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ENFORCEMENT DECREE OF THE ACT ON SUPPORT FOR PROTECTION OF TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES

Presidential Decree No. 25737, Nov. 19, 2014

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

Presidential Decree No. 28106, jun. 13, 2017

Presidential Decree No. 28213, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Act on Support for Protection of Technologies of Small and Medium Enterprises and matters necessary for the enforcement thereof.
 Article 2 (Consultation or Seeking Counsel)
(1) Pursuant to Article 6 of the Act on Support for Protection of Technologies of Small and Medium Enterprises (hereinafter referred to as the "Act"), the Minister of SMEs and Startups may consult with or seek counsel from the heads of related central administrative agencies, the heads of intelligence and investigative agencies, related institutions or organizations, or experts with respect to the following matters: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Matters concerning formulating and implementing a support plan to protect technologies of small and medium enterprises under Article 5 of the Act;
2. Matters concerning formulating and amending the guidelines for the methods, procedures, etc. necessary to prevent disclosure and to protect technologies, of small and medium enterprises (hereinafter referred to as "protection guidelines") under Article 8 of the Act;
3. Matters concerning presenting opinions and recommending improvement under Article 11 of the Act;
4. Matters concerning resolving difficulties related to the protection of technologies of small and medium enterprises under Article 12 of the Act;
5. Other matters the Minister of SMEs and Startups deems necessary to formulate and promote policies to protect technologies of small and medium enterprises.
(2) Consultation or seeking counsel under paragraph (1) shall be conducted by any of the following methods: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Holding meetings of related persons;
2. Requesting the submission of a written opinion;
3. Seeking opinions or conducting questionnaire surveys, utilizing an information and communications network defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc. (hereinafter referred to as "information and communications network"), and other relevant system;
4. Other methods the Minister of SMEs and Startups deems appropriate to hold consultation or to seek counsel.
(3) Civilian experts who have participated in the consultation or counselling under paragraph (1) may be paid allowances and travel expenses within budgetary limits.
 Article 3 (Fact-Finding Surveys to Strengthen Capability to Protect Security of Technologies of Small and Medium Enterprises)
(1) In order to conduct a fact-finding survey conducted pursuant to Article 7 (1) of the Act (hereafter referred to as "fact-finding survey" in this Article), the Minister of SMEs and Startups shall collect the opinion of the institutions and organizations related to small and medium enterprises and statistics experts, etc. and prepare a plan for conducting fact-finding surveys of small and medium enterprises every year. <Amended by Presidential Decree 28106, Jun. 13, 2017; Presidential Decree No. 28213, Jul. 26, 2017>
(2) Deleted. <by Presidential Decree 28106, Jun. 13, 2017>
(3) In conducting a fact-finding survey, the Minister of SMEs and Startups may perform a questionnaire survey in writing or utilizing an information and communications network, etc. or require surveyors to preform the survey by making visits in person. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 4 (Establishment of Protection Guidelines)
The protection guideline formulated by the Minister of SMEs and Startups under Article 8 of the Act shall include the following matters: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Methods of diagnosing the protection level of technologies of small and medium enterprises;
2. Measures for the management and operation to prevent disclosure and protect technologies of small and medium enterprises;
3. Measures to cope with the prevention of disclosure and infringement of technologies of small and medium enterprises, and measures for restoration;
4. Measures for the management of, and security education for, technical personnel of small and medium enterprises.
CHAPTER II SUPPORT PROJECTS FOR PROTECTION OF TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES
 Article 5 (Support for Utilization of Technical Data Bailment System)
Pursuant to Article 9 (1) of the Act, the Minister of SMEs and Startups may take the following measures to support the utilization of the technical data bailment system referred to in Article 24-2 of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises (hereinafter referred to as "technical data bailment system"): <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Expanding a computerized data processing system and preparation of the management system;
2. Establishing a system of cooperation with related institutions, including financial institutions;
3. Supporting the trading and evaluation of technology related to technical data under bailment, with a high economical value for practical use;
4. Other matters that the Minister of SMEs and Startups deems necessary to support the utilization of the technical data bailment system by small and medium enterprises.
