ACT ON SPECIAL MEASURES FOR THE PROMOTION OF VENTURE BUSINESSES
Act No. 5381, Aug. 28, 1997
Amended by Act No. 5529, Feb. 28, 1998
Act No. 5578, Sep. 23, 1998
Act No. 5591, Dec. 28, 1998
Act No. 5607, Dec. 30, 1998
Act No. 5758, Feb. 5, 1999
Act No. 6101, Dec. 31, 1999
Act No. 6195, Jan. 21, 2000
Act No. 6194, Jan. 21, 2000
Act No. 6416, Feb. 3, 2001
Act No. 6482, May 24, 2001
Act No. 6590, Dec. 31, 2001
Act No. 6642, Jan. 26, 2002
Act No. 6723, Aug. 26, 2002
Act No. 6705, Aug. 26, 2002
Act No. 6842, Dec. 30, 2002
Act No. 6841, Dec. 30, 2002
Act No. 6891, May 29, 2003
Act No. 7091, Jan. 20, 2004
Act No. 7289, Dec. 31, 2004
Act No. 7288, Dec. 31, 2004
Act No. 7604, Jul. 21, 2005
Act No. 7633, Jul. 29, 2005
Act No. 7868, Mar. 3, 2006
Act No. 8050, Oct. 4, 2006
Act No. 8086, Dec. 26, 2006
Act No. 8284, Jan. 26, 2007
Act No. 8362, Apr. 11, 2007
Act No. 8361, Apr. 11, 2007
Act No. 8352, Apr. 11, 2007
Act No. 8345, Apr. 11, 2007
Act No. 8635, Aug. 3, 2007
Act No. 8602, Aug. 3, 2007
Act No. 8852, Feb. 29, 2008
Act No. 8863, Feb. 29, 2008
Act No. 8871, Feb. 29, 2008
Act No. 8974, Mar. 21, 2008
Act No. 9071, Mar. 28, 2008
Act No. 9367, Jan. 30, 2009
Act No. 9401, Jan. 30, 2009
Act No. 9584, Apr. 1, 2009
Act No. 9685, May 21, 2009
Act No. 9984, Jan. 27, 2010
Act No. 12237, Jan. 14, 2014
Act No. 12592, May 20, 2014
Act No. 12927, Dec. 30, 2014
Act No. 13310, May 18, 2015
Act No. 13448, Jul. 24, 2015
Act No. 13453, Jul. 31, 2015
Act No. 14079, Mar. 22, 2016
Act No. 14122, Mar. 29, 2016
Act No. 14127, Mar. 29, 2016
Act No. 14111, Mar. 29, 2016
Act No. 14271, May 29, 2016
Act No. 14363, Dec. 2, 2016
Act No. 14681, Mar. 21, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15463, Mar. 13, 2018
Act No. 15920, Dec. 11, 2018
Act No. 16172, Dec. 31, 2018
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to facilitating the structural adjustment of the industry as well as to enhancing the competitiveness thereof, by promoting the conversion of existing enterprises into venture businesses and the establishment of venture businesses.
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| (1) | The term "venture business" means the business which satisfies the requirements under Article 2-2. <Amended by Act No. 8602, Aug. 3, 2007> |
| (2) | The term "investment" means the purchase of stocks, unsecured convertible bonds, or unsecured bonds with warrant, which have been issued by a stock company, or the acceptance of investments made by a limited liability company. <Amended by Act No. 8602, Aug. 3, 2007> |
| (3) | Deleted. <by Act No. 7868, Mar. 3, 2006> |
| (4) | The term "facilities for clustering venture businesses" means such buildings designated under Article 18 for the purpose of facilitating the activities of venture businesses by collectively locating such businesses and supporting installations prescribed by Presidential Decree therein. <Amended by Act No. 8602, Aug. 3, 2007> |
| (5) | The term "laboratory factory" means a business place which is equipped with production facilities falling into the business categories corresponding to urban-type factories under Article 28 of the Industrial Cluster Development and Factory Establishment Act in research facilities held by a university or research institute in order to promote the establishment of venture businesses. <Amended by Act No. 8602, Aug. 3, 2007> |
| (6) | The term "venture business development and promotion zone" means an area which has the higher concentration of venture businesses than other areas and which is designated under Article 18-4 for the purpose of facilitating the activities of venture businesses by the grouping and cooperation thereof. <Amended by Act No. 8602, Aug. 3, 2007> |
| (7) | The term "strategic alliance" means a formation of cooperative relationship with the stockholders of other enterprises or with other venture businesses in the fields of technology, facility, information, manpower, capital, etc., for the purpose of improving the productivity and strengthening the competitiveness, etc. <Amended by Act No. 8602, Aug. 3, 2007> |
| (8) | The term "company specializing in the start-up of new technology-based businesses" means a company established mainly with the aim of industrializing technologies held by universities or research institutes and facilitating business start-up through such industrialization, which is registered pursuant to Article 11-2. <Amended by Act No. 8602, Aug. 3, 2007> |
| Article 2-2 (Requirements for Venture Business) |
| (1) | A venture business shall satisfy the following requirements: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9685, May 21, 2009; Act No. 9984, Jan. 27, 2010; Act No. 10445, Mar. 9, 2011; Act No. 12237, Jan. 14, 2014; Act No. 14079, Mar. 22, 2016; Act Nos. 14122 & 14127, Mar. 29, 2016; Act No. 14271, May 29, 2016; Act No. 16172, Dec. 31, 2018> |
| 2. | It shall fall under any of the following: |
| (a) | An enterprise which is up to the standards prescribed by Presidential Decree concerning the total amount invested by any of the following persons (hereafter in this item referred to as "total of invested amount") and the ratio occupied by the total of invested amount in its capital, respectively: |
| (v) | The Korea Venture Fund provided for in Article 4-3; |
| (vi) | The dedicated company provided for in Article 4-9; |
| (vii) | A financial institution prescribed by Presidential Decree, which makes a technology evaluation on an investment in small and medium enterprises; |
| (viii) | An individual who meets the standards prescribed by Presidential Decree, such as investment performance, career, and qualification requirements; |
| (b) | An enterprise (limited to the enterprise having an affiliated research institute recognized under Article 14-2 (1) of the Basic Research Promotion and Technology Development Support Act) which is up to the standards prescribed by Presidential Decree concerning annual research and development expenses and the ratio occupied by the sum of research and development expenses in annual gross turnover and which is highly appreciated for its business performance by the agencies prescribed by Presidential Decree; |
| (c) | An enterprise which meets each of the following requirements (in cases of a start-up enterprise, applying the requirement (iii) only): |
| (i) | It is required to be guaranteed (including determination of the amount that may be guaranteed) by the Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act (hereinafter referred to as the "Korea Technology Finance Corporation") or it is required to take a loan that is extended without collateral (including determination of the amount that may be loaned) by the agencies prescribed by Presidential Decree, such as the Korea SMEs and Startups Agency under Article 68 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as the "Korea SMEs and Startups Agency") to promote the industrialization of developed technology or the enterprise inauguration; |
| (ii) | It is required to be up to the standards prescribed by Presidential Decree concerning the amount of guarantee or loan of sub-item (i) and the ratio occupied by the amount of such guarantee or loan in its gross assets; |
| (iii) | It is highly appreciated for its technology by the agencies for guarantee or loan under sub-item (i). |
| (2) | Matters necessary for the standards, methods, etc. for appraisal under the provisions of paragraph (1) 2 (b) and (c) (iii) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 3 (Decision on Business Type Excluded from Venture Business) |
Notwithstanding Article 2 (1), enterprises operating businesses prescribed by Presidential Decree shall not be included in the category of venture business for efficacious structural arrangements in the industry and the strengthening of industrial competitiveness of the Republic of Korea. <Amended by Act No. 13310, May 18, 2015> [This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
CHAPTER II ESTABLISHMENT OF FOUNDATION FOR PROMOTION OF VENTURE BUSINESSES
SECTION 1 Establishment of Management System for Promotion of Venture Businesses
| Article 3-2 (Establishment of Venture Business Promotion Plans) |
| (1) | To promote venture businesses, the Minister of SMEs and Startups shall formulate and implement a venture business promotion plan (hereinafter referred to as "promotion plan") every three years following consultation with the heads of related central administrative agencies. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | A promotion plan shall include the following matters: |
| 1. | Basic direction-setting for policies for promoting venture businesses; |
| 2. | Matters concerning providing assistance to venture start-ups; |
| 3. | Matters concerning establishing foundation for promoting venture businesses; |
| 4. | Matters concerning surveying and managing statistics related to venture businesses; |
| 5. | Matters concerning the public procurement of venture business products; |
| 6. | Other matters necessary for promoting venture businesses. |
| (3) | Where necessary to formulate and implement a promotion plan, the Minister of SMEs and Startups may request the heads of related central administrative agencies or the representatives of institutions or organizations, etc. related to the promotion of venture businesses to submit data or to state their opinions. In such cases, the heads of related central administrative agencies, etc. in receipt of such request shall comply therewith unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 14363, Dec. 2, 2016]
| Article 3-3 (Fact-Finding Surveys) |
| (1) | To promote venture businesses systematically and to formulate and implement promotion plans efficiently, the Minister of SMEs and Startups shall conduct annual survey on the status, actual conditions, etc. of activities of venture businesses and publicly announce the outcomes thereof. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Where necessary to conduct a fact-finding survey under paragraph (1), the Minister of SMEs and Startups may request the heads of related central administrative agencies, the heads of local governments, the heads of public institutions prescribed in the Act on the Management of Public Institutions, the representatives of venture businesses, the representatives of related organizations, etc. to submit data or state their opinions, etc. In such cases, the heads of related central administrative agencies, etc. in receipt of such request shall comply therewith unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 14363, Dec. 2, 2016]
| Article 3-4 (Establishment and Operation of Comprehensive Management System) |
The Minister of SMEs and Startups may establish and operate a comprehensive management system to manage information related to venture businesses in a comprehensive manner and to provide information useful for the activities of venture businesses by laying the basis for cooperation among venture businesses. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Newly Inserted by Act No. 14363, Dec. 2, 2016]
SECTION 2 Efficient Supply of Capital
| Article 4 (Investment of Funds in Venture Business) |
| (1) | A person administering any Fund (hereinafter referred to as "fund administrator") prescribed by Presidential Decree, which is prescribed in the National Finance Act, may invest funds in venture businesses within the ratio prescribed by Presidential Decree, or contribute them to small and medium enterprise start-up investment associations, new technology venture investment associations, or the Korea Venture Fund, pursuant to the plans for operating the relevant Fund. <Amended by Act No. 8602, Aug. 3, 2007> |
| (2) | With regard to investments in venture businesses or contributions to small and medium enterprise start-up investment associations, new technology venture investment associations, or the Korea Venture Fund within the plans for operating the relevant Fund, the fund administrator shall be deemed to have obtained authorization, permission, approval, etc. in compliance with the provisions of relevant statutes and regulations. <Amended by Act No. 8602, Aug. 3, 2007> |
| (3) | Deleted. <by Act No. 5607, Dec. 30, 1998> |
| (4) | An insurance company established pursuant to subparagraph 5 of Article 2 of the Insurance Business Act may make investments in venture businesses or contributions to small and medium enterprise start-up investment associations or new technology venture investment associations within the scope determined by the Financial Services Commission, notwithstanding Articles 106, 108 and 109 of the said Act. <Amended by Act No. 8602, Aug. 3, 2007; Act Nos. 8852 & 8863, Feb. 29, 2008> |
| 1. | Small and medium business start-up investment associations; |
| 2. | New technology venture investment associations; |
| 3. | Fund of funds for small and medium enterprises investments under Article 4-2; |
| Article 4-2 (Establishment of Fund of Funds for Small and Medium Enterprise Investments) |
| (1) | Organizations designated by the Minister of SMEs and Startups (hereinafter referred to as "organizations specializing in the management of investments"), from among investment management organizations prescribed by Presidential Decree including the Korea SMEs and Startups Agency, may establish a fund of funds for small and medium enterprise investments (hereinafter referred to as the "Fund of Fund"), the purpose of which is to invest in an association or fund established to make investments in small and medium enterprises and venture businesses with the funds invested by the person, etc. who manages the Fund for the Establishment and Promotion of Small and Medium Venture Businesses under Article 63 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as the "Fund for the Establishment and Promotion of Small and Medium Venture Businesses"). <Amended by Act No. 9367, Jan. 30, 2009; Act No. 9685, May 21, 2009; Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017; Act No. 16172, Dec. 31, 2018> |
| (2) | The person in charge of managing the Fund for the Establishment and Promotion of Small and Medium Venture Businesses may make investments in the Fund of Funds, notwithstanding Article 67 of the Small and Medium Enterprises Promotion Act. <Amended by Act No. 9367, Jan. 30, 2009; Act No. 9685, May 21, 2009; Act No. 13310, May 18, 2015; Act No. 16172, Dec. 31, 2018> |
| (3) | Organizations specializing in the management of investments shall invest assets of the Fund of Funds in the following associations or funds: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9584, Apr. 1, 2009; Act No. 13310, May 18, 2015; Act No. 13448, Jul. 24, 2015> |
| 1. | Small and medium enterprise start-up investment associations; |
| 5. | New technology venture investment associations; |
| 6. | Private investment associations provided for in Article 13. |
| (4) | The organizations specializing in the management of investments shall manage and operate assets of the Fund of Funds, and other necessary matters concerning the designation, management, etc. of organizations specializing in the management of investments shall be prescribed by Presidential Decree. <Amended by Act No. 9367, Jan. 30, 2009> |
| (5) | through (8) Deleted. <by Act No. 9367, Jan. 30, 2009> |
| (9) | The period of existence for the Fund of Funds shall be prescribed by Presidential Decree within the scope of not more than 30 years, and other necessary matters concerning the management and operation of the Fund of Funds shall be prescribed by Presidential Decree. <Amended by Act No. 9367, Jan. 30, 2009> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 4-3 (Establishment of Korea Venture Fund) |
| (1) | Any of the following persons may establish an association that is invested by the Fund of Funds with the aim of making investments in small and medium enterprises and venture businesses as well as making contributions to the investment associations provided for in paragraph (6) 3 (hereinafter referred to as the "Korea Venture Fund"): Provided, That a person who intends to establish an association in compliance with the purpose and standards prescribed by the Minister of SMEs and Startups, such as the merger and acquisition of small and medium enterprises or venture businesses or the purchase of assets including stocks held by other small and medium enterprise start-up investment associations or the Korea Venture Fund, may establish the Korea Venture Fund without receiving investment from the Fund of Funds: <Amended by Act No. 13310, May 18, 2015; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | Small and medium enterprise start-up investment companies; |
