ENFORCEMENT DECREE OF THE ACT ON THE PROMOTION OF MUTUALLY BENEFICIAL COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL AND MEDIUM ENTERPRISES
Presidential Decree No. 19494, May 30, 2006
Amended by Presidential Decree No. 20226, Aug. 17, 2007
Presidential Decree No. 20261, Sep. 10, 2007
Presidential Decree No. 20678, Feb. 29, 2008
Presidential Decree No. 20728, Feb. 29, 2008
Presidential Decree No. 21904, Dec. 24, 2009
Presidential Decree No. 22082, Mar. 23, 2010
Presidential Decree No. 22398, Sep. 20, 2010
Presidential Decree No. 22650, Jan. 28, 2011
Presidential Decree No. 23036, Jul. 19, 2011
Presidential Decree No. 23346, Dec. 6, 2011
Presidential Decree No. 23535, Jan. 25, 2012
Presidential Decree No. 24442, Mar. 23, 2013
Presidential Decree No. 24994, Dec. 11, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25143, Feb. 5, 2014
Presidential Decree No. 26302, jun. 1, 2015
Presidential Decree No. 26717, Dec. 15, 2015
Presidential Decree No. 26804, Dec. 30, 2015
Presidential Decree No. 27110, Apr. 26, 2016
Presidential Decree No. 27236, jun. 21, 2016
Presidential Decree No. 27983, Apr. 11, 2017
Presidential Decree No. 28213, Jul. 26, 2017
Presidential Decree No. 28379, Oct. 17, 2017
Presidential Decree No. 28917, May 28, 2018
Presidential Decree No. 29179, Sep. 18, 2018
Presidential Decree No. 29498, Jan. 22, 2019
Presidential Decree No. 29518, Feb. 8, 2019
CHAPTER I GENERAL PROVISIONS
| Article 1-2 (Exclusive Deposit Account) |
[This Article Newly Inserted by Presidential Decree No. 29179, Sep. 18, 2018]
| Article 1-3 (Technical Data) |
"Data prescribed by Presidential Decree" in subparagraph 9 of Article 2 of the Act means the following types of data: <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 29179, Sep. 18, 2018> | 1. | Information on intellectual property rights, such as patent rights, utility model rights, design rights, and copyrights; |
| 2. | Other technical or managerial information useful for business activities, such as methods of manufacturing, production, and sales. |
[This Article Newly Inserted by Presidential Decree No. 20226, Aug. 17, 2007]
CHAPTER II DEVELOPMENT AND IMPLEMENTATION OF PLANS TO FACILITATE MUTUALLY BENEFICIAL COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL AND MEDIUM ENTERPRISES
| Article 2 (Development of Implementation Plans to Facilitate Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises) |
| (1) | A plan to facilitate mutually beneficial cooperation between large enterprises and small and medium enterprises under Article 5 (1) of the Act (hereinafter referred to as "implementation plan") shall include the following matters concerning a policy to facilitate mutually beneficial cooperation between large enterprises and small and medium enterprises for the relevant year (hereinafter referred to as "facilitation policy"): |
| 1. | The objectives, details, and expected effects of the facilitation policy; |
| 2. | Budget for, and plans to finance, the facilitation policy; |
| 3. | Other matters necessary to facilitate mutually beneficial cooperation between large enterprises and small and medium enterprises. |
| (2) | The head of a relevant central administrative agency shall submit the performance records of the implementation plan for the preceding year and the implementation plan for the relevant year to the Minister of SMEs and Startups by the end of February each year, pursuant to Article 5 (2) of the Act. <Amended by Presidential Decree No. 20226, Aug. 17, 2007; Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups shall integrate and evaluate performance records submitted pursuant to paragraph (2) and reflect the results thereof in formulating a master plan referred to in Article 4 of the Act. <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017> |
| (4) | In order to efficiently evaluate the performance records under paragraph (3), the Minister of SMEs and Startups may outsource necessary surveys, analysis, etc. to a specialized institution. <Newly Inserted by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 3 (Public Notification of Master Plans and Implementation Plans) |
When a master plan has been developed pursuant to Article 4 (1) of the Act and implementation plans have been submitted and integrated pursuant to Article 5 (2) of the Act, the Minister of SMEs and Startups shall publicly notify such plans without delay. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017> [This Article Wholly Amended by Presidential Decree No. 22082, Mar. 23, 2010]
| Articles 4 and 5 Deleted. <by Presidential Decree No. 22082, Mar. 23, 2010> |
| Article 6 (Requests for Cooperation from Relevant Administrative Agencies) |
If necessary to evaluate the performance records of an implementation plan, the Minister of SMEs and Startups may request necessary cooperation from the relevant administrative agencies, organizations, etc., such as the submission of data or opinions. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017>
[This Article Wholly Amended by Presidential Decree No. 22082, Mar. 23, 2010]
| Articles 7 and 8 Deleted. <by Presidential Decree No. 22082, Mar. 23, 2010> |
CHAPTER III PROMOTION OF POLICIES TO FACILITATE MUTUALLY BENEFICIAL COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL AND MEDIUM ENTERPRISES
| Article 9 (Special Cases concerning Prohibition of Unfair Transactions) |
To ensure that support for small and medium enterprises by a large enterprise does not constitute an unfair transaction under Article 13 of the Act, the following requirements shall be satisfied: | 1. | Such support shall be designed to facilitate mutually beneficial cooperation with small and medium enterprises; |
| 2. | Reasonable standards for support, such as enterprises eligible for support, procedures, and conditions, shall be publicized in advance through the media, on the website, etc., thereby providing an equal opportunity to small and medium enterprises. |
