ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF TECHNOLOGY INNOVATION OF SMALL AND MEDIUM ENTERPRISES
Presidential Decree No. 17413, Nov. 22, 2001
Amended by Presidential Decree No. 17735, Sep. 11, 2002
Presidential Decree No. 17791, Dec. 5, 2002
Presidential Decree No. 19365, Feb. 28, 2006
Presidential Decree No. 19719, Oct. 27, 2006
Presidential Decree No. 19765, Dec. 21, 2006
Presidential Decree No. 19939, Mar. 22, 2007
Presidential Decree No. 20261, Sep. 10, 2007
Presidential Decree No. 20331, Oct. 23, 2007
Presidential Decree No. 20519, Jan. 3, 2008
Presidential Decree No. 20728, Feb. 29, 2008
Presidential Decree No. 21644, Jul. 27, 2009
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 24317, Jan. 16, 2013
Presidential Decree No. 24432, Mar. 23, 2013
Presidential Decree No. 24586, jun. 11, 2013
Presidential Decree No. 25043, Dec. 30, 2013
Presidential Decree No. 25927, Dec. 30, 2014
Presidential Decree No. 26481, Aug. 11, 2015
Presidential Decree No. 26804, Dec. 30, 2015
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 26864, Jan. 6, 2016
Presidential Decree No. 27205, May 31, 2016
Presidential Decree No. 28213, Jul. 26, 2017
Presidential Decree No. 28336, Sep. 19, 2017
| Article 2 (Formulation, etc. of Promotion Plans) |
| (1) | Deleted. <by Presidential Decree No. 21644, Jul. 27, 2009> |
| (2) | If deemed necessary to formulate a plan for promoting the technological innovation of small and medium enterprises (hereinafter referred to as “promotion plan”) under Article 5 (1) of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises (hereinafter referred to as the “Act”), the Minister of Small and Medium Enterprises (SMEs) and Startups may conduct a survey on demand for matters specified under Article 5 (2) of the Act among small and medium enterprises, or agencies and organizations related to technological support to small and medium enterprises. <Amended by Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | When implementing a project related to technological support to small and medium enterprises, the head of a relevant central administrative agency, the Special City Mayor, a Metropolitan City Mayor, a Do Governor, or the Special Self-Governing Province Governor, and the head of an institution or organization related to technological support to small and medium enterprises, shall cause such project to be linked to the promotion plan. <Amended by Presidential Decree No. 21644, Jul. 27, 2009> |
| Article 3 (Matters subject to Deliberation by Committee for Promoting Technological Innovation) |
“Matters prescribed by Presidential Decree” in Article 6 (2) 4 of the Act, means the following matters: <Amended by Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 25043, Dec. 30, 2013> | 1. | Combination and coordination of plans by agency for supporting technological innovation of small and medium enterprises under Article 13 of the Act; |
| 2. | Formulation and amendment of guidelines for implementation under Article 11 (5). |
| Article 4 (Composition, Operation, etc. of Committee for Promoting Technological Innovation) |
| (1) | Government members specified in Article 6 (3) of the Act shall be the following: <Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | One person designated by each of the heads of the relevant central administrative agencies, from among director-level public officials of the Ministry of Science and Information and Communications Technology (ICT), the Ministry of Trade, Industry and Energy, and the Defense Acquisition Program Administration; |
| 2. | One person appointed by the Minister of SMEs and Startups, from among director-level public officials of the Ministry of SMEs and Startups. |
| (2) | The term of office of a non-public official member of the Committee for Promoting Technological Innovation of Small and Medium Enterprises established under Article 6 of the Act (hereinafter referred to as the "Committee for Promoting Technological Innovation"), shall be two years; and is consecutively renewable. <Amended by Presidential Decree No. 26844, Dec. 31, 2015> |
| (3) | The Chairperson of the Committee for Promoting Technological Innovation shall convene and preside over meetings thereof. <Amended by Presidential Decree No. 26844, Dec. 31, 2015> |
| (4) | When the Chairperson of the Committee for Promoting Technological Innovation intends to convene a meeting therof, he/she shall notify each member of the date, time, venue, and agenda for the meeting, by no later than seven days before the meeting: Provided, That this shall not apply in cases of emergency. <Amended by Presidential Decree No. 26844, Dec. 31, 2015> |
| (5) | A majority of all incumbent members of the Committee for Promoting Technological Innovation shall constitute a quorum at all its meetings; and resolutions shall be passed with the concurrent vote of at least a majority of those present. <Amended by Presidential Decree No. 26844, Dec. 31, 2015> |
| (6) | The Committee for Promoting Technological Innovation shall have one secretary to conduct its administrative affairs, who shall be designated by the Chairperson from among public officials of the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 26844, Dec. 31, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| (7) | Except as otherwise expressly provided for in paragraphs (1) through (6), matters necessary for operating the Committee for Promoting Technological Innovation, shall be determined by the Chairperson, following deliberation thereon by the Committee. <Amended by Presidential Decree No. 26844, Dec. 31, 2015> |
| Article 4-2 (Revocation of Designation, Removal from Office, and Revocation of Appointment, of Members) |
| (1) | A person who designates a member of the Committee for Promoting Technological Innovation pursuant to Article 4 (1) 1, may revoke such designation, if the relevant member falls under any of the following cases: |
| 1. | Where he/she becomes unable to perform his/her duties due to mental or physical incapacity; |
| 2. | Where he/she engages in any misconduct in connection with his/her duties; |
| 3. | Where he/she is deemed unsuitable as a member due to neglect of a duty, loss of dignity, or any other reason; |
| 4. | Where he/she voluntarily admits that it is difficult for him/her to perform his/her duties. |
