extent prescribed by Presidential Decree, such as a business incubator (hereinafter referred to as "real property for non-business purposes"): Provided, That the foregoing shall not apply where any real property for non-business purposes is acquired as a consequence of exercising its security right;
5. Undermining the purposes of its establishment, as prescribed by Presidential Decree.
(2) Any investment company for the establishment of small and medium enterprise shall, when it acquires any real property for non-business purposes as a consequence of exercising its security right in accordance with the proviso to paragraph (1) 4, dispose of such property within a period prescribed by Ordinance of the Ministry of SMEs and Startups, which shall not exceed one year. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
 Article 15-2 (Restrictions on Activities of Large Stockholders)
(1) No large stockholder of an investment company for the establishment of small and medium enterprise (including his/her specially related persons prescribed by Presidential Decree; hereinafter the same shall apply) shall engage in any of the following activities for the purpose of pursuing his/her own profits against the interests of the investment company for the establishment of small and medium enterprise:
1. Requiring the investment company for the establishment of small and medium enterprise to provide materials or information that is not disclosed outside of the company with intent to exercise undue influence over the company: Provided, That this shall not apply to the exercise of a right under Article 466 of the Commercial Act;
2. Exercising undue influence over the investment activity or other business management of the investment company for the establishment of small and medium enterprise in collusion with other stockholders under the condition of offering economic profits or other considerations;
3. Requiring the investment company for the establishment of small and medium enterprise to commit any illegal act;
4. Requiring the investment company for the establishment of small and medium enterprise to enter into transactions with the large stockholder or a third person under conditions significantly unfavorable to the company in terms of interest rates, fees, security, etc., compared with normal terms of dealings;
5. Other activities similar to those prescribed in subparagraphs 1 through 4, as prescribed by Presidential Decree.
(2) Where a large stockholder of an investment company for the establishment of small and medium enterprise is deemed to have violated paragraph (1), the Minister of SMEs and Startups may require the investment company for the establishment of small and medium enterprise or large stockholder to submit necessary materials. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
 Article 16 (Mandatory Investment by Investment Company for Establishment of Small and Medium Enterprises)
(1) Any investment company for the establishment of small and medium enterprise shall disburse at least a certain amount at the ratio prescribed by Presidential Decree, not exceeding 50 percent of its paid-in capital, for a business set forth in Article 10 (1) 1, 2, 2-2, 3 and 5, by no later than three years after its registration. In computing the amount disbursed for any business set forth in subparagraphs 1, 2, 2-2 and 5 of the same paragraph in such case, only the amount spent for any purpose specified by Ordinance of the Ministry of SMEs and Startups including acquisition of newly issued stocks or unsecured convertible bonds shall be included therein: Provided, That the foregoing shall not apply where an investment company for the establishment of small and medium enterprise organizes and runs a small and medium enterprise establishment investment association with a scale of at least the standard prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017>
(2) Any investment company for the establishment of small and medium enterprise shall maintain the required investment ratio under paragraph (1) even after three years have passed since its registration and, if an investment company for the establishment of small and medium enterprise fails to maintain the required investment ratio under paragraph (1) due to any ground acceptable to the Minister of SMEs and Startups, such as withdrawal of investment and business normalization, the Minister of SMEs and Startups may grant such company a grace period of up to one year, within which to perform the obligation of making an investment. <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017>
(3) Notwithstanding paragraph (1), if an investment company for the establishment of small and medium enterprise acquires any of the business starter’s stocks (limited to cases where the business starter acquired newly-issued stocks) held by an individual or a private investment association under Article 13 of the Act on Special Measures for the Promotion of Venture Businesses for at least three years, the amount of acquisition shall be calculated towards the amount corresponding to the required investment ratio under paragraph (1). <Newly Inserted by Act No. 12009, Aug. 6, 2013>
 Article 17 (Requirements for Overseas Investment by Investment Company for Establishment of Small and Medium Enterprises)
(1) Any investment company for the establishment of small and medium enterprise that has disbursed an amount at least ten percent of its paid-in capital for any business prescribed in Article 10 (1) 1, 2, and 2-2 for any purpose specified by Ordinance of the Ministry of SMEs and Startups in accordance with Article 16 (1) may make overseas investments in accordance with subparagraph 4 of the same paragraph within the limits of the amount disbursed for such business: Provided, That an investment company for the establishment of small and medium enterprise for which three years have elapsed since its registration may make overseas investment insofar as it has met the required investment ratio under Article 16 (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) The limit on the overseas investment under paragraph (1) shall be a ratio specified by Presidential Decree, not exceeding 40 percent of the company's paid-in capital.
 Article 18 (Borrowing of Funds)
(1) An investment company for the establishment of small and medium enterprise may, if necessary for carrying on its business, borrow funds from the Government, Funds established by the Government, domestic or foreign financial institutions, foreign governments or international organizations.
(2) Each investment company for the establishment of small and medium enterprise may issue bonds within the limit of ten times the aggregate of its total capital plus reserves to secure financial resources necessary to conduct its business.
 Article 19 (Reporting on Settlement of Accounts)
Each investment company for the establishment of small and medium enterprise shall submit a report on the settlement of accounts each fiscal year to the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
CHAPTER II-2 ACCELERATORS
 Article 19-2 (Registration, etc. of Accelerators)
(1) If any person engaging in the business referred to in Article 19-3 or 19-4 wishes to have support under this Act, the person shall register itself as an accelerator with the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups. The same procedure shall also apply where such person intends to amend any of the material facts specified by Ordinance of the Ministry of SMEs and Startups, including the name and domicile of a corporation, among facts registered by an accelerator. <Amended by Act No. 14839, Jul. 26, 2017>
(2) An accelerator shall meet the following criteria: <Amended by Act No. 14839, Jul. 26, 2017>
1. An accelerator shall be either of the following corporations that meet the relevant criteria:
(a) A company prescribed in the Commercial Act: The paid-in capital shall be at least the amount specified by Presidential Decree;
(b) A nonprofit corporation prescribed in the Civil Act, etc.: The assets contributed to the business referred to in Article 19-3 or 19-4 shall be at least the mount specified by Presidential Decree. In such cases, the nonprofit corporation shall keep records of the business in accounts separate from those for other business lines of the nonprofit corporation in accordance with Article 113 of the Corporate Tax Act so as to clarify revenue and expenditure for the business;
2. Any of its executive officers shall not fall under any of the following categories:
(a) A minor, an incompetent person under adult guardianship, or a quasi-incompetent person under limited guardianship;
(b) A person declared bankrupt but not yet reinstated;
(c) A person in whose case five years have not passed yet since imprisonment without labor or heavier punishment to which he/she was sentenced was completely executed (or is deemed to have been completely executed) or was remitted;
(d) A person who was sentenced to the suspension of imprisonment without labor or any heavier punishment and is still in the period of suspension;
(e) A person in whose case five years have not passed yet since a fine or any heavier punishment, to which he/she was sentenced for a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission or any other finance-related Act specified by Presidential Decree, was completely executed (or is deemed to have been completely executed) or was remitted;
3. Its business plans, etc. for engaging in the business referred to in Article 19-3 or 19-4 shall meet the standards prescribed by Ordinance of the Ministry of SMEs and Startups ;
4. It shall be equipped with full-time specialized human resources and facilities that meet the standards prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-3 (Selection of Business Starters at Early Stage and Investment in Them)
(1) An accelerator shall select business starters at early stage who it intends to support and shall invest at least the amount specified by Presidential Decree in them.
(2) An accelerator shall select business starters at early stage prescribed in paragraph (1) through a competition for selecting business starters or by any other fair method.
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-4 (Specialized Incubation, etc. of Business Starters at Early Stage)
(1) An accelerator shall assist business starters at early stage in the following activities (hereafter referred to as "specialized incubation" in this Chapter) at least for the period specified by Presidential Decree in order to raise the possibility of success of business starters at early stage: <Amended by Act No. 14839, Jul. 26, 2017>
1. Development of business models;
2. Development of technologies and products;
3. Securing of facilities and places;
4. Assistance in other activities specified by Ordinance of the Ministry of SMEs and Startups.
(2) An accelerator may assist business starters at early stage additionally in the following activities in order to improve the results of specialized incubation: <Amended by Act No. 14839, Jul. 26, 2017>
1. Alliance with investors;
2. Advertising of business starters at early stage;
3. Aquisition and merger with other companies;
4. Development of overseas markets for business starters at early stage;
5. Assistance in other activities specified by Ordinance of the Ministry of SMEs and Startups.
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-5 (Establishment, etc. of Private Investment Associations)
(1) An accelerator may establish a private investment association prescribed in Article 13 of the Act on Special Measures for the Promotion of Venture Businesses for the purpose of investing in business starters at early stage.
