Statutes of the Republic of Korea

Article 1 (Purpose)

The purpose of this Decree is to prescribe matters delegated by the Special Act on Support for Small Urban Manufacturers and matters necessary for enforcing said Act.

Article 2 (Business Lines of Small Urban Manufacturers)

“Line of business prescribed by Presidential Decree” in subparagraph 1 (b) of Article 2 of the Special Act on Support for Small Urban Manufacturers (hereinafter referred to as the “Act”) means a business line falling into mid-classification of the manufacturing business under the Korean Standard Industrial Classification publicly notified by the Commissioner of Statistics Korea pursuant to Article 22 (1) of the Statistics Act (hereinafter referred to as “business line of small urban manufacturers”). <Amended by Presidential Decree No. 29268, Oct. 30, 2018>

Article 3 (Standards for Small Urban Manufacturers’ Clusters)

“Such number of small urban manufacturers’ business places as prescribed by Presidential Decree” in subparagraph 2 of Article 2 of the Act means the number of small urban manufacturers in an administrative district classified as follows. In such cases, the number of small urban manufacturers is calculated on the basis of the same business line of small urban manufacturers: <Amended by Presidential Decree No. 29268, Oct. 30, 2018>

1.	An Eup, Myeon, and Dong in the jurisdiction of the Special Metropolitan City or a Metropolitan City: 50 persons;

2.	An Eup, Myeon, and Dong in the jurisdiction of a Metropolitan Autonomous City, a Special Self-Governing Province or Si: 40 persons;

3.	An Eup and Myeon in the jurisdiction of a Gun (excluding a Gun in a Metropolitan City or Metropolitan Autonomous City): 20 persons.

Article 4 (Procedures for Formulating Comprehensive Plans for Supporting Small Urban Manufacturers)

(1)

The Minister of SMEs and Startups may hear the opinions of private-sector experts, etc., where it is necessary to formulate a comprehensive plan for supporting small urban manufacturers (hereinafter referred to as “comprehensive plan”) pursuant to Article 5 (1) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(2)

The Minister of SMEs and Startups shall notify such comprehensive plan to the head of a relevant central administrative agency, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or a Do Governor (hereinafter referred to as the "Mayor/Do Governor") and each head of the relevant institutions and organizations. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

Article 5 (Formulation of Implementation Plans for Supporting Small Urban Manufacturers)

The Minister of SMEs and Startups may hear the opinions of private-sector experts, etc., where it is necessary to formulate an implementation plan for supporting small urban manufacturers pursuant to Article 6 (1) of the Act. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

Article 6 (Requirements and Procedures for Designation as Skills Education and Training Institutions)

(1)

Each person who intends to obtain designation as a skills education and training institution pursuant to Article 10 (1) of the Act (hereinafter referred to as “skills education and training institution”) shall meet each of the following requirements: <Amended by Presidential Decree No. 29268, Oct. 30, 2018>

1.	At least one year’s experience of providing education and training relating to each business line of small urban manufacturers;

2.	Having in place facilities such as space for training and work, and equipment necessary for skills education and training relating to each business line of small urban manufacturers;

3.	Securing professionals in each business line of small urban manufacturers necessary for skills education and training.

(2)	Each person who intends to obtain designation as a skills education and training institution shall prepare the following documents and submit them to the Minister of SMEs and Startups: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	Documents verifying fulfillment of each requirement specified in paragraph (1);

2.	A business plan including a plan for financing operating expenses and utilizing monetary subsidies.

(3)	The Minister of SMEs and Startups may hear the opinions of private-sector experts where it is necessary to designate a skills education and training institution. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(4)	When the Minister of SMEs and Startups has designated a skills education and training institution, he/she shall publicly announce the same via the website, etc. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(5)	Matters necessary for the designation of a skills education and training institution, other than those provided for in paragraphs (1) through (4), shall be determined and notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

Article 7 (Requirements for Recognition as Advanced Skills Holders)

(1)	Small urban manufacturers with advanced skills pursuant to Article 12 (1) of the Act shall be selected from among those engaged in each business line of small urban manufacturers, based on their expertise and level of skills, etc. <Amended by Presidential Decree No. 29268, Oct. 30, 2018>

(2)	To select those with advanced skills, the Minister of SMEs and Startups shall pre-formulate a plan which includes the requirements and procedures, etc. therefor and publicly announce the same via the website, etc. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(3)	The Awards and Decorations Act shall apply to the types of rewards for advanced skills holders and procedures therefor.

(4)	Matters necessary for selecting, rewarding, etc. small urban manufacturers with advanced skills, other than those provided for in paragraphs (1) through (4), shall be determined and notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

Article 8 (Selection of Outstanding Small Urban Manufacturers)

(1)	To select outstanding small urban manufacturers pursuant to Article 14 (1) of the Act, the Minister of SMEs and Startups shall determine the selection criteria and procedures, etc. and publicly announce the same via the website, etc. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(2)	The Minister of SMEs and Startups may conduct the following support projects for outstanding small urban manufacturers: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	Management guidance;

2.	Skills development;

3.	Creation of sales channels;

4.	Financing.

Article 9 (Designation and Notification of Small Urban Manufacturers’ Clusters)

(1)	“Matters prescribed by Presidential Decree” in Article 15 (1) 3 of the Act means the following:

1.	Status of the concentration of small urban manufacturers, and relevant institutions and organizations in the area to be designated as a small urban manufacturers’ cluster (hereinafter referred to as “cluster”);

2.	Status of infrastructure in the area to be designated as a cluster;

3.	A three-year annual plan for activating the cluster.

(2)	The Minister of SMEs and Startups may hear the opinions of private-sector experts where it is necessary for the designation of a cluster. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(3)	When the Minister of SMEs and Startups has designated a cluster, he/she shall notify the following: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	Name and scope of the cluster;

2.	Purpose of designating the cluster;

3.	A three-year annual plan for activating the cluster.

Article 10 (Beneficiaries of Infrastructure Development Projects for Clusters and Limit of, and Procedures for, Support)

(1)	In providing support to projects for building infrastructure in clusters pursuant to Article 17 (3) of the Act, the State may vary the limit and conditions of such support depending on the level of financial independence of the local governments, the characteristics of the clusters, etc.