CHAPTER III ESTABLISHING FOUNDATIONS FOR PROTECTION OF TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES
 Article 6 (Designation of Institutions Exclusively in Charge of Technology Protection)
(1) Pursuant to Article 14 (1) of the Act, the Minister of SMEs and Startups may designate an institution or organization that meets each of the following requirements as an institution or organization to be exclusively in charge of the affairs related to the support to protect technologies of small and medium enterprises (hereinafter referred to as "exclusive institution for technology protection"), among the institutions or organizations related to technology protection or support for small and medium enterprises: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. The business content of the relevant institution or organization shall include affairs related to technology protection or support for small and medium enterprises;
2. It shall establish an organizational department that exclusively performs the affairs prescribed in subparagraphs of Article 7 (1);
3. It shall have at least ten personnel to exclusively perform the affairs prescribed in subparagraphs of Article 7 (1);
4. It shall be equipped with an exclusive working space, and facilities and equipment necessary to perform the affairs prescribed in subparagraphs of Article 7 (1).
(2) A person who wishes to be designated as an exclusive institution for technology protection shall submit an application for designation in the form determined and publicly notified by the Minister of SMEs and Startups to the Minister of SMEs and Startups, along with documents substantiating that he/she meets the requirements prescribed in subparagraphs of paragraph (1). <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups in receipt of documents under paragraph (2) deems that the applicant is qualified for designation as an exclusive institution for technology protection, he/she shall issue a certificate of designation in the form determined and publicly notified by the Minister of SMEs and Startups. In such cases, the Minister of SMEs and Startups shall announce the designation of an exclusive institution for technology protection without delay on the web-site of the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(4) Detailed criteria for exclusive personnel, working spaces, and facilities and equipment referred to in subparagraphs of paragraph (1) and other matters necessary for the designation of an exclusive institution for technology protection shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 7 (Operation of Exclusive Institution for Technology Protection)
(1) An exclusive institution for technology protection shall perform the following affairs: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Affairs to establish a foundation to protect technologies of small and medium enterprises;
2. Surveys and research for the formulation and implementation of measures to protect technologies of small and medium enterprises;
3. Affairs outsourced by the Minister of SMEs and Startups under Article 19;
4. Other matters that the Minister of SMEs and Startups deems necessary to support the protection of technologies of small and medium enterprises.
(2) An exclusive institution for technology protection shall report its business plan for the relevant year and the performance outcomes of the previous year to the Minister of SMEs and Startups by no later than January 31 every year. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(3) Except as otherwise expressly provided for in paragraphs (1) and (2), matters necessary for the operation of an exclusive institution for technology protection shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 8 (Designation, etc. of Institutions for Training Professional Human Resources for Technology Protection)
(1) Pursuant to Article 16 (2) of the Act, the Minister of SMEs and Startups may designate an institution or organization that meets each of the following requirements as an institution for training professional human resources for technology protection (hereinafter referred to as "institution for training professional human resources"), among universities, colleges, research institutes, or other institutions or organizations: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. It shall have formulated a plan to operate curricula adequate to train professional human resources for technology protection and to improve their quality;
2. It shall have formulated a plan to secure education personnel, including instructors necessary to deliver the curricula referred to in subparagraph 1;
3. It shall retain at least two personnel to exclusively conduct training of professional human resources for technology protection;
4. It shall be equipped with an exclusive space, facilities and equipment necessary to train professional human resources for technology protection.
(2) A person who wishes to be designated as an institution for training professional human resources shall submit an application for designation in the form determined and publicly notified by the Minister of SMEs and Startups to the Minister of SMEs and Startups, along with a business plan for training professional human resources for technology protection and documents substantiating that he/she meets the requirements prescribed in subparagraphs of paragraph (1). <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(3) Where the Minister of SMEs and Startups in receipt of documents under paragraph (2) deems that the applicant is qualified for designation as an institution for training professional human resources, he/she shall issue a certificate of designation in the form determined and publicly notified by the Minister of SMEs and Startups. In such cases, the Minister of SMEs and Startups shall announce such fact of designation of an institution for training of professional human resources without delay, on the web-site of the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(4) Detailed criteria for the curricula, educational personnel, and persons who exclusively conduct training, exclusive space, facilities and equipment, referred to in subparagraphs of paragraph (1), and other matters necessary for the designation and operation of an institution for training professional human resources shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 9 (Provision of Technology Protection Control Service)
The technology protection control service provided by the Minister of SMEs and Startups to protect disclosure, etc. of technologies of small and medium enterprises pursuant to Article 18 (1) of the Act, shall include the following matters: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Prediagnosis of technology protection level, security vulnerability, etc.;
2. Inspection on failure, etc. of networks and systems, and sharing of related information;
3. When any disclosure or infringement of technology occurs through an information and communications network, analysis of the cause thereof and provision of support to cope therewith;
4. Other matters that the Minister of SMEs and Startups deems necessary to protect technologies of small and medium enterprises and to restore them from infringement, such as the preventing disclosure of technologies through information and communications networks.
