The purpose of this Act is to promote the stabilization of business of micro enterprises and the increase of their income by designating, protecting, and fostering types of business suitable for micro enterprises to support their livelihoods; to ensure that they can enjoy lives worthy of human dignity by assuring them of the right to life; and ultimately to contribute to balanced development of the national economy.
The terms used in this Act shall be defined as follows:
| 3. | The term "type of business suitable for livelihood" means any type of business or item designated and publicly notified by the Minister of SMEs and Startups pursuant to Article 7 as those in which many micro enterprises engage in small-scale business because of low barriers to entry; |
| 4. | The term "micro enterprise for livelihood" means a micro enterprise which engages in any type of business suitable for livelihood, among micro enterprises; |
| Article 3 (Relationship to Other Statutes) |
This Act shall prevail over other statutes with regard to the designation and operation of types of business suitable for livelihood.
| Article 4 (Responsibilities of the State and Local Governments) |
The State and local governments shall formulate and implement policies to protect and foster micro enterprises for livelihood, considering unique characteristics, etc. of each region.
| Article 5 (Plans for Protecting and Fostering Micro Enterprises for Livelihood) |
| (2) | In formulating an implementation plan to support micro enterprises under Article 6 (4) of the Act on the Protection of and Support for Micro Enterprises, the Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor") shall include matters concerning the protection and fostering of micro enterprises for livelihood in each area. |
| Article 6 (Committee for Deliberation on Types of Business Suitable for Livelihood) |
| (1) | The Committee for Deliberation on Types of Business Suitable for Livelihood (hereinafter referred to as the "Deliberation Committee") shall be established as an organization under the direction of the Minister of SMEs and Startups in order to deliberate and decide on the following matters in connection with the protection and fostering of micro enterprises for livelihood: |
| 1. | Designating the types of business suitable for livelihood under Article 7 or cancellation of such designation; |
| 2. | Approving the acquisition, commencement, or expansion by a large enterprise or similar enterprise of a business for any type of business suitable for livelihood under Article 8 (2); |
| 3. | Recommending that limitations should be placed on the scope of business allowed for a large enterprise or similar enterprise under Article 11 (1); |
| 4. | Other matters that the Minister of SMEs and Startups deems necessary to protect and foster micro enterprises for livelihood. |
| (2) | The Deliberation Committee shall be comprised of not more than 15 members, including one Chairperson. |
| (3) | Members of the Deliberation Committee shall be commissioned by the Minister of SMEs and Startups, from among the following persons; and the Chairperson shall be appointed by the Minister of SMEs and Startups, from among committee members: |
| 1. | Two persons, each recommended by organizations or corporations representing micro enterprises, small and medium enterprises, middle-standing enterprises, and large enterprises respectively; |
| 3. | Not more than five persons who meet the criteria prescribed by Presidential Decree, from among persons who have extensive knowledge of and experience in the economy, industries, and policies for micro enterprises. |
| (4) | Other matters necessary for organizing the Deliberation Committee, the term of office, meetings, operation, etc. shall be prescribed by Presidential Decree. |
| Article 7 (Designation of Types of Business Suitable for Livelihood) |
| (1) | An organization of micro enterprises may file an application for designation of a type of business or an item falling under any of the following as a type of business suitable for livelihood with the Minister of SMEs and Startups, upon recommendation of the National Commission for Corporate Partnership referred to in paragraph (2): |
| 3. | A type of business or an item for which the period of designation expires within one year, among the types of business and items designated and publicly notified as types of business suitable for livelihood under paragraph (3). |
| (2) | Upon receiving an application from an association of micro enterprises for designation of a type of business suitable for livelihood pursuant to paragraph (1), the National Commission for Corporate Partnership shall determine whether the relevant type of business or item meets the criteria for types of business suitable for livelihood and may recommend that the Minister of SMEs and Startups should designate the type of business or item as a type of business suitable for livelihood, In such cases, the National Commission for Corporate Partnership shall present its recommendation statement to the Minister of SMEs and Startups, including the following: |