| Article 10 (Institutions Required to Prepare and Submit Plans to Support Small and Medium Enterprises and Performance Records) |
| (1) | "Institutions prescribed by Presidential Decree" in Article 19 (1) of the Act means the institutions specified in attached Table 1. <Amended by Presidential Decree No. 22082, Mar. 23, 2010> |
| (2) | Each institution referred to in paragraph (1) shall submit a plan to support small and medium enterprises for the relevant year and the performance records for the preceding year to the Minister of SMEs and Startups by the end of February each year pursuant to Article 19 (1) of the Act. <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017> |
[This Article Wholly Amended by Presidential Decree No. 20226, Aug. 17, 2007]
| Article 11 (Establishment of Consignment and Commission Dispute Mediation Council) |
In order to support the autonomous mediation of disputes between commissioning enterprises and commissioned enterprises under Article 20 (2) 5 of the Act, a Consignment and Commission Dispute Mediation Council (hereinafter referred to as the "Council") shall be established within the Large and Small Business, Agriculture, and Fisheries Cooperation Foundation under Article 20 of the Act. <Amended by Presidential Decree No. 27983, Apr. 11, 2017>
| Article 12 (Composition of Council) |
| (1) | The Council shall be composed of up to 10 members, including one Chairperson. |
| (2) | The members of the Council shall be commissioned by the Minister of SMEs and Startups from among representatives of commissioning enterprises, representatives of commissioned enterprises, and persons with good knowledge of and experience in large enterprises and small and medium enterprises, and the Chairperson of the Council shall be elected from among the members of the Council. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 13 (Operation of Council) |
| (1) | The Chairperson of the Council shall convene Council meetings and preside over such meetings. |
| (2) | A majority of the members of the Council shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present. <Amended by Presidential Decree No. 22082, Mar. 23, 2010> |
| (3) | Except as otherwise provided for in paragraphs (1) and (2), matters necessary for the operation, etc. of the Council shall be determined by the Chairperson by a resolution of the Council. <Newly Inserted by Presidential Decree No. 22082, Mar. 23, 2010> |
| Article 13-2 (Shared Growth Week) |
[This Article Newly Inserted by Presidential Decree No. 27983, Apr. 11, 2017]
| Article 13-3 (Application for Business Coordination on Suitable Types of Business) |
| (1) | Where an organization of small and medium entrepreneurs intends to file an application for business coordination via the National Commission for Corporate Partnership pursuant to Article 20-4 (3) of the Act, it shall attach the following documents to an application for business coordination: <Amended by Presidential Decree No. 28379, Oct. 17, 2017> |
| 1. | A statement of the reason for applying for business coordination; |
| 2. | The articles of association of the organization of small and medium entrepreneurs and the list of its members; |
| 3. | A document verifying that no consensus has been reached on suitable types of business or the details of consensus have not been executed under Article 20-4 (3) of the Act; |
| 4. | A document verifying that the requirements specified in paragraph (2) have been satisfied. |
| (2) | Where an organization of small and medium entrepreneurs intends to file an application for business coordination, it shall obtain a resolution of the board of directors in advance. |
| (3) | A large enterprise, etc. related to the application for business coordination referred to in Article 20-4 (3) of the Act may request the Minister of SMEs and Startups to make public the documents specified in each subparagraph of paragraph (1). In such cases, the Minister of SMEs and Startups shall make public the documents within 10 days after receipt of the request for disclosure thereof. <Amended by Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28379, Oct. 17, 2017> |
[This Article Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014]
| Article 13-4 (Uses of Fund for Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises) |
| 1. | Projects for assisting small and medium enterprises in improving their productivity; |
| 2. | Projects for assisting small and medium enterprises in protecting their technologies; |
| 3. | Projects for assisting small and medium enterprises and venture businesses in starting up new business; |
| 4. | Joint cooperation projects for expanding domestic and overseas markets for large enterprises and small and medium enterprises; |
| 5. | Projects for assisting large enterprises and small and medium enterprises in promoting fair transactions between them; |
| 6. | Projects for establishing a foundation for shared growth between large enterprises and small and medium enterprises. |
[This Article Newly Inserted by Presidential Decree No. 28917, May 28, 2018]
CHAPTER IV FAIRNESS OF TRANSACTIONS OF CONSIGNMENT AND COMMISSION
| Article 14 (Interest Rate and Discount Charges for Amount Payable) |
| (2) | "Discount charge prescribed by Presidential Decree" in Article 22 (4) of the Act means any of the following discount charges: <Amended by Presidential Decree No. 26717, Dec. 15, 2015> |
| 1. | Where a bill is issued within 60 days after receipt of goods, components, half-finished goods, raw materials, etc. (hereinafter referred to as "goods, etc."): A discount charge for the period from the date 60 days have elapsed after receipt of goods, etc. to the maturity date of the bill, which complies with the discount rate determined and publicly notified by the Fair Trade Commission pursuant to Article 13 (9) of the Fair Transactions in Subcontracting Act; |