| 2. | New technology venture capital business; |
| 3. | Limited companies or limited liability companies provided for in the Commercial Act, which meet the following requirements: |
| (a) | The total amount of their investments is required to be at least one percent of the establishment amount of the Fund; |
| (b) | They are required to have professional human resources in conformity with the standards set by Presidential Decree; |
| 4. | Foreign investment companies recognized by the Minister of SMEs and Startups as fulfilling the following requirements: Provided, that where any foreign investment company has established the Korea Venture Fund jointly with a person who falls under subparagraph 1 through 3, it shall be deemed to have fulfilled the following requirements: |
| (a) | They are required to meet physical and human requisites equivalent to small and medium enterprise start-up investment companies, such as domestic branches, professional human resources, etc.; |
| (b) | They are required to have high levels of international confidence and proper operational plans. |
| (2) | A person who establishes the Korea Venture Fund pursuant to paragraph (1) shall report such fact to the Minister of SMEs and Startups as prescribed by Presidential Decree; and the same shall also apply to any modification of reported matters. <Newly Inserted by Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| (3) | The Korea Venture Fund shall be comprised of at least one member with the unlimited liability for the debt of the Fund (hereinafter referred to as "general partner") and other members with limited liabilities within the limit of their investment amount (hereinafter referred to as "members with limited liabilities"). In such cases, the general partner shall be any of the following persons and one person among them shall be the person falling under subparagraph 1; and in cases falling under the proviso to paragraph (1) 4, the position of the general partner shall be jointly held by a person who falls under paragraph (1) 1 through 3 and a foreign investment company: <Amended by Act No. 9984, Jan. 27, 2010; Act No. 14271, May 29, 2016> |
| 1. | Any person falling under any subparagraph of paragraph (1); |
| 3. | Any corporation which manages mutual aid business under statutes; |
| 4. | Other persons prescribed by Presidential Decree. |
| (4) | Notwithstanding the former part of paragraph (3), the general partner shall be one person if the publicly placed Korea Venture Fund under Article 4-8 is formed. <Newly Inserted by Act No. 9984, Jan. 27, 2010; Act No. 14271, May 29, 2016> |
| (5) | Necessary matters concerning the amount of the investment of the Korea Venture Fund, the number of its members, requirements for its establishment, including the period of existence, the matters to be reported, its operation, etc. shall be prescribed by Presidential Decree. <Amended by Act No. 9984, Jan. 27, 2010> |
| (6) | The general partner shall use the funds of the Korea Venture Fund for the following businesses: Provided, That with respect to the business provided for in subparagraph 3, he/she may use the funds only for the associations, the main object of whose establishment is to carry on the business: <Amended by Act No. 9984, Jan. 27, 2010; Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | Investments in small and medium enterprises and venture businesses; |
| 3. | Contributions to small and medium enterprise start-up investment associations, new technology venture investment associations, or private investment associations under Article 13; |
| 4. | Other businesses undertaken to strengthen the competitiveness of small and medium enterprises and venture businesses, which are recognized by the Minister of SMEs and Startups. |
| (7) | The general partner shall manage the assets of the Korea Venture Fund as a good manager for the interest of investors. <Amended by Act No. 9984, Jan. 27, 2010> |
| (8) | The Korea Venture Fund may give remuneration to the general partner according to the returns from investment as provided for in the rules of the Fund, and necessary matters regarding the method of calculating returns from investment, etc. for the payment of remuneration shall be prescribed by Presidential Decree. <Amended by Act No. 9984, Jan. 27, 2010> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 4-4 (Business Performance of Korea Venture Fund) |
| (1) | The general partner shall perform the business of the Korea Venture Fund. |
| (2) | The general partner shall not conduct any of the following acts while performing the business of the Korea Venture Fund: |
| 1. | Using the assets of the Korea Venture Fund in the interest of him/her or any third party; |
| 2. | Borrowing any fund, guaranteeing any payment or offering any security; |
| 4. | Acquiring or possessing stocks of financial institutions prescribed by Presidential Decree; |
| 5. | Acquiring or possessing any real estate (hereinafter referred to as "real estate for non-business use") other than the real estate used for the business, the scope of which is prescribed by Presidential Decree, including a business incubator, etc. provided for in Article 6 (1) of the Support for Small and Medium Enterprise Establishment Act: Provided, That the same shall not apply where any real estate for non-business use is acquired by means of the exercise of any security right; |
| 6. | Any other act prescribed by Presidential Decree as detrimental to the objectives of its establishment. |
| (3) | Where the general partner acquires any real estate for non-business use by means of the exercise of any security right pursuant to the proviso of paragraph (2) 5, such real estate for non-business use shall be disposed of within the period prescribed by Ordinance of the Ministry of SMEs and Startups within one year. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 4-5 (Transfer of Shares Held by Members of Korea Venture Fund) |
| (1) | No general partner shall transfer all or part of his/her share without obtaining unanimous consent of other members. |
| (2) | The share of a member with limited liabilities may be transferred to another person as prescribed by the contract of association. |
| (3) | A person who acquires the share of a member with limited liabilities shall succeed to the rights and obligations of the transferor to the association. |
[This Article Newly Inserted by Act No. 14271, May 29, 2016]
| Article 4-6 (Secession of General Partner from Korea Venture Fund) |
The general partner shall be prohibited from seceding from the Korea Venture Fund except any of the following cases:
| 1. | Where the registration of any small and medium enterprise startup investment company or any new technology venture capital business is revoked or canceled; |
| 2. | Where the general partner goes bankrupt; |
| 3. | Where the consent thereof is obtained from all members. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 4-7 (Dissolution of Korea Venture Fund) |
| (1) | The Korea Venture Fund shall be dissolved on any of the following grounds: <Amended by Act No. 9984, Jan. 27, 2010> |
| 1. | The expiration of the period of existence; |
| 2. | The secession of all of the members with limited liabilities; |
| 3. | The secession of the general partner falling under any subparagraph of Article 4-3 (1); |
| 4. | Other cases prescribed by Presidential Decree. |
| (2) | When the ground falling under paragraph (1) 3 accrues, the Korea Venture Fund may continue to exist by letting a general partner falling under any subparagraph of Article 4-3 (1) join the Korea Venture Fund with a unanimous approval of all members with limited liabilities within three months from the date such ground accrues as prescribed by Presidential Decree. <Amended by Act No. 9984, Jan. 27, 2010> |
| (3) | When the Korea Venture Fund is dissolved, the general partner thereof shall become a liquidator: Provided, That anyone other than the general partner of the Korea Venture Fund may be selected and appointed as a liquidator as prescribed by the rules of the relevant Fund. |
| (4) | Where the amount of debts is in excess of the amount of the investment at the time the Korea Venture Fund is dissolved, general partners of the Korea Venture Fund shall reimburse such debts. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 4-8 (Special Cases concerning Publicly Placed Korea Venture Fund) |
| (1) | Articles 30 through 32, 34 through 43, 48, 50 through 53, 56, 58, 60 through 65, 80 through 83, subparagraphs 2, 3, and 6 through 8 of Article 85, 86 through 95, 181 through 183, 184 (1), (2), and (5) through (7), 185 through 187, 218 through 223, 229 through 249, 249-2 through 249-9, and 250 through 253 of the Financial Investment Services and Capital Markets Act and the Act on Corporate Governance of Financial Companies (excluding Articles 24 through 26) shall not apply to the Publicly Placed Korea Venture Fund (referring to the Korea Venture Fund which does not fall under a privately placed fund under Article 9 (19) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) and its general partners. <Amended by Act No. 13448, Jul. 24, 2015; Act No. 13453, Jul. 31, 2015> |
| (2) | The Minister of SMEs and Startups shall pre-consult with the Financial Services Commission when he/she registers the Publicly Placed Korea Venture Fund. <Amended by Act No. 8863, Feb. 29, 2008; Act No. 14839, Jul. 26, 2017> |
| (3) | The Financial Services Commission may order the Publicly Placed Korea Venture Fund to submit or report materials concerning its business and have the Governor of the Financial Supervisory Service inspect its business if necessary to protect of the public interests or members of the Publicly Placed Korea Venture Fund. <Amended by Act No. 8863, Feb. 29, 2008> |
| (4) | Where the Publicly Placed Korea Venture Fund violates this Act or any order or disposition imposed under this Act, the Financial Investment Services and Capital Markets Act or any order or disposition imposed under the same Act, or the Act on Corporate Governance of Financial Companies (limited to the provisions of Articles 24 through 26), the Financial Services Commission may request the Minister of SMEs and Startups to take measures falling under any subparagraph of Article 28; and the Minister of SMEs and Startups shall comply therewith unless there is a compelling reason not to do so. In such cases, the Minister of SMEs and Startups shall notify the Financial Services Commission of details of the measures taken. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008; Act No. 13453, Jul. 31, 2015; Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 8635, Aug. 3, 2007]
| Article 4-9 (Establishment of Dedicated Company) |
| (1) | The Government may establish a dedicated company (hereinafter referred to as "dedicated company") aimed at facilitating the investment, etc. for the growth and development of small and medium enterprises and venture businesses. |
| (2) | A person who manages the Fund for the Establishment and Promotion of Small and Medium Venture Businesses, may invest in the dedicated company, notwithstanding Article 67 of the Small and Medium Enterprises Promotion Act. <Amended by Act No. 9367, Jan. 30, 2009; Act No. 9685, May 21, 2009; Act No. 16172, Dec. 31, 2018> |
| (3) | The State or a local government may give tax favors to the dedicated company in accordance with tax-related statutes or regulations. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 4-10 (Business Affairs of Dedicated Company) |
| (1) | The dedicated company shall conduct the following business affairs: <Amended by Act No. 11660, Mar. 22, 2013> |
| 1. | Investment in the associations, etc. established with the aim of investing in small and medium enterprises and venture businesses; |
| 2. | Investment in small and medium enterprises and venture businesses; |
| 3. | Assistance to the attraction of foreign venture investment capitals; |
| 4. | Fosterage of small and medium enterprise start-up investment companies; |
| 5. | Operation of investment resources funded by the Government through contributions or investments for the purpose of fostering related industries; |
| 6. | Business incidental to subparagraphs 1 through 5, which is entrusted by the Government. |
| (2) | The dedicated company may, if necessary to carry on its business, borrow funds from the Government, any Fund established by the Government or domestic and foreign financial institutions. |
| (3) | The dedicated company may issue bonds to the extent of 10 times the total amount of its capital and reserves. |
| (4) | Any modification of the articles of incorporation of the dedicated company shall be subject to authorization by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
| (5) | Except for those provided for in this Act, the provisions concerning stock companies in the Commercial Act shall apply mutatis mutandis to a dedicated company. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 5 (Provision of Preferential Credit Guarantee) |
The Korea Technology Finance Corporation shall, in guaranteeing credit, give preference to a venture business and a company specializing in the start-up of new technology-based businesses. <Amended by Act No. 14122, Mar. 29, 2016>
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 6 (Special Cases concerning Contributions of Industrial Property Rights) |
| (1) | Subjects, in respect of which contributions in kind may be made to venture businesses, shall include patent rights, utility model rights, design rights, or technologies equivalent thereto and the rights of uses thereof (hereinafter referred to as "industrial property rights, etc."). |
| (2) | Where the value of industrial property rights, etc. is appraised by the technology appraisal institution as described by Presidential Decree, the details of appraisal shall be deemed to have been appraised by the authorized appraiser in compliance with Articles 299-2 and 422 of the Commercial Act. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 7 Deleted. <by Act No. 5607, Dec. 30, 1998> |
| Article 8 (Special Cases concerning Contribution by Foreigners) |
Contributions made to the small and medium enterprise start-up investment association or the Korea Venture Fund by foreigners under Article 2 (1) 1 of the Foreign Investment Promotion Act shall be regarded as foreigner's investment in compliance with subparagraph 4 of the said paragraph. [This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 9 (Special Cases concerning Restrictions on Acquisition of Stocks by Foreigners) |
| (2) | The acquisition of stocks of a venture business by a foreigner or a foreign corporation, etc. under paragraph (1) may be restricted in accordance with the articles of incorporation of the venture business concerned. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 10 Deleted. <by Act No. 5591, Dec. 28, 1998> |
| Article 10-2 Deleted. <by Act No. 9984, Jan. 27, 2010> |
| Article 11 Deleted. <by Act No. 6416, Feb. 3, 2001> |
| Article 11-2 (Establishment of Companies Specializing in Start-Up of New Technology-Based Businesses) |
| (1) | Any of the following universities or research institutes may establish a company specializing in the start-up of new technology-based businesses (hereinafter referred to as "specialized company"): <Amended by Act No. 9367, Jan. 30, 2009; Act No. 10907, Jul. 25, 2011> |
| 2. | National or public research institutes; |
| 3. | Government-invested research institutes; |
| 4. | Other research institutes prescribed by Presidential Decree in the field of science or industrial technology. |