| (2) | Where a member of the Committee for Promoting Technological Innovation appointed under Article 4 (1) 2, falls under any subparagraph of paragraph (1), the Minister of SMEs and Startups may remove the member from office. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | Where a civil member appointed under Article 6 (3) of the Act, falls under any subparagraph of paragraph (1), the Minister of SMEs and Startups may revoke the appointment of the member. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
| Article 5 (Designation, etc. of Institutions Specialized in Technology Promotion) |
| (1) | Entities eligible to be designated as an institution specialized in the technology promotion of small and medium enterprises (hereinafter referred to as "institution specialized in technology promotion") under Article 7 (1) of the Act, shall be any of the following: <Amended by Presidential Decree No. 17791, Dec. 5, 2002; Presidential Decree No. 19365, Feb. 28, 2006; Presidential Decree No. 20261, Sep. 10, 2007; Presidential Decree No. 20519, Jan. 3, 2008; Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 27205, May 31, 2016; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
| 2. | National or public research institutes; |
| 7. | Other corporations or organizations performing projects for supporting small and medium enterprises, which are deemed by the Minister of SMEs and Startups to have such specialized human resources and organs in exclusive charge as necessary for performing projects for supporting the promotion of technological innovation under Article 9 (1) of the Act (hereinafter referred to as “projects for promotion of technological innovation”). |
| (2) | Each entity designated as an institution specialized in technology promotion shall report a business plan for the relevant year and performance achievements of the preceding year, to the Minister of SMEs and Startups, by January 1 annually. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 5-2 (Scope, etc. of Matters subject to Compilation of Statistics on Technologies of Small and Medium Enterprises) |
Matters subject to compilation of statistics on technologies of small and medium enterprises under Article 8 (1) of the Act, shall be the following categories based on the Korean Standard Industrial Classification publicly announced by the Commissioner of the Statistic Korea pursuant to Article 22 (1) of the Statistics Act; and the survey participants shall be the small and medium enterprises which engage in any of such categories: <Amended by Presidential Decree No. 20331, Oct. 23, 2007; Presidential Decree No. 24586, Jun. 11, 2013> | 2. | Publication, video, broadcasting and communications, and information services; |
| 3. | Professional, scientific, and technological services. |
[This Article Newly Inserted by Presidential Decree No. 19765, Dec. 21, 2006]
| Article 6 (Entrustment of Authority for Compilation of Statistics on Technologies) |
The authority for the compilation of statics on technologies of small and medium enterprises, which the Minister of SMEs and Startups may entrust to the Chairperson of the Korea Federation of Small and Medium Business and the head of an institution specialized in technology promotion pursuant to Article 8 (4) of the Act, shall be the authority for the affairs specified under Article 51 (1) of the Enforcement Decree of the Statistics Act. <Amended by Presidential Decree No. 19365, Feb. 28, 2006; Presidential Decree No. 20331, Oct. 23, 2007; Presidential Decree No. 20519, Jan. 3, 2008; Presidential Decree No. 28213, Jul. 26, 2017>
| Article 6-2 (Methods, etc. for Fact-Finding Surveys and Statistical Surveys of Technological Innovation-Oriented Small and Medium Enterprises) |
| (1) | A fact-finding survey of technological innovation-oriented small and medium enterprises, conducted under Article 8-2 (1) of the Act, shall include the following: |
| 1. | Matters concerning the status of capital, human resources, and management; |
| 2. | Matters concerning the factors hindering growth; |
| 3. | Matters concerning the utilization of governmental support; |
| 4. | Matters concerning technological innovation, and research and development; |
| 5. | Other matters deemed necessary by the Minister of SMEs and Startups to ascertain the status of technological innovation-oriented small and medium enterprises. |
| (2) | In order to efficiently conduct surveys on the status of technological innovation-oriented small and medium enterprises under Article 8-2 (1) of the Act and surveys for statistics thereof (hereinafter referred to as “surveys on status and surveys for statistics”), the Minister of SMEs and Startups may request a specialized research institute, a specialized research organization, or a relevant expert to conduct the survey on status and the survey for statistics. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | Where the Minister of SMEs and Startups conducts a survey on status and a survey for statistics, he/she shall publicly announce the results thereof at the website of the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 26481, Aug. 11, 2015]
| Article 7 (Public Announcement of Plan for Contribution) |
The Minister of SMEs and Startups shall formulate and publicly announce a plan for contribution providing for the following matters with respect to a project for technological innovation under Article 10 (1) of the Act; or a project for supporting academic-industrial cooperation and a project for technology guidance under Article 11 (1) of the Act: <Amended by Presidential Decree No. 20519, Jan. 3, 2008; Presidential Decree No. 28213, Jul. 26, 2017> | 1. | Scope of the projects subject to contribution; |
| 2. | Procedures and methods for applying for contributions; |
| 3. | Degree of support by contributions; |
| 4. | Other matters deemed necessary by the Minister of SMEs and Startups for contribution. |
| Article 8 (Conclusion of Agreement, Management of Contributions, etc.) |
| (1) | Where the Minister of SMEs and Startups intends to provide contributions to a project for technological innovation under Article 10 (1) of the Act; a project for supporting academic-industrial cooperation and a project for technology guidance under Article 11 (1) of the Act; or a project for feasibility studies under Article 12 (2) of the Act, he/she shall conclude an agreement providing for the following matters with the person to conduct the relevant project: <Amended by Presidential Decree No. 20519, Jan. 3, 2008; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Details of the project; |