| 1. | Findings of a fact-finding survey on the relevant type of business or item; |
| 2. | Opinions of large enterprises or similar enterprises, organizations of micro enterprises, experts, etc.; |
| (3) | Within three months from the date on which the National Commission for Corporate Partnership recommends that the Minister of SMEs and Startups should designate a type of business suitable for livelihood pursuant to paragraph (2), the Minister of SMEs and Startups shall designate and publicly notify the type of business suitable for livelihood, following deliberation and decision by the Deliberation Committee: Provided, That the Minister of SMEs and Startups may extend the period specified above only once by not more than three months if deemed necessary. |
| (4) | Specific guidelines for deliberation on the designation of a type of business suitable for livelihood shall be publicly notified by the Minister of SMEs and Startups, comprehensively considering smallness of the size and income of the businesses in such types of business, requirement for stable protection, impacts on consumer welfare and industrial competitiveness, etc. |
| (5) | The term of designation of a type of business suitable for livelihood under paragraph (3) shall be five years from the date of public notice. |
| (6) | Notwithstanding paragraph (5), if the Minister of SMEs and Startups determines that it is necessary to cancel the designation of a type of business suitable for livelihood due to a significant change in the market or other cause after it is designated and publicly notified as a type of business suitable for livelihood, he or she may cancel such designation of the type of business suitable for livelihood, even before five years lapse, following deliberation and decision by the Deliberation Committee. |
| (7) | Other matters necessary for applying for designation of types of business suitable for livelihood and for the recommendation, designation, public notice, and cancellation of types of business suitable for livelihood shall be prescribed by Presidential Decree. |
| Article 8 (Restrictions on Participation of Large Enterprises or Similar Enterprises) |
| (1) | No large enterprise or similar enterprise shall acquire, commence, or expand a business for any type of business suitable for livelihood. |
| (2) | Notwithstanding paragraph (1), if deemed unavoidable in light of consumer welfare and impacts on related industries, the Minister of SMEs and Startups may approve the acquisition, commencement, or expansion by a large enterprise or similar enterprise of a business for any type of business suitable for livelihood, following deliberation and decision by the Deliberation Committee. |
| (3) | Matters necessary for the criteria, procedure, etc. for approval under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 9 (Corrective Orders) |
| (1) | The Minister of SMEs and Startups may order any large enterprise or similar enterprise that acquired, commenced, or expanded a business for any type of business suitable for livelihood, in violation of Article 8, to take measures to rectify the acts done in connection with such violation within a specified period, as prescribed by Presidential Decree. |
| (2) | If any large enterprise or similar enterprise issued with a corrective order under paragraph (1) fails to comply with such order, without good cause, the Minister of SMEs and Startups may disclose details, etc. of such violation to the public, as prescribed by Presidential Decree. |
| Article 10 (Charges for Compelling Compliance) |
| (1) | If any large enterprise or similar enterprise fails to comply with a corrective order within a specified period after it received such order issued under Article 9 (1), the Minister of SMEs and Startups may impose and collect the amount specified by Presidential Decree as charges for compelling compliance, not exceeding 5/100 of the amount of revenue obtained in connection with the relevant violation. |
| (2) | The Minister of SMEs and Startups may repeatedly impose and collect charges for compelling compliance under paragraph (1) not exceeding twice a year until the relevant corrective order is complied with from the date the Minister of SMEs and Startups issues the corrective order. |
| (3) | If a large enterprise or similar enterprise has complied with a corrective order, the Minister of SMEs and Startups shall immediately stop imposing any new charges for compelling compliance but shall collect the charges for compelling compliance already imposed. |
| (4) | The Minister of SMEs and Startups shall collect delinquent charges for compelling compliance in the same manner as delinquent national taxes are collected. |
