ENFORCEMENT DECREE OF THE SPECIAL ACT ON THE PROMOTION OF BUSINESS CONVERSION IN SMALL AND MEDIUM ENTERPRISES
Presidential Decree No. 19667, Aug. 29, 2006
Amended by Presidential Decree No. 20137, jun. 29, 2007
Presidential Decree No. 20728, Feb. 29, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 21343, Feb. 27, 2009
Presidential Decree No. 21835, Nov. 20, 2009
Presidential Decree No. 24697, Aug. 27, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 27205, May 31, 2016
Presidential Decree No. 28213, Jul. 26, 2017
| Article 2 (Scope of Business Conversion) |
| (2) | The types of business used in this Decree shall be classified according to the Korean Standard Industrial Classification prepared and publicly announced by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act. |
[This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 3 (Scope of Application) |
“Standards prescribed by Presidential Decree” in Article 3 of the Act means that a transfer between types of business is made by a small and medium business operator with at least five full-time workers, as prescribed 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. 21343, Feb. 27, 2009]
| Article 4 (Establishment and Implementation of Plans for Promotion of Business Conversion in Small and Medium Enterprises) |
The Minister of SMEs and Startups may conduct a demand survey of small and medium enterprises or agencies or organizations assisting small and medium enterprises when necessary for establishing a plan for the promotion of business conversion in small and medium enterprises (hereinafter referred to as “plan for the promotion of business conversion”) pursuant to Article 4 (1) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> [This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 5 Deleted. <by Presidential Decree No. 20728, Feb. 29, 2008> |
| Article 6 (Establishment of Support Center for Business Conversion in Small and Medium Enterprises) |
| (1) | The standards for the designation of an agency or organization assisting small and medium enterprises, which should establish and operate a support center for the business conversion in small and medium enterprises (hereinafter referred to as “support center”) pursuant to Article 6 (1) of the Act, shall be as follows: <Amended by Presidential Decree No. 21835, Nov. 20, 2009; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | It shall be a corporation; |
| 2. | The scope of business of the corporation shall include the affairs concerning business conversion; |
| 3. | It shall have an organization exclusively dedicated to supporting the business conversion in small and medium enterprises; |
| 4. | It shall retain at least three experts who fall under any of the following: |
| (a) | A person who has been engaged in business conversion-related planning, analysis, evaluation, or assistance for at least three years at an agency or organization assisting small and medium enterprises; |
| (c) | A person who is recognized and publicly notified by the Minister of SMEs and Startups as having a career equivalent to that of a person referred to in item (a) or (b). |
| (2) | Upon designation of an agency or organization assisting small and medium enterprises which should establish and operate a support center (hereinafter referred to as “corporation that establishes and operates a support center”) pursuant to Article 6 (1) of the Act, the Minister of SMEs and Startups shall give public notice thereof. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | A person who has been designated as a corporation that establishes and operates a support center pursuant to Article 6 (1) of the Act shall submit the support center’s operating performance of the previous year to the Minister of SMEs and Startups by no later than January 31 annually. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 7 (Investigation into Actual State of Business Conversion) |
When the Minister of SMEs and Startups has investigated the actual state of business conversion pursuant to Article 7 (1) of the Act, he/she shall publicly announce the result thereof and incorporate it in a plan for the promotion of business conversion. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| Article 8 (Standards, etc. for Approval of Plan for Business Conversion) |
| (1) | The standards for approval of a plan for business conversion under Article 8 (1) of the Act (hereinafter referred to as “plan for business conversion) shall be as follows: |
| 1. | A plan for business conversion shall fall under the scope of business conversion; |
| 2. | A small and medium business operator who intends to obtain approval of a plan for business conversion shall fall under the scope of application referred to in Article 3 of the Act; |
| 4. | The method of implementing a plan for business conversion shall be specific and feasible. |
| (2) | A small and medium business operator who intends to obtain approval of a plan for business conversion shall file with the Minister of SMEs and Startups an application therefor prescribed and publicly notified by the Minister of SMEs and Startups, attaching a plan for business conversion thereto. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | Upon receipt of an application for approval of a plan for business conversion pursuant to paragraph (2), the Minister of SMEs and Startups shall decide whether to approve the plan, after conducting an on-site inspection of the relevant place of business: Provided, That such on-site inspection may be omitted if deemed unnecessary. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (4) | The scope and method of, and procedure for, an on-site inspection under paragraph (3), and other necessary matters shall be prescribed 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. 21343, Feb. 27, 2009]
| Articles 9 and 10 Deleted. <by Presidential Decree No. 21343, Feb. 27, 2009> |