(2) Articles 13 (2) through (11), 13-2, and 13-3 of the Act on Special Measures for the Promotion of Venture Businesses shall apply mutatis mutandis to the operation, etc. of private investment associations. In such cases, "venture businesses or founders" in Articles 13 (5) and 13-2 of the afore-said Act shall be construed as "business starters at early stage."
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-6 (Assistance to Business Incubators in Conversion into Accelerators)
If a business incubator prescribed in Article 6 (1) is converted into an accelerator, the Minister of SMEs and Startups may fully or partially subsidize the business incubator for expenses incurred therein. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-7 (Formulation and Implementation of Measures for Fostering Accelerators)
The Government may formulate and implement policies necessary to foster internationally competent accelerators.
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-8 (Joint Public-Private Search and Fostering of Business Starters)
(1) The Minister of SMEs and Startups may implement projects for searching and fostering business starters jointly with accelerators for the growth and development of business starters. <Amended by Act No. 14839, Jul. 26, 2017>
(2) In order to efficiently implement a project for searching and fostering business starters prescribed in paragraph (1), the Minister of SMEs and Startups may select any of the following persons as the operator of the program (hereafter referred to as "project operator" in this Chapter"): <Amended by Act No. 14839, Jul. 26, 2017>
3. An investment companies for the establishment of small and medium enterprises prescribed in subparagraph 4 of Article 2;
4. A large company (referring to an enterprise that is not a small and medium enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises);
5. Other persons that meet the standards determined by the Minister of SMEs and Startups.
(3) The Minister of SMEs and Startups may grant subsidies for expenses incurred in relation to research and development or a fund for starting up a business preferentially to promising persons, among business starters found by project operators. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Detailed criteria for the selection of project operators prescribed in paragraph (2) shall be determined by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
 Article 19-9 (Application Mutatis Mutandis)
Except as otherwise provided for in Articles 19-2 through 19-8, Articles 11 through 14 shall apply to the registration, operation, etc. of accelerators. In such cases, "investment companies for the establishment of small and medium enterprises" in Articles 11 through 14 shall be construed as "accelerator," "Article 10 (2)" in Article 11 (1) as "Article 19-2 (2)," "Article 10 (1)" in Article 12 (1) as "Articles 19-3 and 19-4," and "small and medium enterprise establishment investment association" in Article 14 (1) 3 as "private investment association prescribed in Article 19-5."
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
CHAPTER III SMALL AND MEDIUM ENTERPRISE ESTABLISHMENT INVESTMENT ASSOCIATION
 Article 20 (Organization of Cooperatives, etc.)
(1) Where any of the following persons and any person who does not fall under any of the following subparagraphs jointly contribute to funds in order to organize a small and medium enterprise establishment investment association, the association shall be registered with the Minister of SMEs and Startups, as prescribed by Presidential Decree. The foregoing procedure shall also apply to an amendment to any of descriptions in the register. <Amended by Act No. 13868, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017>
1. An investment company for the establishment of a small and medium enterprise;
2. A new technology venture business entity prescribed in Article 41 of the Specialized Credit Finance Business Act;
3. A limited company or a limited liability company prescribed in Article 4-3 (1) 3 of the Act on Special Measures for the Promotion of Venture Businesses, which meets all the criteria determined by the Minister of SMEs and Startups.
(2) Each small and medium enterprise establishment investment association shall comprise of at least one member with unlimited liability for the cooperative's obligations (hereinafter referred to as "executive member") and members with limited liability for such obligations to the extent of their investments. In such cases, each executive member shall be a person specified in any of the following subparagraphs, and one of executive members shall be a person specified in any subparagraph of paragraph (1): <Amended by Act No. 9889, Dec. 30, 2009; Act No. 13868, Jan. 27, 2016>
2. A fund managing entity prescribed in Article 8 (1) of the National Finance Act who manages or operates funds listed in attached Table 2 of the same Act;
3. A juristic person who manages a mutual-aid business pursuant to Acts;
4. Other persons prescribed by Presidential Decree.
(3) Notwithstanding the former part of paragraph (2), an executive member shall be one person in cases where a public equity investment cooperative of business start-up prescribed in Article 47-2 (1) is established. <Newly Inserted by Act No. 9889, Dec. 30, 2009>
(4) No executive partner of a small and medium enterprise establishment investment association shall be transformed to any of the companies specified in paragraph (1) while operating the small and medium enterprise establishment investment association. <Newly Inserted by Act No. 13868, Jan. 27, 2016>
(5) Each member may invest the full amount of its investment in a lump sum or in installment, as stipulated by the by-laws of the cooperative.
(6) Matters necessary for the requirements for registration, management, etc. of a small and medium enterprise establishment investment association, including the amount of funds to be invested, number of members, and duration of existence shall be prescribed by Presidential Decree.
 Article 21 (Execution of Business Affairs, etc.)
(1) The business affairs of a small and medium enterprise establishment investment association shall be conducted by its executive member.
(2) The executive member owes a duty of care as a good manager in executing the business affairs under paragraph (1). In such cases, no executive member shall use any properties of the small and medium enterprise establishment investment association for its own or a third party's benefits.
(3) Any small and medium enterprise establishment investment association shall, by no later than three years after its registration, disburse at least a certain amount at the ratio prescribed by Presidential Decree, not exceeding 50 percent of its invested funds, for any business under Article 10 (1) 1, 2, 2-2 and 5 for purposes specified by Ordinance of the Ministry of SMEs and Startups pursuant to Article 16 (1) and (3): Provided, That the Minister of SMEs and Startups may grant a grace period of up to one year for the small and medium enterprise establishment investment association to fulfill its obligation to make an investment, if any small and medium enterprise establishment investment association fails to achieve the ratio prescribed by Presidential Decree by no later than three years after its registration due to withdrawal of the invested funds or any other reason acceptable to the Minister of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9379, Jan. 30, 2009; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017>
(4) No executive member shall borrow any funds, make any guarantee for payment, or pledge any properties as security in executing the business affairs of the small and medium enterprise establishment investment association.
(5) Article 15 shall apply mutatis mutandis to the executive member's execution of business affairs of the small and medium enterprise establishment investment association. In such cases, an "investment company for the establishment of small and medium enterprise" shall be construed as a "small and medium enterprise establishment investment association".
(6) Article 17 shall apply mutatis mutandis to overseas investments made by small and medium enterprise establishment investment association. In such cases, a "investment company for the establishment of small and medium enterprise" shall be construed as the "small and medium enterprise establishment investment association", and "paid-in capital" construed as "invested funds".
 Article 22 (Management and Operation of Assets of Small and Medium Enterprise Establishment Investment Association)
(1) An executive member shall manage the properties of the small and medium enterprise establishment investment association as follows: <Amended by Act No. 8635, Aug. 3, 2007>
1. He/she shall entrust a trust business entity under the Financial Investment Services and Capital Markets Act with the safekeeping of the properties of the small and medium enterprise establishment investment association;
2. He/she shall obtain approval from the general meeting of members before changing the trust business entity.
(2) A trustee under paragraph (1) shall conduct the following business:
1. Safekeeping and management of properties of the small and medium enterprise establishment investment association;
2. Acquisition and disposal of properties under the instructions of the executive member to manage properties of the small and medium enterprise establishment investment association.
(3) Where the executive member acquires stocks of a corporation listed in such securities market under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act as prescribed by the Minister of SMEs and Startups with properties of the small and medium enterprise establishment investment association, it shall not invest the amount exceeding 20/100 of the total amount of investment. <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9379, Jan. 30, 2009; Act No. 11845, May 28, 2013; Act No. 12310, Jan. 21, 2014; Act No. 14839, Jul. 26, 2017>
 Article 23 (Reporting on Settlement of Accounts)
Each executive member under Article 21 (1) shall submit a report on the settlement of accounts to the Minister of SMEs and Startups by no later than three months after the end of each business year of the small and medium enterprise establishment investment association, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 24 (Executive Member's Withdrawal)
No executive member may withdraw from the membership of small and medium enterprise establishment investment association, unless any of the following causes and events occurs:
1. When the registration of the investment company for the establishment of small and medium enterprise is revoked;
2. When the investment company for the establishment of small and medium enterprise becomes bankrupt;
3. When all members of the small and medium enterprise establishment investment association give unanimous consent for withdrawal.