| 2. | Where a bill is issued at least 60 days after receipt of goods, etc.: A discount charge for the period from the issuing date to the maturity date of the bill, which complies with the discount rate determined and publicly notified by the Fair Trade Commission pursuant to Article 13 (9) of the Fair Transactions in Subcontracting Act; |
| 3. | Where the price of goods, etc. is paid by payment in lieu of bills within 60 days after receipt of goods, etc.: A discount charge for the period from the date on which 60 days have elapsed after receipt of goods, etc. to the date of redemption of the price of delivered goods, etc., which is a commission that complies with the commission rate specified in the agreement on the method of payment in lieu of bills, between the commissioning enterprises and the financial institution (including credit card companies defined in subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act); |
| 4. | Where the price of goods, etc. is paid by means of payment replacing bills after 60 days elapse after receipt of goods, etc.: A discount rate for the period from the payment date (referring to the approval date of card payment, in cases of a card exclusively for business purchases, the transmission date of the details of received goods in cases of a loan against security of credit sales claims, and the settlement date of purchase funds in cases of a purchase loan) by payment in lieu of bills to the redemption date of the price of delivered goods, etc., which is a commission that complies with the commission rate specified in the agreement on the method of payment in lieu of bills, between the commissioning enterprises and the financial institution (including credit card companies defined in subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act). |
[This Article Wholly Amended by Presidential Decree No. 20226, Aug. 17, 2007]
| Article 14-2 (Exception to Payment of Price of Delivered Goods through Mutually Beneficial Settlement) |
"Extenuating circumstances prescribed by Presidential Decree, such as direct payment of the subcontract consideration of construction works or bankruptcy of a commissioning enterprise" in Article 22 (5) of the Act means either of the following cases: | 1. | Where the project owner of a construction project pays prices for subcontracted works directly to subcontractors, not paying them through the contractor; |
| 2. | Where financial transactions are impossible due to bankruptcy of the commissioned enterprise. |
| (2) | Further details necessary for operating mutually beneficial settlement, including the method of calculating the payment ratio of the price of delivered goods through mutually beneficial settlement under Article 22 (5) of the Act, shall be determined and publicly notified by the Minister of SMEs and Startups. |
[This Article Newly Inserted by Presidential Decree No. 29179, Sep. 18, 2018]
| Article 15 (Notification of Grounds for Goods Failing Inspection) |
A document by which a commissioning enterprise notifies a commissioned enterprise of the grounds on which its goods fail inspection pursuant to Article 23 (2) of the Act shall specify the following: | 1. | The item name and quantity of the goods delivered, delivery date, and date for inspection of such goods, etc.; |
| 2. | The inspection criteria for, and the inspection and analysis results of, the goods, etc. that have failed an inspection. |
"Agency prescribed by Presidential Decree that has experts, equipment, etc." in Article 24-2 (1) of the Act means any of the following: <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 27983, Apr. 11, 2017; Presidential Decree No. 28213, Jul. 26, 2017> | 1. | The Large and Small Business, Agriculture, and Fisheries Cooperation Foundation referred to in Article 20 of the Act; |
| 2. | A corporation, institution, or organization that satisfies each of the following requirements and is recognized by the Minister of SMEs and Startups as capable of accepting escrow of technical data: |
| (a) | An independent storage facility for escrow of technical data; |
| (b) | Facilities, etc. for constant temperature and humidity, fire protection, access control, security, and environmental cleanup; |
| (c) | Legal and technical experts for review of a contract, protection of intellectual property rights, technology verification, etc. |
[This Article Newly Inserted by Presidential Decree No. 20226, Aug. 17, 2007]
| Article 16 (Survey of Transactions of Consignment and Commission) |
| (1) | The Minister of SMEs and Startups shall conduct surveys at least annually pursuant to Article 27 (1) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 17 (Request for Dispute Mediation) |
When any commissioning enterprise, commissioned enterprise, or small and medium enterprise cooperative intends to request mediation of disputes pursuant to Article 28 (1) of the Act, it shall submit an application for mediation of consignment and commission disputes, to the Minister of SMEs and Startups, along with documents prescribed by Ordinance of the Ministry of SMEs and Startups. In such cases, it may undergo prior mediation by the Council. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 28213, Jul. 26, 2017>
| Article 18 (Management of Dispute Mediation) |
| (1) | When the Minister of SMEs and Startups examines the details of a dispute pursuant to Article 28 (3) of the Act, he/she shall hear from the relevant parties, and may hear from the Council, if necessary. <Amended by Presidential Decree No. 27236, Jun. 21, 2016; Presidential Decree No. 28213, Jul. 26, 2017> |