| 2. | Purposes and plan for management of contributions; |
| 3. | Utilization of the outcomes of the project; |
| 5. | Matters concerning amendments to the agreement; |
| 6. | Other matters deemed necessary by the Minister of SMEs and Startups to implement the project. |
| (2) | The Minister of SMEs and Startups may pay contributions specified under paragraph (1) in lump sum or in installments, in consideration of the details of, or the timing for commencing, the relevant project. <Amended by Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
| (3) | A person paid contributions shall manage the contributions by establishing a separate account therefor and shall use the contributions only for the purposes provided for in the agreement. |
| (4) | Where, as a result of calculation after the completion of a project for research and development, it is found that there is any unused residual amount or there is any amount which has been executed differently from the content of the agreement under paragraph (1), the Minister of SMEs and Startups may withdraw all or part of the contributions. <Amended by Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
| (5) | Standards for and scope of withdrawal of contributions under paragraph (4) shall be determined and publicly announced by the Minister of SMEs and Startups. <Newly Inserted by Presidential Decree No. 28336, Sep. 19, 2017> |
| Article 9 (Scope of Projects for Technology Guidance) |
Projects for technology guidance provided for in Article 11 (1) of the Act shall include a project for consultation, counselling, diagnosis, and assessment for improving the management and technological capabilities of enterprises.
| Article 9-2 (Necessary for Promotion of International Technological Cooperation) |
“Projects prescribed by Presidential Decree” in Article 11-2 (1) 5 of the Act, means projects for any of the following: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> | 1. | Technology counselling and training for international technological cooperation of small and medium enterprises; |
| 2. | Matters similar to those referred to in subparagraph 1, which the Minister of SMEs and Startups deems necessary to promote international technological cooperation of small and medium enterprises. |
[This Article Newly Inserted by Presidential Decree No. 25927, Dec. 30, 2014]
| Article 10 (Selection of Institutions to Conduct Feasibility Studies) |
In accordance with Article 12 (3) of the Act, the Minister of SMEs and Startups may select a corporation or organization falling under any subparagraph of Article 5 (1) as an institution to conduct feasibility studies. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| Article 11 (Formulation, Implementation, etc. of Plans for Supporting Technological Innovation) |
| (1) | Each plan for supporting the technological innovation of small and medium enterprises under Article 13 (1) of the Act (hereinafter referred to as “plan for supporting technological innovation”), shall include the following: <Amended by Presidential Decree No. 25043, Dec. 30, 2013> |
| 1. | Fields subject to support and the scale of support budget; |
| 2. | Scope and limits of support; |
| 3. | Standards for selecting enterprises entitled to support; |
| 4. | Other matters deemed necessary for supporting the technological innovation of small and medium enterprises. |
| (2) | Budget for research and development under Article 13 (1) of the Act shall be classified as follows: <Amended by Presidential Decree No. 26481, Aug. 11, 2015> |
| (3) | The support percentage (referring to the percentage the aggregate of the amounts classified in the subparagraphs of paragraph (4), comprises in the research and development budget of the relevant implementing agency; hereafter the same shall apply in this Article) for which the Minister of SMEs and Startups requests the head of an implementing agency pursuant to Article 13 (3) of the Act, shall be calculated as follows: <Amended by Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | In cases of an implementing agency which provided support of at least the average support percentage of all implementing agencies in the preceding year: The average of the support percentages in the preceding three years; |
| 2. | In cases of an implementing agency which provided support at lower than the average support percentage of all implementing agencies in the preceding year: The percentage calculated by adding the annual increase rate of the support percentages in the preceding three years to its support percentage in the preceeding year: Provided, That the percentage classified in the following items shall be in lieu of the percentage so calculated, in any of the following cases: |
| (a) | Where the annual average increase rate is a negative number: The highest of the support percentages in the preceding three years; |
| (b) | Where the support percentages remained the same for the preceding three years: The percentage calculated by adding to the support percentage in the preceding year the proper increase rate determined by the Minister of SMEs and Startups. |
| (4) | The records of support provided under Article 13 (4) of the Act shall be the aggregate of the amounts classified as follows: <Newly Inserted by Presidential Decree No. 26481, Aug. 11, 2015> |
| 1. | In cases of a research and development project, in which case the amount supported for the technological innovation of small and medium enterprises (hereafter referred to as “amount of support for small and medium enterprises" in this paragraph) represents at least 30 percent of the project expenses of such research and development project: The amount of support for small and medium enterprises; |
| 2. | In cases of a research and development project, the amount of support for small and medium enterprises of which is at least one billion won: The amount of support for small and medium enterprises; |
| 3. | In cases of a research and development project which provides support to small and medium enterprises for technology development on the condition of the purchase of the products developed by such small and medium enterprises: All project expenses of the relevant research and development project. |