 Article 24-2 (Transfer of Shares of Members)
(1) No executive partner may transfer all or some of its shares to a third party, without the consent of all other members.
(2) Shares of members with limited liability are transferable according to the relevant association agreement.
(3) Any person who acquires shares of a member with limited liability shall succeed to the transferor's rights and obligations to the association.
[This Article Newly Inserted by Act No. 13868, Jan. 27, 2016]
 Article 25 (Dissolution)
(1) A small and medium enterprise establishment investment association shall be dissolved when any of the following causes or events occurs: <Amended by Act No. 9889, Dec. 30, 2009>
1. Expiration of its duration of existence;
2. Withdrawal from membership by all members with limited liability;
3. Withdrawal from membership by all executive members who are investment companies for the establishment of small and medium enterprises;
4. De-registration of all executive members who are investment companies for the establishment of small and medium enterprises;
5. Any other cause or event prescribed by Presidential Decree.
(2) When any cause or event set forth in paragraph (1) 3 and 4 arises to a small and medium enterprise establishment investment association, the association may admit a replacement of the investment company for the establishment of small and medium enterprise as an executive member to maintain its operation, with the unanimous consent by all members with limited liability within three months after such cause or event arises, as prescribed by Presidential Decree. <Amended by Act No. 9889, Dec. 30, 2009>
(3) When a small and medium enterprise establishment investment association is dissolved, its executive member shall act as the liquidator: Provided, That any person other than the executive member may be appointed as the liquidator as stipulated in its by-laws.
(4) Any debts in excess of the amount of the invested funds, if any, at the time a small and medium enterprise establishment investment association is dissolved, shall be fully repaid by the executive member.
 Article 26 (Reporting on Results of Liquidation and De-Registration)
(1) Upon completion of affairs pertaining to liquidation, a liquidator under Article 25 (3) shall submit a report on the results thereof, without delay, to the Minister of SMEs and Startups, 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 a report under paragraph (1), the Minister of SMEs and Startups shall de-register the small and medium enterprise establishment investment association. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 27 (Protection of Association's Property)
Notwithstanding Articles 704 and 712 of the Civil Act, a creditor of a member of a small and medium enterprise establishment investment association may enforce his/her claims within the limit of the amount that such member has invested in the small and medium enterprise establishment investment association, when exercising such rights against the member.
 Article 28 (Appropriation of Earnings)
Each small and medium enterprise establishment investment association may pay the investment company for the establishment of small and medium enterprise, acting as an executive member, such performance-based remuneration linked to investment returns as stipulated by its by-laws, and matters necessary for the formula for computing the investment returns for the payment of such performance-based remuneration shall be prescribed by Presidential Decree.
 Article 29 (Public Disclosure of Cooperative)
An executive member shall keep and make available the following documents at its office for public inspection: <Amended by Act No. 14839, Jul. 26, 2017>
1. By-laws of the small and medium enterprise establishment investment association;
2. Reports on the settlement of accounts for each fiscal year;
3. Other documents concerning the management of the small and medium enterprise establishment investment association in accordance with the public notice given by the Minister of SMEs and Startups.
 Article 30 (Mutatis Mutandis Application of Civil Act)
Except as otherwise provided for in this Act, the provisions of the Civil Act governing cooperatives shall apply mutatis mutandis to a small and medium enterprise establishment investment association.
CHAPTER IV SMALL AND MEDIUM BUSINESS CONSULTING COMPANIES
 Article 31 (Registration of Small and Medium Business Consulting Companies)
(1) If any company engaged in any the following business activities intends to receive support under this Act, it shall register itself as a small and medium enterprise consulting company with the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups. The foregoing shall also apply to any changes in important matters already registered by the company, as specified by Ordinance of the Ministry of SMEs and Startups, including the name and address of the company: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10354, Jun. 8, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
1. Assessment of business feasibilities of small and medium enterprises;
2. Providing services for the improvement of business management and technology of small and medium enterprises;
3. Referral of business opportunities to small and medium enterprises;
4. Providing advices on and acting as a proxy in supplying and operating funds for small and medium enterprises;
5. Processing for business start-up on behalf of others;
6. Providing advices on establishment and operation of a business incubator center;
7. Other business activities incidental to those prescribed in subparagraphs 1 through 6, as specified by the Minister of SMEs and Startups.
(2) Any small and medium enterprise consulting company under paragraph (1) shall satisfy all the following requirements: <Amended by Act No. 12310, Jan. 21, 2014>
1. It shall be a company as defined in the Commercial Act, with a paid-in capital of no less than the amount prescribed by Presidential Decree;
2. None of its officers shall fall under any of the followings:
(a) A minor, a person under adult guardianship, or a person under limited guardianship;
(b) A person that was declared bankrupt, but not yet reinstated;
(c) A person for whom three years have not elapsed since a sentence of imprisonment without labor or heavier punishment imposed upon him/her has been fully executed (or deemed to have been fully executed) or exempted;
(d) A person that is still subject to a suspension period after he/she was sentenced to a suspension of execution of imprisonment without labor or heavier punishment;
(e) A person that fails to pay back any of his/her debts incurred in conducting financial or other commercial transactions within an agreed period, as prescribed by Presidential Decree;
3. It shall have professionals and facilities in compliance with the standards prescribed by Presidential Decree.
 Article 32 (Subsidization of Service Fees)
When a small and medium enterprise consulting company renders its service to business starters, the Minister of SMEs and Startups may grant subsidies for part of the service fees, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
CHAPTER V PROCEDURE, ETC. FOR business start-up
 Article 33 (Approval for Business Plans)
(1) A business starter who intends to engage in manufacturing (referring to the manufacturing business according to the Korean Standard Industrial Classification prepared and publicly announced by the Commissioner of the Statistics Korea under Article 22 (1) of the Statistics Act) shall prepare a business plan, as prescribed by Presidential Decree, and obtain approval therefor from the head of a Si/Gun/Gu (only referring to the head of an autonomous Gu; hereinafter the same shall apply). The same shall also apply where he/she intends to change a business operator, the size of the factory site, or any other important matter prescribed by Presidential Decree. <Amended by Act No. 12009, Aug. 6, 2013; Act No. 15139, Nov. 28, 2017>
(2) In granting approval for a business plan pursuant to paragraph (1), the head of a Si/Gun/Gu shall ensure that the building area of the relevant factory conforms to the standard factory area ratio prescribed in Article 8 of the Industrial Cluster Development and Factory Establishment Act.
(3) Upon receipt of an application for approval under paragraph (1), the head of a Si/Gun/Gu shall issue a notice as to whether the approval is granted to the applicant, within 20 days after he/she receives such application. In such cases, it shall be deemed that the approval is granted on the day immediately following the expiration of 20 days, if no notice is issued to the applicant as to whether the approval is granted.
(4) The Minister of SMEs and Startups may prepare and publicly notify guidelines necessary for dealing with affairs regarding approval for the business plan under paragraph (1) to simplify the process of a business start-up. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 34 (Preliminary Consultation)
(1) A business starter may request the head of a Si/Gun/Gu to consult in advance on the possibility of approval of a business plan, etc. before filing an application for approval of the business plan in accordance with Article 33 (1).
(2) Matters necessary for the procedure for preliminary consultation, etc. under paragraph (1) shall be prescribed by Presidential Decree.