| (2) | A recommendation for correction or an order necessary for correction referred to in Article 28 (3) of the Act shall be issued in writing, expressly specifying the matters to be corrected, and the grounds for and period of correction. <Amended by Presidential Decree No. 27236, Jun. 21, 2016> |
CHAPTER V PROTECTION OF BUSINESS ARENA OF SMALL AND MEDIUM ENTERPRISES
| Articles 19 and 20 Deleted. <by Presidential Decree No. 22082, Mar. 23, 2010> |
| Article 21 (Composition of Small and Medium Enterprise Business Coordination Council) |
| (1) | The Small and Medium Enterprise Business Coordination Council referred to in the main sentence of Article 31 (1) of the Act (hereinafter referred to as the "Coordination Council") shall be composed of one Chairperson and the following members: <Amended by Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 29179, Sep. 18, 2018> |
| 1. | Two members prescribed in paragraph (3) (hereinafter referred to as a "designated member"); |
| 2. | Not more than 20 members prescribed in paragraph (4) (hereinafter referred to as a "commissioned member"). |
| (2) | The Vice Minister of SMEs and Startups shall serve as the Chairperson of the Coordination Council. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | through 3. Deleted <by Presidential Decree No. 25143, Feb. 5, 2014> |
| (3) | Each designated member shall be either of the following persons: <Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | One person among the public officials of Grade III or IV of the Fair Trade Commission, who is appointed to a position by the Minister of SMEs and Startups among positions recommended by the Chairman of the Fair Trade Commission; |
| 2. | One person among the public officials of Grade III or IV of the Ministry of Trade, Industry and Energy, who holds a position designated by the Minister of SMEs and Startups among positions recommended by the Minister of Trade, Industry and Energy. |
| (4) | Each commissioned member shall be commissioned by the Minister of SMEs and Startups from among the following persons with good knowledge of, and experience in, matters on consumers, small and medium enterprises, etc.: <Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| 2. | A person who has served as an executive officer or employee in a consumer-related institution or organization for at least three years; |
| 3. | A person who has served as an executive officer or employee in an enterprise or enterprise-related organization for at least three years; |
| (5) | The Chairperson and designated members shall remain in office while remaining in such post. <Newly Inserted by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 25143, Feb. 5, 2014> |
| (6) | Each commissioned member shall hold office for a term of two years and may be appointed consecutively only for two terms: Provided, That such member may be dismissed from office even before the expiration of the relevant term if they fall under either of the following cases, and in such cases, any member filling a vacancy shall serve for the remainder of his/her predecessor's term of office: <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 29179, Sep. 18, 2018> |
| 1. | Where a member is unable to perform his/her duties due to a disease, lengthy travel, or any other unavoidable cause; |
| 2. | Where a member exerts undue influence, exercises his/her authority in return for any unjust solicitation for a favor, or commits any other illegal act, in connection to his/her duties; |
| 3. | Where a member is found unfit for the office due to neglect of duty or indecent conduct or any other cause; |
| 4. | Where a member does not voluntarily refrain from deliberations and decisions on the relevant agenda issue, although his/her status falls under any subparagraph of Article 22-2 (1). |
| (7) | Where the Minister of SMEs and Startups appoints commissioned members, he/she may do so by classifying the commissioned members into those in charge of either of the following business coordination agenda items: <Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28379, Oct. 17, 2017> |
| 1. | Business coordination, an application for which is filed by the National Commission for Corporate Partnership under Article 20-2 (1) of the Act (hereinafter referred to as the "National Commission for Corporate Partnership") or by an organization of small and medium entrepreneurs pursuant to Article 20-4 (3) of the Act, where consensus has not been reached on suitable types of business referred to in Article 20-2 (2) 2 of the Act, or where consensus thereon fails to be implemented; |
| 2. | Business coordination, an application for which is filed by an organization of small and medium entrepreneurs or a small and medium enterprise pursuant to Article 32 (1) of the Act. |
| (8) | The Coordination Council shall have one secretary, who is designated by the Minister of SMEs and Startups from among public officials of the Ministry of SMEs and Startups. <Amended by Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 28213, Jul. 26, 2017> |
| (9) | A meeting of the Coordination Council shall consist of 10 persons, including the Chairperson, designated members, and commissioned members designated by the Chairperson for each meeting. <Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014> |
| Article 21-2 (Composition of Small and Medium Enterprise Business Coordination Council of Local Government) |
| (1) | The small and medium enterprise business coordination council of a local government under the proviso of Article 31 (1) of the Act (hereinafter referred to as "local coordination council") shall be comprised of one Chairperson and the following members: |
| 1. | Two members referred to in paragraph (3) (hereinafter referred to as "designated members of the local coordination council"); |
