ACT ON THE PROMOTION OF MUTUALLY BENEFICIAL COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL AND MEDIUM ENTERPRISES
Act No. 7864, Mar. 3, 2006
Amended by Act No. 8108, Dec. 28, 2006
Act No. 8454, May 17, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9013, Mar. 28, 2008
Act No. 9331, Jan. 7, 2009
Act No. 9978, Jan. 27, 2010
Act No. 10252, Apr. 12, 2010
Act No. 11173, Jan. 17, 2012
Act No. 12002, Aug. 6, 2013
Act No. 12307, Jan. 21, 2014
Act No. 12498, Mar. 18, 2014
Act No. 13839, Jan. 27, 2016
Act No. 13732, Apr. 7, 2016
Act No. 14529, Jan. 17, 2017
Act No. 14775, Apr. 18, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15081, Nov. 28, 2017
Act No. 15519, Mar. 20, 2018
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to sharpen the competitiveness of large enterprises and small-medium enterprises by consolidating mutually beneficial cooperation between them and to attain their shared growth by resolving the polarization between large enterprises and small-medium enterprises with the aim of laying the foundation for sustainable growth of the national economy.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 11173, Jan. 17, 2012; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
| 2. | The term "large enterprises" means enterprises that are not small-medium enterprises; |
| 3. | The term "mutually beneficial cooperation" means joint activities carried out between large enterprises and small-medium enterprises, between small-medium enterprises, or between commissioning enterprises and commissioned enterprises in order to increase their mutual interests in sectors of technology, human resources, fund, purchase, marketing, etc.; |
| 4. | The term "transaction effected on consignment and commission" means a trade in which anyone who runs business of manufacture, construction work, processing, repair, sales, or services commissions the manufacture, construction work, processing, repair, services, or technology development (hereinafter referred to as "manufacture") of goods, parts, semi-finished goods, raw materials, etc. (hereinafter referred to as "goods, etc.") to any other small-medium enterprise and the commissioned small-medium enterprise manufactures the goods, etc. in a specialized manner; |
| 5. | The term "commissioning enterprise" means anyone who commissions pursuant to subparagraph 4; |
| 6. | The term "commissioned enterprise" means anyone who is commissioned pursuant to subparagraph 4; |
| 8. | The term "payment replacing bills" means that a commissioning enterprise pays the price of delivered goods by means of an exclusive-use card for business purchase, loan against security of credit sales claims, and purchase loan system under Article 7-2 (3) 5 through 7 of the Restriction of Special Taxation Act and other means of payment used as a substitute for bills, which are prescribed by Presidential Decree; |
| 9. | The term "technical data" means the method of manufacturing or producing goods, etc., and other data useful for business activities and have independent economic value, which are prescribed by Presidential Decree; |
| 10. | The term "shared growth index" means a quantitative indicator developed by evaluating the degree of shared growth between large enterprises and small-medium enterprises in order to promote their shared growth; |
| 11. | The term "business types and items suitable for small-medium enterprises (hereinafter referred to as "suitable type of business") means sectors (including service business) in which it is appropriate to operate business in the form of small-medium enterprises so as to induce reasonable division of roles between large enterprises and small-medium enterprises. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 11173, Jan. 17, 2012; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017; Act No. 15519, Mar. 20, 2018>
| 2. | The term "large enterprises" means enterprises that are not small-medium enterprises; |
| 3. | The term "mutually beneficial cooperation" means joint activities carried out between large enterprises and small-medium enterprises, between small-medium enterprises, or between commissioning enterprises and commissioned enterprises in order to increase their mutual interests in sectors of technology, human resources, fund, purchase, marketing, etc.; |
| 4. | The term "transaction effected on consignment and commission" means a trade in which anyone who runs business of manufacture, construction work, processing, repair, sales, or services commissions the manufacture, construction work, processing, repair, services, or technology development (hereinafter referred to as "manufacture") of goods, parts, semi-finished goods, raw materials, etc. (hereinafter referred to as "goods, etc.") to any other small-medium enterprise and the commissioned small-medium enterprise manufactures the goods, etc. in a specialized manner; |
| 5. | The term "commissioning enterprise" means anyone who commissions pursuant to subparagraph 4; |
| 6. | The term "commissioned enterprise" means anyone who is commissioned pursuant to subparagraph 4; |
| 8. | The term "payment replacing bills" means that a commissioning enterprise pays the price of delivered goods by means of an exclusive-use card for business purchase, loan against security of credit sales claims, and purchase loan system under Article 7-2 (3) 5 through 7 of the Restriction of Special Taxation Act and other means of payment used as a substitute for bills, which are prescribed by Presidential Decree; |
| 8-2. | The term "mutually-beneficial settlement" means that a commissioning enterprise or commissioned enterprise pays the price of delivered goods by means of accounts receivable which meet each of the following requirements: |
| (a) | A commissioned enterprise must be able to issue new accounts receivable to another commissioned enterprise to pay the price of delivered goods, by pledging as security the accounts receivable it has received from a commissioning enterprise for the price of delivered goods; |
| (b) | Subordinate commissioned enterprises at multiple levels must be able to pay the price of delivered goods, using accounts receivable with the same interest rate as accounts receivable issued by a commissioning enterprise; |
| (c) | An agreement must be concluded to the effect that a financial institution is not entitled to exercise the right of recourse against a commissioned enterprise, in relation to the accounts receivable; |
| (d) | The accounts receivable must be withdrawn in cash from a separately designated exclusive deposit account and redeemed when the maturity date arrives, as prescribed by Presidential Decree; |
| 9. | The term "technical data" means the method of manufacturing or producing goods, etc., and other data useful for business activities and have independent economic value, which are prescribed by Presidential Decree; |
| 10. | The term "shared growth index" means a quantitative indicator developed by evaluating the degree of shared growth between large enterprises and small-medium enterprises in order to promote their shared growth; |
| 11. | The term "business types and items suitable for small-medium enterprises (hereinafter referred to as "suitable type of business") means sectors (including service business) in which it is appropriate to operate business in the form of small-medium enterprises so as to induce reasonable division of roles between large enterprises and small-medium enterprises. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
<<Enforcement Date: Sep. 21, 2018>>
| Article 3 (Basic Direction of Policies to Facilitate Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises) |
The Government shall develop and implement policies to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises according to the basic direction set forth in the following subparagraphs:
| 1. | Guaranteeing the autonomy in mutually beneficial cooperation between large enterprises and small-medium enterprises; |
| 2. | Facilitating mutually beneficial cooperation which contributes to the mutual interests of large enterprises and small-medium enterprises; |
| 3. | Enhancing the public sector's leading role in cooperation between public institutions and small-medium enterprises. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
CHAPTER II DEVELOPMENT AND IMPLEMENTATION OF PLANS TO FACILITATE MUTUALLY BENEFICIAL COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL-MEDIUM ENTERPRISES
| Article 4 (Development of Master Plans to Facilitate Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises) |
| (1) | The Minister of SMEs and Startups shall develop a master plan to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises (hereinafter referred to as "master plan") after having a consultation with the heads of relevant central administration agencies every three years. <Amended by Act No. 9978, Jan. 27, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The following matters shall be included in the master plan: <Amended by Act No. 9978, Jan. 27, 2010; Act No. 14775, Apr. 18, 2017> |
| 1. | The basic direction setting of policies for facilitating mutually beneficial cooperation between large enterprises and small-medium enterprises; |
| 2. | Annual objectives of mutually beneficial cooperation between large enterprises and small-medium enterprises; |
| 3. | Matters to facilitate the sharing of achievements and exchange of technology and human resources between large enterprises and small-medium enterprises; |