| (5) | In any special circumstance in which it is difficult to reflect the notified support percentage in a plan for supporting technological innovation, the head of an implementing agency in receipt of a request referred to in paragraph (3) may separately determine the support percentage in consultation with the Minister of SMEs and Startups. <Newly Inserted by Presidential Decree No. 25043, Dec. 30, 2013; Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| (6) | If deemed necessary for efficiently formulating and implementing a plan for supporting technological innovation, the Minister of SMEs and Startups may formulate implementation guidelines providing for the following matters and notify the heads of implementing agencies thereof: <Amended by Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 25043, Dec. 30, 2013; Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Matters concerning methods and procedures for implementation, preferential support, etc. regarding support projects for technological innovation; |
| 2. | Matters concerning support percentages, support limits, royalty collection, etc. regarding support projects for technological innovation; |
| 3. | Other matters deemed necessary by the Minister of SMEs and Startups to efficiently formulate and implement a plan for supporting technological innovation. |
| (7) | Where the Minister of SMEs and Startups intends to formulate or amend implementation guidelines, he/she shall submit it for deliberation by the Committee for Promoting Technological Innovation. <Amended by Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 25043, Dec. 30, 2013; Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| (8) | “Deadline prescribed by Presidential Decree” in Article 13 (4) of the Act, means January 31. <Newly Inserted by Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 25043, Dec. 30, 2013; Presidential Decree No. 26481, Aug. 11, 2015> |
| (9) | the Minister of SMEs and Startups may combine and publicly announce the plans for supporting technological innovation notified by the head of an implementing agency pursuant to Article 13 (4) of the Act. <Newly Inserted by Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 12 (Composition, etc. of Technological Innovation Support Group for Small and Medium Enterprises) |
| (1) | A Technological Innovation Support Group for Small and Medium Enterprises referred to in Article 13-2 (1) of the Act (hereinafter referred to as the “Support Group”), shall be comprised of at least six members, including the leader. |
| (2) | The leader shall be appointed from among public officials belonging to the Senior Executive Service or public officials of at least Grade III of the Ministry of SMEs and Startups; members shall be appointed from among the public officials or executives or employees of the Ministry of SMEs and Startups, implementing agencies, or institutions specialized in technology promotion. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The leader and members may be ordered to work concurrently with their other positions or dispatched from their original positions, and the period of dispatch work shall be one year, except in extenuating circumstances. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary for the composition and operation of the Support Group, shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 21644, Jul. 27, 2009]
| Article 13 (Selection, etc. of Technological Innovation-Oriented Small and Medium Enterprises and Management Innovation-Oriented Small and Medium Enterprises) |
| (1) | Where the Minister of SMEs and Startups intends to select a technological innovation-oriented small and medium enterprise referred to in Article 15 (1) of the Act (hereinafter referred to as “technological innovation-oriented small and medium enterprise”) or a management innovation-oriented small and medium enterprise referred to in Article 15-3 (1) of the Act (hereinafter referred to as “management innovation-oriented small and medium enterprise”), he/she shall determine and publicly announce selection procedures and assessment standards classified as follows: <Amended by Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Matters concerning the outcomes of technological innovation, the capability for technology commercialization, etc., in cases of technological innovation-oriented small and medium enterprises; |
| 2. | Matters concerning the activities for management innovation, the outcomes of management innovation, etc., in cases of management innovation-oriented small and medium enterprises. |
| (2) | The Minister of SMEs and Startups shall conduct an assessment of enterprises according to assessment standards referred to in paragraph (1) 1 or 2, and select enterprises with excellent assessment results as technological innovation-oriented small and medium enterprises or as management innovation-oriented small and medium enterprises, respectively. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups may preferentially provide support to the enterprises selected as technological innovation-oriented small and medium enterprises or as management innovation-oriented small and medium enterprises under paragraph (2), where implementing a project for promotion of technological innovation or a project for discovering and fostering management-oriented small and medium enterprises under Article 15-3 (1) of the Act. <Amended by Presidential Decree No. 26481, Aug. 11, 2015; Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 20519, Jan. 3, 2008]
| Article 14 (Selection, etc. of Implementing Agencies) |
| (1) | In accordance with Article 17 (4) of the Act, the Minister of SMEs and Startups may request an agency meeting the following requirements, to perform a project for supporting the acquisition of overseas industrial standards under paragraph (2) 1 of the same Article: <Amended by Presidential Decree No. 19765, Dec. 21, 2006; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | To employ at least two specialists necessary for counselling about the acquisition of overseas industrial standards; |
| 2. | To have a track record of supporting the successful acquisition of overseas industrial standards at least five times within the preceding two years. |
| (2) | In accordance with Article 17 (4) of the Act, the Minister of SMEs and Startups may request any of the following agencies or organizations to perform a project for supporting the acquisition of overseas industrial standards under paragraph (1) 2 and 3 of the same Article, and to perform a project for quality improvement under paragraph (2) of the same Article: <Amended by Presidential Decree No. 19365, Feb. 28, 2006; Presidential Decree No. 19719, Oct. 27, 2006; Presidential Decree No. 19765, Dec. 21, 2006; Presidential Decree No. 20519, Jan. 3, 2008; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | The Korea Technology and Information Promotion Agency for Small and Medium Enterprises established under Article 20 (1) of the Act; |