| 2. | Up to seven members referred to in paragraph (4) (hereinafter referred to as "commissioned members of the local coordination council"). |
| (2) | The Chairperson of a local coordination council shall be designated by the head of a local government in which the local coordination council is established (hereinafter referred to as a "relevant local government") from among the members of the Senior Executive Service, or the public officials of Grade III, of the relevant local government. |
| (3) | Designated members of a local coordination council shall be either of the following persons: <Amended by Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | One person designated by the head of the relevant local government from among the public officials of Grade IV or V who takes charge of business relating to small and medium enterprises in the relevant local government; |
| 2. | One person among the public officials of the regional SMEs and Startups office having jurisdiction over the relevant area, who is appointed to a position by the head of the relevant local government among positions recommended by the head of the relevant institution. |
| (4) | Commissioned members of a local coordination council shall be appointed by the head of the local government from among persons falling under any subparagraph of Article 21 (4). |
| (5) | The Chairperson and designated members of a local coordination council shall remain in office while holding such post. |
| (6) | Commissioned members of a local coordination council shall serve a two-year term: Provided, That they may be dismissed even before the expiration of the terms of office in any of the following cases: |
| 1. | Where a member is unable to perform his/her duties due to a disease, lengthy travel, or any other unavoidable cause; |
| 2. | Where a member exerts undue influence, exercises his/her authority in return for any unjust solicitation for a favor, or commits any other illegal act, in relation to his/her duties. |
| (7) | A local coordination council shall have one secretary, who is designated by the head of the relevant local government from among public officials of the relevant local government. |
[This Article Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014]
| Article 22 (Operation of Coordination Council) |
| (1) | The Chairperson of the Coordination Council (including a local coordination council; hereinafter the same shall apply) shall represent the Coordination Council and exercise overall control over the affairs of the Coordination Council. <Amended by Presidential Decree No. 25143, Feb. 5, 2014> |
| (2) | Where the Chairperson of the Coordination Council is unable to perform his/her duties due to any unavoidable cause, a member designated by the Chairperson of the Coordination Council in advance shall act for the Chairperson. <Amended by Presidential Decree No. 22082, Mar. 23, 2010> |
| (3) | The Chairperson of the Coordination Council shall convene meetings of the Coordination Council and preside over such meetings. |
| (4) | A majority of the members referred to in Article 21 (9) (referring to the members referred to in Article 21-2 (1) in the case of a local coordination council) shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present. <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 25143, Feb. 5, 2014> |
| (5) | Where the Chairperson of the Coordination Council intends to call a meeting, he/she shall notify each of the members of the date, venue, and deliberation agenda of the meeting by not later than seven days beforehand: Provided, That the foregoing shall not apply in cases of emergency or in other inevitable circumstances. <Newly Inserted by Presidential Decree No. 22082, Mar. 23, 2010> |
| (6) | If deemed necessary, the Coordination Council may request the relevant administrative agencies, organizations, etc. to submit data or opinions or request the parties to coordination, the relevant public officials or experts, or other persons relating to the agenda to attend the meeting to state their opinions. <Amended by Presidential Decree No. 22082, Mar. 23, 2010> |
| (7) | The Coordination Council shall prepare and keep minutes of its meetings, which shall be made public: Provided, That if any details in the minutes fall under any of the following, such contents shall not be made public by a resolution of the Coordination Council: <Amended by Presidential Decree No. 25143, Feb. 5, 2014> |
| 1. | Information on an individual or enterprise, which falls under any of the following: |
| (b) | Resident registration number; |
| (c) | Business secret of an enterprise; |
| (d) | Matters deemed likely to significantly undermine an individual's privacy and an enterprise's management activities, if made public; |
| 2. | Matters deemed likely to substantially undermine the fairness of meetings of the Coordination Council, if made public; |
| 3. | Other matters deemed inappropriate for disclosure by the Chairperson. |
| (8) | Allowances may be paid to any member who attends a Coordination Council meeting within budgetary limits: Provided, That the foregoing shall not apply where a member who is a public official attends such meeting in direct relation to any of his/her affairs. <Newly Inserted by Presidential Decree No. 22082, Mar. 23, 2010> |
| (9) | Except as otherwise provided for in paragraphs (1) through (8), matters necessary for the operation, etc. of the Coordination Council shall be prescribed by the Chairperson by a resolution of the Coordination Council. <Newly Inserted by Presidential Decree No. 22082, Mar. 23, 2010> |
| Article 22-2 (Disqualification of, Challenge to, or Refrainment by, Members) |
| (1) | If a member of the Coordination Council falls under any of the following cases, he/she shall be disqualified from deliberations and decisions on the Coordination Council: <Amended by Presidential Decree No. 29179, Sep. 18, 2018> |