| 4. | Matters concerning selection of and support for exemplary mutually beneficial cooperation enterprises; |
| 5. | Matters concerning narrowing the salary gap between large enterprises and small-medium enterprises; |
| 6. | Matters concerning cooperation of public institutions with small-medium enterprises; |
| 7. | Matters concerning nurturing and supporting small-medium enterprises engaging in suitable types of business; |
| 8. | Other matters necessary to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises. |
| (3) | Deleted. <by Act No. 9331, Jan. 7, 2009> |
| (4) | When it is deemed necessary to develop the master plan, the Minister of SMEs and Startups may request the heads of relevant central administration agencies and institutions or organizations related to mutually beneficial cooperation between large enterprises and small-medium enterprises to submit necessary material and present their opinions, etc. Upon receipt of such request, the heads of relevant central administration agencies and the institutions or organizations related to mutually beneficial cooperation between large enterprises and small-medium enterprises shall comply therewith unless in extenuating circumstances. <Amended by Act No. 9978, Jan. 27, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 5 (Development of Implementation Plans to Facilitate Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises) |
| (1) | The heads of the relevant central administration agencies shall develop and implement a plan to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises (hereinafter referred to as "implementation plan") according to the master plan each year. |
| (2) | The heads of the relevant central administration agencies shall submit the performance records of the implementation plan of the preceding year and the implementation plan of the current year to the Minister of SMEs and Startups each year, as prescribed by Presidential Decree, and the Minister of SMEs and Startups shall evaluate the performance records based on the implementation plan each year. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The heads of the relevant central administration agencies may provide support necessary to carry out the implementation plan. |
| (4) | Necessary matters for the development and implementation of the implementation plan and the evaluation of the performance records thereof shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Articles 6 and 7 Deleted. <by Act No. 9331, Jan. 7, 2009> |
CHAPTER III PROMOTION OF POLICIES TO FACILITATE MUTUALLY BENEFICIAL COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL-MEDIUM ENTERPRISES
| Article 8 (Fair Distribution of Results of Mutually Beneficial Cooperation) |
| (1) | The Government may develop and implement policies to distribute a contract model (hereinafter referred to as "win-win model") under which commissioning enterprises support commissioned enterprises to attain their common and agreed goals, including the cost-cutting, etc. and both commissioned and commissioning enterprises share the results. In such cases, the scope of commissioned enterprises shall include middle-standing enterprises defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises, notwithstanding subparagraph 6 of Article 2. <Amended by Act No. 12002, Aug. 6, 2013; Act No. 12307, Jan. 21, 2014> |
| (2) | The Minister of SMEs and Startups may establish the promotion headquarters for the distribution of the win-win model (hereinafter referred to as "promotion headquarters") in each of the corporations or organizations prescribed by Ordinance of the Ministry of SMEs and Startups in order to support the distribution of the win-win model. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The promotion headquarters shall conduct businesses falling under each of the following: |
| 1. | Research and survey of the win-win model; |
| 2. | Finding out and distributing exemplary cases in Korea and overseas; |
| 3. | Providing education and consulting for enterprises adopting the win-win model; |
| 4. | Other matters necessary to distribute the win-win model. |
| (4) | The Minister of SMEs and Startups may provide the promotion headquarters with necessary support to implement projects referred to in each subparagraph of paragraph (3). <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 9 (Facilitation of Technological Cooperation between Large Enterprises and Small-Medium Enterprises) |
| (1) | In order to facilitate technological cooperation between large enterprises and small-medium enterprises, the Government may subsidize funds necessary to develop technologies jointly by large enterprises and small-medium enterprises, or develop the technology which requires the cooperation of large enterprises, such as a purchase agreement of large enterprises, etc. |
| (2) | The Minister of SMEs and Startups may provide necessary support, such as in terms of budget, etc., to technology transaction institutions provided for in Article 10 of the Technology Transfer and Commercialization Promotion Act in order to facilitate the transfer of patent rights and utility model rights of large enterprises that remain unexercised to small-medium enterprises. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 10 (Expansion of Exchange of Human Resources between Large Enterprises and Small-Medium Enterprises) |
| (1) | The Government shall develop and implement policies to facilitate the exchange of human resources between large enterprises and small-medium enterprises. |
| (2) | The Government may subsidize part of labor costs if it is necessary for facilitating the exchange of human resources between large enterprises and small-medium enterprises. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 11 (Capital Participation, etc. of Large Enterprises in Small-Medium Enterprises) |
| (1) | If it is necessary to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises to the extent of not impeding the autonomous management of small-medium enterprises, the Government may develop and implement plans which permit large enterprises to make capital participation in small-medium enterprises. |
| (2) | The Government may subsidize the issuance of asset-backed securities, etc. provided for in subparagraph 4 of Article 2 of the Asset-Backed Securitization Act in order to support the management of commissioned enterprises, including technological development, investment in facilities, etc. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 12 (Facilitation, etc. of Cooperation between Large Enterprises and Small-Medium Enterprises in Green Management) |
| (2) | The Government may develop plans to facilitate cooperation between large enterprises and small-medium enterprises in their informatization and their exchange of technology and information, etc. and provide necessary support therefor. |
| (3) | The Government may provide necessary support to facilitate cooperation between large enterprises and small-medium enterprises in expanding markets for goods manufactured by small-medium enterprises, including joint marketing between large enterprises and small-medium enterprises. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 13 (Special Cases concerning Prohibition on Unfair Transactions) |
Where any large enterprise supports small-medium enterprises (excluding any company that belongs to an enterprise group, etc. subject to limitations on mutual investment provided for in Article 14 of the Monopoly Regulation and Fair Trade Act) according to reasonable standards made public in advance by the relevant large enterprise as prescribed by Presidential Decree in order to facilitate mutually beneficial cooperation between the large and small-medium enterprises, such support shall not be deemed to constitute a unfair transaction provided for in Article 23 (1) 7 of the Monopoly Regulation and Fair Trade Act. [This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 14 (Survey of Status of Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may survey the status of mutually beneficial cooperation between large enterprises and small-medium enterprises, where necessary. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may request large enterprises and small-medium enterprises to submit materials and present their opinions, etc, if necessary to conduct the status survey referred to in paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 15 (Calculation and Publication of Mutually Beneficial Cooperation Index between Large Enterprises and Small-Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may calculate and publish a quantified mutually beneficial cooperation index (hereinafter referred to as "mutually beneficial cooperation index") between large enterprises and small-medium enterprises after assessing the level of mutually beneficial cooperation between large enterprises and small-medium enterprises in order to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Necessary matters concerning plans to calculate mutually beneficial cooperation index, publication procedures therefor, etc. shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Notwithstanding paragraph (1), if deemed necessary by the Minister of SMEs and Startups, a mutually beneficial cooperation index may be replaced by a shared growth index calculated and publicly announced by the National Commission for Corporate Partnership pursuant to Article 20-2 (2) 1. <Newly Inserted by Act No. 12002, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 16 (Selection of and Support for Exemplary Mutually Beneficial Cooperation Enterprises) |