 Article 35 (Relationship with other Acts)
(1) In granting approval for a business plan pursuant to Article 33 (1), it shall be deemed that permission, authorization, a license, approval, designation, a decision, reporting, release, or disuse (hereafter referred to as "permission, etc." in this Article) prescribed in the following subparagraphs has been obtained or completed in connection with matters on which the head of the relevant Si/Gun/Gu has discussed with the heads of other relevant administrative agencies pursuant to paragraph (4): <Amended by Act No. 8819, Dec. 27, 2007; Act No. 8976, Mar. 21, 2008; Act No. 9401, Jan. 30, 2009; Act No. 9758, Jun. 9, 2009; Act No. 10272, Apr. 15, 2010; Act No. 10331, May 31, 2010; Act No. 10354, Jun. 8, 2010; Act No. 10599, Apr. 14, 2011; Act No. 10892, Jul. 21, 2011; Act No. 12248, Jan. 14, 2014; Act No. 13797, Jan. 19, 2016; Act No. 14480, Dec. 27, 2016>
1. Approval for the establishment of a factory, etc. prescribed in Article 13 (1) of the Industrial Cluster Development and Factory Establishment Act;
2. Permission for timbering, etc. prescribed in Article 14 of the Erosion Control Work Act or cancellation of the designation of an erosion control area prescribed in Article 20 of the same Act;
3. Permission for occupancy and use of public waters prescribed in Article 8 of the Public Waters Management and Reclamation Act, authorization for an implementation plan for occupancy or use of public waters prescribed in Article 17 of the same Act, license for reclamation of public waters prescribed in Article 28 of the same Act;
4. Deleted; <by Act No. 10272, Apr. 15, 2010>
5. Permission for river construction works prescribed in Article 30 of the River Act or permission for occupancy prescribed in Article 33;
6. Permission for or reporting on conversion of a mountainous district prescribed in Articles 14 and 15 of the Mountainous Districts Management Act, permission for or reporting on temporary use of a mountainous district prescribed in Article 15-2 of the same Act, and approval for alteration of the purpose of use of a parcel of land converted from a mountainous district prescribed in Article 21 of the same Act, or permission for or reporting on timbering standing trees, etc. prescribed in Article 36 (1) and (4) of the Creation and Management of Forest Resources Act;
7. Permission for opening a private road prescribed in Article 4 of the Private Road Act;
8. Permission for development activities prescribed in Article 56 (1) of the National Land Planning and Utilization Act, designation of an executor of a City/Gun planning facility project prescribed in Article 86 of the same Act, or preparation of and authorization for an implementation plan prescribed in Article 88 of the same Act;
9. Permission for conversion of farmland prescribed in Article 34 (1) of the Farmland Act, reporting on conversion of farmland prescribed in Article 35 (1) of the same Act, or approval for change of purposes of use prescribed in Article 40 (1) of the same Act;
10. Permission for or report on conversion of grassland prescribed in Article 23 of the Grassland Act;
11. Permission for use of and profits from any State-owned property prescribed in Article 30 of the State Properties Act or disuse of a road, river system, ditch or embankment prescribed in Article 40 of the same Act;
12. Permission for occupancy and use of a road prescribed in Article 61 (1) of the Road Act;
13. Consultation on small environment impact assessment prescribed in the Environmental Impact Assesment Act;
14. Permission for use of an agricultural infrastructure under the main sentence of Article 23 (1) of the Rearrangement of Agricultural and Fishing Villages Act;
15. Permission for relocation of graves installed on other person's land prescribed in Article 27 (1) of the Funeral Services, etc. Act;
16. Permission for use of and profits from any administrative property prescribed in Article 20 (1) of the Public Property and Commodity Management Act or disuse of any administrative property prescribed in Article 11 of the same Act;
17. Permission for a land transaction contract prescribed in Article 11 of the Act on Report on Real Estate Transactions, Etc.
(2) In granting building permission prescribed in Article 11 of the Building Act for a factory for which a business plan has been approved pursuant to Article 33 (1), it shall be deemed that permission, authorization, approval, consent, examination or reporting prescribed in the following subparagraphs (hereafter referred to as "approval, etc." in this Article) has been obtained or completed in connection with matters on which the head of the relevant Si/Gun/Gu has consulted with the heads of other administrative agencies in accordance with paragraph (4): <Amended by Act No. 8466, May 17, 2007; Act Nos. 8974 & 8976, Mar. 21, 2008; Act No. 9770, Jun. 9, 2009; Act No. 10354, Jun. 8, 2010; Act No. 11037, Aug. 4, 2011; Act No. 11483, Aug. 13, 2012; Act No. 12246&12248, Jan. 14, 2014; Act No. 12960, Jan. 6, 2015; Act No. 13089, Jan. 28, 2015; Act No. 14532, Jan. 17, 2017; Act No. 15139, Nov. 28, 2017>
1. Permission for occupancy and use of a road prescribed in Article 61 (1) of the Road Act;
2. Permission for occupancy and use prescribed in Article 24 of the Sewerage Act or reporting on installation of a drainage system prescribed in Article 27 (3) and (4) of the same Act;
3. Reporting on installation of a private sewage treatment facility prescribed in Articles 34 (2) of the Sewerage Act;
4. Consent to building permission, etc. prescribed in Article 7 (1) of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Fire-Fighting Systems, reporting on construction works for a fire protection system prescribed in Article 13 (1) of the Fire-Fighting System Installation Business Act, or permission to build a workshop, etc. prescribed in Article 6 (1) of the Safety Control of Dangerous Substances Act;
6. Approval for or report on installation of waste treatment facilities prescribed in Article 29 (2) of the Wastes Control Act;
7. Authorization for installation of an exclusive water supply system prescribed in Articles 52 and 54 of the Water Supply and Waterworks Installation Act;
8. Authorization for or report on a construction plan for a private electric facility and equipment prescribed in Article 62 of the Electric Utility Act;
9. Permission for installation of a temporary depot for explosives prescribed in Article 25 (1) of the Act on the Safety Management of Firearms, Knives, Swords, Explosives, Etc.;
10. Building permission prescribed in Article 11 (1) of the Building Act, reporting on a building work prescribed in Article 14 (1) of the same Act, permission for or report on construction of a temporary structure prescribed in Article 20 (1) and (3) of the same Act, or reporting on erection of a structure prescribed in Article 83 (1) of the same Act;
11. Report on installation of a specific facility subject to the control of soil contamination prescribed in Article 12 of the Soil Environment Conservation Act;
12. Permission for the manufacturing business of gas appliances prescribed in Article 5 of the Safety Control and Business of Liquefied Petroleum Gas Act or permission for installation of storage facilities for liquefied petroleum gas prescribed in Article 8 of the same Act;
13. Permission to manufacture high-pressure gas and permission to install storage facilities for high-pressure gas prescribed in Article 4 of the High-Pressure Gas Safety Control Act, registration of manufacturing of containers, freezers and specific equipment prescribed in Article 5 (1) of the same Act, or report on the use of specific high-pressure gas prescribed in 20 (1) of the same Act;
14. Examination of a plan for prevention of harm and danger prescribed in Article 48 (4) of the Occupational Safety and Health Act and a process safety report prescribed in Article 49-2 (3) of the same Act.
(3) In granting approval for the use of a building pursuant to Article 22 of the Building Act for a factory built under a business plan approved pursuant to Article 33 (1), it shall be deemed that an inspection, reporting, consent, or application (hereinafter referred to as "inspection or the like") as prescribed in the following subparagraphs has been completed or obtained in connection with matters on which the head of the competent Si/Gun/Gu has consulted with the heads of other administrative agencies pursuant to paragraph (4): <Amended by Act No. 8466, May 17, 2007; Act No. 8974, Mar. 21, 2008; Act Nos. 9770 & 9774, Jun. 9, 2009; Act No. 10354, Jun. 8, 2010; Act No. 11037, Aug. 4, 2011; Act No. 12738, Jun. 3, 2014; Act No. 12960, Jan. 6, 2015; Act No. 13089, Jan. 28, 2015; Act No. 14532, Jan. 17, 2017; Act No. 15139, Nov. 28, 2017>
1. Final inspection conducted under Article 37 of the Sewerage Act;
2. Consent to the approval for use prescribed in Article 7 (1) of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Fire-Fighting Systems, final inspection of construction works for a fire-fighting system prescribed in Article 14 of the Fire-Fighting System Installation Business Act, or final inspection of construction works for workshops, etc. prescribed in Article 9 of the Safety Control of Dangerous Substances Act;
3. Report on the commencement of services of waste treatment facilities prescribed in Article 29 (4) of the Wastes Control Act;
4. Report on the commencement of operation of a discharging system, etc. prescribed in Article 30 (1) of the Clean Air Conservation Act and Article 37 of the Water Environment Conservation Act;
5. Final inspection conducted under Article 43 of the Act on the Safety Management of Firearms, Knives, Swords, Explosives, Etc.;
6. Conditional license for a business of manufacturing drinking spring-water prescribed in Article 23 (1) of the Management of Drinking Water Act;
7. Pre-use inspection of a private electric system prescribed in Article 63 of the Electric Utility Act;
8. Final inspection of installation of storage facilities and manufacturing facilities for gas appliances prescribed in Article 36 (2) of the Safety Control and Business of Liquefied Petroleum Gas Act;
9. Final inspection of installation works for manufacturing and storage facilities of high-pressure gas and the final inspection of installation works for manufacturing facilities of containers, etc. prescribed in the provisions of Article 16 (3) of the High-Pressure Gas Safety Control Act, and the final inspection of specific high-pressure gas facilities prescribed in Article 20 of the same Act;
11. Application for change of land description prescribed in Article 64 (2) of the Act on the Establishment, Management, etc. of Spatial Data.