| 1. | Where a member, his/her spouse, or his/her former spouse becomes a party to the relevant agenda (including executive officers if the party is a corporation, organization, etc.; hereafter the same shall apply in this subparagraph and subparagraph 2) or holds any rights or obligations jointly with a party to the agenda; |
| 2. | Where a member is a current or former relative of a party to the relevant agenda; |
| 3. | Where a member or a corporation, organization, etc. to which a member belongs is a current or former agent of a party to the relevant agenda; |
| 4. | Where a member has worked for a party to the relevant agenda issue, which is a corporation, an organization, or any other entity, as its executive officer or employee during the last three years before the date on which the relevant meeting of the Coordination Council is held; |
| 5. | Where a member has provided services as an advisor, a researcher, a contractor (including a subcontractor), an appraiser, or an investigator with regard to the relevant agenda issue. |
| (2) | Where it is impracticable to expect a fair deliberation or resolution by a member, a party to the relevant agenda may file an application for challenge, and the Coordination Council shall make a determination thereon by a resolution. In such cases, no challenged member shall participate in the resolution. |
| (3) | Where a member falls under any ground for exclusion specified in any subparagraph of paragraph (1), he/she shall voluntarily abstain from the deliberations or decisions on the relevant agenda. |
[This Article Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014]
| Article 23 (Application for Business Coordination) |
| (1) | Where an organization of small and medium entrepreneurs or a small and medium enterprise intends to file an application for business coordination pursuant to Article 32 (1) of the Act, it shall submit an application for business coordination to the Minister of SMEs and Startups, along with the following documents, via the Korea Federation of Small and Medium Business: <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| 1. | A statement of grounds for the application for business coordination; |
| 2. | The articles of incorporation of the organization of small and medium entrepreneurs and a list of its members (only for organizations of small and medium entrepreneurs); |
| 3. | A document by which the Korea Federation of Small and Medium Business confirms that there is no small and medium enterprise cooperative for the relevant type of business (limited to where no cooperative for the relevant type of business exists); |
| 4. | A document verifying that the requirements referred to in paragraph (3) are satisfied; |
| 5. | A document verifying consent required under paragraph (4) has been obtained (limited to where a small and medium enterprise files an application for business coordination pursuant to the proviso to Article 32 (1) of the Act). |
| (2) | If it is impracticable to determine whether it is appropriate to file an application for business coordination using only the documents submitted pursuant to paragraph (1), the Chairperson of the Korea Federation of Small and Medium Business may request the relevant organization of small and medium entrepreneurs or small and medium enterprise to supplement the application with further documents necessary for the application for business coordination. <Newly Inserted by Presidential Decree No. 25143, Feb. 5, 2014> |
| (3) | Where an organization of small and medium entrepreneurs intends to file an application for business coordination, it shall obtain a resolution of the board of directors in advance. <Amended by Presidential Decree No. 22398, Sep. 20, 2010> |
| (4) | Where no organization of small and medium entrepreneurs involved in the relevant field of business exists and a small and medium enterprise intends to file an application for business coordination pursuant to the proviso to Article 32 (1) of the Act, it shall obtain consent from at least 1/3 of the small and medium enterprises engaged in the same type of business in an area deemed, by the Minister of SMEs and Startups, to adversely affect the stability of the management of small and medium enterprises engaged in the relevant type of business, if a large enterprise under Article 32 (1) of the Act acquires, commences, or expands business. <Newly Inserted by Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 28213, Jul. 26, 2017> |
| (5) | Upon receipt of an application under paragraph (1), the Chairperson of the Korea Federation of Small and Medium Business shall conduct a fact-finding survey on matters necessary for business coordination, prepare a statement of opinion on business coordination, and submit it to the Minister of SMEs and Startups within 45 days after receipt of such application. In such cases, the Chairperson of the Korea Federation of Small and Medium Business may conduct a fact-finding survey through analysis, etc. by the relevant specialized institution, etc., if he/she deems it necessary for an accurate fact-finding survey. <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 28213, Jul. 26, 2017> |
| (6) | A large enterprise, etc. involved in an application for business coordination under Article 32 (1) of the Act may request the Minister of SMEs and Startups to make public the documents specified in the subparagraphs of paragraph (1). In such cases, the Minister of SMEs and Startups shall make public the relevant materials within 10 days after receipt of the request for disclosure of the materials. <Newly Inserted by Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 28213, Jul. 26, 2017> |