| 2. | A corporation or organization falling under any subparagraph of Article 5 (1); |
| (3) | Necessary detailed matters concerning methods for implementation of, support procedures, etc. for, projects for supporting the acquisition of overseas industrial standards and projects for quality improvement under paragraphs (1) and (2), shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Articles 14-2 through 14-7 Deleted. <by Presidential Decree No. 28336, Sep. 19, 2017> |
| Article 15 (Designation, etc. of Institutions in Exclusive Charge) |
| (1) | The Minister of SMEs and Startups may designate any of the following corporations or organizations as an institution in exclusive charge of projects for supporting an integrated informatization management system under Article 19 (1) of the Act (hereinafter referred to as “institution in exclusive charge”), pursuant to Article 19 (2) of the Act: <Amended by Presidential Decree No. 19365, Feb. 28, 2006; Presidential Decree No. 20261, Sep. 10, 2007; Presidential Decree No. 21644, Jul. 27, 2009; Presidential Decree No. 28213, Jul. 26, 2017> |
| 2. | The Korea Technology and Information Promotion Agency for Small and Medium Enterprises established under Article 20 (1) of the Act; |
| 4. | Deleted. <by Presidential Decree No. 19765, Dec. 21, 2006> |
| (2) | Necessary detailed matters concerning methods for implementation of projects for supporting an integrated informatization management system, the performance scope, etc. of business affairs of institutions in exclusive charge under paragraph (1), shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 15-2 (Support Projects for Protection of Outcomes of Technological Innovation) |
| (1) | The Minister of SMEs and Startups may implement any of the following support projects pursuant to Article 19-2 (1) of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Surveys for the actual situation of divulging of the outcomes of technological innovation; |
| 2. | Counselling and consulting for protecting the outcomes of technological innovation; |
| 5. | Establishment of a system for preventing the divulging of the outcomes of technological innovation; |
| 6. | Other projects deemed necessary by the Minister of SMEs and Startups to protect the outcomes of technological innovation. |
| (2) | The universities and colleges, research institutes, public institutions, private organizations, small and medium enterprises, etc. (hereafter referred to as “college, etc.” in this Article) which intend to participate in a project referred to in any subparagraph of paragraph (1) and receive contributions or subsidies for expenses related thereto, shall file a business plan providing for the following matters with the Minister of SMEs and Startups: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Purposes and details of the project; |
| 2. | Necessity and effects of the project; |
| 3. | Capabilities for implementing the project; |
| 4. | Other matters deemed necessary and publicly announced by the Minister of SMEs and Startups. |
| (3) | the Minister of SMEs and Startups shall select entities entitled to contribution or subsidization, taking into account matters specified under paragraph (2) and opinions from relevant outside experts. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (4) | The colleges, etc. selected as entities entitled to contribution or subsidization pursuant to paragraph (3) shall report the result of the relevant project and detailed expenditures to the Minister of SMEs and Startups, within two months after completing the relevant project. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (5) | Methods, procedures, and standards for selecting entities entitled to contribution or subsidization under paragraph (3), and other matters necessary for implementing projects, shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 24586, Jun. 11, 2013]
| Article 16 (Selection, etc. of Institutions for Fostering Technical Human Resources) |
| (1) | The standards for selection of institutions implementing projects for fostering technical human resources under Article 21 (3) of the Act, shall be as follows: |
| 1. | To have definite and realizable goals in a business plan for a project for fostering technical human resources; |
| 2. | To secure the facilities and specialists necessary for a project for fostering technical human resources. |
| (2) | When the Minister of SMEs and Startups selects an institution for fostering technical human resources, he/she shall enter into an agreement with that institution concerning performing a project for fostering technical human resources. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 17 (Entities for Supporting Testing and Analysis, etc.) |
| (1) | The Minister of SMEs and Startups may provide the following support to small and medium enterprises pursuant to Article 25 (1) of the Act: <Amended by Presidential Decree No. 17735, Sep. 11, 2002; Presidential Decree No. 19939, Mar. 22, 2007; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Use of the equipment for testing and analysis held by Regional Offices of Small and Medium Enterprises and Startups Administration; |
| 2. | Good office of use of the equipment for testing and analysis held by public institutions, research institutes, colleges, etc.; |
| 3. | Provision of information on the equipment for testing and analysis held by the supporting entities under subparagraphs 1 and 2. |
| (2) | The Minister of SMEs and Startups may determine and publicly announce necessary matters concerning the methods, procedures, etc. for using the equipment for testing and analysis under paragraph (1). <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 18 (Collection, etc. of Royalties) |