(4) If any matter prescribed in paragraphs (1) through (3) among matters involved in granting approval for a business plan pursuant to Article 33 or building permission and approval for use prescribed in Articles 11 (1) and 22 (1) of the Building Act falls within the authority of any other administrative agency, the head of the relevant Si/Gun/Gu shall consult in advance with the head of an administrative agency, and the head of the administrative agency shall, upon receipt of a request for consultation, present his/her opinion within a period prescribed by Presidential Decree. In such cases, it shall be deemed that the head of the administrative agency has no objection unless he/she presents his/her opinion within the prescribed period. <Amended by Act No. 8974, Mar. 21, 2008>
 Article 36 (Consultation at Time of Enactment or Amendment of Statutes)
The head of the relevant administrative agency shall, when he/she intends to enact or amend any statute that governs any matter concerning approval of a business plan under Article 33, building permission under Article 11 (1) of the Building Act for a business starter's factory, or approval for use under Article 22 (1) of the said Act, consult in advance with the Minister of SMEs and Startups. <Amended by Act No. 8974, Mar. 21, 2008; Act No. 14839, Jul. 26, 2017>
 Article 37 (Revocation, etc. of Approval for Business Plans)
(1) If any person that has obtained approval for his/her business plan falls under any of the following subparagraphs, the head of a Si/Gun/Gu may revoke such approval for the business plan and the building permission for a factory involved or issue an order to reinstate the relevant land to its original state: <Amended by Act No. 12009, Aug. 6, 2013>
1. If such person fails to commence construction works for the factory before expiration of the period prescribed by Presidential Decree after the date of approval of the business plan, or suspends construction works for a period no less than that prescribed by Presidential Decree after commencement of such works for the factory;
2. If such person transfers to a third party the land for the site of the factory for which the business plan was approved, before reporting the completion of factory establishment, etc. under Article 15 of the Industrial Cluster Development and Factory Establishment Act: Provided, That this shall not apply where he/she transfers the land to the business starter;
3. If such person leases to a third party the land for the site of the factory for which the business plan was approved or uses the land for any purpose other than that for the factory;
4. If such person fails to complete construction works for the factory before expiration of the period prescribed by Presidential Decree after the date of approval of the business plan.
(2) If any person fails to restore the land to its original state, in violation of an order of restoration issued pursuant to paragraph (1), the head of a Si/Gun/Gu may restore it to the original state through vicarious execution.
(3) The provisions of the Administrative Vicarious Execution Act shall apply to the procedures of the vicarious execution under paragraph (2).
(4) The head of a Si/Gun/Gu shall hold a hearing whenever he/she intends to revoke the approval of a business plan pursuant to paragraph (1).
 Article 38 (Establishment of Business Start-Up Ombudsman Office)
(1) The Government may establish an office responsible for receiving and processing civil petitions filed in connection with business start-up (hereinafter referred to as "small and medium enterprise start-up ombudsman office") in each Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, Special Self-Governing Province or Si/Gun/Gu for the convenience of civil petitioners. <Amended by Act No. 12009, Aug. 6, 2013>
(2) Necessary matters for the establishment and operation of small and medium enterprise start-up ombudsman offices shall be prescribed by Presidential Decree.
 Article 39 (Establishment of Organizations Exclusively Dedicated to Promotion of Business Start-Up)
(1) The Minister of SMEs and Startups may establish an organization exclusively dedicated to the affairs pertaining to the promotion of business start-up (hereafter referred to as "specialized organization" in this Article). <Amended by Act No. 14839, Jul. 26, 2017>
(2) Matters necessary for the establishment and operation, etc. of the specialized organization under paragraph (1) shall be prescribed by Presidential Decree.
 Article 39-2 (Contribution, etc. to Youth Entrepreneurship Incorporated Foundation)
The Minister of SMEs and Startups may invest in or assist a non-profit corporation that has obtained permission for its incorporation from the Minister of SMEs and Startups under Article 32 of the Civil Act within budgetary limits, insofar as they are mainly engaged in any of the following business to foster challenging spirit, creativity and innovation ability, etc. (hereafter referred to as "entrepreneurship" in this Article) in youths and aspiring business starters, etc.: <Amended by Act No. 14839, Jul. 26, 2017>
1. Plan, develop and research projects that can promote entrepreneurship;
2. Research the actual conditions of, prepare and use statistics on, entrepreneurship;
3. Develop and disseminate education courses and materials on entrepreneurship for youths and aspiring business starters, etc., and manage and operate educational projects relating thereto;
4. Create an atmosphere to spread entrepreneurship, such as discovery and spread of best practices on entrepreneurship;
5. Identify and remove obstacles to entrepreneurship and create better conditions for re-startup;
6. Engage in any other business designated and entrusted by the Minister of SMEs and Startups to foster and spread entrepreneurship.
[This Article Newly Inserted by Act No. 10533, Apr. 4, 2011]
 Article 39-3 (Exemption from Charges and Fees)
(1) A business starter who obtains approval for his/her business plan under Article 33 shall be exempted from the following charges and fees for five years from the commencement date of the business: <Newly Inserted by Act No. 13158, Feb. 3, 2015>
1. Farmland preservation charges under Article 38 (1) of the Farmland Act;
2. Charges for the development of substitute grasslands under Article 23 (6) of the Grassland Act.
(2) A person who starts up a small and medium enterprise in order to engage in the manufacturing business under the Korea Standard Industry Code, which is prepared and publicly notified by the Commissioner of the Korea National Statistical Office pursuant to Article 22 (1) of the Statistics Act, shall be exempted from the following charges and fees for three years from the commencement date of the business: <Amended by Act No. 10354, Jun. 8, 2010; Act No. 14532, Jan. 17, 2017>
2. Farmland preservation charges under Article 38 (1) of the Farmland Act;
3. Charges for the development of substitute grasslands under Article 23 (6) of the Grassland Act;
5. Basic charges under Article 35 (2) 1 of the Clean Air Conservation Act (applicable only to the businesses that emit, in the aggregate, less than 10 tons per year of air pollutants);
6. Basic effluent charges under Article 41 (1) 1 of the Water Environment Conservation Act (applicable only to the business premises from which wastewater discharged a day is less than 200 cubic meters);
7. Waste charges under Article 12 (1) of the Act on the Promotion of Saving and Recycling of Resources (applicable only to the manufacturers whose annual sales turnover is less than two billion won);
8. Water use fees under Article 19 (1) of the Act on the Improvement of Water Quality and Support for Residents of the Han River Basin;
9. Water use fees under Article 30 (1) of the Act on Water Management and Resident Support in the Geum River Basin;
10. Water use fees under Article 32 (1) of the Act on Water Management and Resident Support in the Nakdong River Basin;
11. Water use fees under Article 30 (1) of the Act on Water Management and Resident Support in the Yeongsan and Seomjin River Basins.
12. Expenses incurred in creating forest replacement resources as defined in Article 19 (1) of the Mountainous Districts Management Act.
(3) Such matters as the procedures for and methods of exemption from charges and fees under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 10354, Jun. 8, 2010>
[This Article Newly Inserted by Act No. 8606, Aug. 3, 2007]
[Paragraph (2) of this Article shall remain in force until Aug. 2, 2022 under paragraph (2) of the Addenda to Act No. 8606, Aug. 3, 2007]
 Article 39-4 (Special Treatment in Registration of Factory for Business Start-Up by Division of Business)
Where a small and medium enterprise, which starts its business by separating a part of business of a domestic corporation under subparagraph 1 of Article 1 of the Corporate Tax Act (hereafter referred to as "domestic corporation" in this Article), meets all of the following requirements, a business registration certificate issued under Article 5 of the Value-Added Tax Act shall be deemed as a document certifying registration of a factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act for two years from the date of business commencement:
1. A person who has been a director or employee of a domestic corporation shall be the representative, the largest shareholder, or the largest investor;
2. The contracts with the domestic corporation for the division of business and joint use of all or a part of a factory of the relevant domestic corporation shall be concluded in writing.