 Article 10 (Support for Establishment of Security Systems)
In order to support planning and establishment of a security system suitable for small and medium enterprises pursuant to Article 10 (1) of the Act, the Minister of SMEs and Startups may perform the following matters: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Provision of subsidies to cover the expenses incurred in planning and establishing a security system;
2. Other matters that the Minister of SMEs and Startups deems necessary to support the planning and establishment of a security system suitable for small and medium enterprises.
 Article 11 (Bounties for Protection of Technologies of Small and Medium Enterprises)
(1) Where the Minister of SMEs and Startups intends to award a prize pursuant to Article 22 (1) of the Act to a person who has made a significant contribution to protecting technologies of small and medium enterprises, he/she shall receive recommendations from institutions related to small and medium enterprises or applications by public announcement. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(2) Upon receipt of recommendations or applications under paragraph (1), the Minister of SMEs and Startups shall verify the details thereof and determine whether to grant bounties, and shall notify his/her decision to the person who has made the recommendation (limited to cases where recommendations are received) and the person determined as an awardee of the prize. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(3) Except as otherwise expressly provided for in paragraphs (1) and (2), matters necessary for the procedures for recommendation and application for a person eligible for bounties, shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
CHAPTER IV CONCILIATION AND MEDIATION OF DISPUTES
 Article 12 (Composition and Operation of Commission for Conciliation and Mediation of Disputes on Technologies of Small and Medium Enterprises)
(1) The chairperson of the Commission for Conciliation and Mediation of Disputes on Technologies of Small and Medium Enterprises (hereinafter referred to as the "chairperson"), to be established under the jurisdiction of the Minister of SMEs and Startups to conciliate and mediate disputes related to the protection of technologies of small and medium enterprises pursuant to Article 23 (1) of the Act (hereinafter referred to as the "Commission"), shall convoke and preside over Commission meetings. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
(2) When the chairperson is unable to perform his/her duties due to any extenuating circumstance, a member in order predesignated by the chairperson, shall act on his/her behalf.
(3) Where the chairperson intends to convoke a meeting, he/she shall notify the date, time, venue, and agenda items to each member in writing by no later than seven days before the meeting: Provided, That in urgent situations or in extenuating circumstances, he/she may notify such matters orally by no later than the day before holding the meeting.
(4) Members who attend a meeting of the Commission may be paid allowances and reimbursed travel expenses, within budgetary limits: Provided, That the same shall not apply where a member who is a public official attends a Commission meeting directly in connection with his/her competent duties.
 Article 12-2 (Removal or Dismissal of Members)
The Minister of SMEs and Startups may remove or dismiss a member of the Commission from office, if the member falls under any of the following cases: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Where he/she becomes incapable of performing his/her duties due to a mental disorder;
2. Where he/she engages in misconduct in connection with any of his/her duties;
3. Where he/she is deemed unsuitable as a member due to neglect of duty, loss of dignity, or any other reason;
4. Where he/she expresses an intention to discontinue performing his/her duties.
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
 Article 13 (Composition and Operation of Conciliation Panel)
(1) Within 15 days from receipt of a request for conciliation of a dispute under Article 25 (3) of the Act, the chairperson shall appoint the head of a conciliation panel referred to in Article 25 (1) of the Act (hereinafter referred to as "conciliation panel").
(2) A conciliation panel shall be comprised of at least three but not exceeding five members, including the head of the conciliation panel.
(3) Members of a conciliation panel shall be appointed by the head of the conciliation panel from among members of the Commission.
(4) No meeting of a conciliation panel shall be public: Provided, That in cases falling under Article 27 (2) of the Act, the parties to the case or reference witnesses may be allowed to observe the meetings.