| (1) | Where the Minister of SMEs and Startups collects royalties from a business operator pursuant to Article 28 (1) of the Act, he/she may allow the business operator to pay royalties in installments for a period not exceeding five years as provided for in the agreement. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (2) | “Where any intellectual property right created as an outcome of a project for technological innovation under Article 10 (1) or a project for supporting academic-industrial cooperation under Article 11 (1) falls under grounds prescribed by Presidential Decree, such as not being vested in a small and medium enterprise” in Article 28 (3) of the Act, means as follows: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Where any intellectual property right created as an outcome of a project for technological innovation under Article 10 (1) of the Act, is not vested in the relevant small and medium enterprise; |
| 2. | Where a project for technological innovation under Article 10 of the Act or a project for supporting academic-industrial cooperation under Article 11 (1) of the Act, aims at establishing research infrastructure or fostering technical human resources; |
| 3. | Where any intellectual property right created as an outcome of a project for supporting academic-industrial cooperation under Article 11 of the Act, is not vested in the relevant small and medium enterprise; |
| 4. | In cases of a project for supporting academic-industrial cooperation performed by a school, institution, or organization jointly with a small and medium entrepreneur pursuant to Article 11 of the Act, where the primarily responsible entity (referring to the institution, organization, or enterprise which has primary responsibility to perform tasks relating to a project for technology development) is not the relevant small and medium enterprise; |
| 5. | Where it is impracticable to pay royalties due to the occurrence of non-payment, business discontinuation, receivership, or other situation similar thereto; |
| 6. | Where the Minister of SMEs and Startups deems the exemption from royalties is necessary for the technological innovation of small and medium enterprises. |
| (3) | “Grounds prescribed by Presidential Decree, such as the payment of royalties in lump sum and the early repayment thereof” in Article 28 (4) of the Act, means as follows: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Where paying royalties in lump sum or repaying royalties early; |
| 2. | Where submitting a security for guaranteeing payment performance in order to repay royalties in installments; |
| 3. | Otherwise where the Minister of SMEs and Startups deems that the exemption from or reduction of royalties is necessary for the encouragement, promotion, etc. of technology development. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), necessary detailed matters concerning methods, standards, and procedures for collecting royalties, shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 21644, Jul. 27, 2009]
| Article 19 (Entrustment of Business Affairs) |
The Minister of SMEs and Startups shall entrust the heads of institutions specialized in technology promotion with the authority for the following affairs, pursuant to Article 29 (1) of the Act: | 2. | Affairs concerning restricting participation in a project for promotion of technological innovation under Article 31 (1) of the Act; |
[This Article Wholly Amended by Presidential Decree No. 28336, Sep. 19, 2017]
| Article 20 (Period, etc. of Restriction on Participation in Projects for Promotion of Technological Innovation) |
| (1) | “Cases prescribed by Presidential Decree” in Article 31 (1) 9 of the Act, means any of the following cases, where, even though a person who performs the relevant project under Article 31 (1) 9 of the Act receives a demand for rectification to the effect that it is required to fulfil any obligatory affair prescribed in the agreement, that person fails to comply with such demand without just grounds: <Newly Inserted by Presidential Decree No. 24586, Jun. 11, 2013; Presidential Decree No. 28336, Sep. 19, 2017> |
| 1. | Where he/she fails to submit reports obliged to be submitted as prescribed by the agreement, including a report detailing the use of project expenses; |
| 2. | Where he/she fails to pay the adjusted project expenses; |
| 3. | Where he/she fails to bear the amount to be borne pursuant to the agreement; |
| 4. | Where he/she fails to comply with any matters related to security and management prescribed by the agreement; |
| 5. | Where he/she violates any matter prescribed by the agreement, except for matters prescribed in subparagraphs 1 through 4, and the Minister of SMEs and Startups deems him/her to be inappropriate for performing the relevant project. |
| (2) | Where the Minister of SMEs and Startups restricts participation in a project for promotion of technological innovation pursuant to the main sentence of Article 31 (1) of the Act, the periods of restriction on participation by restriction cause shall be as specified in attached Table 2. <Amended by Presidential Decree No. 24586, Jun. 11, 2013; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
| (3) | In cases falling under any of the following subparagraphs, where the fact is recognized that a research has been systematically and faithfully performed in terms of its methods and process in accordance with the proviso to Article 31 (1) of the Act, the Minister of SMEs and Startups may choose not to reduce the period of participation restriction or restrict participation under subparagraph 2 (a) 1) of attached Table 2: <Newly Inserted by Presidential Decree No. 28336, Sep. 19, 2017> |
| 1. | In cases of failing to achieve the initial goals of such research due to setting such goals to a somewhat aggressive extent; |
| 2. | In cases of failing to achieve the goals of such research due to external factors such as the changed circumstances. |
| (4) | Where the Minister of SMEs and Startups decides to restrict participation under paragraphs (2) and (3), he/she shall notify the head of the relevant central administrative agency of such fact. <Amended by Presidential Decree No. 24586, Jun. 11, 2013; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
| (5) | In addition to matters prescribed in paragraphs (2) through (4), those concerning detailed standards, procedures, etc. for restricting participation, shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 24586, Jun. 11, 2013; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
[This Article Newly Inserted by Presidential Decree No. 21644, Jul. 27, 2009]
| Article 20-2 (Standards, etc. for Evaluating Findings of Research and Development) |