[This Article Newly Inserted by Act No. 10354, Jun. 8, 2010]
 Article 39-5 (Installation and Operation of Support System to Help Starting Home-Based Business)
(1) The Minister of SMEs and Startups may establish and operate a system which allows people to set up a business through such information and communications network as defined in subparagraph 10 of Article 2 of the Electronic Government Act (hereafter referred to as "support system to help starting a home-based business" in this Article). <Amended by Act No. 14839, Jul. 26, 2017>
(2) Relevant central administrative agencies and other related institutions shall provide cooperation, such as expedited processing of the related affairs under their jurisdiction, to ensure that the procedures for business start-up through the support system to help starting a home-based business can be progressed smoothly.
(3) The Minister of SMEs and Startups may, within budgetary limits, fully or partially subsidize the expenses incurred by the relevant central administrative agencies and other related institutions for operation of individual systems linked to the support system to help starting a home-based business. <Amended by Act No. 14839, Jul. 26, 2017>
(4) Matters concerning the procedures and methods necessary for installing and operating the support system to help starting a home-based business other than those provided for in paragraphs (2) and (3) shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 10354, Jun. 8, 2010]
CHAPTER VI SUPPLEMENTARY PROVISIONS
 Article 40 (Reporting and Inspection)
(1) If the Minister of SMEs and Startups deems it necessary, he/she may require an investment company for the establishment of a small and medium enterprise, an accelerator, the executive member of a small and medium enterprise establishment investment association, a small and medium enterprise consulting company, the operator of a business incubator to submit a report on the status of business operations, as prescribed by Presidential Decree, and may also authorize public officials of the Administration to enter an office or a place of business to inspect books of accounts, documents, etc. specified by Presidential Decree, including audit reports of an investment company for the establishment of small and medium enterprises, an accelerator, or a small and medium enterprise establishment investment association, in any of the following cases: <Amended by Act No. 9584, Apr. 1, 2009; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
1. If necessary to check whether the investment company for the establishment of small and medium enterprises continues to fulfill the requirements for registration prescribed in Article 10 (2);
2. If necessary to check whether the investment company for the establishment of small and medium enterprises violates any restriction on its activities conducted under Article 15;
3. If necessary to check whether the investment company for the establishment of small and medium enterprises performs its investment obligation in accordance with Article 16;
4. If necessary to check whether the investment company for the establishment of small and medium enterprises satisfies the requirements for overseas investment prescribed in Article 17;
5. If necessary to check whether an accelerator continues to meet the criteria for registration made under Article 19-2 (2);
6. If necessary to check whether an accelerator has invested, in accordance with Article 19-3 (1);
7. If necessary to check whether an executive member prescribed in Article 21 has committed a violation or has fulfilled its obligation of investment;
8. If there is any of the grounds specified by Presidential Decree as similar to those set forth in subparagraphs 1 through 7.
(2) Whenever an inspection is conducted pursuant to paragraph (1), the inspection plan containing the date, timing, purpose, details, etc. of the inspection shall be notified to the person who is to undergo the inspection by no later than seven days before the date of inspection: Provided, That the foregoing shall not apply where it is urgently required or it is considered impracticable to achieve the purpose of the inspection otherwise due to anticipated destruction of evidence, etc.
(3) Each public official who has access for inspection pursuant to paragraph (1) shall carry identification showing his/her authority to present to the relevant person, and shall deliver a document stating his/her name, timing and purpose of access, etc. to the relevant person.
 Article 41 Deleted. <by Act No. 9584, Apr. 1, 2009>
 Article 42 (Disciplinary Measures against Officers and Employees)
(1) If any investment company for the establishment of small and medium enterprises or any executive member falls under any subparagraph of Article 43 (1) or (3) (excluding subparagraph 1) and it is deemed likely to undermine the sound management of the investment company for the establishment of small and medium enterprises or the relevant small and medium enterprise establishment investment association, the Minister of SMEs and Startups may demand the issuing of any of the following reprimand to the relevant officer or employee of the investment company for the establishment of small and medium enterprises: <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
1. Dismissal or release from office;
2. Suspension of performing duties for a period of up to six months;
3. Reduction of salary;
4. Warning.
(2) Any measure taken under paragraph (1) may be imposed concurrently with any measure taken under Article 43 (6). <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14273, May 29, 2016>
(3) The Minister of SMEs and Startups may determine and publicly notify matters necessary for the standards, procedures, etc. for measures falling under each subparagraph of paragraph (1). <Newly Inserted by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017>
 Article 42-2 (Standards, etc. for Soundness of Business Management)
(1) Any investment company for the establishment of small and medium enterprise shall meet the standards for soundness of business management prescribed by Presidential Decree.
(2) The Minister of SMEs and Startups may evaluate the business operations of investment company for the establishment of small and medium enterprises to secure the soundness of business management of those companies. <Amended by Act No. 14839, Jul. 26, 2017>
(3) If it is deemed that an investment company for the establishment of small and medium enterprise fails to meet the standards under paragraph (1) or is not likely to maintain the soundness of business management, based on the results of evaluating the business operations under paragraph (2), the Minister of SMEs and Startups may require the investment company for the establishment of small and medium enterprise to take measures necessary for improving its business management, such as increasing its equity capital or placing limits on the distribution of dividends. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
 Article 43 (Revocation of Registration, etc.)
(1) If an investment company for the establishment of small and medium enterprises falls under any of the following, the Minister of SMEs and Startups may revoke its registration or suspend support prescribed in this Act by up to three years as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, he/she shall revoke such registration: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 12009, Aug. 6, 2013; Act No. 13158, Feb. 3, 2015; Act No. 13453, Jul. 31, 2015; Act No. 14839, Jul. 26, 2017>
1. When it has made a registration by deceit or other unjust means;
2. When it has failed to meet the requirements for registration prescribed in Article 10 (2): Provided, That this shall not apply where an executive officer falls under any of the items of subparagraph 2 of the same paragraph (items (g) and (h) of the same subparagraph shall be applicable to the representative director only), and it appoints another person as executive officer in place of such executive officer within three months;
3. When it has discontinued an investment prescribed in Article 10 (1) 1, 2, 2-2 or 5 for any purpose specified by Ordinance of the Ministry of SMEs and Startups under Article 16 (1) for at least one year without any justifiable ground: Provided, That the same shall not apply where it has met all the requirements prescribed by Presidential Decree including the mandatory investment prescribed in Article 16 (1);
4. When conduct of business prescribed in Article 10 (1) has become difficult due to a ground attributable to the company;
5. When it has violated the duty of restrictions on acts prescribed in Article 15 (1) or violated the duty of disposal of non-business purpose real property prescribed in paragraph (2) of the same Article;
6. When its percentage of investment does not meet the percentage requirement prescribed in Article 16;
7. When it has made an overseas investment, in violation of Article 17;
8. When an executive member of the small and medium enterprise establishment investment association has used any properties of the association for his/her own benefit or benefit of the third party, in violation of Article 21 (2);
10. When it has failed to meet the requirements for reprimand prescribed in Article 42 (1) or for measures taken under Article 42-2 (3) or to take a measure imposed under paragraph (5) below;
11. When it has violated Article 15, which shall apply mutatis mutandis pursuant to Article 21 (4) or (5), as an executive member of the small and medium enterprise establishment investment association or has violated Article 4-4 (2) of the Act on Special Measures for the Promotion of Venture Businesses as an executive member of the Korea Venture Investment Cooperative prescribed in Article 4-3 (2) of the same Act (including cases where it has violated the Financial Investment Services and Capital Markets Act or an order issued or a disposition made under the same Act, in the case of an executive member of a public equity investment cooperative of establishment of business under Article 47-2 (1)) or the Act on Corporate Governance of Financial Companies (limited to provisions of Articles 24 through 26).
(2) In any of the following cases, the Minister of SMEs and Startups may revoke the registration of an accelerator or may suspend support prescribed in this Act to an accelerator for a period not more than three years, as prescribed by Presidential Decree: Provided, That the registration must be revoked in cases falling under subparagraph 1: <Newly Inserted by Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
1. If an accelerator commits fraud or other wrongdoing to register itself as an accelerator;
2. If an accelerator ceases to meet the criteria for registration prescribed in Article 19-2 (2);
3. If the amount that an accelerator has invested in business starters in early stage prescribed in Article 19-3 does not meet standards;
4. If an accelerator does not provide specialized incubation service to business starters in early stage prescribed in Article 19-4;
5. If an accelerator receives, demands, or promises unjust benefits in connection with its service for searching and fostering under Article 19-8 (1).
