ENFORCEMENT DECREE OF THE ACT ON THE FACILITATION OF ENTREPRENEURIAL ACTIVITIES OF PERSONS WITH DISABILITIES
Presidential Decree No. 19099, Oct. 26, 2005
Amended by Presidential Decree No. 19513, jun. 12, 2006
Presidential Decree No. 20728, Feb. 29, 2008
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 22269, Jul. 12, 2010
Presidential Decree No. 24432, Mar. 23, 2013
Presidential Decree No. 24638, jun. 28, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 27388, Jul. 26, 2016
Presidential Decree No. 28103, jun. 13, 2017
Presidential Decree No. 28213, Jul. 26, 2017
Presidential Decree No. 28337, Sep. 19, 2017
| Article 2 (Definition, etc. of Enterprise Owned or Operated by Person with Disability) |
| 1. | A company prescribed by the Commercial Act, in which a person with a disability is registered as an executive officer having authority to represent the company (hereinafter referred to as “representative of the company”): Provided, That where such company has at least two representatives (hereinafter referred to as “joint representatives”), it is limited to a company for which the number of stocks (including investment shares, but excluding stocks without voting rights prescribed by Article 370 of the Commercial Act; hereinafter the same shall apply) owned by joint representatives comprised of persons with disabilities, exceeds the number of stocks owned by joint representatives comprised of persons without disabilities; |
| (2) | “Employment ratio of persons with disabilities” referred to in subparagraph 2 (b) of Article 2 of the Act, means 30/100. |
| (3) | Deleted. <by Presidential Decree No. 28213, Sep. 19, 2017> |
| Article 3 (Formulation of Basic Plans for Facilitation of Entrepreneurial Activities of Persons with Disabilities) |
The Minister of Small and Medium Enterprises (SMEs) and Startups shall formulate a basic plan for the facilitation of business activities of persons with disabilities (hereinafter referred to as “basic plan”) by the end of March each year, pursuant to Article 5 (1) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| Article 4 (Composition of Committee for Facilitation of Entrepreneurial Activities of Persons with Disabilities) |
| (1) | The Committee for the Facilitation of Entrepreneurial Activities of Persons with Disabilities prescribed by Article 6 of the Act (hereinafter referred to as the “Committee”), shall be comprised of not more than 20 members, including one Chairperson. |
| (2) | The Vice Minister of SMEs and Startups shall be the Chairperson of the Committee. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The members of the Committee shall be as follows: <Amended by Presidential Decree No. 19513, Jun. 12, 2006; Presidential Decree No. 20728, Feb. 29, 2008; Presidential Decree No. 22075, Mar. 15, 2010; Presidential Decree No. 22269, Jul. 12, 2010; Presidential Decree No. 24432, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | One person respectively designated by the head of the relevant agency from among public officials in Grade III who work for the Ministry?of Strategy and Finance; the Ministry of Justice; the Minister of Interior; the Ministry of Trade, Industry and Energy; the Ministry of Health and Welfare; the Ministry of Employment and Labor; the Financial Services Commission; the National Tax Service; and the Public Procurement Service, or from among public officials in general service belonging to the Senior Civil Service Corps; and the Chairperson of the Korean Disabled Entrepreneurs Association prescribed by Article 11 of the Act; |
| 2. | Persons commissioned by the Minister of SMEs and Startups from among those persons who have substantial knowledge and experience regarding small and medium enterprises and regarding policy for persons with disabilities. |
| (4) | Members commissioned pursuant to the provisions of paragraph (3) 2 shall serve a term of two years. |
| Article 4-2 (Cancellation of Designation, and Revocation of Commission, of Members) |
| (1) | A person who has designated a member of the Committee pursuant to Article 4 (3) 1 may cancel 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 corruption or illegality in the course of performing his/her duties; |
| 3. | Where he/she is deemed inappropriate to remain as a member due to neglect of duties, loss to dignity, or other grounds; |
| 4. | Where he/she voluntarily declares that it is difficult to perform duties as a member. |
| (2) | Where a member of the Committee prescribed by Article 4 (3) 2, falls under any of the subparagraphs of paragraph (1), the Minister of SMEs and Startups may revoke the commission of the relevant member. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Newly Inserted by Presidential Decree No. 26844, Dec. 31, 2015]
| Article 5 (Functions of the Committee) |
The Committee shall deliberate on the following matters concerning: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| 6. | Supporting the Business Center for Enterprises Owned or Operated by Persons with Disabilities prescribed by Article 13 of the Act; |
| 7. | Other matters necessary for facilitating entrepreneurial activities of persons with disabilities, which are referred to a meeting by the Minister of SMEs and Startups or the Chairperson of the Committee. |
| Article 6 (Operation of the Committee) |
| (1) | The Chairperson of the Committee shall convene and preside over Committee meetings. |
| (2) | The Committee shall pass a resolution with a majority of incumbent members of the Committee present and by affirmative votes of a majority of those of the Committee present. |
| (3) | Allowances and travel expenses may be paid to members of the Committee within budgetary limits: Provided, That this shall not apply where a member of the Committee attends as a public official in a meeting of the Committee, in direct relation to duties assigned for the relevant public official. |
| (4) | One administrative secretary shall be employed to deal with administrative affairs of the Committee, but shall be appointed by the Chairperson from among public officials belonging to the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (5) | Other necessary matters concerning the operation of the Committee shall be determined by the Chairperson following a resolution by the Committee. |