| (7) | "Case prescribed by Presidential Decree where a procedure or system with similar effects as business coordination has been established" in Article 32 (8) of the Act means either of the following cases: <Amended by Presidential Decree No. 22650, Jan. 28, 2011> |
| Article 24 (Public Announcement of Orders for Coordination) |
Where the Minister of SMEs and Startups has made a recommendation pursuant to Article 33 (1) and (2) of the Act or has issued an order for coordination pursuant to Article 33 (4) of the Act, he/she shall publicly announce the outline of the details of such recommendation or order for coordination. <Amended by Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28379, Oct. 17, 2017>
| Article 25 (Temporary Suspensions and Withdrawal of Orders for Coordination) |
| (1) | Where the Minister of SMEs and Startups has recommended temporary suspension of the acquisition, commencement, or expansion of the relevant business pursuant to Article 34 (1) of the Act, he/she shall give written notice of the details of the recommendation to the Korea Federation of Small and Medium Business, relevant organization of small and medium entrepreneurs, small and medium enterprise, large enterprise, etc. within 10 days from the date of recommendation. <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 28213, Jul. 26, 2017> |
| (2) | Where the Minister of SMEs and Startups has fully or partially withdrawn the terms of coordination pursuant to Article 34 (4) of the Act, he/she shall give notice of the details of withdrawal to the Korea Federation of Small and Medium Business, relevant organization of small and medium entrepreneurs, small and medium enterprise, large enterprise, etc., and shall publicly announce such fact within 10 days from the date of withdrawal. <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 26 (Criteria for Support for Large Enterprises That Transfer their Business) |
Cases in relation to which financial or taxation support may be provided pursuant to Article 37 of the Act shall be the cases where a large enterprise, etc. referred to in Article 32 (1) of the Act transfers business falling under any subparagraph of Article 35 of the Act to a small and medium enterprise in any of the following forms: <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 23036, Jul. 19, 2011> | 1. | Where the large enterprise, etc. transfers or lends all or part of its production facilities; |
| 2. | Where the large enterprise, etc. transfers intellectual property rights, such as patent rights relating to the type or item of the business it intends to transfer; |
| 3. | Where a large enterprise, etc. under Article 32 (1) of the Act entrusts, curtails, or suspends the manufacture, construction, processing or repair of, or services for, the items of business in which it has directly engaged, and instead requires a small and medium enterprise to produce and deliver them: Provided, That where business is curtailed, support shall be provided only where such business is suspended for up to three years. |
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 27 (Delegation and Entrustment of Authority) |
| (1) | The Minister of SMEs and Startups shall delegate his/her authority falling under any of the following to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereafter referred to as the "Mayor/Do Governor" in this Article) pursuant to Article 38 (2) of the Act, for the business type which is publicly notified because the effects of business activities are deemed limited to a specific area in the light of the nature of the business type: <Amended by Presidential Decree No. 22082, Mar. 23, 2010; Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28213, Jul. 26, 2017; Presidential Decree No. 28379, Oct. 17, 2017> |
| 8. | Imposition and collection of administrative fines under Article 43 (1) and (2) of the Act (limited to where it is necessary to conduct the affairs delegated pursuant to subparagraphs 6 and 7); |
| 9. | Disclosure of application documents for business coordination under the latter part of Article 23 (6) and the latter part of Article 23-2 (3). |
| (2) | The Minister of SMEs and Startups shall entrust his/her authority falling under each subparagraph of paragraph (1) to the competent Minister in charge of the relevant business type pursuant to Article 38 (2) of the Act, for the business type which has not been delegated to the Mayor/Do Governor pursuant to paragraph (1) and has been publicly notified because it is deemed necessary for the efficient coordination of business. <Amended by Presidential Decree No. 22398, Sep. 20, 2010; Presidential Decree No. 28213, Jul. 26, 2017> |
| Article 27-2 (Re-Examination of Regulation) |
The Minister of SMEs and Startups shall examine the appropriateness of the following, every three years from the base date specified in the following (referring to the period that ends on the day, preceding the same day of the month as the base date, of every third year) and take measures such as making improvements, etc.: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>
| 1. | Interest rate and discount charges for the amount payable for the delivered goods, etc. in Article 14: January 1, 2016; |
| 2. | Application procedures for business coordination provided for in Article 23: January 1, 2014. |
[This Article Wholly Amended by Presidential Decree No. 26804, Dec. 30, 2015]
CHAPTER VII PENALTY PROVISIONS
| Article 28 (Criteria for Imposition of Administrative Fines) |
The criteria for imposing administrative fines referred to in Article 43 (1) through (3) of the Act shall be as specified in attached Table 2. <Amended by Presidential Decree No. 25143, Feb. 5, 2014; Presidential Decree No. 28379, Oct. 17, 2017> [This Article Wholly Amended by Presidential Decree No. 22082, Mar. 23, 2010]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2006.