| (2) | In establishing a specialized company pursuant to paragraph (1), the relevant university or research institute shall register such company with the Minister of SMEs and Startups as prescribed by Presidential Decree. The same shall also apply where any registered matter is altered. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Where the application for registration is filed pursuant to paragraph (2), the Minister of SMEs and Startups shall grant the registration except where the application falls under any of the following: <Amended by Act No. 9367, Jan. 30, 2009; Act No. 11660, Mar. 22, 2013; Act No. 14839, Jul. 26, 2017> |
| 2. | Where any executive officer falls under any of the following: |
| (a) | A person under adult guardianship or person under limited guardianship; |
| (b) | A person who has been declared bankrupt, but has not yet been reinstated; |
| (c) | A person who has been sentenced to imprisonment without labor or heavier punishment, and for whom five years have not yet lapsed since the execution of such sentence is terminated (including where the execution of sentence is deemed to have been terminated) or the decision to waive such sentence has been made; |
| (d) | A person who has been sentenced to the suspension of the execution of imprisonment without labor or heavier punishment, and for whom two years have not yet lapsed since the period of suspension is terminated; |
| (e) | A person who is under a grace period after having been sentenced to a suspended sentence of imprisonment without labor or heavier punishment; |
| (f) | A person who is disqualified, or whose qualification is suspended according to a court ruling or other statutes; |
| 3. | Where its manpower and facilities fail to meet the standards prescribed by Presidential Decree. |
| (4) | The specialized company shall carry on the following business: <Amended by Act No. 9984, Jan. 27, 2010; Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | Industrialization of technologies held by universities, research institutes or specialized companies; |
| 2. | Establishment of subsidiaries necessary to industrialize technologies pursuant to subparagraph 1: Provided, That the universities provided for in paragraph (1) 1 may not establish their subsidiaries; |
| 4. | Investment in small and medium business start-up investment cooperatives, new technology venture investment associations, the Korea Venture Fund, or private investment associations under Article 13; |
| 4-2. | Operation of assets of private investment associations under Article 13; |
| 5. | Transfer of technologies possessed by specialized companies to industrial enterprises, etc.; |
| 6. | Assistance in transferring technologies possessed by universities and research institutes to industrial enterprises, etc.; |
| 7. | Managerial and technical support for any company established by teachers, researchers, etc. of universities and research institutes; |
| 8. | Other businesses incidental to those provided for in subparagraphs 1 through 7, as determined by the Minister of SMEs and Startups. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 11-3 (Operation of Specialized Companies) |
| (1) | A university or a research institute shall own stocks equivalent to at least 10/100 of the gross number of outstanding stocks of a specialized company established by itself. <Amended by Act No. 9367, Jan. 30, 2009; Act No. 13310, May 18, 2015> |
| (2) | When a university or a research institute establishes a specialized company or its specialized company issues new stocks, it may make contributions in kind, such as industrial property rights, or in cash: Provided, That where the universities under Article 11-2 (1) 1 establish a specialized company by investing cash only, they shall transfer retaining technologies to the specialized company. <Amended by Act No. 9367, Jan. 30, 2009> |
| (3) | Where necessary to perform its projects, a specialized company may borrow loans from the Government, Funds established by the Government, domestic or foreign financial institutions, foreign governments or international organizations. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 11-4 (Preferential Provision of Funds to Specialized Companies) |
A person who manages the Fund for the Establishment and Promotion of Small and Medium Venture Businesses may preferentially provide funds to specialized companies. <Amended by Act No. 9367, Jan. 30, 2009; Act No. 16172, Dec. 31, 2018>
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 11-5 (Special Cases concerning Specialized Companies) |
| (1) | Articles 16 and 16-2 shall apply mutatis mutandis to where a teacher, researcher or employee of a university or a research institute is allowed a leave of absence to work as the representative, an executive officer or employee of a specialized company or concurrently holds the post or office of such representative, officer or employee. |
| (2) | When a university or a research institute makes contributions in kind to a specialized company pursuant to Article 11-3 (2), Article 6 (2) shall apply mutatis mutandis to the assessment and appraisal of the values of industrial property rights, etc. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 11-6 (Restrictions on Activities of Specialized Companies) |
| (1) | A specialized company shall be prohibited from performing any of the following acts: |
| 2. | The act of having any such business relations with a subsidiary established by the specialized company as prescribed by Presidential Decree, such as debt guarantee; |
| 3. | Other acts prescribed by Presidential Decree, which are detrimental to the purposes of establishing the specialized company. |
| (2) | A specialized company may establish its subsidiary pursuant to Article 11-2 (4) 2 only upon a special resolution of the general meeting of stockholders. |
| (3) | A university or a research institute shall use any dividends, gains and surpluses accrued from investments in or contributions to its specialized company for the proper purpose business or research and development, industry-academic cooperation activities, etc. of the university or research institute, as prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 11-7 (Revocation of Registration of Specialized Companies) |
Where a specialized company falls under any of the following, the Minister of SMEs and Startups may revoke its registration: Provided, That he/she shall revoke the relevant registration, where it falls under subparagraph 1: <Amended by Act No. 11660, Mar. 22, 2013; Act No. 14839, Jul. 26, 2017; Act No. 15920, Dec. 11, 2018>
| 1. | Where it registers the company by fraud or other improper means; |
| 2. | Where it performs any act referred to in any subparagraph of Article 11-6 (1); |
| 3. | Where it falls under any of the subparagraphs of Article 11-2 (3): Provided, That this shall not apply to specialized companies falling under Article 11-2 (3) 2, in whose case grounds for revocation of their registration have ceased to exist within three months from the date said grounds for revocation arose. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 12 (Special Cases concerning Operation of Small and Medium Enterprise Start-up Investment Association) |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 13 (Formation of Private Investment Associations) |
| (1) | Any association, formed by investment of any of the following persons with the aim of investment in venture businesses and founders, which seeks to obtain the supports under this Act, shall file a registration with the Minister of SMEs and Startups as prescribed by Presidential Decree. This shall also apply where any registered matter is altered: <Amended by Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| 2. | Any of the following persons who fulfills the criteria prescribed by Presidential Decree, such as the purpose and scale of investment: |
| (a) | Specialized companies; |
| (b) | Funds of funds or the Korea Venture Fund; |
| (c) | Institutions prescribed and publicly announced by the Minister of SMEs and Startups, which provide start-up assistance and invest in small and medium enterprises. |
| (2) | An association registered under paragraph (1) (hereinafter referred to as "private investment association") shall consist of at least one general partner in charge of the business of the private investment association with unlimited liabilities and members with limited liabilities who takes limited liability within the limit of their respective contributions: Provided, That regarding commercial transactions, such as financial transactions, the general partner shall not have a debt in excess of 10 million won that is overdue for not less than three months without good cause. <Amended by Act No. 14271, May 29, 2016> |
| (3) | Where any person falling under the subparagraphs of paragraph (1) intends to establish an association under paragraph (1), he/she shall invite to joint the association by means of private placement only under Article 9 (8) of the Financial Investment Services and Capital Markets Act. <Newly Inserted by Act No. 8635, Aug. 3, 2007; Act No. 11660, Mar. 22, 2013; Act No. 13310, May 18, 2015> |
| (4) | Matters necessary for the requirements for registration of a private investment association including the amount of investment, number of members and period of duration, for the operation thereof, etc. shall be prescribed by Presidential Decree. <Amended by Act No. 11660, Mar. 22, 2013> |
| (5) | The general partner shall use the funds of the private investment association for the investment in venture businesses and founders: Provided, That no fund of the private investment association may be used for the investment in a corporation listed in the securities market prescribed by the Minister of SMEs and Startups as the securities market referred to in Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act. <Newly Inserted by Act No. 11660, Mar. 22, 2013; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| (6) | The general partner shall manage the assets of the private investment association as a good manager for the interest of investors. <Newly Inserted by Act No. 14271, May 29, 2016> |
| (7) | The general partner shall not conduct the acts of borrowing funds, guaranteeing payment or offering security in carrying out the businesses of the private investment association, or transfer his/her position, except for cases as otherwise stipulated in the rules of the relevant private investment association. <Amended by Act No. 11660, Mar. 22, 2013; Act No. 14271, May 29, 2016> |
| (8) | The general partner may secede from the private investment association only in any of the following cases: <Newly Inserted by Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | Where the registration as a specialized company is revoked or cancelled; |
| 2. | Where the general partner went bankrupt; |
| 3. | Where the unanimous consent thereto is obtained from all association members; |
| 4. | Where the general partner who is an individual person is deceased; |
| 5. | Other cases prescribed by the Minister of SMEs and Startups. |
| (9) | Every private investment association shall be dissolved where there exists any of the following grounds: Provided, That where any cause falling under subparagraph 3 occurs, a private investment association may continue its existence by appointing its general partner from among members with limited liabilities or by making any general partner that falls under any subparagraph of paragraph (1) join therein, with the unanimous consent of all members with limited liabilities: <Amended by Act No. 11660, Mar. 22, 2013; Act No. 14271, May 29, 2016> |
| 1. | Expiration of its existing period; |
| 2. | Secession of its entire members; |
| 3. | Secession of all general partners due to a reason that falls under any subparagraph of paragraph (8); |
| 4. | Other reasons prescribed by Presidential Decree. |
| (10) | Where a private investment association is dissolved, the general partner thereof shall become a liquidator: Provided, That any other person than the general partner may be appointed as a liquidator as stipulated by the rules of the relevant association. <Amended by Act No. 11660, Mar. 22, 2013> |
| (11) | Except for those provided for in this Act, the provisions concerning limited partnership in the Commercial Act shall apply mutatis mutandis to private investment associations: Provided, That Articles 86-4 and 86-9 of the Commercial Act shall not apply mutatis mutandis thereto. <Newly Inserted by Act No. 14271, May 29, 2016> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 13-2 (Business Performance and Operation of Private Investment Associations) |
| (1) | Article 4-4 shall apply mutatis mutandis to the general partner's performance of business of a private investment association. In such cases, the Korea Venture Fund shall be deemed "private investment association". <Newly Inserted by Act No. 14271, May 29, 2016> |
| (2) | The general partner of an association with the total amount of its investments at least the amount determined by the Minister of SMEs and Startups shall manage the assets of a private investment association in compliance with the following: <Newly Inserted by Act No. 11660, Mar. 22, 2013; Act No. 14839, Jul. 26, 2017> |
| 2. | The approval of the general meeting of association members shall be acquired for the change of a trust business entity. |
| (3) | A trust business entity entrusted with the assets of a private investment association pursuant to paragraph (2) shall perform the following duties: <Newly Inserted by Act No. 11660, Mar. 22, 2013; Act No. 14271, May 29, 2016> |
| 1. | Keeping in custody and management of the assets of the private investment association; |
| 2. | Acquisition or disposition of assets in compliance with the instructions for the operation of the assets of the private investment association from the general partner. |
| (4) | The Minister of SMEs and Startups may, in the operation of the assets of a private investment association by its general partner, lead such assets that have not been invested in venture businesses or founders to be operated by depositing in the banks under the Banking Act, or by buying the State or public bonds. <Amended by Act No. 10303, May 17, 2010; Act No. 11660, Mar. 22, 2013; Act No. 14839, Jul. 26, 2017> |
| (5) | The general partner of a private investment association shall submit the settlement statement accompanied with the written opinion on audit and inspection by a certified public accountant to the Minister of SMEs and Startups within three months from the end of each business year: Provided, That in the case of an association whose result of investment of the previous year has been unchanged, the data fixed by the public notice of the Minister of SMEs and Startups may replace the aforementioned documents. <Amended by Act No. 11660, Mar. 22, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 13-3 (Revocation of Registration) |
| (1) | Where a private investment association falls under any of the following, the Minister of SMEs and Startups may revoke its registration: Provided, That he/she shall revoke the relevant registration in cases falling under subparagraph 1: <Amended by Act No. 11660, Mar. 22, 2013; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | Where it registers by fraud or other improper means; |
| 3. | Where it violates the proviso of Article 13 (2); |
| 4. | Where it invites any person to joint the association in violation of Article 13 (3); |
| 5. | Where it fails to meet the requirements for registration pursuant to Article 13 (4); |
| 6. | Where it invites to joint an association, in violation of Article 13 (5); |
| 7. | Where it commits the acts of borrowing funds, guaranteeing payment or offering security in violation of Article 13 (7); |
| 8. | Where it performs its business in violation of Article 13-2 (1); |
| 9. | Where it manages assets, in violation of Article 13-2 (2); |
| 10. | Where it fails to submit the settlement statement, in violation of Article 13-2 (5); |
| 11. | Where it rejects, interferes with, or evades the ascertainment or the inspection conducted under Article 26 (3) or files a false report; |
| 12. | Where it fails to comply with a corrective order issued by the Minister of SMEs and Startups under paragraph (2) 1. |