(2)

The Mayor/Do Governor and the head of a Si/Gun or the head of a Gu (limited to the head of an autonomous Gu) may prescribe the details regarding the procedures for conducting infrastructure development projects in clusters and follow-up management thereof by municipal ordinance. <Amended by Presidential Decree No. 29268, Oct. 30, 2018>

(3)	Matters necessary for providing support to projects for establishing infrastructure in clusters, other than those provided for in paragraph (1), shall be determined and notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

Article 11 (Establishment and Operation of Support Center for Small Urban Manufacturers)

(1)	“Corporation and organization prescribed by Presidential Decree” in Article 18 (3) of the Act means any of the following corporations or organizations:

1.	The Small Enterprise and Market Service under Article 17 of the Act on the Protection of and Support for Micro Enterprises;

2.	Corporations or organizations which perform the affairs relating to small enterprises, among non-profit corporations incorporated under Article 32 of the Civil Act.

(2)	“Professionals who meet the standards prescribed by Presidential Decree” in Article 18 (4) of the Act means any of the following persons: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	A person who has worked as a small urban manufacturer for at least five years;

2.	A person who has worked as a small urban manufacturer for at least two years, among those who completed a course relating to small urban manufacturing at any of the schools specified in Article 2 of the Higher Education Act;

3.	A person who has worked as a small urban manufacturer for at least three years, among those who completed an occupational ability development training program recognized by the Minister of Employment and Labor pursuant to Article 19 of the Act on the Development of Workplace Skills of Workers;

4.	A person deemed to be as qualified as the persons prescribed in subparagraphs 1 through 3 by the Minister of SMEs and Startups.

(3)	Where the Minister of SMEs and Startups entrusts the establishment and operation of a support center for small urban manufacturers pursuant to Article 18 (3) of the Act, he/she may check the matters relating thereto. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

(4)	Matters necessary for the establishment and operation of a support center, other than those provided for in paragraphs (1) through (3), shall be determined and notified by the Minister of SMEs and Startups. <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

Article 12 (Beneficiaries of Business Place and Working Environment Improvement Support Projects)

(1)	The beneficiaries of projects for improving business places and working environment of small urban manufacturers (hereinafter referred to as “environment improvement project”) pursuant to Article 19 (3) of the Act shall be as follows: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	Repair of buildings, facilities and equipment of the business places of small urban manufacturers;

2.	Repair of common-use buildings and facilities, such as shops, space for work, toilets, parking lots, etc. jointly used by small urban manufacturers or customers;

3.	Repair of other facilities and equipment deemed necessary to improve business places and working environment of small urban manufacturers by the Minister of SMEs and Startups.

(2)	The State and local governments may determine the support requirements and limit after conducting a survey on demand for environment improvement projects and their status.

Article 13 (Establishment and Operation of Comprehensive Information System)

The Minister of SMEs and Startups shall perform the following duties through a comprehensive information system pursuant to Article 21 (1) of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	Production and management of statistics on small urban manufacturers;

2.	Provision of information on the support for small urban manufacturers;

3.	Management of applications filed by small urban manufacturers for a support project, their acceptance status, and application-filing history;

4.	Other duties necessary for providing useful information for small urban manufacturers.

Article 14 (Entrustment of Duties)

The Minister of SMEs and Startups shall entrust the following to the Small Enterprise and Market Service pursuant to Article 23 of the Act: <Amended by Presidential Decree No. 28213, Jul. 26, 2017>

1.	Surveys, preparation, analysis, and management of statistical data regarding small urban manufacturers pursuant to Article 7 of the Act;

2.	Projects for cultivating small urban manufacturers and securing workforce pursuant to Article 8 (2) of the Act;

3.	Projects for providing management guidance and skills development opportunities to small urban manufacturers pursuant to Article 9 (2) of the Act;

4.	Designating and supporting skills education and training institutions pursuant to Article 10 of the Act;

5.	Receiving applications for recognition as advanced skills holders and notifying the results thereof pursuant to Article 12 of the Act;

6.	Projects for supporting transfer of skills pursuant to Article 13 (2) of the Act;

7.	Selecting outstanding small urban manufacturers pursuant to Article 14 (1) of the Act;

8.	Projects for supporting outstanding small urban manufacturers pursuant to Article 14 (2) of the Act;

9.	Designating small urban manufacturers’ clusters pursuant to Article 15 of the Act;

10.	Providing financial support for small urban manufacturers’ clusters pursuant to Article 16 of the Act;

11.	Providing support for infrastructure-building projects in small urban manufacturers’ clusters pursuant to Article 17 of the Act;

12.	Projects for improving business places and working environment pursuant to Article 19 of the Act;

13.	Projects for supporting joint projects pursuant to Article 20 of the Act;

14.	Operating a comprehensive information system pursuant to Article 21 (1) of the Act.

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ENFORCEMENT DECREE OF THE SPECIAL ACT ON SUPPORT FOR SMALL URBAN MANUFACTURERS