(3) If the small and medium enterprise establishment investment association falls under any of the following, the Minister of SMEs and Startups may revoke its registration or suspend support prescribed in this Act by up to three years, as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, the registration shall be revoked: <Amended by Act No. 9889, Dec. 30, 2009; Act No. 13158, Feb. 3, 2015; Act No. 13868, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017>
1. When it has made a registration by deceit or other unjust means;
2. When it has failed to meet the requirements for registration prescribed in Article 20 (6);
3. When it has violated the provisions of Article 21 (3) through (6);
4. When the registration of an investment company for the establishment of small and medium enterprises, acting as an executive member, has been revoked or cancelled;
5. When it has violated Article 22 (1) and (3);
6. Deleted. <by Act No. 8606, Aug. 3, 2007>
(4) If any small and medium enterprise consulting company falls under any of the following, the Minister of SMEs and Startups may revoke its registration or suspend support prescribed in this Act by up to three years, as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, the registration shall be revoked: <Amended by Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017>
1. When it has made a registration by deceit or other unjust means;
2. When it has failed to meet the requirements for registration prescribed in Article 31 (2): Provided, That this shall not apply where an executive officer falls under any of the items of subparagraph 2 of the same paragraph, and it appoints another person as an executive officer in place of such executive officer within six months;
3. When conduct of business prescribed in Article 31 (1) has become difficult due to a ground attributable to the company;
4. When it does not continue business operations for at least one year without any justifiable grounds;
5. Deleted. <by Act No. 8606, Aug. 3, 2007>
(5) If an operator of a business incubator falls under any of the following, the Minister of SMEs and Startups may revoke its designation as an operator or suspend support prescribed in this Act by up to three years, as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, the designation shall be revoked: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11483, Aug. 13, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017>
1. When it has been designated by deceit or other unjust means;
2. When it has used funds given for other purposes;
3. When it has used the facilities and premises of the business incubator for the purposes, other than support for establishment of a small and medium enterprise;
4. When the actually executed operation of the business incubator has failed to meet the standards prescribed by Ordinance of the Ministry of SMEs and Startups;
5. When it has failed to meet the requirements for designation prescribed in Article 6 (1).
(6) If an investment company for the establishment of small and medium enterprises or an executive member of a small and medium enterprise establishment investment association falls under any subparagraph of paragraph (1) or (3) (excluding paragraphs (1) 1 and (3) 1), the Minister of SMEs and Startups may take any of the following measures: <Newly Inserted by Act No. 12009, Aug. 6, 2013; Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
1. Suspension of business in whole or in part for a period of up to six months;
2. Order to correct the violation;
3. Warning.
(7) If a new technology venture business entity falls under any subparagraph of paragraph (1) or (3), the Minister of SMEs and Startups may request the Financial Services Commission to take the measures specified in paragraph (6) of this Article and Article 42 (1) against the relevant new technology venture business entity or any of its executive officers or employees. <Newly Inserted by Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
 Article 44 (Hearings)
When the Minister of SMEs and Startups intends to revoke the registration of an investment company for the establishment of a small and medium enterprise, an accelerator, a small and medium enterprise establishment investment association, or a small and medium enterprise consulting company or revoke the designation of the operator of a business incubator pursuant to Article 43, he/she shall hold a hearing. <Amended by Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
 Article 45 (Delegation and Entrustment of Authority)
(1) Part of the authority of the Minister of SMEs and Startups under this Act may be delegated to the heads of its subordinate agencies or each Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor, as prescribed by Presidential Decree. <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017>
(2) The Minister of SMEs and Startups may entrust any part of his/her business affairs under this Act to the heads of other administrative agencies, the Small Business Corporation established pursuant to Article 68 of the Small and Medium Enterprises Promotion Act, investment company for the establishment of small and medium enterprises, small and medium enterprise consulting companies, or other institutions related to small and medium enterprise, as prescribed by Presidential Decree. <Amended by Act No. 9685, May 21, 2009; Act No. 14839, Jul. 26, 2017>
 Article 46 (Prohibition on Use of Similar Names)
Any person who is not an investment company for the establishment of small and medium enterprise or a small and medium enterprise establishment investment association shall not use the name “investment company for the establishment of small and medium enterprise” or “small and medium enterprise establishment investment association” or any other name similar thereto.
 Article 47 (Public Notice of Work Standards)
The Minister of SMEs and Startups may determine and publicly notify standards for support for business start-up so that an investment company for the establishment of a small and medium enterprise, and accelerator, a small and medium enterprise establishment investment association, a small and medium enterprise consulting company, or the operator of a business incubator can efficiently provide business starters with their services. <Amended by Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
 Article 47-2 (Special Cases concerning Public Equity Startup Investment Association)
(1) Articles 11 through 16, 30 through 32, 34 through 43, 48, 50 through 53, 56, 58, 60 through 65, 80 through 83, subparagraphs 2, 3 and 6 through 8 of Article 85, Articles 86 through 95, 181 through 183, 184 (1), (2), (5) through (7), 185 through 187, 218 through 223, 229 through 249, 249-2 through 249-22, 250 through 253, and 415 through 425 of the Financial Investment Services and Capital Markets Act and the Act on Corporate Governance of Financial Companies (excluding the provisions of Articles 24 through 26) shall not apply to public equity startup investment associations (referring to business startup investment associations that do not fall under private equity collective investment organizations prescribed in Article 9 (19) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) and business start-up investment companies (excluding business start-up investment companies conducting their business after organizing only business startup investment associations that are not public equity startup investment associations). <Amended by Act No. 13448, Jul. 24, 2015; Act No. 13453, Jul. 31, 2015>
(2) Where the Minister of SMEs and Startups registers public equity startup investment associations or business start-up investment companies (excluding business start-up investment companies conducting their business after organizing only business startup investment associations which are not public equity startup investment associations), he/she shall consult with the Financial Services Commission. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 14839, Jul. 26, 2017>
(3) If necessary for protection of public interests or benefits of members of public equity investment cooperative of business start-up, the Financial Services Commission may order a public equity investment cooperative of business start-up and business start-up investment company (excluding business start-up investment companies conducting their businesses after organizing only the business startup investment associations that are not public equity startup investment associations) to submit data concerning their businesses or to make report thereof, or have the Governor of the Financial Supervisory Service inspect their business. <Amended by Act No. 8852, Feb. 29, 2008>
(4) Where public equity startup investment associations and business start-up investment companies (excluding business start-up investment companies conducting their business after organizing only a business startup investment association that is not a public equity startup investment association) have violated this Act or an order issued or a disposition made under this Act or have violated the Financial Investment Services and Capital Markets Act itself or an order issued or a disposition made under the same Act or have violated the Act on Corporate Governance of Financial Companies (excluding the provisions of Articles 24 through 26), the Financial Services Commission may request the Minister of SMEs and Startups to take measures falling under any of Articles 42 (1) and 43 (1), (3) and (6), and the Minister of SMEs and Startups shall comply with such request, except in exceptional circumstances. In such cases, the Minister of SMEs and Startups shall notify the Financial Services Commission of the details of the measures taken. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 12009, Aug. 6, 2013; Act No. 13453, Jul. 31, 2015; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 8635, Aug. 3, 2007]
 Article 48 (Penalty Provisions)
(1) Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won: <Amended by Act No. 13868, Jan. 27, 2016>
1. A person who divulges information acquired under Article 4-3 (5) or uses such information for any purpose other than the performance of his/her duties;
2. A large stockholder who perpetrates an act specified in any subparagraph of Article 15-2 (1) for his/her own interest, in violation of the afore-said paragraph.
(2) Any person who does not dispose of stocks in violation of an order for disposition issued under Article 10 (4) shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won.
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
 Article 49 (Joint Penalty Provisions)
If the representative of a corporation, or an agent, servant or other employee of a corporation or individual, commits an offense provided for in Article 48 in conducting the business affairs of such corporation or individual, not only shall the offender be punished, but the corporation or individual shall be punished by a fine provided for in the said Article: Provided, That this shall not apply where the corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such offense.