| (2) | Where a private investment association falls under any subparagraph of paragraph (1) (excluding subparagraphs 1 and 12 of the same paragraph), the Minister of SMEs and Startups may take any of the following measures: <Newly Inserted by Act No. 13310, May 18, 2015; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| (3) | Where a private investment association falls under any subparagraph of paragraph (1) (excluding subparagraphs 1 and 12 of the same paragraph), the Minister of SMEs and Startups may take any of the following measures against the relevant general partner: <Newly Inserted by Act No. 13310, May 18, 2015; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| (4) | In taking any measures under paragraph (3), the Minister of SMEs and Startups may take any of the following measures against the executive officers and employees of the relevant general partner as well, if the general partner is a person prescribed in Article 13 (1) 2: <Newly Inserted by Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | A demand for dismissal; |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 14 (Special Cases concerning Taxation) |
| (1) | The State or local governments may afford reduction of or exemption from income tax, corporate tax, acquisition tax, property tax, registration license tax, etc. to venture businesses, as prescribed in the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, or other relevant statutes, so as to foster the growth of the venture businesses. <Amended by Act No. 10220, Mar. 31, 2010> |
| (2) | Where any individual or any private investment association invests in a venture business, income tax, etc. may be reduced or exempted in accordance with the statutes relating to taxation. In such cases, definite objects of investment, procedures for reduction and exemption, etc. shall be prescribed by Presidential Decree. |
| (3) | In any of the following cases, tax favors may be rendered as stipulated by the statutes relating to taxation. In such cases, matters necessary for verifying, etc. those eligible for the tax favors shall be prescribed by Presidential Decree: |
| 1. | Where a venture business which is a stock company makes a stock exchange with the stockholders of another stock company, or another venture business which is a stock company; |
| 2. | Where a venture business which is a stock company and another stock company make a merger. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
SECTION 3 Facilitation of Business Activities and Smooth Supply of Manpower
| Article 15 (Exchange of Stocks by Venture Businesses) |
| (1) | Any venture business (excluding a corporation which is listed in the securities exchange under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act; hereafter the same shall apply in this Article and Articles 15-2 through 15-11 and 16-3) which is a stock company may exchange the treasury stocks with stocks of principal stockholders of other stock companies (referring to stockholders retaining at least 10/100 of the gross number of issued voting stocks of the relevant corporations; hereinafter the same shall apply) or those of other venture businesses which are stock companies, for the purpose of strategic alliance, as determined by the articles of incorporation. <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9367, Jan. 30, 2009; Act No. 11845, May 28, 2013> |
| (2) | Any venture business which seeks to make a stock exchange under paragraph (1) shall acquire treasury stocks necessary for stock exchange under paragraph (1) on its own account, notwithstanding Article 341 of the Commercial Act. In such cases, the amount of acquisition shall be within the limits capable of paying a dividend under Article 462 (1) of the same Act. |
| (3) | Any venture business which seeks to make a stock exchange under paragraph (1) shall prepare a written contract for stock exchange containing the following matters, and obtain approval at a general meeting of stockholders. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of approval by the general meeting of stockholders: |
| 1. | Details of strategic alliance; |
| 2. | Matters related to the method, price and time of acquisition of treasury stocks; |
| 3. | Matters related to the gross amount of values, assessment, kinds and volume of the stocks to be exchanged; |
| 4. | Date of making the stock exchange; |
| 5. | Where making a stock exchange with the principal stockholders of other stock companies, the names and resident registration numbers of stockholders and the kinds and volume of stocks to be exchanged. |
| (4) | Any venture business which seeks to make a stock exchange under paragraph (1) shall, when there exists a resolution thereon made by the board of directors, promptly notify the stockholders of the details of such resolution, and keep the written contract for stock exchange under paragraph (3) so as to make it available for a perusal. |
| (5) | Where any venture business acquires stocks of the principal stockholders of other stock companies or those of other venture businesses pursuant to the stock exchange under paragraph (1), it shall retain them for at least one year from the date of acquisition. The same shall also apply to the principal stockholders of other stock companies who have acquired the stocks of venture businesses pursuant to the stock exchange under paragraph (1). |
| (6) | The acquisition period of treasury stocks under paragraph (2) shall be within six months from the date of a resolution on approval of the general meeting of stockholders under paragraph (3). |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-2 (Appraisal Rights of Opposing Stockholders) |
| (1) | Any stockholder who has informed in writing the venture business of his/her intent to oppose the stock exchange before the resolution on approval of the general meeting of stockholders under Article 15 (3), may claim in writing the relevant venture business to purchase stocks owned by him/ her within 10 days from the date of a resolution on approval of the general meeting of stockholders. |
| (2) | Any venture business which has received the claim under paragraph (1) shall purchase such stocks within 2 months from the date of receiving such claim. In such cases, the said stocks shall be disposed of within six months. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-3 (Simplification of Merger Procedures) |
| (1) | When any venture business which is a stock company has made a decision on merging with another stock company [in the case of a small-scale merger under Article 15-9 and a short-form merger under Article 15-10, referring to the resolution of approval by the board of directors], it shall, within one week from the day the said merger resolution has been made, give the creditors a public notice that any objection against such merger, if any, should be raised within the period of not less than 10 days, and shall make a peremptory notice on matters of the public notification to the creditors who are known to itself, notwithstanding Article 527-5 (1) of the Commercial Act. |
| (2) | Any venture business which is a stock company may notify a convocation of the general meeting of stockholders for making a merger resolution seven days prior to the date of general meeting of stockholders, notwithstanding Article 363 (1) of the Commercial Act. |
| (3) | Any venture business which is a stock company may, in publicly announcing a written contract for merger, etc. in order to merge with another stock company, make the period of such public announcement from seven days prior to the date of general meeting of stockholders for a merger approval to the day on which one month elapses after the date of merger, notwithstanding Article 522-2 (1) of the Commercial Act. |
| (4) | When there exists a resolution of the board of directors relating to a merger of venture business which is a stock company, any stockholder of the venture business who is opposed to the said resolution shall, notwithstanding Article 522-3 (1) of the Commercial Act, inform the venture business in writing of his/her intention of opposing the merger prior to the general meeting of stockholders, and demand a purchase of his stocks, stating the kinds and numbers of stocks possessed by him/her. |
| (5) | Where any venture business has received a demand under paragraph (4), it shall purchase such stocks within two months from the date of resolution by the general meeting of stockholders relating to the merger, notwithstanding Articles 374-2 (2) and 530 (2) of the Commercial Act. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-4 (Stock Exchanges by Issuing New Stocks) |
| (1) | A venture business which is a stock company may issue new stocks and exchange them with the stocks of the major stockholders of other stock companies or stocks of other venture businesses which are stock companies, for the purpose of strategic alliance as determined by the articles of incorporation. In such cases, the major stockholders of such other stock companies or the other venture businesses which are stock companies shall become the stockholders of the relevant venture business by receiving an allotment of new stocks to be issued by the venture business for a stock exchange. |
| (2) | A venture business seeking to make a stock exchange pursuant to paragraph (1) shall prepare a contract for stock exchange containing the following matters and obtain approval therefor from the general meeting of stockholders. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of approval of the general meeting of stockholders: |
| 1. | Details of the strategic alliance; |
| 2. | Matters concerning the value, gross amount, assessment, kinds, volume and allotments of new stocks to be exchanged; |
| 3. | Date of making the stock exchange; |
| 4. | Where making stock exchange with major stockholders of other stock companies, the names and resident registration numbers of the stockholders and the kinds and volume of stocks to be exchanged. |
| (3) | Where the major stockholders of other stock companies or other venture businesses which are stock companies make an investment in kind in the venture business with their retained stocks through a stock exchange pursuant to paragraph (1), if a certified assessment agency prescribed by Presidential Decree has made an assessment of the price of said stocks, it shall be deemed that an inspector has made an investigation pursuant to Article 422 (1) of the Commercial Act or that a certified appraiser has made an appraisal. In such cases, Article 422 (3) and (4) of the Commercial Act shall not be applicable. <Amended by Act No. 14271, May 29, 2016> |
| (4) | Article 15 (4) and (5) shall apply mutatis mutandis where a stock exchange is made pursuant to paragraph (1). |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-5 (Appraisal Rights by Stockholders at Time of Stock Exchange by Issuing New Stocks) |
Article 15-2 (1) through (3) shall apply mutatis mutandis to the appraisal right by the stockholders opposing stock exchanges under Article 15-4. [This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-6 (Special Cases concerning Stock Exchange) |
| (1) | Where a venture business makes a stock exchange pursuant to Article 15 or 15-4, if the number of stocks to be exchanged does not exceed 50/100 of the gross number of issued stocks, approval of the general meeting of stockholders may be substituted by approval of the board of directors as determined by the articles of incorporation. |
| (2) | A venture business seeking to make a stock exchange pursuant to paragraph (1) shall state on the written contract for stock exchange the purport that the stock exchange may be made without obtaining approval of the general meeting of stockholders under Article 15 (3) or 15-4 (2). |
| (3) | A venture business shall make a public notification of the following matters or notify the stockholders thereof within two weeks from the date of preparing a written contract for stock exchange: |
| 1. | The main contents of the written contract for stock exchange; |
| 2. | The purport that the stock exchange is made without obtaining approval of the general meeting of the stockholders. |
| (4) | When a stockholder who owns the stocks equivalent to 20/100 or more of the gross number of issued stocks of a venture business has notified in writing his/her intention of opposing the stock exchange under paragraph (1) within two weeks from the date of public notification or notice under paragraph (3), no stock exchanges under this Article shall be made. |
| (5) | In cases of stock exchanges under paragraph (1), the provisions of Article 15-2 or 15-5 shall not be applicable. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-7 (Litigation for Invalidity of Stock Exchange) |
Article 360-14 of the Commercial Act shall apply mutatis mutandis to the litigation for invalidity of stock exchange under Article 15 or 15-4. In such cases, "company to become a perfect parent company" in Article 360-14 (2) of the Commercial Act shall be construed as "venture business;" "company which became a perfect parent company" in paragraph (3) of the same Article as "venture business;" and "company which became a perfect subsidiary" as "other venture businesses which are stock companies". [This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-8 (Special Cases concerning Takeover of Business by Other Stock Companies) |
| (1) | Where a venture business which is a stock company transfers the whole or part of its business to another stock company (excluding the corporations listed in the securities exchange under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act; hereafter in this Article and Articles 15-9 through 15-11, the same shall apply), if the transfer value does not exceed 10/100 of the amount of net assets existing on the final balance sheet of the other stock company, approval of the general meeting of stockholders of the other stock company may be substituted by approval of the board of directors as determined by the articles of incorporation. <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9367, Jan. 30, 2009; Act No. 11845, May 28, 2013> |
| (2) | A venture business seeking to transfer the whole or part of its business pursuant to paragraph (1) shall state, on the written contract for transfer or takeover of business, the purport that another stock company may take over the whole or part of business of the venture business without obtaining approval from the general meeting of stockholders. |
| (3) | Another stock company which seeks to take over the whole or part of business of a venture business under paragraph (1) shall make a public notification of the following matters or notify the stockholders thereof within two weeks from the date of preparing a written contract for transfer or takeover of business: |
| 1. | The main contents of the written contract for transfer or takeover of business; |
| 2. | The purport that the business is taken over without obtaining approval from the general meeting of the stockholders. |
| (4) | When a stockholder who owns stocks equivalent to at least 20/100 of the gross number of issued stocks of another stock company has notified in writing his/her intention of opposing the business takeover pursuant to paragraph (1), within two weeks from the date of public notification or notice under paragraph (3), no business takeover under this Article shall be made. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 15-9 (Special Cases concerning Small-Scale Merger of Venture Businesses) |
| (1) | Where a venture business which is a stock company merges with another stock company, if the gross number of new stocks issued by a company remaining after the merger due to the merger is not more than 20/100 of the gross number of issued stocks of the stock company, approval of the general meeting of stockholders of the remaining company may be substituted by approval of the board of directors, notwithstanding Article 527-3 (1) of the Commercial Act: Provided, That where the amount to be paid to the stockholders of the company extinguished due to the merger is determined, if the amount exceeds 5/ 100 of the amount of net assets existing on the final balance sheet of the remaining company, this shall not apply. <Amended by Act No. 12004, Aug. 6, 2013> |