| (1) | The Minister of SMEs and Startups may prepare supporting policies, such as by selecting enterprises that set a good example for mutually beneficial cooperation and those who contribute to distribution of mutually beneficial cooperation (hereinafter referred to as "exemplary mutually beneficial cooperation enterprises, etc.") and rewarding them in order to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Necessary matters concerning methods of and procedures for selecting exemplary mutually beneficial cooperation enterprises, etc. and policies for supporting such enterprises shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 17 (Consultative Counsel of Commissioned Enterprises) |
| (1) | Commissioned enterprises (including secondary commissioned enterprises where the commissioned enterprises recommission part of its commissioned work in order to manufacture the commissioned goods, etc) may establish a consultative counsel of commissioned enterprises by commissioning enterprise, region and type of business in order to maintain equal transaction relationship with commissioning enterprises and to facilitate the exchange of technical information, the joint development of technologies, and other matters. |
| (2) | The State or local governments may provide necessary support to vitalize the consultative council of commissioned enterprises. <Amended by Act No. 12002, Aug. 6, 2013> |
| (3) | The Large and Small Business, Agriculture, and Fisheries Cooperation Foundation referred to in Article 20 shall investigate the composition and operation of the consultative council of commissioned enterprises each year, and submit the investigation results to the Minister of SMEs and Startups. <Newly Inserted by Act No. 12002, Aug. 6, 2013; Act No. 14529, Jan. 17, 2017; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 18 (Narrowing Salary Gap between Large Enterprises and Small-Medium Enterprises) |
The Government may develop and implement necessary policies, such as by actively supporting efforts to negotiate the salaries between labor and management for mutually beneficial cooperation in order to narrow the salary gap between large enterprises and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 19 (Facilitation of Cooperation of Public Institutions with Small-Medium Enterprises) |
| (1) | Institutions prescribed by Presidential Decree (hereafter referred to as "public institutions" in this Article) among public institutions falling under Article 4 of the Act on the Management of Public Institutions shall develop a supporting plan for small-medium enterprises and prepare the performance records of such plan each year and submit them to the Minister of SMEs and Startups. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may evaluate supporting plans for small-medium enterprises and the performance records of such plans, which are submitted by public institutions pursuant to paragraph (1) and notify the Minister of Strategy and Finance of the results thereof. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The Minister of Strategy and Finance may reflect the results of assessment notified pursuant to paragraph (2) in evaluating the management of public institutions. |
| (4) | Public institutions may establish and operate an exclusive supporting organization for small-medium enterprises in order to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 20 (Establishment of Large and Small Business, Agriculture, and Fisheries Cooperation Foundation) |
| (1) | The Government shall establish the Large and Small Business, Agriculture, and Fisheries Cooperation Foundation (hereinafter referred to as the "Foundation") in order to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises. <Amended by Act No. 14529, Jan. 17, 2017> |
| (2) | The Foundation shall conduct the following affairs: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14529, Jan. 17, 2017; Act No. 14839, Jul. 26, 2017> |
| 1. | Supporting the development and operation of cooperative projects between large enterprises and small-medium enterprises; |
| 2. | Supporting the management, operation, and evaluation of the technological cooperation facilitation projects provided for in Article 9; |
| 3. | Supporting the establishment and operation of the consultative counsel of commissioned enterprises provided for in Article 17; |
| 4. | Supporting the fairness of transactions effected on consignment and commission provided for in Articles 21 through 24, 24-2 and 25; |
| 5. | Supporting the autonomous mediation of disputes between commissioning enterprises and commissioned enterprises; |
| 7. | Other affairs designated or entrusted by the Minister of SMEs and Startups. |
| (3) | The Foundation shall be a juristic person, and the provisions governing incorporated foundations of the Civil Act shall apply mutatis mutandis to the Foundation except as provided in this Act. |
| (4) | The Government may subsidize funds necessary to establish and operate the Foundation within the budgetary limit. |
| (5) | When the Foundation intends to modify its articles of association, it shall obtain authorization from the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 20 (Establishment of Large and Small Business, Agriculture, and Fisheries Cooperation Foundation) |
| (1) | The Government shall establish the Large and Small Business, Agriculture, and Fisheries Cooperation Foundation (hereinafter referred to as the "Foundation") in order to facilitate mutually beneficial cooperation between large enterprises and small-medium enterprises. <Amended by Act No. 14529, Jan. 17, 2017> |
| (2) | The Foundation shall conduct the following affairs: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14529, Jan. 17, 2017; Act No. 14839, Jul. 26, 2017; Act No. 15081, Nov. 28, 2017; Act No. 15519, Mar. 20, 2018> |
| 1. | Supporting the development and operation of cooperative projects between large enterprises and small-medium enterprises; |
| 2. | Supporting the management, operation, and evaluation of the technological cooperation facilitation projects provided for in Article 9; |
| 3. | Supporting the establishment and operation of the consultative counsel of commissioned enterprises provided for in Article 17; |
| 4. | Supporting the fairness of transactions effected on consignment and commission provided for in Articles 21 through 24, 24-2 and 25; |
| 5. | Supporting the autonomous mediation of disputes between commissioning enterprises and commissioned enterprises; |
| 6. | Managing and operating the Fund for Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises established under Article 20-5; |
| 8. | Supporting the management, operation, distribution and proliferation of mutually-beneficial settlement; |
| 9. | Other affairs designated or entrusted by the Minister of SMEs and Startups. |
| (3) | The Foundation shall be a juristic person, and the provisions governing incorporated foundations of the Civil Act shall apply mutatis mutandis to the Foundation except as provided in this Act. |
| (4) | The Government may subsidize funds necessary to establish and operate the Foundation within the budgetary limit. |
| (5) | When the Foundation intends to modify its articles of association, it shall obtain authorization from the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
<<Enforcement Date: Sep. 21, 2018>>
| Article 20-2 (Establishment, etc. of National Commission for Corporate Partnership) |
| (1) | The National Commission for Corporate Partnership (hereinafter referred to as the "Commission") shall be established under the Foundation in order to secure consensus in the private sector with regard to shared growth between large enterprises and small-medium enterprises and to create and foster culture for shared growth. |
| (2) | The Commission shall perform the business affairs concerning the following: |
| 1. | Matters concerning calculation and publication of a shared growth index; |
| 2. | Matters concerning the securement of consensus on and publication of suitable types of business; |
| 3. | Other matters deemed necessary by the Commission to promote shared growth in the private sector. |
| (3) | The Commission shall perform the business affairs referred to in paragraph (2) independently and autonomously from government agencies, the Foundation, etc. |
| (4) | To calculate and publish a shared growth index, the Commission may request the heads of relevant central administrative agencies, the heads of public institutions, the representatives of enterprises, etc. to provide necessary data. In such cases, the heads of relevant central administrative agencies, etc. so requested shall comply with such request, except in any extenuating circumstances. <Newly Inserted by Act No. 15081, Nov. 28, 2017> |
| (5) | The Commission shall prepare and keep its minutes in accordance with its bylaws. <Newly Inserted by Act No. 13839, Jan. 27, 2016> |
| (6) | Matters necessary for organizing and operating the Commission shall be determined by resolutions of the Commission. |
[This Article Newly Inserted by Act No. 11173, Jan. 17, 2012]
| Article 20-3 (Shared Growth Week) |
In order to facilitate shared growth of large enterprises and small-medium enterprises and to enhance understanding and awareness of the shared growth among the general public, one week per year shall be designated as Shared Growth Week.