Article 2 (Repeal of Other Statutes or Regulations)
The Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation is thereby repealed.
Article 3 (Applicability to Interest Rate for Amount Payable)
Article 14 shall apply starting from the price of delivered goods, etc., the first payment date of which arrives after this Decree enters into force. Article 4 (Transitional Measures concerning Small and Medium Enterprise Business Coordination Council)
| (1) | The Small and Medium Enterprise Business Coordination Council under Article 5 of the previous Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation as at the time this Decree enters into force shall be deemed the Small and Medium Enterprise Business Coordination Council under Article 21 of this Decree. |
| (2) | The Consignment and Commission Dispute Mediation Council under Article 16 of the previous Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation as at the time this Decree enters into force shall be deemed the Consignment and Commission Dispute Mediation Council under Article 11 of this Decree, but the Chairperson shall be elected within three months after this Decree enters into force. |
| (3) | An application for business coordination referred to in Article 10 of the previous Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation and any request for dispute mediation made under Article 23 of the same Act as at the time this Decree enters into force shall be deemed an application for business coordination made under Article 23 of this Decree and a request for dispute mediation under Article 17 of this Decree. |
| (4) | Dispositions taken and other acts done in accordance with the previous Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation shall be deemed dispositions taken and acts done in accordance with this Decree, if relevant provisions corresponding to the provisions of the previous Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation exist in this Decree as at the time this Decree enters into force. |
Article 5 Omitted.
Article 6 (Relationship with Other Statutes or Regulations)
Where the previous Enforcement Decree of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation or any other provisions thereunder are cited in other statutes or regulations as at the time this Decree enters into force, this Decree or the relevant provisions of this Decree shall be deemed cited in lieu of the previous provisions, if corresponding provisions exist in this Decree.
ADDENDUM <Presidential Decree No. 20226, Aug. 17, 2007>
This Decree shall enter into force on August 18, 2007.
ADDENDA <Presidential Decree No. 20261, Sep. 10, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 20678, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 20728, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21904, Dec. 24, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2010.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 22082, Mar. 23, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Special Cases concerning Submission of Performance Records of Implementation Plans)
| (1) | Notwithstanding the amended provisions of Article 2 (2), the head of each relevant central administrative agency shall submit both the performance records of the implementation plan for 2009 and the implementation plan for 2010 to the Minister of Knowledge Economy within one month after this Decree enters into force. |
| (2) | Notwithstanding the amended provisions of Article 10 (2), each institution listed in attached Table 1 shall submit the support plan for small and medium enterprises for 2010 and the performance records of 2009 to the Minister of Knowledge Economy within one month after the enforcement date of this Decree. |
ADDENDUM <Presidential Decree No. 22398, Sep. 20, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 22650, Jan. 28, 2011>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23036, Jul. 19, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 23346, Dec. 6, 2011>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23535, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 24994, Dec. 11, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25143, Feb. 5, 2014>
This Decree shall enter into force on February 7, 2014.
ADDENDA <Presidential Decree No. 26302, Jun. 1, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26717, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 4, 2015.
Article 2 (Transitional Measures concerning Discount Charges in Cases of Payment for Receipt of Goods in Lieu of Bills)
Notwithstanding the amended provisions of Article 14 (2) 3 and 4, the previous provisions shall apply to consignment and commission transactions for which consignment agreement is made before the Decree enters into force.
ADDENDUM <Presidential Decree No. 26804, Dec. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27110, Apr. 26, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 27236, Jun. 21, 2016>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 27983, Apr. 11, 2017>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended Article 13-2 shall enter into force on April 18, 2017.
ADDENDA <Presidential Decree No. 28213, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 28379, Oct. 17, 2017>
This Decree shall enter into force on October 19, 2017.
ADDENDUM <Presidential Decree No. 28917, May 28, 2018>
This Decree shall enter into force on May 29, 2018.
ADDENDA <Presidential Decree No. 29179, Sep. 18, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 21, 2018: Provided, That the amended provisions of Articles 21 (1) and (6) and 22-2 (1) and subparagraph 45 of attached Table 1 shall enter into force on the date of its promulgation. Article 2 (Applicability to Consecutive Appointment of Commissioned Members of Coordination Council)
For the purpose of applying the amended provisions of the main sentence of Article 21 (6), with the exception of its subparagraphs, to the members of the Coordination Council as at the time this Decree enters into force, their term of office as at the time this Decree enters into force shall be deemed their first term of office.
ADDENDA <Presidential Decree No. 29498, Jan. 22, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2019.
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 29518, Feb. 8, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.