 Article 14 (Composition and Operation of Mediation Panel)
(1) Within 20 days from the date the method of selecting a mediation panel is determined under Article 26 (5) of the Act, the chairperson shall organize a mediation panel referred to in Article 26 (1) of the Act (hereinafter referred to as "mediation panel"). In this regard, where it is agreed to select a mediation panel in accordance with the method prescribed in Article 26 (5) 2 of the Act (including where agreement is deemed reached in accordance with the proviso to the same paragraph), multiple number of mediation panel shall be formed.
(2) A mediation panel shall be comprised of not less than three nor more than five members of the Commission, including the head of the mediation panel.
(3) Meetings of a mediation panel shall not be disclosed: Provided, That in cases falling under Article 27 (2) of the Act, the parties to the case or reference witnesses may be allowed to observe the meetings.
 Article 15 (Hearing Opinions of Parties to Case or Reference Witnesses)
(1) Where a conciliation panel or mediation panel intends to hear opinions of parties to the case or reference witnesses under Article 27 (2) of the Act, it shall notify in writing the date, time, venue, and grounds for requesting their opinions to the parties to the case or the reference witnesses, by no later than seven days before holding the meeting.
(2) Where a person in receipt of a notification under paragraph (1) is unable to attend the meeting of the conciliation panel or mediation panel due to any inevitable reason, the head of the conciliation panel or the head of the mediation panel may require him/her to submit his/her opinion in writing.
 Article 16 (Sharing of Expenses for Conciliation or Mediation)
Where the Commission intends to make the expenses for conciliation or mediation shared under Article 28 (1) of the Act, it shall hear the opinions of the parties to the case as to the methods of sharing expenses, including the principal person to bear the expenses and the share ratio.
 Article 17 (Detailed Rules of Operation)
Except as otherwise expressly provided for in this Decree, matters necessary for the composition and operation of a conciliation panel and a mediation panel shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
 Article 18 (Encouragement of Utilization of Conciliation and Mediation)
In order to promote conciliation referred to in Article 25 of the Act and mediation referred to in Article 26 of the Act, the Minister of SMEs and Startups may encourage small and medium enterprises to utilize conciliation and mediation in dealing with disputes related to the protection of technologies of small and medium enterprises. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 19 (Delegation or Entrustment of Authority)
(1) Pursuant to Article 31 (2) of the Act, the Minister of SMEs and Startups shall outsource the following affairs to an exclusive institution for technology protection: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Affairs related to conducting fact-finding surveys under Article 7 (1) of the Act;
2. Affairs related to surveys and research for the formulation of protection guidelines under Article 8 of the Act;
3. Affairs related to the support for utilization of a technical data bailment system under Article 9 of the Act;
4. Affairs related to researching systems related to presenting opinions and recommendation for improvement under Article 11 of the Act;
5. Affairs related to diagnosing, and counselling on, etc. the protection of technologies of small and medium enterprises under Article 12 (1) of the Act;
6. Affairs related to the protection of technologies of small and medium enterprises expanding their business abroad under Article 13 (1) of the Act;
7. Affairs related to the management of institutions for training professional human resources under Article 16 (2) of the Act;
8. Affairs related to public relations and education on the protection of technologies of small and medium enterprises under Article 17 of the Act;
9. Affairs related to the support for establishment of an international cooperation system under Article 20 of the Act.
(2) Pursuant to Article 31 (2) of the Act, the Minister of SMEs and Startups may outsource the following affairs to an exclusive institution for technology protection, an institution specializing in technology promotion of small and medium enterprises referred to in Article 7 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises, or an exclusive institution for projects for supporting an integrated informatization management system of small and medium enterprises referred to in Article 15 (1) of the Enforcement Decree of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
1. Affairs related to facilitating and disseminating the development of security technologies under Article 15 (1) of the Act;
2. Affairs related to the support for planning and establishment of security systems under Article 19 (1) of the Act.
(3) Where the Minister of SMEs and Startups outsources affairs pursuant to paragraph (2), he/she shall publicly notify the name of the outsourced institution, its representative and location, and details of affairs outsourced. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
ADDENDUM
This Decree shall enter into force on November 29, 2014.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 28106, Jun. 13, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 28213, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.