[This Article Newly Inserted by Act No. 14529, Jan. 17, 2017]
| Article 20-4 (Application, etc. for Consensus on Suitable Types of Business) |
| (1) | An organization of small-medium enterprisers may file an application with the Commission for securing consensus on suitable types of business under Article 20-2 (2) 2. |
| (2) | Upon receipt of an application under paragraph (1), the Commission shall reach a consensus on suitable types of business within one year from the date of application, after hearing opinions of enterprises, the relevant organization of small-medium enterprisers, experts, etc. referred to in Article 32 (1) 1 through 3. In such cases, the Commission may request the relevant enterprises and organization of small-medium enterprisers to submit data necessary for reaching a consensus on suitable types of business or to attend a meeting of the Commission. <Amended by Act No. 15519, Mar. 20, 2018> |
| (3) | Where no consensus is reached on suitable types of business within the time limit specified in paragraph (2), or where the details of consensus are not executed, the Commission may file an application with the Minister of SMEs and Startups for business coordination; and the relevant organization of small-medium enterprisers which has applied for consensus may also file an application with the Minister of SMEs and Startups for business coordination via the Commission. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 14775, Apr. 18, 2017]
| Article 20-5 (Establishment, etc. of Fund for Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises) |
| (1) | To lay the foundation for sustainable growth of the national economy by promoting sustainable development of large enterprises and small-medium enterprises, mutually beneficial cooperation between them, and their shared growth, the Fund for Mutually Beneficial Cooperation between Large Enterprises and Small-Medium Enterprises (hereinafter referred to as the "Mutually Beneficial Cooperation Fund") shall be established in the Foundation. |
| (2) | The Foundation shall manage and operate accounts of the Mutually Beneficial Cooperation Fund separately from other accounts. |
| (3) | The Mutually Beneficial Cooperation Fund shall be created out of contributions, etc. from domestic corporations. |
| (4) | A person who makes contributions pursuant to paragraph (3) may designate the use of the contributions and projects to be implemented. In such cases, the Foundation shall use the contributions, etc. for the designated use and projects. |
| (5) | The Mutually Beneficial Cooperation Fund shall be used for the following: |
| 1. | A project for equitable distribution of the results of mutually beneficial cooperation between large enterprises and small-medium enterprises; |
| 2. | A project to facilitate technological cooperation between large enterprises and small-medium enterprises; |
| 3. | A project to expand human resources exchange between large enterprises and small-medium enterprises; |
| 4. | A project to facilitate cooperation between large enterprises and small-medium enterprises in green management; |
| 5. | A project to narrow the salary gap between large enterprises and small-medium enterprises and to support job creation; |
| 6. | Expenses incurred in raising, operating, and managing the Mutually Beneficial Cooperation Fund; |
| 7. | Any other projects prescribed by Presidential Decree, which are designed to promote cooperation between large enterprises and small-medium enterprises. |
[This Article Newly Inserted by Act No. 15081, Nov. 28, 2017]
CHAPTER IV FAIRNESS OF TRANSACTIONS EFFECTED ON CONSIGNMENT AND COMMISSION
| Article 21 (Issuance of Written Agreements) |
| (1) | When an enterprise commissions the manufacture of goods, etc. to any other enterprise, the commissioning enterprise shall promptly issue a written agreement in which the contents of the commission, the amount of the price of delivered goods, the payment method of the price, the payment date, the method of inspection, and other necessary matters are entered to the relevant commissioned enterprise. |
| (2) | When the commissioning enterprise receives goods, etc. from the commissioned enterprise, it shall promptly issue the receipt of the delivered goods, regardless of whether it has inspected the goods, etc. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 22 (Payment, etc. of Price of Delivered Goods) |
| (1) | The payment date for the price of the delivered goods by a commissioning enterprise to a commissioned enterprise shall be the shortest period of not more than 60 days from the date on which the commissioning enterprise receives the goods, etc. regardless of whether it has inspected the goods, etc. |
| (2) | When the payment date for the price of the delivered goods is not agreed, the date on which the goods, etc. are received by the commissioning enterprise shall be deemed the date on which it is agreed to pay the price of the goods, etc. and when the payment date is set in violation of paragraph (1), the date on which 60 days lapse from the date on which the goods, etc. are received shall be deemed the date on which it is agreed to pay the price of the goods, etc. |
| (3) | Where any commissioning enterprise pays the price of delivered goods, etc. after 60 days from the commissioning enterprise receives the goods, etc., it shall pay the interest calculated according to the interest rate prescribed by Presidential Decree within the extent of 40/100 per year for the delayed period. |
| (4) | Where a commissioning enterprise pays the price of delivered goods by means of bills or payment replacing bills, it shall pay discount charge prescribed by Presidential Decree within the extent of 40/100 per year to the commissioned enterprise. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 22 (Payment, etc. of Price of Delivered Goods) |
| (1) | The payment date for the price of the delivered goods by a commissioning enterprise to a commissioned enterprise shall be the shortest period of not more than 60 days from the date on which the commissioning enterprise receives the goods, etc. regardless of whether it has inspected the goods, etc. |
| (2) | When the payment date for the price of the delivered goods is not agreed, the date on which the goods, etc. are received by the commissioning enterprise shall be deemed the date on which it is agreed to pay the price of the goods, etc. and when the payment date is set in violation of paragraph (1), the date on which 60 days lapse from the date on which the goods, etc. are received shall be deemed the date on which it is agreed to pay the price of the goods, etc. |
| (3) | Where any commissioning enterprise pays the price of delivered goods, etc. after 60 days from the commissioning enterprise receives the goods, etc., it shall pay the interest calculated according to the interest rate prescribed by Presidential Decree within the extent of 40/100 per year for the delayed period. |
| (4) | Where a commissioning enterprise pays the price of delivered goods by means of bills or payment replacing bills, it shall pay discount charge prescribed by Presidential Decree within the extent of 40/100 per year to the commissioned enterprise. |
| (5) | Where a commissioned enterprise (including subordinate commissioned enterprises at multiple levels) has received the price of delivered goods through mutually-beneficial settlement, it shall pay the price of delivered goods to a subordinate commissioned enterprise through cash settlement or mutually-beneficial settlement at a ratio exceeding the ratio of mutually-beneficial settlement to the total price of delivered goods paid, except in extenuating circumstances prescribed by Presidential Decree, such as direct payment of the subcontract consideration of construction works or bankruptcy of a commissioning enterprise. <Newly Inserted by Act No. 15519, Mar. 20, 2018> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
<<Enforcement Date: Sep. 21, 2018>>
| Article 23 (Rationalization of Inspections) |
| (1) | A commissioning enterprise shall upgrade its inspection facilities, improve the qualification of inspectors, and set objective and reasonable inspection standards in order to ensure fair and prompt inspection of goods, etc. which are delivered by the commissioned enterprise. |
| (2) | With any goods, etc. that fail an inspection conducted under paragraph (1), the relevant commissioning enterprise shall promptly notify in writing the relevant commissioned enterprise of the grounds therefor. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 24 (Quality Guarantee, etc.) |
| (1) | A commissioned enterprise shall endeavor to improve its facilities and technology in order to improve the quality of manufactured goods which is commissioned by a commissioning enterprise and to deliver goods meeting the specified standards by the delivery deadline. |
| (2) | A commissioned enterprise shall endeavor to standardize its products, set reasonable prices utilizing a reasonable cost-calculation system, and control the quality of manufactured goods. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 24-2 (Technical Data Bailment System) |
| (1) | A commissioned enterprise and a commissioning enterprise (including an enterprise that intends to accept custody of technical data on its own or jointly with another person, in addition to the commissioned enterprise and the commissioning enterprise) may accept deposit of technical data held by an enterprise intending to bail technical data (hereinafter referred to as "bailor enterprise") in consultation with an agency prescribed by Presidential Decree that has experts, equipment, etc. (hereinafter referred to as "bailee"). <Amended by Act No. 10399, Dec. 7, 2010> |
| (2) | In any of the following cases, a commissioning enterprise may request a bailee to deliver technical data of which a commissioned enterprise takes custody: |
| 1. | Where the commissioned enterprise has agreed thereto; |
| 2. | Where it meets the conditions of delivery of technical data determined by mutual consent between the commissioning enterprise and the commissioned enterprise, such as where the right of the commissioned enterprise is extinguished because it has declared bankruptcy or has decided to dissolve, or where it is unable to carry on business because it has closed its place of business, etc. |
| (3) | Where the conditions of delivery of technical data determined by the Minister of SMEs and Startups are satisfied, the bailee shall deliver technical data of a bailor enterprise to a person who requests such data. <Newly Inserted by Act No. 10399, Dec. 7, 2010; Act No. 14839, Jul. 26, 2017> |
| (4) | The Government may give necessary support to bailees within the budget. <Amended by Act No. 10399, Dec. 7, 2010> |