| Article 7 (Public Announcement of Financial Support Procedures, etc.) |
Where necessary for providing financial support to enterprises owned or operated by persons with disabilities pursuant to the provisions of Article 9 of the Act, the Minister of SMEs and Startups may determine and publicly pre-announce the scope of, and support procedures for, the enterprises owned or operated by persons with disabilities eligible for support. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| Article 7-2 (Preferential Purchase Ratio of Public Institutions) |
“Ratio determined by Presidential Decree” referred to in Article 9-2 (3) of the Act, means 1/100 of the total amount of products to be purchased by the relevant institution in the relevant year: Provided, That the head of a public institution which has difficulty attaining the purchase ratio of at least 1/100 due to the characteristics of the public institution may separately determine the purchase ratio in consultation with the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 27388, Jul. 26, 2016]
| Article 8 (Incorporation, etc. of Korean Disabled Entrepreneurs Association) |
| (1) | When it is intended to incorporate the Korean Disabled Entrepreneurs Association (hereinafter referred to as the "Association") pursuant to the provisions of Article 11 of the Act, an inaugural general meeting shall be held by at least five promoters who are entrepreneurs with disabilities, for the Association, with the consent of at least 100 entrepreneurs with disabilities. |
| (2) | The representative of the promoters referred to in the provisions of paragraph (1), shall file an application for permission for incorporation with the Minister of SMEs and Startups, along with the following documents: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | A written application for permission for incorporation; |
| 2. | Articles of association; |
| 3. | Lists of promoters and consenters; |
| 4. | A written business plan and a written budget for income and expenses; |
| 5. | Certificates issued by registration offices and financial institutions, etc., regarding primary property, including an inventory of property, real estate, deposits, and securities; |
| 6. | Minutes of the inaugural general meeting. |
| (3) | The Minister of SMEs and Startups shall publicly announce the incorporation of the Association when he/she permits its incorporation. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (4) | Necessary administrative affairs during the period until the Association is incorporated and executive officers are appointed, shall be conducted by the promoters. |
| Article 9 (Articles of Association for the Association) |
The articles of association for the Association shall state the following:
| 3. | Location of the principal office; |
| 6. | Matters concerning executive officers; |
| 7. | Matters concerning the composition and operation of general meetings and the board of directors; |
| 8. | Matters concerning assets and accounting; |
| 9. | Matters concerning amendment of the articles of association; |
| 10. | Matters concerning the Business Center for Supporting Enterprises Owned or Operated by Persons with Disabilities prescribed by Article 13 of the Act. |
| Article 10 (Incorporation of the Business Center for Enterprises Owned or Operated by Persons with Disabilities) |
| (1) | The Business Center for Enterprises Owned or Operated by Persons with Disabilities prescribed by Article 13 of the Act (hereinafter referred to as the “Business Center”) may be incorporated as an incorporated foundation under the Civil Act. |
| (2) | The Business Center shall perform the following business affairs: <Amended by Presidential Decree No. 25840, Dec. 9, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Guaranteeing and recommending enterprises owned or operated by persons with disabilities; |
| 2. | Providing information and data to enterprises owned or operated by persons with disabilities; |
| 3. | Supporting start-up businesses by persons with disabilities; |
| 4. | Providing education, training, and workshops to entrepreneurs with disabilities; |
| 5. | Facilitating managerial and marketing activities by enterprises owned or operated by persons with disabilities; |
| 6. | Operating a consulting center to help resolve difficulties faced by enterprises owned or operated by persons with disabilities; |
| 7. | Conducting research and investigation for nurturing enterprises owned or operated by persons with disabilities; |
| 8. | Projects commissioned by the Minister of SMEs and Startups, the head of a local government, or the Chairperson of the Association, for the purpose of nurturing enterprises owned or operated by persons with disabilities; |
| 9. | Other projects provided for by the articles of association for the Business Center, which support enterprises owned or operated by persons with disabilities. |
| Article 11 (Operation of Business Center) |
| (1) | The representative of the Business Center shall be appointed by the head of the Association. |
| (2) | Necessary matters concerning the organization and operation of the Business Center shall be provided for by the articles of association or operational regulations of the Business Center. |
| Article 11-2 (Verification of Enterprise Owned or Operated by Persons with Disabilities) |
| 1. | In the case of a corporation: |
| 2. | In the case of an individual business entity: |
| (a) | A partnership agreement (only applicable to a joint business entity); |
| (2) | The Minister of SMEs and Startups, in receipt of an application under paragraph (1), shall verify the following through the joint use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That if the applicant refuses to agree to the verification of the matters under subparagraphs 2 through 4, the Minister of SMEs and Startups shall have him/her attach the copies thereof: |
| 1. | A corporation registration certificate (only applicable to a corporation); |
| 2. | A business registration certificate; |