| (1) | Standards for evaluating the findings of research and development under Article 31 (4) of the Act, shall be as follows: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Appropriateness of the process and methods of research and development; |
| 2. | Level of achievement of goals and usefulness of the findings; |
| 3. | Other matters deemed necessary and publicly announced by the Minister of SMEs and Startups to successfully perform projects for technological innovation under Article 10 (1) of the Act or projects for supporting academic-industrial cooperation under Article 11 (1) of the Act. |
| (2) | The Minister of SMEs and Startups may request a person who performs a project for technological innovation under Article 10 (1) of the Act or a project for supporting academic-industrial cooperation under Article 11 (1) of the Act, to report on the findings of research and development to the Minister of SMEs and Startups within two months from the date the project is completed. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups shall notify the outcomes of evaluation of the development and research of a project for technological innovation under Article 10 (1) of the Act or a project for supporting academic-industrial cooperation under Article 11 (1) of the Act, to the person who performs the relevant project. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), detailed matters necessary for evaluating the findings of research and development, shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 24586, Jun. 11, 2013]
| Article 20-3 (Standards, etc. for Imposing Penalty Surcharges) |
| (1) | Standards for imposing penalty surcharges under Article 31 (2) of the Act (hereinafter referred to as “penalty surcharge”), shall be as specified in attached Table 3. <Amended by Presidential Decree No. 26864, Jan. 6, 2016> |
| (2) | If necessary for determining whether to impose a penalty surcharge or the amount of a penalty surcharge to be imposed, the Minister of SMEs and Startups may seek opinions from relevant public officials, experts, etc. <Newly Inserted by Presidential Decree No. 26864, Jan. 6, 2016; Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 24586, Jun. 11, 2013]
| Article 20-4 (Imposition and Payment of Penalty Surcharges) |
| (1) | Where the Minister of SMEs and Startups imposes a penalty surcharge pursuant to Article 31 (2) of the Act, he/she shall notify in writing advising that the penalty surcharge must be paid, specifying the kind of relevant violation and the amount of the penalty surcharge. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (2) | A person in receipt of a notification issued under paragraph (1) shall pay the penalty surcharge to the collecting agency determined by the Minister of SMEs and Startups within 30 days from the date the notification is received: Provided, That where it is impossible to pay the penalty surcharge within such period due to extenuating circumstances, such as an act of God or a war or armed conflict, the person shall pay the penalty surcharge within seven days from the date such reason ceases to exist. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The collecting agency which receives a penalty surcharge pursuant to paragraph (2) shall issue a receipt to the payor and notify such fact to the Minister of SMEs and Startups without delay. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 24586, Jun. 11, 2013]
| Article 21 (Standards and Procedures for Withdrawing Contributions) |
| (1) | The causes for which the Minister of SMEs and Startups may withdraw any already contributed project expenses pursuant to the main sentence of Article 32 (1) of the Act, and the scope of the amount to be withdrawn, shall be as specified in attached Table 2: <Amended by Presidential Decree No. 25043, Dec. 30, 2013; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
| (2) | In cases falling under any subparagraph of Article 20 (3) where the fact is recognized that a research has been systematically and faithfully performed in terms of its methods and process in accordance with the proviso to Article 32 (1) of the Act, the Minister of SMEs and Startups may either reduce or choose not to collect the amount to be withdrawn under subparagraph 2 (a) 1) of attached Table 2. <Newly Inserted by Presidential Decree No. 28336, Sep. 19, 2017> |
| (3) | Except as provided in paragraphs (1) and (2), detailed standards, procedures, etc. for withdrawing the contributions shall be determined and publicly announced by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28336, Sep. 19, 2017> |
[This Article Newly Inserted by Presidential Decree No. 21644, Jul. 27, 2009]
| Article 22 (Management of Personally Identifiable Information) |
| 1. | Affairs concerning projects for promotion of technological innovation of small and medium enterprises under Article 9 of the Act; |
| 2. | Affairs concerning support for improving the manufacturing environment and increasing productivity of small and medium enterprises under Article 17-3 of the Act; |
| 3. | Affairs concerning fostering technical human resources of small and medium enterprises under Article 21 of the Act; |
| 4. | Affairs concerning support for joint utilization of research facilities and equipment under Article 25-2 of the Act; |
| 6. | Affairs concerning restrictions, etc. on participation in projects for promotion of technological innovation under Article 31 of the Act; |
[This Article Newly Inserted by Presidential Decree No. 24317, Jan. 16, 2013]
| Article 23 (Re-Examination of Regulation) |
The Minister of SMEs and Startups shall examine the appropriateness of the following matters, every three years from the following base dates (referring to the date immediately before the third anniversary from the base date) and shall take measures, such as making improvements: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| 1. | Causes, period, and procedures for restricting participation in a project for supporting the promotion of technological innovation under Article 20 and attached Table 2: January 1, 2016; |
| 2. | Standards and procedures for recovering contributions under Article 21: January 1, 2016. |
[This Article Newly Inserted by Presidential Decree No. 26804, Dec. 30, 2015]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2001.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 17735, Sep. 11, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 19365, Feb. 28, 2006>
This Decree shall enter into force on March 1, 2006.