| (5) | Other matters necessary for the bailment, etc. of technical data shall be prescribed by Presidential Decree. <Amended by Act No. 10399, Dec. 7, 2010> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 24-3 (Registration of Bailment of Technical Data) |
| (1) | A bailor enterprise may register the following: |
| 1. | The title, type, and production date of technical data; |
| 2. | The outline of technical data; |
| 3. | The name and address of the bailor enterprise; |
| 4. | Other matters prescribed by Presidential Decree. |
| (2) | If any dispute arises between the parties concerned or the parties interested with regard to technology of a bailor enterprise registered in its real name pursuant to paragraph (1), such technology shall be construed to have been developed by the bailor enterprise according to the details of the deposited goods. |
[This Article Newly Inserted by Act No. 10399, Dec. 7, 2010]
| Article 24-4 (Confidentiality) |
No person who was, or is currently engaged in the business of managing technical data under Article 24-2 may release any secret he/she has learned in the course of performing his/her duties to any third person. [This Article Newly Inserted by Act No. 10399, Dec. 7, 2010]
| (1) | A person who has been designated as a bailee pursuant to Article 24-2 may collect fees from a bailor enterprise, etc. with regard to the relevant business. |
| (2) | Matters regarding the type, rate, amount, payment method, etc. of fees referred to in paragraph (1) shall be determined by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 10399, Dec. 7, 2010]
| Article 25 (Matters to Be Observed) |
| (1) | A commissioning enterprise shall not perform the following acts when it commissions the manufacture of goods, etc. to any commissioned enterprise: |
| 1. | Refusing to accept goods, etc. or reducing the price of delivered goods without any reason attributable to the commissioned enterprise; |
| 2. | Failing to pay the price of delivered goods until the payment date; |
| 3. | Determining the price of delivered goods, at a price considerably lower than that normally paid for the goods, etc. that are the same as or similar to the goods, etc. delivered by any commissioned enterprise in their kinds; |
| 4. | Failing to increase the price of delivered goods according to the ratio of additional amount paid by the person who places an order to the commissioning enterprise on the grounds that the economic situation changes after the manufacture of goods, etc. is commissioned, although the commissioned enterprise faces additional costs on the same grounds; |
| 5. | Coercing a commissioned enterprise to buy the goods, etc. that are designated by the commissioning enterprise with the exception of cases where it is necessary to maintain or improve the quality of the goods, etc. or where there exist other justifiable grounds to do so; |
| 6. | Paying the price of delivered goods, etc. in bill that makes it difficult to get a discount from any financial institution by the payment date of the price of delivered goods; |
| 7. | Significantly reducing the quantity of ordered goods compared to the quantity of ordinarily ordered goods or discontinuing the placement of the order without any justifiable grounds although no defect is found in the goods, etc.; |
| 8. | Demanding a commissioned enterprise to receive goods manufactured by the commissioning enterprise in lieu of the payment of the price of the delivered goods; |
| 9. | Evading the opening of a local letter of credit on the goods, etc. on which an order has been placed by the commissioning enterprise for their export; |
| 10. | Evading the placement of an order on manufactured goods, etc. after having requested for the manufacture of such goods, etc. without any justifiable grounds thereof; |
| 11. | Setting objectively unreasonable standards when inspecting goods delivered by commissioned enterprises; |
| 12. | Requesting the provision of technical data without justifiable grounds; |
| 13. | Giving disadvantage to the commissioned enterprise that has requested for the deposit of technical data; |
| 14. | Reducing the quantity of the transaction of goods on consignment and commission, discontinuing the transaction of goods on consignment and commission, or giving other disadvantages on the grounds that the relevant commissioned enterprise reports the acts referred to in subparagraphs 1 through 13 to any relevant agency. |
| (2) | Where any commissioning enterprise requests technical data from a commissioned enterprise for justifiable grounds, it shall consult, in advance, with the relevant commissioned enterprise to decide on matters regarding the purpose of request, confidentiality provisions, reversion of rights, and compensation therefor, etc., and shall provide the commissioned enterprise with a document stating the details thereof. In such cases, the commissioning enterprise shall not misuse the obtained technical data, without a legitimate authority, for itself or for a third party. <Newly Inserted by Act No. 12002, Aug. 6, 2013; Act No. 13839, Jan. 27, 2016> |
| (3) | A commissioned enterprise shall not perform any of the following acts when it is commissioned to manufacture the goods, etc. by any commissioning enterprise: |
| 1. | Violating an agreement on the quality, performance, or delivery date of the goods, etc., which are commissioned by any commissioning enterprise; |
| 2. | Requesting for an unreasonable increase of price of goods, etc.; |
| 3. | Disrupting the order of the transaction on consignment and commission. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 26 (Request for Measures to Fair Trade Commission) |
| (1) | When a commissioning enterprise violates Articles 21 through 23, Article 25 (1) or (2) and it is deemed that such violation falls under the provisions of Articles 3, 4 through 12, 12-2, 12-3, 13, 13-2, 15, 16, 16-2, 17 through 20 of the Fair Transactions in Subcontracting Act or constitutes a prohibited act provided for in Article 23 (1) of the Monopoly Regulation and Fair Trade Act, the Minister of SMEs and Startups shall request the Fair Trade Commission to take necessary measures against the commissioning enterprise pursuant to Article 25 of the Fair Transactions in Subcontracting Act or Article 24 of the Monopoly Regulation and Fair Trade Act. <Amended by Act No. 13839, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017> |
| (2) | Upon receipt of the request pursuant to paragraph (1), the Chairperson of the Fair Trade Commission shall give priority to examining the request, take necessary measures within six months, and notify the Minister of SMEs and Startups of the results: Provided, That the deadline may be extended by up to one year in consultation with the Minister of SMEs and Startups, in extenuating circumstances. <Amended by Act No. 12498, Mar. 18, 2014; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 27 (Improvements in Unfair Transactions between Commissioned and Commissioning Enterprises) |
| (1) | The Minister of SMEs and Startups shall periodically survey whether commissioning enterprises implement provisions of Articles 21 through 23 or 25 (1) in the course of transactions effected on consignment and commission between large enterprises and small-medium enterprises, as prescribed Presidential Decree, and shall request relevant enterprises to improve the matters requiring improvement and if they refuse to comply therewith, they shall be published. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Where deemed necessary, the Minister of SMEs and Startups shall apply paragraph (1) mutatis mutandis to cases where small-medium enterprises of a scale exceeding that prescribed by Presidential Decree commission the manufacture of goods to other small-medium enterprises. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Where an enterprise is found to have good settlement conditions, including the increase of cash settlements, etc. and to have endeavored to establish fair relation of transaction effected on consignment and commission as a result of the survey referred to in paragraphs (1) and (2), the Minister of SMEs and Startups may grant reward to such enterprise and provide it with necessary support. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | The Government may provide necessary support, such as taxation support, etc., and other necessary support in order to improve settlement conditions for the price of goods delivered by small-medium enterprises to large enterprises and increase the cash settlement (including the settlement in cash). |
| (5) | The Minister of SMEs and Startups may give black marks according to the severity of a violation and damage to the commissioning enterprise that has violated Articles 21 through 23 or Article 25 (1), as prescribed by Ordinance of the Ministry of SMEs and Startups, and he/she may request the head of a central agency, the head of a local agency, or the head of a public institution, to place restrictions on qualifications for participation in the bidding referred to in Article 27 of the Act on Contracts to Which the State is a Party, Article 31 of the Act on Contracts to Which a Local Government Is a Party, and Article 39 of the Act on the Management of Public Institutions, to the enterprise whose black marks exceed the standards prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14529, Jan. 17, 2017; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 27 (Improvements in Unfair Transactions between Commissioned and Commissioning Enterprises) |
| (1) | The Minister of SMEs and Startups shall periodically survey whether commissioning enterprises implement provisions of Articles 21 through 23 or 25 (1) in the course of transactions effected on consignment and commission between large enterprises and small-medium enterprises, as prescribed Presidential Decree, and shall request relevant enterprises to improve the matters requiring improvement and if they refuse to comply therewith, they shall be published. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Where deemed necessary, the Minister of SMEs and Startups shall apply paragraph (1) mutatis mutandis to cases where small-medium enterprises of a scale exceeding that prescribed by Presidential Decree commission the manufacture of goods to other small-medium enterprises. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Where an enterprise is found to have good settlement conditions, including the increase of cash settlements, mutually-beneficial settlements, etc., and to have endeavored to establish fair relation of transaction effected on consignment and commission as a result of the survey referred to in paragraphs (1) and (2), the Minister of SMEs and Startups may grant reward to such enterprise and provide it with necessary support. <Amended by Act No. 14839, Jul. 26, 2017; Act No. 15519, Mar. 20, 2018> |