| 3. | A certificate of the value-added tax base; |
| 4. | A certificate of a person with a disability or a certificate verifying a person of distinguished services to the State. |
| (3) | The Minister of SMEs and Startups, upon receipt of an application under paragraph (1), may conduct paper-based and on-site inspections to verify whether any enterprise is eligible as an enterprise owned or operated by a person with a disability, and may, if necessary, demand that such enterprise submit the relevant materials. |
| (4) | The Minister of SMEs and Startups, upon receipt of an application under paragraph (1), shall examine whether such application meets the requirements specified in each item of subparagraph 2 of Article 2 of the Act, and issue a certificate of verification under attached Form 2, if the relevant enterprise is verified as an enterprise owned or operated by a person with a disability. |
| (5) | Where an enterprise owned or operated by a person with a disability which is verified pursuant to paragraph (4) intends to make changes to any of the verified content, it shall file with the Minister of SMEs and Startups an application for verification or verification of changes of an enterprise owned or operated by a person with a disability, which is prescribed in attached Form 1, together with the documents proving such changes, through an information network for procurement. |
| (6) | In addition to the matters provided for in paragraphs (1) through (5), those necessary for verifying enterprises owned or operated by a person with a disability shall be determined and publicly announced by the Minister of SMEs and Startups. |
[This Article Newly Inserted by Presidential Decree No. 28337, Sep. 19, 2017]
| Article 11-3 (Validity, etc. of Verification of Enterprises Owned or Operated by Persons with Disability) |
| (1) | Verification of an enterprise owned or operated by a person with a disability under the latter part of Article 18-2 (2) of the Act shall be valid for two years from the issuance of a certificate verifying an enterprise owned or operated by a person with a disability: Provided, That where the time limit for re-decision on the disability grade or wound grade of the representative with a disability is within two years of such date of issuance, the validity thereof shall be from such date of issuance to the time limit for re-decision. |
| (2) | A person who intends to continue to receive support under the Act after the expiry of the validity under paragraph (1) may file with the Minister of SMEs and Startups an application for re-verification of an enterprise owned or operated by a person with a disability. In such cases, Article 11-2 shall apply mutatis mutandis to procedures, methods, etc. for re-verification. |
| (3) | “Period prescribed by Presidential Decree” referred to in Article 18-2 (3) of the Act means one year from the cancellation of the verification of an enterprise owned or operated by a person with a disability. |
[This Article Newly Inserted by Presidential Decree No. 28337, Sep. 19, 2017]
| Article 11-4 (Entrustment of Affairs) |
The Minister of SMEs and Startups shall entrust business centers for supporting enterprises owned or operated by persons with disabilities under Article 13 of the Act with the receipt of applications for verification of enterprises owned or operated by persons with disabilities and the verification of applied content under Article 18-2 (1) of the Act, pursuant to Article 19 of the Act. [This Article Newly Inserted by Presidential Decree No. 28337, Sep. 19, 2017]
| Article 12 (Subsidization of Expenses for Commission) |
The Minister of SMEs and Startups may subsidize necessary expenses for commission where projects are commissioned to an institution or organization related to enterprises owned or operated by persons with disabilities pursuant to the provisions of Article 19 of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| Article 12-2 (Re-Evaluation of Regulation) |
The Minister of SMEs and Startups shall evaluate the appropriateness of procedures for applying for permission for the incorporation of the Korean Disabled Entrepreneurs Association referred to in Article 8 (1), (2) and (4) every three years, counting from January 1, 2014 (referring to the day before every third anniversary from January 1 of every third year) and shall take improvement measures. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
| Article 13 Deleted. <by Presidential Decree No. 28103, Jun.13, 2017, 2017> |
ADDENDUM
This Decree shall enter into force on October 30, 2005.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
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 through 3 Omitted.
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.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. <Proviso Omitted.>
Article 2 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. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. <Proviso Omitted.>
Articles 2 through 17 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. <Proviso Omitted.>
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That, the amendments to the Presidential Decrees amended pursuant to Article 5 of Addenda, which were promulgated before this Decree enter into force, but the dates on which they enter into force have not yet arrived, shall respectively enter into force on the enforcement dates of the relevant Presidential Decrees.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 27388, Jul. 26, 2016>
This Decree shall enter into force on July 28, 2016.
ADDENDUM <Presidential Decree No. 28103, 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.
ADDENDA <Presidential Decree No. 28337, Sep. 19, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 22, 2017.
Article 2 (Transitional Measures concerning Application for Verification of Enterprise Owned or Operated by Person with Disability)
An application for verification of an enterprise owned or operated by a person with a disability, which has been filed pursuant to former Article 2 (3) before this Decree enters into force, shall be deemed to have been filed under the amended provisons of Article 11-2 (1).