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
CHAPTER VII PENALTY PROVISIONS
 Article 50 (Administrative Fines)
(1) Any of the following persons shall be punished by an administrative fine not exceeding five million won: <Amended by Act No. 14273, May 29, 2016>
1. He/she fails to register a change in accordance with the latter part of Article 10 (1), Article 19-2 (1) or the latter part of Article 20 (1) or makes a false statement in registering a change;
2. He/she fails to submit a report on a business transfer, etc. in accordance with Article 11 (2) or 19-9 or makes a false statement in such report;
3. He/she fails to make public disclosure of an investment company for the establishment of small and medium enterprises in accordance with Article 14 or makes a false statement in making such public disclosure;
4. He/she fails to submit a report on the settlement of accounts in accordance with Article 19 or 23 or submits a false report thereon;
5. He/she fails to submit a report in accordance with Article 40 (1), or files a false report, or rejects, hinders, or evades an inspection provided for in the said paragraph;
6. Deleted; <by Act No. 9584, Apr. 1, 2009>
7. He/she uses any similar name, in violation of Article 46.
(2) The administrative fine prescribed in paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(3) through (5) Deleted. <By Act No. 9379, Jan. 30, 2009>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 9 (4) of Addenda shall enter into force on April 27, 2007, and the amended provisions of Article 35 (2) 2, 3, and 5 and Article 35 (3) 1 shall enter into force on September 28, 2007.
Article 2 (Transitional Measures concerning Enforcement Date)
Until the amended provisions of Article 35 (2) 2, 3, and 5 and Article 35 (3) 1 enter into force pursuant to the proviso to Article 1 of Addenda, the former corresponding provisions of Article 22 (2) 2, 3, and 5 and Article 22 (3) 1 shall remain in force.
Article 3 (Applicability to Management and Operation of Assets of Small and Medium Enterprise Establishment Investment Association)
Article 22 (3), as amended, shall be applicable to all small and medium enterprise establishment investment associations organized on or after April 1, 2005.
Article 4 (Transitional Measures concerning Small and Medium Enterprise Establishment Investment Association, etc.)
(1) As to the small and medium enterprise establishment investment association that completed the report on their organization before April 22, 2000, the former provisions in force before the amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 6194) entered into force shall remain in force.
(2) As to the business plans approved or on which an application for approval was filed before April 22, 2000, the former provisions in force before the amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 6194) entered into force shall remain in force.
Article 5 (Transitional Measures concerning Disqualifications for Officers of Investment Company for Establishment of Small and Medium Enterprises)
Where any incumbent officer of an investment company for the establishment of small and medium enterprise as of June 26, 2002 fell under any ground for disqualification under any provision of Article 10 (2) 2 (c) through (f) owing to any ground that had arisen before June 26, 2002, Article 10 (2) 2 (c) through (f) shall not become applicable to such officer until his/her term of office ends: Provided, that the former provisions of Article 7 (2) 2 in force before the amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 6675) entered into force shall be applicable to the representative director, until his/her term of office ends.
Article 6 (Transitional Measures concerning Grace Period for Performing Obligations to Invest)
An investment company for the establishment of small and medium enterprise or a small and medium enterprise establishment investment association that is under the grace period granted by the Administrator of the Small and Medium Business Administration for performing its obligations to invest as of March 27, 2007, which corresponds to the enforcement date of the partially amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 8086), shall be deemed to have been granted the grace period for performing its obligations to invest pursuant to the amended provisions of Articles 16 (2) and 21 (3).
Article 7 (General Transitional Measures concerning Dispositions, etc.)
The actions done by or against an administrative agency as of the date this Act entered into force pursuant to the provisions of the former Act shall be deemed as actions done by or against an administrative agency pursuant to the corresponding provisons of this Act.
Article 8 (Transitional Measure concerning Penalty Provisons and Administrative Fine)
Acts committed before this Act entered into force shall be governed by the former provisons in application of penalty provisons and provisions relevant to the administrative fine.
Article 9 Omitted.
Article 10 (Relations with Other Acts)
A citation of the former Support for Small and Medium Enterprise Establishment Act or any provision thereof by any other Acts in force at the time when this Act entered into force, if any, shall be deemed to be a citation of this Act or corresponding provisions hereof in lieu of the former provisions, if such corresponding provisions are contained herein.
ADDENDA <Act No. 8466, May 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8606, Aug 3, 2007>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Effective Period) The amended provisions of Article 39-3 (2) shall be applicable only to a person who starts up a business within 15 years from the date this Act enters into force. <Amended by Act No. 13158, Feb. 3, 2015; Mar. 2, 2018>
(3) (Transitional Measures concerning the Water Quality and Aquatic Ecosystem Conservation Act) "The Water Quality and Aquatic Ecosystem Conservation Act" in the amended provisions of subparagraph 6 of Article 39-2 shall be construed as "the Water Quality Conservation Act" until November 17, 2007.
(4) (Transitional Measures concerning Article 22 of the Statistics Act) "Article 22 (1) of the Statistics Act" in the amended provisions of Article 39-2 shall be construed as "Article 17 (1) of the Statistics Act" until October 27, 2007.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
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. 8974, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 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.
Articles 2 Omitted.
ADDENDUM <Act No. 9379, Jan. 30, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
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. 9770, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2010. (Proviso Omitted.)
Articles 2 through 7 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. 9889, Dec. 30, 2009>
This Act shall enter into force three months after the date of its promulgation.
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. 10310, May 25, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation. (Proviso Omitted.)
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 its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDUM <Act No. 10354, Jun. 8, 2010>
This Act shall enter into force six months after its promulgation: Provided, That the amended provisions of Article 39-2 and the amended provisions of paragraph (2) of the Addenda to the Act No. 8606 for amendment of the Support for Small and Medium Enterprise Establishment Act shall enter into force on August 3, 2010.
ADDENDUM <Act No. 10533, Apr. 4, 2011>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 3 shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10892, Jul. 21, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 11037, Aug. 4, 2011>
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. 11483, Aug. 13, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 43 (4) 3 shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Exemption from Charges and Fees)
The amended provisions of Article 2 of the Addenda to the Support for Small and Medium Enterprise Establishment Act, as partially amended by Act No. 8606, shall also apply to a person who starts up a business before this Act enters into force after August 3, 2012.
ADDENDUM <Act No. 11655, Mar. 22, 2013>
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. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 12009, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 10, 14, 15-2, 16 (1) (limited to portions related to the amended provisions of Article 10 (1) 5), 21 (3) (limited to portions related to the amended provisions of Article 10 (1) 5), 42, 42-2, 43 (1) and (5), 47-2 (4), 48, and 49 shall enter into force six months after the date of its promulgation.
Article 2 (Term of Validity of Special Provisions for State-Owned Property)
The amended provisions of Article 6 (2) through (4) shall be valid until December 31, 2022.
Article 3 (Transitional Measures concerning Administrative Dispositions)
With respect to administrative dispositions against offenses committed before this Act enters into force, the previous provisions shall prevail.
ADDENDA <Act No. 12246, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (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. 12310, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetent Persons, etc.)
A person under adult guardianship or a person under limited guardianship under the amended provisions of Articles 10 (2) 2 (a) and 31 (2) 2 (a) shall be deemed to include those who are already declared incompetent or quasi-incompetent and are still in the state of such incompetence or quasi-incompetence under Article 2 of the Addenda to the Civil Act, as partially amended by 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. 12960, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13089, Jan. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 13093, Jan. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 13158, Feb. 3, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 4-2 (2) and 4-4 shall enter into force three months after this Act is promulgated.
Article 2 (Applicability to Exemption from Charges and Fees)
(1) The amended provisions of Article 39-3 (1) shall apply where a business was started before this Act enters into force but five years have not passed: Provided, That it shall not apply to the charges and fees that were paid or the obligation to pay which has arisen before this Act enters into force.
(2) The amended provisions of Article 39-3 (2) 12 shall apply where a business was started before this Act enters into force but three years have not passed: Provided, That it shall not apply to the charges and fees that were paid or the obligation to pay which has arisen before this Act enters into force.
ADDENDA <Act No. 13448, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 20 Omitted.
ADDENDA <Act No. 13453, Jul. 31, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDA <Act No. 13797, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 13868, Jan. 27, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 14273, May 29, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14480, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14532, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That, from among the Acts amended under Article 6 of the Addenda, the amendments to the Acts, which were promulgated before this Act enters into force, but the enforcement dates of which have yet to arrive, shall enter into force on their respective enforcement dates.
Articles 2 through 7 Omitted.
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 among the Acts amended by Article 5 of the Addenda, the amendments to the Acts, which were promulgated before this Act enters into force but the enforcement dates of which have not arrived yet, shall enter into force on the enforcements dates of the respective Acts.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15139, Nov. 28, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 15421, Mar. 2, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exemption from Charges and Fees)
The amended provisions of paragraph (2) of the Addenda to the Support for Small and Medium Enterprise Establishment Act, as partially amended by Act No. 8606, shall also apply to a person who started his/her business during the period from August 3, 2017 to the enforcement date of this Act.