| (4) | The Government may provide taxation support and other necessary support in order to improve settlement conditions for the price of goods delivered by small-medium enterprises to large enterprises and increase the cash settlement (including the settlement in cash and mutually-beneficial settlement). <Amended by Act No. 15519, Mar. 20, 2018> |
| (5) | The Minister of SMEs and Startups may give black marks according to the severity of a violation and damage to the commissioning enterprise that has violated Articles 21 through 23 or Article 25 (1), as prescribed by Ordinance of the Ministry of SMEs and Startups, and he/she may request the head of a central agency, the head of a local agency, or the head of a public institution, to place restrictions on qualifications for participation in the bidding referred to in Article 27 of the Act on Contracts to Which the State is a Party, Article 31 of the Act on Contracts to Which a Local Government Is a Party, and Article 39 of the Act on the Management of Public Institutions, to the enterprise whose black marks exceed the standards prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14529, Jan. 17, 2017; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
<<Enforcement Date: Sep. 21, 2018>>
| Article 28 (Mediation of Disputes) |
| (1) | Where a dispute on any of the following matters arises between commissioning enterprises and commissioned enterprises or between small-medium enterprise cooperatives, the commissioning enterprises and the commissioned enterprises as well as the small-medium enterprise cooperatives involved in such dispute may request the Minister of SMEs and Startups to mediate their dispute, as prescribed by Presidential Decree: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Matters concerning a written agreement and the receipt of goods provided for in Article 21; |
| 2. | Matters concerning the payment of delivered goods, etc. provided for in Article 22; |
| 3. | Matters concerning the inspection of goods, etc. provided for in Article 23; |
| 4. | Matters concerning deposit of technical data provided for in Article 24-2; |
| 5. | Matters concerning whether matters to be observed pursuant to Article 25 are complied with. |
| (2) | The commissioned enterprise involved in the dispute as described in paragraph (1) may delegate its authority regarding the mediation of the dispute to an organization of small-medium enterprisers. <Newly Inserted by Act No. 13839, Jan. 27, 2016> |
| (3) | Upon receipt of a request for mediation referred to in paragraph (1), the Minister of SMEs and Startups shall promptly examine the contents thereof and where it is deemed necessary to correct the matters referred to in each subparagraph of paragraph (1), recommend the relevant commissioning enterprise, commissioned enterprise, or small-medium enterprise cooperatives to correct such matters or issue a corrective order. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | When the relevant commissioning enterprise, commissioned enterprise, or small-medium enterprise cooperatives refuses to comply with a corrective order under paragraph (3), the Minister of SMEs and Startups shall publish its names and the summary of the corrective order: Provided, That where the acts of the relevant commissioning enterprise fall under Article 26, the Minister of SMEs and Startups shall request the Fair Trade Commission to take necessary measures. <Amended by Act No. 13839, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017> |
| (5) | Necessary matters concerning the examination, recommendation for correction, and a corrective order under paragraph (3) shall be prescribed by Presidential Decree. <Amended by Act No. 13839, Jan. 27, 2016> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 28-2 (Training Orders, etc.) |
| (1) | With regards to the commissioning enterprise which has received black marks pursuant to Article 27 (5), the Minister of SMEs and Startups may take measures, such as a training order, etc. to the executives and employees of the relevant enterprise, as well as a request for improvement under Article 27 (1) and (2) and recommendation for correction or corrective orders under Article 28 (3) according to the standards of black mark prescribed by Ordinance of the Ministry of SMEs and Startups. In such cases, he/she may have the commissioning enterprise bear the expenses incurred in training. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13839, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017> |
| (2) | Necessary matters concerning the detailed procedures, methods, etc. of taking measures, such as a training order, etc. shall be announced by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
CHAPTER V PROTECTION OF BUSINESS ARENA OF SMALL-MEDIUM ENTERPRISES
| Articles 29 and 30 Deleted. <by Act No. 9978, Jan. 27, 2010> |
| Article 31 (Small and Medium Enterprise Business Coordination Council) |
| (1) | The Small and Medium Enterprise Business Coordination Council (hereinafter referred to as the "Coordination Council") shall be established under the jurisdiction of the Minister of SMEs and Startups in order to promote mutually beneficial cooperation between large enterprises and small-medium enterprises and facilitate business coordination provided for in Article 33: Provided, That if the Minister of SMEs and Startups delegates part of his/her authority to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereafter referred to as the "Special Metropolitan City Mayor, etc." in this Article) pursuant to Article 38 (2), the small and medium enterprise business coordination council of a local government (hereinafter referred to as the "local government coordination council") shall be established under the jurisdiction of the Special Metropolitan City Mayor, etc. <Amended by Act No. 12002, Aug. 6, 2013; Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (2) | Necessary matters concerning the composition and operation of the Coordination Council and local government coordination councils shall be prescribed by Presidential Decree. <Amended by Act No. 12002, Aug. 6, 2013> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 32 (Application, etc. for Business Coordination) |
| (1) | Where an organization of small-medium enterprisers deems that any of the following enterprises adversely affects, or is likely to affect, the stabilization of the management of small-medium enterprises by taking over, commencing, or expanding of any business and thereby causing a decrease in the demand for goods and services supplied by a large number of small-medium enterprises of the relevant type of business, it may file an application with the Minister of SMEs and Startups for business coordination via the Korea Federation of Small and Medium Business referred to in Article 3 (1) 4 of the Small and Medium Enterprise Cooperatives Act, as prescribed by Presidential Decree. In such cases, the application date for business coordination shall be deemed the date on which the application for business coordination is accepted by the Korea Federation of Small and Medium Business: Provided, That in cases where the organization of small-medium enterprisers involved in the relevant business type does not exist, the small-medium enterprise of the relevant business type may file an application with the Minister of SMEs and Startups for business coordination via the Korea Federation of Small and Medium Business by obtaining consent from at least a specific ratio of the small-medium enterprises among those engaged in the same business type in the relevant region. In such cases, the scope of the relevant region and the ratio of the small-medium enterprises from which the consent should be obtained shall be prescribed by Presidential Decree: <Amended by Act No. 10399, Dec. 7, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 2. | Where a large enterprise directly manages several retail stores of the same business type (which means directly managing stores at its own responsibility and for its own account at the stores it owns or rents; hereinafter the same shall apply), or where it manages any of the following businesses in which it continuously provides management guidance and supplies goods, raw materials, or services to several retail stores of the same business type, a chain store determined by Ordinance of the Ministry of SMEs and Startups which belongs to such business: |
| (a) | Direct control-type chain business: Chain business in most cases of which the chain headquarters directly manages retail stores, while continuously supplying goods and providing management guidance to some retail stores that have concluded a merchant agreement with the chain headquarters (hereafter referred to as "member store" in this subparagraph); |
| (b) | Franchise-type chain business: Chain business in which the chain headquarters that has developed its own goods or sales and management techniques determines the trade name, the method of sales, the methods of shop management and advertisement, and has its member stores manage shops in compliance with its decision and guidance; |
| 3. | A small or medium enterprise determined by Ordinance of the Ministry of SMEs and Startups, which is under the de facto control of a large enterprise. |
| (2) | An application for business coordination referred to in paragraph (1) may be filed before an enterprise referred to in paragraph (1) 1 through 3 (hereinafter referred to as "large enterprise, etc.") takes over, commences, or expands business: Provided, That after the large enterprise, etc. takes over, commences, or expands business, an application for business coordination shall be filed within 180 days from the relevant date. <Amended by Act No. 10399, Dec. 7, 2010; Act No. 12002, Aug. 6, 2013> |
| (3) | Upon receipt of the application referred to in paragraph (1), the Korea Federation of Small and Medium Business shall survey the fact, as prescribed by Presidential Decree, and prepare the statement of opinion on the business coordination to submit it to the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | Upon receipt of the application referred to in paragraph (1), the Minister of SMEs and Startups shall notify the large enterprise, etc. related to the relevant application of the fact. <Amended by Act No. 14839, Jul. 26, 2017> |
| (5) | Deleted. <by Act No. 14775, Apr. 18, 2017> |