| (2) | The appraisal rights of the stockholders opposing the merger pursuant to paragraph (1) shall not be allowed. |
[This Article Newly Inserted by Act No. 8602, Aug. 3, 2007]
| Article 15-10 (Special Cases concerning Short-Form Merger of Venture Businesses) |
| (1) | Where a venture business which is a stock company merges with another stock company, if a company remaining after the merger owns at least 80/100 of the gross number of voting stocks issued by the extinguished company, approval of the general meeting of stockholders of the extinguished company may be substituted by approval of the board of directors, notwithstanding Article 527-2 (1) of the Commercial Act. <Amended by Act No. 12004, Aug. 6, 2013> |
[This Article Newly Inserted by Act No. 8602, Aug. 3, 2007]
| Article 15-11 (Short-Form Transfer of Business) |
| (1) | Where a venture business which is a stock company transfers all or part of its business to another stock company, approval of the general meeting of stockholders of the company transferring its business may be substituted by approval of the board of directors, if all stockholders of the company transferring its business agree or another stock company possesses at least 90/100 of voting stocks out of the total number of stocks issued by the company transferring its business, notwithstanding Article 374 of the Commercial Act. |
| (2) | In cases falling under paragraph (1), the purport that the company transferring its business may transfer all or part of its business without obtaining approval of the general meeting of stockholders shall be stated in the written contract for transfer or takeover. |
| (3) | The company which intends to transfer all or part of its business under paragraph (1) shall announce or inform stockholders of the following matters within two weeks from the date when a written contract for transfer or takeover is prepared: |
| 1. | Important details of the written contract for transfer or takeover of business; |
| 2. | Its purport to transfer business without obtaining approval of the general meeting of the stockholders. |
| (4) | Any stockholder who has informed the company, in writing, of his/her intention of opposing the transfer of business within two weeks from the date when the announcement or notification under paragraph (3) is made may request, in writing stating the kinds and number of stocks, the company to purchase stocks owned by him/her within 20 days from the date when the said two-week period has lapsed. |
[This Article Newly Inserted by Act No. 9367, Jan. 30, 2009]
| Article 15-12 (Provisions Applicable Mutatis Mutandis) |
Articles 15, 15-2 through 15-11 and 24 (1) 4 shall apply mutatis mutandis to founders. In such cases, "venture business" shall be construed as "founder". <Amended by Act No. 9367, Jan. 30, 2009> [This Article Newly Inserted by Act No. 8602, Aug. 3, 2007]
| Article 15-13 (Designation of Supporting Centers for Merger and Acquisition of Small and Medium Venture Businesses) |
| (1) | The Minister of SMEs and Startups may designate agencies or institutions relevant to support for small and medium enterprises as a supporting center for merger and acquisition of small and medium venture businesses (hereinafter referred to as "supporting center") to efficiently support merger and acquisition of small and medium venture businesses. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The duties of supporting centers shall be as listed in the following: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Matters pertaining to support for development of merger and acquisition plan of small and medium venture businesses; |
| 2. | Matters pertaining to collecting and providing information of enterprises and consulting support for merger and acquisition of small and medium venture businesses; |
| 3. | Matters pertaining to developing and supplying enterprise value evaluating models of small and medium venture businesses; |
| 4. | Matters pertaining to support of funds necessary for merger and acquisition of small and medium venture businesses; |
| 5. | Matters pertaining to fostering and education of experts in merger and acquisition of small and medium venture businesses; |
| 6. | Other matters determined by the Minister of SMEs and Startups to promote merger and acquisition of small and medium venture businesses. |
| (3) | The Minister of SMEs and Startups may subsidize all or part of expenses incurred in administrating a supporting center. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | In addition to matters prescribed in paragraphs (1) through (3), matters necessary for designation standards, procedures therefor, operation, etc. of a supporting center shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 9367, Jan. 30, 2009]
| Article 15-14 (Revocation of Designation as Supporting Centers) |
Where each supporting center falls under any of the following cases, the Minister of SMEs and Startups may revoke the designation thereof: Provided, That where a case falls under subparagraph 1, the designation thereof shall be revoked: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | Where a supporting center is designated by fraud or other improper means; |
| 2. | Where a supporting center fails to meet the designation standards under Article 15-13 (4); |
| 3. | Where a supporting center fails to perform the duties designated for not less than one month without good cause. |
[This Article Newly Inserted by Act No. 9367, Jan. 30, 2009]
| Article 16 (Grant of Leave of Absence of Public Educational Officials) |
| (1) | Any of the following persons (hereinafter referred to as "public educational official, etc.") may be allowed a leave of absence so as to work as a representative or an executive officer of a venture business or founder, notwithstanding Article 44 (1) of the Public Educational Officials Act, Article 71 (2) of the State Public Officials Act, Article 63 (2) of the Local Public Officials Act, and Article 59 (1) of the Private School Act: <Amended by Act No. 11660, Mar. 22, 2013; Act No. 13310, May 18, 2015; Act No. 15463, Mar. 13, 2018> |
| 1. | Teaching staff (including a researcher at a university-affiliated institute; hereinafter the same shall apply) at a university (including a university of technology and a junior college; hereinafter the same shall apply) under the Higher Education Act; |
| 3. | Researchers at a research institute under Article 8 (1) of the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes (including researchers at affiliated research institutes; hereinafter the same shall apply); |
| (2) | A researcher at a public institution under Article 4 (1) of the Act on the Management of Public Institutions (excluding research institutes under paragraph (1) 3 of this Article) may be allowed a leave of absence so as to work as a representative or an executive officer of a venture business or founder, with permission from the head of an institution to which he/she belongs. <Newly Inserted by Act No. 13310, May 18, 2015> |
| (3) | The period of leave of absence under paragraph (1) or (2) shall not exceed five years (including six months for preparing establishment): Provided, That the period of leave of absence may be extended up to one year if it is deemed necessary by the head of the institution whereto the public official, etc. belongs. In such cases, the period of leave of absence for teaching staff at a university may exceed the remaining period of his/her employment, notwithstanding Article 45 (2) of the Educational Officials Act. <Amended by Act No. 9367, Jan. 30, 2009; Act No. 12927, Dec. 30, 2014; Act No. 13310, May 18, 2015> |
| (4) | Where teaching staff at a university or researchers at a public research institute or a public institution are awarded a leave of absence for at least six months in compliance with paragraph (1) or (2), it shall be deemed that there are a fixed number of extra regular staff which is equal to that of teaching staff or researchers who are awarded the leave of absence from the beginning date of leave of absence at the university, public research institute, or public institution. <Amended by Act No. 11660, Mar. 22, 2013; Act No. 13310, May 18, 2015> |
| (5) | Where teaching staff at a university or researchers at a public research institute or public institution resume office after taking a leave of absence under paragraph (1) or (2), the head of an institution to which they belong shall not give them any unfavorable treatment in terms of their status or salary due to the leave of absence. <Newly Inserted by Act No. 11660, Mar. 22, 2013; Act No. 13310, May 18, 2015> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 16-2 (Special Cases concerning Concurrent Posts or Offices of Public Educational Officials) |
| (1) | Where public educational officials, etc. or researchers at government-funded research institutes (excluding research institutes in the field of national defense) prescribed by Presidential Decree do not fall under any of the following, they may concurrently hold office or position as a representative, an executive officer or employee of a venture business or a founder referred to in subparagraph 2 of Article 2 of the Support for Small and Medium Enterprise Establishment Act, with permission from the heads of institutions to which they belong: <Amended by Act No. 11660, Mar. 22, 2013> |
| 1. | Where they intend to concurrently hold office or position in the fields which have no relation to their areas of expertise, skills, work experiences, etc.; |
| 2. | Where there is a concern that the efficient performance of duties as a public official is likely to be obstructed. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 16-3 (Stock Options of Venture Businesses) |
| (1) | When a resolution of the general meeting of stockholders is made as determined by its articles of incorporation, any venture business which is a stock company may grant a person who has contributed, or is capable of contributing, to the establishment of the venture business or the innovation in its technology and management, etc., among the following persons, the right to purchase new stocks at a particularly advantageous price and the right to purchase existing stocks of the said business as prescribed by Presidential Decree (hereafter in this Article referred to as "stock option"), notwithstanding Articles 340-2 through 340-5 of the Commercial Act. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of the general meeting of stockholders: <Amended by Act No. 12004, Aug. 6, 2013> |
| 1. | An executive officer or employee of the venture business (excluding persons prescribed by Presidential Decree); |
| 2. | A person prescribed by Presidential Decree who has skill or managerial ability; |
| 3. | A university or a research institute prescribed by Presidential Decree; |
| 4. | Executive officers and employees of a company acquired by the venture business (limited to where at least 30/100 of the gross number of outstanding stocks is acquired). |
| (2) | The articles of incorporation concerning the stock options under paragraph (1) shall contain the following matters: |
| 1. | Purports that stock options may be granted in a specified case; |
| 2. | Kinds and number of stocks to be delivered by the exercise of stock options; |
| 3. | Qualifications of the persons to be granted the stock options; |
| 4. | Period for exercising stock options; |
| 5. | Purports that the stock options may be revoked by a resolution of the board of directors in a specified case. |
| (3) | In the special resolution of the general meeting of stockholders under paragraph (1), the following matters shall be determined: |
| 1. | Names or titles of the persons to be granted the stock options; |
| 2. | Methods of granting the stock options; |
| 3. | Prices and period for exercising the stock options; |
| 4. | Kinds and number of stocks to be delivered by the exercise of stock options, with respect to each individual to be granted the stock options. |
| (4) | Where not more than 20/100 of the total number of stocks under paragraph (2) 2 are granted as stock options to other persons than the executive officers and employees of the relevant venture business, the matters referred to in paragraph (3) 1 and 4 may be decided by the board of directors of the venture business, through a special resolution of the general meeting of stockholders, notwithstanding paragraph (3). In such cases, the grant of stock options shall be approved by a resolution of the general meeting of stockholders convoked for the first time after granting them. <Amended by Act No. 12927, Dec. 30, 2014> |
| (5) | If a resolution is made under paragraphs (3) and (4), a venture business which seeks to grant stock options shall report the details to the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (6) | A person granted a stock option under paragraph (1) or (4) may exercise it only if he/she has served or held office for at least two years since the date the resolution under paragraph (1) was adopted or the date decided by the board of directors under paragraph (4), except for cases prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 12927, Dec. 30, 2014; Act No. 14839, Jul. 26, 2017> |
| (7) | No stock option shall be transferred to another person: Provided, That when a person granted a stock option is deceased, his/her inheritor shall be deemed to be granted it. <Newly Inserted by Act No. 12927, Dec. 30, 2014> |
| (9) | Where the venture business which has granted a stock option acquires the treasury stocks for the purpose of delivering them to the person granted the stock option, they may exceed 10/100 of the gross number of its issued stocks, notwithstanding the main sentence of Article 341-2 (1) of the Commercial Act. <Amended by Act No. 12927, Dec. 30, 2014> |
| (10) | Matters necessary for the grant limit, etc. of stock options shall be prescribed by Presidential Decree. <Amended by Act No. 12927, Dec. 30, 2014> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 16-4 (Provision of Information to Venture Businesses) |
| (1) | The Government may provide a venture business with information on investments, funds, manpower, technology, markets, locations, etc. related to the establishment and business activity of the venture business, or provide other support for promoting the informatization of the venture business. |
| (2) | The Minister of SMEs and Startups may request that the head of a central administrative agency, local government, or public agency subject to the application of the Act on the Management of Public Institutions provide data necessary for the provision of information under paragraph (1). <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | To promote investments in a venture business by an individual or a private investment association (hereafter in this paragraph referred to as "individual, etc."), the Minister of SMEs and Startups may furnish the individual, etc. with necessary information concerning the venture business such as investment value as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 16-5 (Special Cases concerning Limited Liability Companies Which Are Venture Businesses) |
| (1) | and (2) Deleted. <by Act No. 13310, May 18, 2015> |
| (3) | A venture business which is a limited liability company may separately prescribe the standards for dividends by a resolution of the general meeting of members as determined by the articles of incorporation, notwithstanding Article 580 of the Commercial Act. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 16-6 Deleted. <by Act No. 13310, May 18, 2015> |
| Article 16-7 (Special Cases concerning Use of Industrial Property Rights) |
| (1) | A university or a research institute may permit an exclusive license in the use of industrial property rights, etc. obtained from the invention during performing duties to a public educational official or researcher who takes a leave of absence or is permitted to concurrently hold office or position under Article 16 or 16-2, notwithstanding Article 24 (4) and (5) of the Technology Transfer and Commercialization Promotion Act: Provided, That in cases of the work-for-hire invention which is completed after taking a leave of absence or concurrently holding office or position, where the relevant public educational official or researcher wishes, an exclusive license shall be granted preferentially after the mutual agreement on a fair consideration. <Amended by Act No. 9984, Jan. 27, 2010; Act No. 11660, Mar. 22, 2013> |