| Article 11 (Investigation into Actual Implementation of Plan for Business Conversion) |
| (1) | To investigate the actual implementation of a plan for business conversion pursuant to Article 10 (1) of the Act, the Minister of SMEs and Startups may request, in advance, the following data from a small and medium business operator who has obtained approval of such plan (hereinafter referred to as “approved enterprise”): <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Status of implementation of the plan for business conversion; |
| 3. | Other data necessary for the investigation into the actual results of the plan for business conversion. |
[This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 12 (Approval for Modification of Plan for Business Conversion) |
| (1) | Where an approved enterprise intends to modify any of the following details of a plan for business conversion pursuant to Article 11 (1) of the Act, it shall file with the Minister of SMEs and Startups an application therefor prescribed and publicly notified by the Minister of SMEs and Startups, attaching documents relating to the modification of such plan thereto: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (2) | Upon receipt of an application for modification of a plan for business conversion pursuant to paragraph (1), the Minister of SMEs and Startups shall decide whether to approve the modification, after conducting an on-site inspection of the relevant place of business: Provided, That such on-site inspection may be omitted if deemed unnecessary. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The scope and method of and procedure for an on-site inspection under paragraph (2), and other necessary matters shall be prescribed 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. 21343, Feb. 27, 2009]
| Article 13 (Recommendation on Modification or Suspension of Plan for Business Conversion) |
Where the Minister of SMEs and Startups intends to recommend an approved enterprise to modify or suspend its plan for business conversion pursuant to Article 11 (2) of the Act, he/she shall do so in writing, specifying the details of such recommendation. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> [This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 14 (Publicly Certified Appraisal Agency) |
“Publicly certified appraisal agency prescribed by Presidential Decree” in the former part of Article 14 (3) of the Act means each of the following institutions: <Amended by Presidential Decree No. 24697, Aug. 27, 2013; Presidential Decree No. 27205, May 31, 2016> [This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 15 (Cancellation of Approval) |
[This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]
| Article 16 (Reporting and Inspections) |
| (1) | “Books, papers, etc. of approved enterprises prescribed by Presidential Decree” in the main sentence of Article 32 (1) of the Act means any of the following: |
| 1. | Account books relating to a plan for business conversion; |
| 2. | Documents relating to the implementation of a plan for business conversion; |
| 3. | Other documents relating to business conversion. |
| (2) | “Matters which are prescribed by Presidential Decree” in Article 32 (1) 3 of the Act means where an investigation into the actual state of operation of a support center is necessary. |
[This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]?
| Article 17 (Delegation and Entrustment of Authority) |
| (1) | The Minister of SMEs and Startups shall delegate the following authority to the head of a regional SMEs and Startups office pursuant to Article 33 (1) of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups shall entrust the following duties to the head of a corporation that establishes and operates a support center pursuant to Article 33 (2) of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | Each of the following, from among the duties of approval of a plan for business conversion under Article 8 of the Act: |
| (a) | Receipt of an application for approval of a plan for business conversion under Article 8 (2); |
| (b) | On-site inspection of a place of business under Article 8 (3); |
| 2. | Matters concerning an investigation into the actual implementation of a plan for business conversion under Article 10 of the Act; |
| 3. | Each of the following from among the duties of approval for modification of a plan for business conversion under Article 11 of the Act: |
| (a) | Receipt of an application for modification of a plan for business conversion under Article 12 (1); |
[This Article Wholly Amended by Presidential Decree No. 21343, Feb. 27, 2009]?
| Article 18 (Re-examination of Regulation) |
In cases of suspension of business under Article 15, the Minister of SMEs and Startups shall examine the appropriateness of the period falling under the grounds for cancellation of a plan for business conversion, every three years counting from January 1, 2014 (referring to the period that ends on the day before January 1 of every third year), and shall take measures for improvement, etc. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> [This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on September 4, 2006. |
ADDENDA <Presidential Decree No. 20137, Jun. 29, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 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 and 3 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009.
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21343, Feb. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 2009: Provided, That the amended provisions of Article 7 (3) shall enter into force on January 1, 2010. Article 2 Omitted.
ADDENDA <Presidential Decree No. 21835, Nov. 20, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 22, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 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. 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.