| (6) | The Coordination Council shall complete deliberation on the matters subject to business coordination within one year from the application date for business coordination referred to in paragraph (1): Provided, That where the Minister of SMEs and Startups deems it necessary, such period may be extended by up to one year. <Amended by Act No. 11173, Jan. 17, 2012; Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (7) | Upon receipt of an application for business coordination under Article 20-4 (3), the Coordination Council shall complete deliberation on the relevant business coordination matter within three months from the date of application, notwithstanding paragraph (6): Provided, That if deemed necessary by the Minister of SMEs and Startups, such period may be extended only once by up to three months. <Newly Inserted by Act No. 12002, Aug. 6, 2013; Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (8) | Organizations of small-medium enterprisers or small-medium enterprises shall not apply for business coordination referred to in paragraph (1) in cases prescribed by Presidential Decree where a procedure or system with the similar effect as business coordination has been established for the business type or other business subject to approval, authorization, registration, etc. under other statutes. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 33 (Recommendations and Orders Related to Business Coordination) |
| (1) | Upon receipt of an application for business coordination provided for in Article 32, if it is deemed necessary to secure an opportunity for the business activities of small-medium enterprises of the relevant business type, the Minister of SMEs and Startups may recommend the relevant large enterprise, etc. to postpone the time to acquire, commence, or expand business for a fixed period not exceeding three years or to reduce production items, production quantity, production facilities, etc. after undergoing deliberation by the Coordination Council: Provided, That if the initial application for business coordination is filed, the Minister of SMEs and Startups may extend the relevant term only once by up to three years after undergoing deliberation by the Coordination Council and may determine the scope of extension by considering the characteristics of each business type. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Upon receipt of an application for business coordination provided for in Article 20-4 (3), if it is deemed necessary to secure an opportunity for the business activities of small-medium enterprises of the relevant business type, the Minister of SMEs and Startups may recommend the relevant large enterprise, etc. to transfer the relevant business, withdraw or reduce all or part of the business, or refrain from expanding or entering the business for a fixed period not exceeding three years after undergoing deliberation by the Coordination Council: Provided, That if an application for extension is filed by the Commission or the relevant organization of small-medium enterprisers (limited to where an application for extension of business coordination is filed via the Commission), the Minister of SMEs and Startups may extend the relevant term only once by up to three years after undergoing deliberation by the Coordination Council and may determine the scope of extension, in consideration of the characteristics of each business type. <Newly Inserted by Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (3) | Where the large enterprise, etc. fails to comply with the recommendation referred to in paragraph (1) or (2), the Minister of SMEs and Startups may publish the subject of recommendation or details thereof. <Amended by Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (4) | Where the large enterprise, etc. fails to comply with the recommendation without any justifiable grounds after the publication referred to in paragraph (3) is made, the Minister of SMEs and Startups may order the relevant large enterprise, etc. to comply with such recommendation. <Amended by Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 34 (Rescindment of Temporary Suspensions and Orders for Coordination) |
| (1) | Upon receipt of an application for business coordination provided for in Article 20-4 (3) or 32 (1), the Minister of SMEs and Startups may recommend the relevant large enterprise, etc. to temporarily suspend acquiring, commencing, and expanding the relevant business until the time he/she notifies the results of deliberation by the Coordination Council to the relevant large enterprise, etc. <Amended by Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (2) | Where the large enterprise, etc. fails to comply with the recommendation made by the Minister of SMEs and Startups pursuant to paragraph (1), he/she may publish the subject of recommendation or details thereof. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Where the recommendation is not implemented without any justifiable grounds even after the public announcement under paragraph (2) is made, the Minister of SMEs and Startups may order the implementation thereof to the relevant large enterprise, etc., following deliberation by the Coordination Council. <Newly Inserted by Act No. 12002, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| (4) | When the Minister of SMEs and Startups issues an order pursuant to Article 33 (4) or 34 (3) but deems that the grounds for issuing an order are changed or cease to exist before such order is executed, he/she shall rescind all or part of the details of coordination after undergoing deliberation by the Coordination Council. <Amended by Act No. 12002, Aug. 6, 2013; Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 34-2 (Support for Small-Medium Enterprises of Business Type under Business Coordination) |
The Government may support the small-medium enterprises of the business types under business coordination with matters necessary for the improvement in business activities such as upgrading of facilities of small-medium enterprises of the relevant business type, improvement of technology, etc. with the aim of sharpening the competitiveness of the relevant small-medium enterprises, within the budget.
[This Article Newly Inserted by Act No. 9331, Jan. 7, 2009]
| Article 35 (Transfer of Large Enterprise's Business to Small-Medium Enterprise) |
A large enterprise, etc., which runs any of the following business shall endeavor to transfer such business to any small-medium enterprise for the purpose of increasing industrial efficiency through the rational sharing of the role with small-medium enterprises: <Amended by Act No. 9978, Jan. 27, 2010; Act No. 14839, Jul. 26, 2017>
| 1. | Deleted; <by Act No. 9978, Jan. 27, 2010> |
| 2. | The type of business subject to recommendation or order of compliance provided for in Article 33; |
| 3. | Other types of business and the items of business which are recognized by the Minister of SMEs and Startups as being appropriate for small-medium enterprises. |
| Article 36 (Support for Small-Medium Enterprises That Take over Large Enterprises' Businesses) |
The Government may provide the following support to small-medium enterprises that take over the business of large enterprises, etc.: <Amended by Act No. 10252, Apr. 12, 2010>
| 2. | Preferential occupancy of cooperative industrial complexes and knowledge-based industry center, etc.; |
| 3. | Preferential subsidization of technology-development fund, etc. |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 37 (Support for Large Enterprises, etc. that Transfer their Businesses) |
When the businesses transferred by a large enterprise, etc. to small-medium enterprises meet the standards prescribed by Presidential Decree, the Government may provide the relevant large enterprise, etc. with financial and taxation support.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 38 (Delegation of Authority and Entrustment of Duties) |
| (1) | Deleted. <by Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may delegate part of his/her authority bestowed by this Act to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor or entrust part of his/her authority to ministers in charge by business type, as prescribed by Presidential Decree. <Amended by Act No. 12002, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups may entrust part of his/her duties under this Act to the Korea Federation of Small and Medium Business, the Small Business Corporation, or the Foundation, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 39 (Retention of Documents) |
| (1) | Commissioning enterprises, commissioned enterprises, or small-medium enterprise cooperatives shall keep the documents pertaining to transactions effected on consignment and commission. |
| (2) | Necessary matters concerning the scope of the documents referred to in paragraph (1) and the period of keeping such documents shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
| Article 40 (Submission of Materials, etc.) |
| (1) | If deemed necessary in any of the following cases, the Minister of SMEs and Startups may request the relevant small-medium enterprises and large enterprises, etc. to submit materials and have public officials under his/her control enter offices, places of business, factories, etc. to inspect books, documents, facilities, and other items: <Amended by Act No. 9978, Jan. 27, 2010; Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| 1. | Where he/she intends to ascertain the actual state of transactions effected on consignment and commission provided for in Articles 21 through 24, 24-2 and 25; |
| 2. | Deleted; <by Act No. 9978, Jan. 27, 2010> |
| 3. | Where he/she receives an application for business coordination pursuant to Article 20-4 (3) or 32 (1); |
| 4. | Where he/she finds it necessary to ensure the fairness of transactions effected on consignment and commission and protect the business arena of small-medium enterprises. |
| (2) | Where conducting inspections referred to in paragraph (1), the Minister of SMEs and Startups shall notify the person to be inspected of the inspection plan including the date, purposes, details of the inspection, etc. by not later than seven days prior to the scheduled inspection: Provided, That the same shall not apply to cases where the emergent inspection is required and where it is recognized that any prior notice might cause destruction of any evidence, etc. to make it impossible to attain the purposes of such inspection. <Amended by Act No. 9978, Jan. 27, 2010> |
| (3) | Public officials who conducts an inspection referred to in paragraph (1) shall carry their certificates indicating their authority and show them to the related persons and deliver a document stating the names of the relevant public officials, the entry and exit hours, and the purposes of the entry and exit to the related persons. <Amended by Act No. 9978, Jan. 27, 2010> |
| Article 40-2 (Liability for Damages) |
| (1) | If any person suffers damage due to a violation of this Act committed by a commissioning enterprise, the commissioning enterprise shall be liable to pay damages for the person: Provided, That the foregoing shall not apply if the commissioning enterprise proves that it was neither intentional nor negligent. |