| (2) | Paragraph (1) shall not apply where an invention is accomplished through the support of research and development costs by the Government, local governments, or public institutions. <Newly Inserted by Act No. 11660, Mar. 22, 2013> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
SECTION 4 Efficient Supply of Sites
| Article 17 Deleted. <by Act No. 7868, Mar. 3, 2006> |
| Article 17-2 (Designation of Areas for Clustering New Technology-Based Businesses) |
| (1) | The head of a university or a research institute may request the Minister of SMEs and Startups to designate a specific land held by the university or research institute as an area for clustering new technology-based businesses (hereinafter referred to as "clustering area") in which the production facilities and other support facilities of founders, venture businesses, etc. are collectively equipped. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The head of a university or a research institute shall, when requesting the designation of a clustering area under paragraph (1), submit a plan for developing the clustering area containing the matters prescribed by Presidential Decree such as the name, area of designation, etc. of the clustering area. |
| (3) | The Minister of SMEs and Startups, who is requested to designate an area as a clustering area, may designate such area as a clustering area after examining whether it meets the requirements provided for in the subparagraphs of Article 17-3. In such cases, he/she shall publicly announce the details of designation as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | When the size of an area to be designated as a clustering area pursuant to paragraph (3) is not smaller than the area prescribed by Presidential Decree, the Minister of SMEs and Startups shall consult with the Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor or the Jeju Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") who has jurisdiction over such area. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 17-3 (Requirements for Designation of Clustering Areas) |
The clustering area shall satisfy the following requirements:
| 1. | The ratio of a designated area to the total floor area of the land held by the university or research institute concerned shall not exceed the ratio prescribed by Presidential Decree; |
| 2. | The area of designation shall not be less than 3,000 square meters; |
| 3. | The plan for development of the clustering area shall be feasible. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 17-4 (Special Cases concerning Clustering Areas) |
| (6) | The head of a university or research institute may lease part of the relevant clustering area to a founder, a venture business or the installer or operator of support facilities who intends to construct buildings (including any factory structures) or other permanent installations in the clustering area concerned, notwithstanding Articles 18 and 27 of the State Properties Act, Articles 13 and 20 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. In such cases, when the period of the lease contract (including the renewed contract) expires, the installations in question shall be donated to the relevant university or research institute or the relevant land shall be reinstated to the original state and returned, taking into consideration the types, utilities, etc. of the installations. <Amended by Act No. 9401, Jan. 30, 2009> |
| (7) | Matters necessary for the rental fee, lease period, etc. pursuant to paragraph (6) shall be prescribed by Presidential Decree. |
| (8) | Article 22 (1) and (3) shall apply mutatis mutandis with respect to the clustering areas. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 17-5 (Guidelines for Management of Clustering Areas) |
The Minister of SMEs and Startups shall establish and publicly announce the guidelines for designating and managing clustering areas. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 17-6 (Revocation of Designation of Clustering Areas) |
The Minister of SMEs and Startups may revoke the designation of a clustering area pursuant to Article 17-2 (3) in any of the following cases: <Amended by Act No. 14839, Jul. 26, 2017> | 1. | Where it is impracticable to attain the designation objectives on the grounds of business delay, poor management, etc.; |
| 2. | Where it fails to meet the requirements for designation pursuant to Article 17-3. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 18 (Designation of Facilities for Clustering Venture Businesses) |
| (1) | A person who intends to establish the facilities for clustering venture businesses or use existing buildings as those facilities may obtain such designation from the Mayor/Do Governor where their total floor area exceeds the total floor area prescribed by Presidential Decree. The same shall also apply to where the designated matters are modified. |
| (2) | The facilities for clustering venture businesses that have been designated under paragraph (1) shall satisfy the following requirements within one year from the date they are so designated (in cases of buildings under construction, referring to the date approval for use of the buildings is granted under Article 22 of the Building Act): <Amended by Act No. 8974, Mar. 21, 2008; Act No. 9367, Jan. 30, 2009> |
| 1. | The businesses prescribed by Presidential Decree, such as venture businesses, etc., shall move in, and the number of venture businesses from among enterprises located therein shall be no less than four (no less than three in cases of an area other than the Seoul Metropolitan Area under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act); |
| 3. | The facilities prescribed by Presidential Decree, such as facilities for clustering venture businesses, shall occupy the designated area which does not fall under subparagraph 2. |
| (3) | If deemed necessary for supporting venture businesses, the Mayor/Do Governor may establish the facilities for clustering venture businesses or designate existing buildings as those facilities, so that venture businesses and their supporting installations may move therein. |
| (4) | When the facilities for clustering venture businesses fall under any of the following cases, the Mayor/Do Governor may revoke such designation: Provided, That when they fall under subparagraph 1, he/she shall revoke such designation: |
| 1. | When they have been designated by fraud or other improper means; |
| 2. | When they fails to satisfy the requirements for designation under paragraph (1) or (2). |
| (5) | The Mayor/Do Governor intends to revoke the designation of the facilities for clustering venture businesses under paragraph (4), he/she shall hold a hearing. |
| (6) | Application for designation under paragraph (1) and other matters necessary for such designation shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 18-2 (Special Cases concerning Laboratory Factories) |
| (1) | Any of the following persons may establish a laboratory factory with approval from the head of an institution (referring to the head of an institution which establishes a laboratory factory, in cases falling under subparagraph 4) to which he/she belongs, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. The same shall also apply where any approved matter is modified: <Amended by Act No. 8974, Mar. 21, 2008; Act No. 9984, Jan. 27, 2010; Act No. 11232, Jan. 26, 2012; Act No. 13310, May 18, 2015> |
| 2. | A researcher at a national or public research institute or a government-invested research institution; |
| 3. | A researcher at a research institute prescribed by Presidential Decree, which is in the field of science or industrial technology; |
| 4. | The founder of a venture business. |
| (2) | The head of an institution to which a person who falls under any subparagraph of paragraph (1) belongs shall notify the applicant whether he/she grants an approval, within seven days from the date of the receipt of an application for approval or an application for approval for the modification. <Newly Inserted by Act No. 14681, Mar. 21, 2017> |
| (3) | If the head of the competent institution referred to in paragraph (2) fails to notify the applicant whether he/she grants an approval within the period prescribed in the same paragraph or that the processing period is extended pursuant to statutes or regulations related to processing of civil complaints, the approval shall be deemed granted on the day following the end of such period. <Newly Inserted by Act No. 14681, Mar. 21, 2017> |
| (5) | The total floor area of a laboratory factory for the use of production facilities shall not exceed 3,000 square meters: Provided, That the same shall not apply where the standards for construction of buildings, etc. in special purpose areas under Article 76 (1) of the National Land Planning and Utilization Act are fulfilled. <Amended by Act No. 13310, May 18, 2015>. |
| (6) | The total area of a laboratory factory (where at least two laboratory factories exist, referring to their total area) shall not exceed 1/2 of the total floor area of buildings in the relevant university or research institute: Provided, That the same shall not apply where the standards for construction of buildings, etc. in special purpose areas under Article 76 (1) of the National Land Planning and Utilization Act are fulfilled. <Amended by Act No. 13310, May 18, 2015> |
| (8) | The head of a university or a research institute may allow any person who has established a laboratory factory under paragraph (1), even if he/she is voluntarily retired (graduated) from his/her office, to use the factory for a fixed period not exceeding two years from the date of such retirement (graduation). <Amended by Act No. 9984, Jan. 27, 2010; Act No. 13310, May 18, 2015> |
| (9) | Other matters necessary for the establishment, operation, etc. of a laboratory factory shall be prescribed by Presidential Decree. <Amended by Act No. 13310, May 18, 2015> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 18-3 (Special Cases concerning Venture Businesses and Founders Moved into Business Incubators) |
| (1) | A venture business or founder that has moved into a business incubator established and operated at a university or research institute which falls under any of the following may establish a urban-type factory prescribed in Article 28 of the Industrial Cluster Development and Factory Establishment Act by obtaining approval from the head of the operating agency of a business incubator, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. In such cases, approval for establishment, etc. of factories under Article 13 of the Industrial Cluster Development and Factory Establishment Act and approval for installation of manufacturing facilities under Article 14-3 of the same Act shall be deemed obtained: <Amended by Act No. 8974, Mar. 21, 2008; Act No. 9984, Jan. 27, 2010; Act No. 11232, Jan. 26, 2012; Act No. 14839, Jul. 26, 2017> |
| 2. | A business incubator which is recognized by the head of a central administrative agency or local government. |
| (3) | The business incubator established and operated at a university or research institute shall be deemed the facility group pursuant to Article 19 (4) 2 of the Building Act. <Amended by Act No. 8974, Mar. 21, 2008> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 18-4 (Designation of Venture Business Development and Promotion Zones) |
| (1) | If necessary for the development of venture businesses, the Mayor/Do Governor may request the Minister of SMEs and Startups to designate any certain area in districts under his/her jurisdiction as a venture business development and promotion zone (hereinafter referred to as "promotion zone"). <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | If the Minister of SMEs and Startups designates the promotion zone under paragraph (1), he/she shall publicly announce the details of such designation as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | If any promotion zone that is designated pursuant to paragraph (1) falls under any of the following cases, the Minister of SMEs and Startups may cancel such designation: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Where the plan for developing the promotion zone is infeasible; |
| 2. | Where it is impracticable to attain the designation objectives on the grounds of business delay, poor management, etc. |
| (4) | Necessary matters concerning the requirements and procedures for the designation under paragraph (1), the support for the promotion zone, etc. shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 18-5 (Support for Promotion Zones) |
| (1) | For the purpose of vitalizing the promotion zone, the Minister of SMEs and Startups may favorably support local governments, which have had the promotion zone designated in their jurisdictional districts, in supporting the raising of funds for the development of local small and medium enterprises under Article 62-17 of the Small and Medium Enterprises Promotion Act. <Amended by Act No. 14111, Mar. 29, 2016; Act No. 14839, Jul. 26, 2017> |
| (2) | The State or a local government may preferentially support any venture business, that is located in the promotion zone or moves therein, with funds or other necessary matters. |
| (3) | The State or a local government may provide a person who establishes and manages the facilities for clustering venture businesses in the promotion zone and an operator of a business incubator with all or part of funds required by them, or may favorably support. |
| (4) | Article 22 shall apply mutatis mutandis to any venture business and its supporting installations in the promotion zone. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 19 (Sale of State or Public Properties) |
| (1) | If deemed necessary for developing, establishing and operating facilities for clustering venture businesses, the State or local governments may sell or lease, by free contract, State or public properties to a person who has established or operated the facilities for clustering venture businesses, notwithstanding the provisions of the State Properties Act or the Public Property and Commodity Management Act. |
| (2) | Matters necessary for the selling price, rental fee, lease period, etc. of State properties, pursuant to paragraph (1), shall be determined by the Presidential Decree. |
| (3) | The State or local governments may trust real estates that are State-owned general property or public miscellaneous property with a trust business entity, on condition that such properties shall be leased to venture businesses. In such cases, Article 58 of the State Property Act shall apply mutatis mutandis to the trust of public real estates. <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9401, Jan. 30, 2009; Act No. 11660, Mar. 22, 2013> |
| (4) | The State, local governments, or educational foundations of private schools may lease State or public lands or a part of the land of a university to a person who has established or operated the facilities for clustering venture businesses, and allow him/her to construct buildings or other permanent installations, notwithstanding Article 18 of the State Properties Act, Articles 13 and 20 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. In such cases, lease conditions shall be defined in consideration of the types, utilities, etc. of the installations concerned to the effect that such installations shall be donated to the State, local governments, or educational foundations of private schools, or that such lands shall be restored to the original state and returned at the end of the lease period. <Amended by Act No. 9401, Jan. 30, 2009> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 20 (Bearing of Installation Expenses) |
The State or local governments may bear all or some of expenses incurred in the development of areas and the installation of facilities for clustering venture businesses.