ADDENDA <Presidential Decree No. 19719, Oct. 27, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 29, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 19765, Dec. 21, 2006>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability concerning Selection of Implementing Agencies) The amended provisions of Article 14 (1) shall begin to apply from the first application for selection of an implementing agency, filed after this Decree enters into force. |
ADDENDA <Presidential Decree No. 19939, Mar. 22, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
Article 3 (Relations with other Statutes)
References in other statutes to a Regional Office of SMBA and the Daejeon and Chungnam branch office, or the head of a Regional Office of SMBA and the head of the Daejeon and Chungnam Branch Office, as at the time this Decree enters into force, shall be deemed references to a Regional Office of SMBA or the head of a Regional Office of SMBA, respectively.
ADDENDA <Presidential Decree No. 20261, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 20331, Oct. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 28, 2007. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20519, Jan. 3, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2008: Provided, That the amended provisions of Article 14 (2) shall enter into force on May 26, 2008. Article 2 (Transitional Measures concerning Selection of Management Innovation-Oriented Small and Medium Enterprises)
Management innovation-oriented small and medium enterprises selected by the SME Minister of the SMBA before this Decree enters into force, shall be deemed selected in accordance with the amended provisions of Article 13.
ADDENDA <Presidential Decree No. 20728, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21644, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009: Provided, That the amended provisions of Articles 5 (1) 4 and 15 (1) 3 shall enter into force on November 22, 2009. Article 2 (Applicability)
The amended provisions of Articles 20 and 21 shall also apply to any person performing a project with the project expenses contributed pursuant to the former provisions as at the time this Decree enters into force. Article 3 (Transitional Measures)
“The Korea Land and Housing Corporation” in the amended provisions of Article 11 (2) 2 shall be construed as “the Korea National Housing Corporation and the Korea Land Corporation” until September 30, 2009.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 24317, Jan. 16, 2013>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 24432, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24586, Jun. 11, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 12, 2013.
Article 2 (Transitional Measures concerning Restricting Participation in Projects for Promotion of Technological Innovation, and concerning Recovering Contributions)
Notwithstanding the amended provisions of attached Table 2, the former provisions shall apply to restricting participation in a project for promotion of technological innovation, and recovering contributions, both provided for in Articles 31 (1) and 32 (1) of the Act, on account of any violation committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 25043, Dec. 30, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2014.
Article 2 (Transitional Measures concerning Modification of Scope of Contributions to be Recovered)
Notwithstanding the amended provisions of attached Table 2, the former provisions shall apply to the scope of contributions to be recovered on account of any cause for restriction on participation occurring before this Decree enters into force.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 25927, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Article 2 (Transitional Measures concerning Quality Certification Marks)
A quality certification mark specified in former attached Table 1, which is attached pursuant to Article 14-5 (2), by a small and medium enterprise issued a quality certificate pursuant to paragraph (1) of the same Article before this Decree enters into force, shall be deemed a quality certification mark specified in the amended provisions of attached Table 1.
ADDENDUM <Presidential Decree No. 26481, Aug. 11, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 26804, Dec. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26864, Jan. 6, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Standards for Imposing Penalty Surcharges)
Notwithstanding the amended provisions of attached Table 3, the former provisions shall apply to the imposition of penalty surcharges for offences committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
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.
ADDENDA <Presidential Decree No. 28336, Sep. 19, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 22, 2017.
Article 2 (Transitional Measure concerning Periods of Participation Restriction and Withdrawal of Contributions)
Notwithstanding the amended provisions of attached Table 2, former provisions shall apply to restrictions on participation in national research and development projects for which agreements has been concluded before this Decree enters into force and the withdrawal of contributions with respect to such projects.
Article 3 (Transitional Measure concerning Calculation of Cumulative Number of Periods of Participation Restriction)
The participation restrictions caused with respect to national research and development projects for which agreements have been concluded before this Decree enters into force shall not be included in calculating the cumulative number of participation restrictions prescribed in the amended provisions of attached Table 2.