[This Article Newly Inserted by Act No. 13839, Jan. 27, 2016]
CHAPTER VII PENALTY PROVISIONS
| Article 41 (Penalty Provisions) |
| (1) | A person who acquires another person's technical data by wrongful means, including theft, and registers it pursuant to Article 24-3 shall be punished by imprisonment with labor for up to five years, or by a fine equivalent to the amount which is at least twice but not more than ten times the proprietary benefits taken therefrom. |
| (2) | A person who fails to comply with an order issued pursuant to Article 33 (4) shall be punished by imprisonment with labor for up to two years, or by a fine not exceeding 150 million won. <Newly Inserted by Act No. 12002, Aug. 6, 2013; Act No. 14775, Apr. 18, 2017> |
| (3) | Any of the following persons shall be punished by imprisonment with labor for up to one year, or by a fine not exceeding 50 million won: <Amended by Act No. 12002, Aug. 6, 2013; Act No. 13839, Jan. 27, 2016> |
| 1. | A person who violates a duty of confidentiality under Article 24-4; |
| 2. | A person who fails to comply with a corrective order under Article 28 (2) by the time one month elapses after the publication provided for in the main sentence of Article 28 (4) is made; |
| 3. | Deleted. <by Act No. 12002, Aug. 6, 2013> |
[This Article Wholly Amended by Act No. 10399, Dec. 7, 2010]
| Article 42 (Joint Penalty Provisions) |
If the representative of a corporation or an agent or employee of, or any other person employed by, a corporation or an individual commits any violation referred to in Article 41 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be punished by a fine prescribed in the relevant provision: Provided, That the same shall not apply, where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation. <Amended by Act No. 9331, Jan. 7, 2009>
| Article 43 (Administrative Fines) |
| (1) | A person who fails to comply with an order referred to in Article 34 (3) shall be subject to an administrative fine not exceeding 50 million won. <Amended by Act No. 14775, Apr. 18, 2017> |
| (2) | A person who fails to submit materials provided for in Article 40, submits false materials, or refuses, interferes with, or evades an inspection shall be subject to an administrative fine not exceeding ten million won. <Amended by Act No. 14775, Apr. 18, 2017> |
| (3) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Newly Inserted by Act No. 14775, Apr. 18, 2017; Act No. 15081, Nov. 28, 2017> |
| 1. | A person who fails to prepare and keep the minutes referred to in Article 20-2 (5); |
| 2. | A person who fails to comply with measures, such as a training order, etc. referred to in Article 28-2; |
| 3. | A person who fails to keep documents referred to in Article 39 (1) or has entered false matters in the documents. |
| (4) | Administrative fines referred to in paragraphs (1) through (3) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 9978, Jan. 27, 2010; Act No. 12002, Aug. 6, 2013; Act No. 14775, Apr. 18, 2017; Act No. 14839, Jul. 26, 2017> |
| (5) | Deleted. <by Act No. 9978, Jan. 27, 2010> |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Repeal of Other Act)
Article 3 (General Transitional Measures)
Article 4 (Period of Validity)
The provisions of Articles 29, 30, subparagraph 1 of 35, 40 (1) 2 and subparagraphs 2 and 3 of 41 shall be valid on or before December 31, 2006 and the "business other than the inherent type of business" in Article 32 (1) shall be made the "business" beginning on January 1, 2007. Article 5 (Transitional Measures concerning Consultative Council of Commissioned Enterprises)
The consultative council of commissioned enterprises provided for in the provisions of Article 17 of the previous Act at the time of the enforcement of this Act shall be deemed the consultative council of commissioned enterprises provided for in the provisions of Article 17. Article 6 (Special Cases concerning Large and Small Business Cooperation Foundation)
The Large and Small Business Cooperation Foundation that has been established pursuant to the provisions of Article 16 of the previous Act shall be deemed the Foundation provided for in the provisions of Article 20. Article 7 (Transitional Measures concerning Arbitration of Disputes)
The dispute case for which an application is filed for its arbitration pursuant to the provisions of Article 25 of the previous Act and which is pending at the time of the enforcement of this Act shall be deemed the dispute for which an application is filed for its arbitration pursuant to the provisions of Article 28. Article 8 (Transitional Measures concerning Business Coordination, etc.)
The application filed for the business coordination, the recommendation made and the order issued for the business coordination and the recommendation made for the temporary suspension pursuant to the provisions of Articles 6 through 8 of the previous Act at the time of the enforcement of this Act shall be all deemed to be filed, made, issued and made pursuant to the provisions of Articles 32 through 34. Article 9 (Transitional Measures concerning Inherent Types of Business of Small-Medium Enterprises)
| (1) | The inherent types of business of small-medium enterprises, which are designated pursuant to the provisions of Article 3 (1) of the previous Act at the time of the enforcement of this Act shall be deemed to be designated pursuant to the provisions of Article 29 (1). |
| (3) | Anyone who has failed to make a report required by the provisions of paragraph (2) shall be punished by an administrative fine not exceeding five million won and the provisions of Article 43 (2) through (5) shall apply mutatis mutandis to the procedures and methods for imposing and collecting the administrative fine. |
Article 10 (Transitional Measures concerning Penalty Provisions, etc.)
The application of the penalty provisions and administrative fines to the act performed prior to the enforcement of this Act shall be governed by the provisions of the previous Act.
Article 11 Omitted.
ADDENDA <Act No. 8108, Dec. 28, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 8454, May 17, 2007>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 32 (1) shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9013, Mar. 28, 2008>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
ADDENDA <Act No. 9331, Jan. 7, 2009>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Business Coordination) The application for business coordination or the recommendation on or the order for business coordination filed and made before this Act enters into force shall be deemed the application for business coordination or the recommendation on or the order for business coordination under this Act. |
ADDENDA <Act No. 9931, Jan. 13, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 9978, Jan. 27, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10252, Apr. 12, 2010>
Article 1(Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 10399, Dec. 7, 2010>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Applicability concerning Application, etc. for Business Coordination) The amended provisions of Article 32 (1) shall apply where an application for business coordination is filed on or after the date this Act enters into force. |
ADDENDA <Act No. 11173, Jan. 17, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning National Commission for Corporate Partnership)
| (1) | The National Commission for Corporate Partnership established in accordance with the articles of association of the Foundation as at the time this Act enters into force shall be deemed established pursuant to the amended provisions of Article 20-2. |
| (2) | The suitable types of business on which consensus has been secured by the National Commission for Corporate Partnership, which was established in accordance with the articles of association of the Foundation before this Act enters into force, shall be deemed agreed upon and published pursuant to the amended provisions of Article 20-2 (2) 2. |
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12002, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 8 (1), 15 (3), 17 (3) and 25-2 shall enter into force on the date of its promulgation. Article 2 (Applicable Cases concerning Business Coordination for Suitable Types of Business)
The amended provisions of Article 32 (7) shall begin to apply from the first business coordination for which an application is filed after this Act enters into force.
ADDENDA <Act No. 12307, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 12498, Mar. 18, 2014>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 13732, Jan. 6, 2016>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 13839, Jan. 27, 2016>
This Act shall enter into force on the date of its promulgation: Provided, That the amended Article 28 (2) shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 14529, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 17 (3) and 20 shall enter into force on the date of its promulgation. Article 2 (Transitional Measures concerning Large and Small Business Cooperation Foundation)
As at the time the amended provisions of Article 20 enter into force, the Large and Small Business Cooperation Foundation established under the former provisions of Article 20 shall be construed as the Large and Small Business, Agriculture, and Fisheries Cooperation Foundation established under the amended provisions of Article 20.
ADDENDA <Act No. 14775, Apr. 18, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Application, etc. for Consensus on Suitable Types of Business)
With regard to an application for which the Commission is in the process of reaching a consensus on suitable types of business as at the time this Act enters into force, the Commission shall reach a consensus within one year after this Act enters into force; and where no consensus is reached on suitable types of business within one year, an application for business coordination may be filed under the amended provisions of Article 20-4 (3).
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the Acts to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the date the relevant Act enters into force. |
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15081, Nov. 28, 2017>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 15519, Mar. 20, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 20-4 (2) shall enter into force on the date of its promulgation. Article 2 (Applicability to Mutually-Beneficial Settlement)
The amended provisions of Article 22 (5) shall begin to apply from the first contract for commissioning the manufacture of goods, etc. concluded after this Act enters into force.