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 21 (Special Cases concerning Prohibition from Construction) |
| (1) | Deleted. <by Act No. 7868, Mar. 3, 2006> |
| (3) | A person who has moved within the facilities for clustering venture businesses may establish a factory prescribed by Presidential Decree to the extent that the structural safety is not threatened, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. In such case, approval of factory establishment, etc. under Article 13 of the Industrial Cluster Development and Factory Establishment Act or approval for the installation of manufacturing facilities under Article 14-3 of the said Act shall be deemed obtained. <Amended by Act No. 8602, Aug. 3, 2007; Act No. 8974, Mar. 21, 2008; Act No. 11232, Jan. 26, 2012> |
| Article 22 (Exemption from Various Charges) |
| (1) | Facilities for clustering venture businesses shall be exempted from the charges provided for in the following: <Amended by Act No. 5578, Sep. 23, 1998; Act No. 5758, Feb. 5, 1999; Act No. 6642, Jan. 26, 2002; Act No. 6841, Dec. 30, 2002; Act No. 7604, Jul. 21, 2005; Act No. 7868, Mar. 3, 2006; Act No. 8352, Apr. 11, 2007; Act No. 8602, Aug. 3, 2007; Act No. 9071, Mar. 28, 2008> |
| 2. | Deleted; <by Act No. 8602, Aug. 3, 2007> |
| (2) | Deleted. <by Act No. 7868, Mar. 3, 2006> |
| Article 23 Deleted. <by Act No. 8602, Aug. 3, 2007> |
CHAPTER IV SUPPLEMENTARY PROVISIONS
| Article 24 (Special Cases concerning Issuance of Stocks by Former Venture Businesses) |
| (1) | Where an enterprise which once was a venture business is no longer one, each of the following conducts performed as at the time the relevant enterprise was a venture business shall be deemed valid: <Amended by Act No. 9367, Jan. 30, 2009> |
| 1. | Contributing industrial property rights, etc. under Article 6; |
| 2. | Acquiring stocks of the relevant enterprise by a foreigner, a foreign corporation, etc. under Article 9; |
| 3. | Deleted; <by Act No. 9984, Jan. 27, 2010> |
| 6. | Establishing a venture business with employees of not less than 50 but not more than 300 under Article 16-5. |
| (2) | Even where a venture business, which has moved into the facilities for clustering venture businesses, is no longer one, it is still allowed to move in there. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 25 (Confirmation as to Whether to Be Categorized as Venture Businesses or Not) |
| (1) | Any venture business which seeks to receive supports under this Act may request the head of the agency or organization prescribed by Presidential Decree (hereinafter referred to as "institution in charge of confirming venture businesses"), such as the Korea Technology Finance Corporation, etc., to make confirmation as to whether it may be categorized as a venture business or not. <Amended by Act No. 14122, Mar. 29, 2016> |
| (2) | The head of the institution in charge of confirming venture businesses upon receipt of the request under paragraph (1) shall make confirmation within the deadline prescribed by Ordinance of the Ministry of SMEs and Startups, and give notice on the result of confirmation to the requester. In such cases, when the relevant business is a venture business, the head of the institution in charge of confirming venture businesses shall issue the certificate of venture business with a valid period fixed as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | The head of the institution in charge of confirming venture businesses may disclose information on the venture businesses confirmed as prescribed by Presidential Decree to secure the transparency in confirming venture businesses: Provided, That none of the following information shall be disclosed: |
| 2. | Matters concerning personal information, such as the resident registration numbers of representatives. |
| (4) | Matters necessary for the procedures for confirmation, etc. under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 25-2 (Revocation of Confirmation of Venture Businesses) |
| (1) | Where a venture business falls under any of the following, the head of the institution in charge of confirming venture businesses may revoke the confirmation under Article 25 (2): Provided, That when it fall under subparagraph 1, he/she shall revoke such designation: <Amended by Act No. 9984, Jan. 27, 2010> |
| 1. | Where it has obtained the confirmation of being a venture business by fraud or other improper means; |
| 2. | Where it has failed to satisfy the requirements for a venture business under Article 2-2: |
| 3. | Where no business activities have been performed for the period prescribed by Presidential Decree due to suspension or discontinuation of business or bankruptcy, etc.; |
| 4. | Where the representative, largest stockholder, or largest investing member, etc. has caused damages to the stockholders, members, or interested parties, etc. in connection with the business management, such as misappropriating or concealing the business property, etc., as prescribed by Presidential Decree. |
| (2) | The head of the institution in charge of confirming venture businesses shall hold a hearing when he/she intends to revoke the confirmation of being a venture business under paragraph (1). |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| (1) | If the Minister of SMEs and Startups deems it necessary for the enforcement of this Act, he/she may ask small and medium enterprise start-up investment companies, small and medium enterprise start-up investment associations, the Korea Venture Fund, or individuals referred to in Article 2-2 (1) 2 (a) (viii) to ascertain and inspect the status of business operation (excluding ascertainment and verification of an individual referred to in Article 2-2 (1) 2 (a) (viii)) or submit reports on actual results of investment. <Amended by Act No. 12237, Jan. 14, 2014; Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may have new technology venture capital business, new technology venture investment associations, the Korea Development Bank established under the Korea Development Bank Act or the Industrial Bank of Korea established under the Industrial Bank of Korea Act submit the information relating to the actual results of investments in small and medium enterprises and venture businesses on a quarterly basis. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | If the Minister of SMEs and Startups deems it necessary for the enforcement of this Act, he/she may ask the individuals or the private investment associations referred to in Article 14 (2) to ascertain and inspect the status of their business operation (excluding ascertainment and verification of an individual referred to in Article 14 (2)) or submit reports on actual results of investment. <Amended by Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| (4) | If the Minister of SMEs and Startups deems it necessary for the enforcement of this Act, he/she may ask the institution in charge of confirming venture businesses to file a report on the actual record, etc. for the confirmation of venture businesses and the revocation of such confirmation under Articles 25 and 25-2, or have the public officials under his/her jurisdiction enter the relevant agency inspect the books and other documents. In such cases, the public officials conducting the inspection shall carry certificates of their competence and present them to the parties concerned. <Amended by Act No. 14839, Jul. 26, 2017> |
| (5) | The Mayor/Do Governor may ask the person who has obtained a designation of the facilities for clustering venture businesses under Article 18 to submit the information on the current status of location and operational situations as to the said facilities. |
| (6) | When the head of the institution in charge of confirming venture businesses deems it necessary for the confirmation of a venture business, the revocation of such confirmation, etc. pursuant to Articles 25 and 25-2, he/she may ask the venture business to submit the information required for the actual status of operations. |
| (7) | The Minister of SMEs and Startups may have a university, research institute or public institution submit the information on the actual results of permission for the leaves of absence or concurrent posts or offices of the teachers or researchers, and of approval for establishment of laboratory factories, under Articles 16, 16-2 and 18-2. <Amended by Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| (8) | The Minister of SMEs and Startups may have a specialized company submit the materials relating to those provided for in the subparagraphs of Article 11-2 (4) or its settlement statement for every fiscal year. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 27 (Delegation or Entrustment of Authority) |
The authority of the Minister of SMEs and Startups prescribed in this Act may, as prescribed by Presidential Decree, be partially delegated to the head of agency under his/her control or the Mayor/Do Governor, or be partially entrusted to the head of other administrative agencies, or institutions or associations relating to small and medium enterprises prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 28 (Administrative Dispositions against Korea Venture Fund) |
| (1) | Where the Korea Venture Fund falls under any of the following cases, the Minister of SMEs and Startups may order the correction thereof or suspend its assistance provided for in this Act: <Amended by Act No. 9984, Jan. 27, 2010; Act No. 13310, May 18, 2015; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | Where it fails to report or to report any alteration under Article 4-3 (2) or reports any false matters; |
| 2. | Where it fails to meet the establishment requirements provided for in Article 4-3 (5); |
| 3. | Where the registration of a small and medium enterprise start-up investment company or the registration of a new technology venture capital business is revoked or cancelled; |
| 4. | Where it uses its fund in violation of Article 4-3 (6); |
| 6. | Where it rejects, interferes with, or evades any ascertainment or inspection conducted under Article 26 (1), fails to file a report, or files a false report; |
| 7. | Where it fails to comply with the purpose and standards for the establishment of the association referred to in the proviso to Article 4-3 (1). |
| (2) | Where the Korea Venture Fund falls under paragraph (1) 2, 4, 5, 6 or 7, the Minister of SMEs and Startups may take any of the following measures: <Newly Inserted by Act No. 13310, May 18, 2015; Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| (3) | In taking any measures under paragraph (2), the Minister of SMEs and Startups may take any of the following measures against the executive officers and employees of the general partner: <Newly Inserted by Act No. 13310, May 18, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | A demand for dismissal; |
| (4) | Where the Korea Venture Fund falls under any violation set forth in paragraph (1) and the general partner of the relevant Korea Venture Fund is a new technology venture capital business, the Minister of SMEs and Startups may request the Financial Services Commission to take measures set forth in paragraph (2) or (3) on the relevant new technology venture capital business or an executive officer or employee thereof. <Newly Inserted by Act No. 14271, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
When the Minister of SMEs and Startups intends to take any of the following dispositions, he/she shall hold a hearing thereon: <Amended by Act No. 9367, Jan. 30, 2009; Act No. 14839, Jul. 26, 2017>
| 1. | The revocation of the registration of any private investment association under Article 13-3; |
| 2. | The cancelation of the designation of any promotion zone under Article 18-4; |
| 3. | The revocation of the registration of any specialized company under Article 11-7; |
| 4. | The revocation of the designation of any clustering area under Article 17-6; |
| 5. | The revocation of the designation as a supporting center under Article 15-14. |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 30 (Prohibition of Use of Similar Names) |
Anyone who is not the Korea Venture Fund shall be prohibited from using the name "Korea Venture Fund" or any other similar name.
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 30-2 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
Executive officers and employees of the institution in charge of confirming venture businesses who are engaged in the duties of confirming venture business and cancelling such confirmation under Articles 25 and 25-2 shall be deemed public officials in applying Articles 129 through 132 of the Criminal Act. [This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 30-3 (Procedures for Dissatisfaction) |
Any administrative appeal under the provisions of the Administrative Appeals Act may be raised against the confirmation of venture business or cancellation of such confirmation under Articles 25 and 25-2. In such cases, the supervisory administrative agency for confirmation and revocation of confirmation of venture business shall be the Minister of SMEs and Startups. <Amended by Act No. 8871, Feb. 29, 2008; Act No. 14839, Jul. 26, 2017> [This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 31 (Application Mutatis Mutandis of Other Statutes) |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
| Article 31-2 (Re-Examination of Regulation) |
The Minister of SMEs and Startups shall examine the appropriateness of the following matters, such as the repeal, mitigation, or maintenance thereof, every three years, counting from the following base dates (referring to the period that ends on the day before the base date of every third year): <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | Grounds for the revocation of registration of private investment associations under Article 13-3: January 1, 2015; |
| 2. | Grounds for the revocation of designation of clustering area under Article 17-6: January 1, 2015; |
| 3. | Grounds for an administrative disposition against the Korea Venture Fund under Article 28: January 1, 2015; |
| 4. | Grounds for the imposition of administrative fines under Article 32: January 1, 2015. |
[This Article Newly Inserted by Act No. 13310, May 18, 2015]
CHAPTER V PENALTY PROVISIONS
| Article 32 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended by Act No. 13310, May 18, 2015> |
| 2. | A person who fails to comply with any corrective order under Article 13-3 (2) 1 or 28 (1); |
| 3. | A person who uses any similar name in violation of Article 30; |
| 4. | A person who fails to submit the settlement of accounts under Article 31 or submits a falsely compiled settlement of accounts. |
| (2) | The administrative fines referred to in paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | through (5) Deleted. <by Act No. 9367, Jan. 30, 2009> |
[This Article Wholly Amended by Act No. 8602, Aug. 3, 2007]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on October 1, 1997.
Article 2 (Validity)
This Act shall be valid until December 31, 2027. <Amended by Act No. 8602, Aug. 3, 2007; Act No. 14363, Dec. 2, 2016>
Article 3 (Special Cases concerning Scope of New Technology Venture Capital Businesses)
With regard to the application of Article 2 (1) 1 (c) and (d) above, a new technology venture capital business or the Venture Business Investment Association shall be treated as a new technology venture capital business or the Venture Business Investment Association under subparagraphs 4 and 10 of Article 2 of the Financial Assistance to New Technology Businesses Act by December 31, 1997 respectively. Article 4 (Transitional Measures on Termination of Period of Validity)
| (1) | At the time the period of validity of this Act has expired, Article 10 or 11 shall continue to apply to Venture Business, which has issued stock with the value of less than 5,000 won per share according to Article 10 (1) above and been subject to Articles 191-2 through 191-5, and 191-8 through 191-10 of the Securities and Exchange Act pursuant to Article 11, even after the termination of the period of validity of this Act. |
| (2) | With regard to the undergoing projects of technology development and supporting measures according to the support plans of technology development pursuant to Article 15 at the time the period of validity of this Act has expired, the provisions of this Act shall continue to apply until such projects of technology development and supporting measures are finished. |
| (3) | As for the teaching staff at a university or researchers at national or public research institutes who are on leave of absence in accordance with Article 16 at the time the period of validity of this Act has expired, the provisions of this Act shall continue to apply until such period of leave expires. |
| (4) | As for an exclusive complex for venture businesses and collective complex for technology research designated as such in accordance with Articles 17 and 18 at the time when the period of validity of this Act has expired, the provisions of this Act shall continue to apply even after the termination of the period of validity of this Act. |
ADDENDA <Act No. 5529, Feb. 28, 1998>
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. 5578, Sep. 23, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 5591, Dec. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 5607, Dec. 30, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures Due to Expiration of Term of Validity)
| (1) | With respect to a venture business which is established with capital of less than fifty million won under the amended provisions of Article 10-2, which is subject to the application of Articles 189-2 and 189-3 of the Securities and Exchange Act under the amended provisions of Article 11, or which grants a stock option under the amended provisions of Article 16-3, as of December 31, 2007 on which the term of validity of this Act expires, the amended provisions of Articles 10-2, 11, and 16-3 shall continue to apply even after January 1, 2008. |
| (2) | A teacher at a university or a researcher at a state or public research institute who concurrently holds a position or office under the amended provisions of Article 16-2, as of December 31, 2007 on which the term of validity of this Act expires, may continue to concurrently hold the position or office until the term of the position or office expires. |
| (3) | Where a teacher or researcher establishes and registers a laboratory factory as factory under the amended provisions of Article 18-2, as of December 31, 2007 on which the term of validity of this Act expires, the amended provisions of Article 18-2 shall continue to apply to the laboratory factory even after January 1, 2008. |
| (4) | Where a person who has moved into an establishment assistance center establishes and registers a municipal model factory as factory under the amended provisions of Article 18-3, as of December 31, 2007 on which the term of validity of this Act expires, the amended provisions of Article 18-3 shall continue to apply to the municipal model factory even after January 1, 2008. |
ADDENDA <Act No. 5758, Feb. 5, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 6101, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6194, Jan. 21, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 6195, Jan. 21, 2000>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 6416, Feb. 3, 2001>
| (1) | (Enforcement Date) This Act shall enter into force on May 1, 2001. |
| (2) | (Applicability to Private Investment Associations) The amended provisions of Article 13 shall begin to apply to the first private investment association that files registration with the Administrator of the Small and Medium Business Administration after this Act enters into force. |
ADDENDA <Act No. 6482, May 24, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 6590, Dec. 31, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2002. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 6642, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 6705, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6723, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on November 1, 2002.
Article 2 (Transitional Measures Following Expiration of Valid Period)
With regard to the venture business which has exchanged stocks under the amended provisions of Article 15 as of December 31, 2007 when the valid period of this Act expires, and the venture business incorporated by making the gross number of members not less than 50 but not more than 300 under the amended provisions of Article 16-5, the amended provisions of Articles 15 and 16-5 shall continuously apply even after January 1, 2008. Article 3 (Transitional Measures for Confirmation of Venture Businesses)
| (1) | Any enterprise which has been confirmed as a venture business under the previous provisions of Article 25 as at the time this Act enters into force shall be deemed to have been confirmed as a venture business under the amended provisions of to Article 25 not later than the valid period under the previous provisions. |
| (2) | In applying the matters as to the requirements for venture businesses under the amended provisions of Article 25-2 (1) 2 to the venture business for which a confirmation has been fictionalized under the provisions of paragraph (1), the previous provisions of Article 2 shall govern, notwithstanding the amended provisions of Article 2-2. |
ADDENDA <Act No. 6841, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 6842, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2003.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 6891, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 34 Omitted.
ADDENDA <Act No. 7091, Jan. 20, 2004>
| (1) | (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. |
| (2) | (Applicability to Stock Exchange, Merger and Business Transfer or Takeover) The amended provisions of Articles 15, 15-3 through 15-8 shall apply from the portion of the first preparation of a written contract for stock exchange, merger and business transfer or takeover after the enforcement of this Act. |
ADDENDA <Act No. 7288, Dec. 31, 2004>
| (1) | (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. |
| (2) | (Transitional Measures concerning Registration of Korea Venture Fund That Is Already Established) The Korea Venture Fund that is established as at the time this Act enters into force shall be deemed registered pursuant to this Act. |
| (3) | (Transitional Measures concerning Fund of Funds for Small and Medium Enterprise Investment upon Expiration of Effective Period) The amended provisions of Article 4-2 shall continue to apply to the Fund of Funds for Small and Medium Enterprise Investment that is established as of December 31, 2007 when the effective period of this Act expires pursuant to the amended provisions of Article 4-2 by the time when the period of existence expires even after January 1, 2008. |
ADDENDA <Act No. 7289, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 7604, Jul. 21, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 7633, Jul. 29, 2005>
| (1) | (Enforcement Date) This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 2-2, 4-2, 4-3, 4-7 and 4-8 shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Establishment of Dedicated Company) Dasan Venture, Inc. established pursuant to the previous provisions before this Act enters into force shall be deemed as the dedicated company established pursuant to the amended provisions of Article 4-7 (1). |
| (3) | (Applicability to Revocation of Registration of Private Investment Associations) The amended provisions of subparagraph 3 of Article 13-3 shall begin to apply to the first private investment association organized after this Act enters into force. |
ADDENDA <Act No. 7868, Mar. 3, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 2-2 (1) 3 (c) (i) shall begin to apply to what is guaranteed or loaned first after this Act enters into force. Article 3 (Transitional Measures concerning Confirmation of Venture Businesses)
| (1) | The business that is confirmed as a venture business under the previous provisions of Article 25 as at the time this Act enters into force shall be considered to have been confirmed as a venture business under the amended provisions of Article 25 until its effective period. |
| (2) | The previous provisions shall govern the application of the provisions of Article 25-2 (1) 2 to the venture businesses under the provisions of paragraph (1), notwithstanding the amended provisions of Article 2-2. |
| (3) | For any investment by the agency under the amended provisions of Article 2-2 (1) 3 (a) (vii) as at the time this Act enters into force, the computation of invested amount and period under the provisions of the main sentence of the same item shall be based on the date this Act enters into force. |
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8086, Dec. 26, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 8284, Jan. 26, 2007>
| (1) | (Enforcement Date) This Act shall enter into force three months after the date of its promulgation. |
| (2) | (Transitional Measures concerning Report on Korea Venture Fund Which Has Been Established and Registered) The Korea Venture Fund which has been established and registered pursuant to the previous provisions before this Act enters into force shall be deemed to have been reported pursuant to the amended provisions of Article 4-3. |
ADDENDA <Act No. 8345, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8352, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 16 Omitted.
ADDENDA <Act No. 8361, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8362, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 9 (4) of the Addenda shall enter into force ... <omitted> ... on April 27, 2007.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8602, Aug. 3, 2007>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Applicability to Small-Scale Merger and Short-Form Merger) The amended provisions of Articles 15-9 through 15-11 shall apply to a written contract for merger which is prepared on or after this Act enters into force. |
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
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. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8871, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8974, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 9071, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 9367, Jan. 30, 2009>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 9 (1) shall enter into force on February 4, 2009.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 9984, Jan. 27, 2010>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 10-2, 16-5 (2) and 24 (1) 3 shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 10445, Mar. 9, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 10907, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 11232, Jan. 26, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 11660, Mar. 22, 2013>
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 11-2 (excluding Article 11-2 (3) 2 (a)) and 11-7 shall enter into force on the date of its promulgation, and the amended provisions of Article 11-2 (3) 2 (a) on July 1, 2013. Article 2 (Transitional Measure concerning Incompetent Persons)
The persons under adult guardianship and persons under limited guardianship prescribed in the amended provisions of Article 11-2 (3) 2 (a) shall be deemed to include those for whom the declaration of incompetency or quasi-incompetency remains effective under Article 2 of the Addenda of the Civil Act (Act No. 10429).
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. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDUM <Act No. 12004, Aug. 6, 2013>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 12237, Jan. 14, 2014>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 12592, May 20, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 12927, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 16-3 shall enter into force on the date of its promulgation. Article 2 (Applicability to Public Educational Officials)
The amended provisions of the main sentence of Article 16 (2) shall apply to a public educational official, etc. who files a leave of absence after this Act enters into force. Article 3 (Applicability to Ex Post Facto Approval from General Meeting of Shareholders)
The amended provisions of the latter part of Article 16-3 (4) shall apply to cases of granting stock options after the amended provisions of the same Article enters into force. Article 4 (Transitional Measures concerning Extension of Period of Leave of Absence of Public Educational Officials)
Notwithstanding the amended provisions of the proviso to Article 16 (2), the extension of the period of leave of absence of a public educational official, etc. who has been granted a leave of absence under the main sentence of the previous provisions of Article 16 (2) before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 13310, May 18, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 3 and 13 (1) and (9) shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Administrative Dispositions against Private Investment Associations)
The amended provisions of Article 13-3 shall apply where the relevant violation is committed after this Act enters into force: Provided, That the amended provisions of Article 13-3 (2) shall also apply to any violation which falls under paragraph (1) 2 through 5 of the same Article before this Act enters into force. Article 3 (Applicability to Administrative Dispositions against Korea Venture Fund)
The amended provisions of Article 28 shall apply where the relevant violation is committed after this Act enters into force.
ADDENDA <Act No. 13448, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 20 Omitted.
ADDENDA <Act No. 13453, Jul. 31, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDA <Act No. 14079, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 14111, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14127, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 14271, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provision of Articles 4-3 and 28 shall enter into force three months after the date of its promulgation. Article 2 (Applicability to Administrative Dispositions against Private Investment Associations)
The amended provisions of Article 13-3 shall apply where the relevant violation is committed after this Act enters into force. Article 3 (Applicability to Administrative Dispositions against Korea Venture Fund)
The amended provisions of Article 28 shall apply where the relevant violation is committed after the same amended provisions enter into force. Article 4 Omitted.
Article 5 (Relationship to Other Statutes or Regulations)
Where any other statute or regulation cites the previous provisions of the Act on Special Measures for the Promotion of Venture Businesses as at the time this Act enters into force, it shall be deemed to cite the relevant provisions of this Act in lieu of the previous provisions, if provisions corresponding thereto exist in this Act.
ADDENDA <Act No. 14363, Dec. 2, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Venture Business Promotion Plans)
The amended provisions of Article 3-2 shall begin to apply from the venture business promotion plan for 2018.
ADDENDA <Act No. 14681, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Article 2 (Applicability to Approval for Establishment of Laboratory Factories and Approval for Modification)
The amended provisions of Article 18-2 (2) and (3) shall begin to apply from the first application for approval or approval for modification filed after this Act enters into force.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the statutes 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 enforcement date of the relevant statute.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15463, Mar. 13, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 15920, Dec. 11, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Revocation of Registration of Specialized Companies)
The amended provisions of Article 11-7 (3) shall begin to apply to the first administrative disposition imposed on a specialized company that falls under Article 11-2 (3) 2 before this Act enters into force.
ADDENDA <Act No. 16172, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.