| (5) | The Minister of SMEs and Startups shall give written notice of his or her intention to impose and collect charges for compelling compliance before imposing the charges; and charges for compelling compliance shall be imposed in writing, specifying the amount of the charges, the ground for the imposition, the deadline for payment, the receiving agency, the methods for filing any objection, the agency with which any objection may be filed, and other detailed information. |
| (6) | Other matters necessary for imposing and collecting charges for compelling compliance shall be prescribed by Presidential Decree. |
| Article 11 (Recommendations to Large Enterprises or Similar Enterprises) |
| (1) | The Minister of SMEs and Startups may recommend that any large enterprise or similar enterprise engaging in a certain type of business or item as at the time the type of business or item is determined and publicly notified as a type of business suitable for livelihood under Article 7 (3) should restrict its scope of business, including items, volume, facilities, services, and promotional activities, within a specified period not exceeding three years, following deliberation and decision by the Deliberation Committee. |
| (2) | If any large enterprise or similar enterprise fails to comply with a recommendation under paragraph (1), without good cause, the Minister of SMEs and Startups may disclose to the public the identity of the enterprise to which the recommendation was given, facts relevant to the recommendation, etc., as prescribed by Presidential Decree. |
| (3) | Matters necessary for the guidelines, procedures, etc. for the recommendations under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 12 (Assistance for Large Enterprises or Similar Enterprises) |
The Government may provide financial and taxation relief to large enterprises or similar enterprises restricting their scope of business, including items, volume, facilities, services, and promotional activities, pursuant to Article 11 (1).
| Article 13 (Delegation or Entrustment of Authority or Business Affairs) |
| (1) | The Minister of SMEs and Startups may delegate part of his or her authority under this Act to a Mayor/Do Governor, as prescribed by Presidential Decree. |
| (2) | The Minister of SMEs and Startups may entrust part of the business affairs under this Act to related agencies, organizations, or corporations, as prescribed by Presidential Decree. |
| Article 14 (Request for Materials and Inspection) |
| (1) | If deemed necessary in any of the following cases, the Minister of SMEs and Startups may require relevant organizations, or large enterprises or similar enterprises to submit materials or may authorize public officials of the Ministry to enter offices, places of business, factories, etc. of such enterprises to inspect books of accounts, documents, facilities, and other items: |
| 1. | Where such inspection is necessary to ascertain actual conditions in order to designate types of business suitable for livelihood under Article 7 or to cancel such designation; |
| 2. | Where such inspection is necessary to ascertain whether it is unavoidable for a large enterprise or similar enterprise to acquire, commence, or expand a business for types of business suitable for livelihood pursuant to Article 8 (2); |
| 3. | Where such inspection is necessary for imposing charges for compelling compliance under Article 10 (1). |
| (3) | The National Commission for Corporate Partnership may request a large enterprise or similar enterprise, or an organization of micro enterprises to submit materials necessary for conducting a fact-finding survey, hearing opinions, etc. under Article 7 (2) or to attend a meeting. |
| Article 15 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 150 million won:
| 1. | A person who acquires, commences, or expands a business for types of business suitable for livelihood, in violation of Article 8 (1); |
| 2. | A person who obtains the approval under Article 8 (2) by fraud or other improper means. |
| Article 16 (Joint Penalty Provisions) |
If the representative of a corporation or an agent or employee of, or any other person employed by, the corporation or an individual commits any violations referred to in Article 15 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violators accordingly, be punished by a fine prescribed in the relevant provision: Provided, That the foregoing shall not apply where the corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violations.
| Article 17 (Administrative Fines) |
| (1) | Any person who fails to submit materials prescribed in Article 14 (1), without good cause, or who submits false materials or refuses, obstructs, or evades an inspection shall be subject to an administrative fine not exceeding 10 million won. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Application for Designation of Types of Business Suitable for Livelihood)
Notwithstanding Article 7 (1) 1, an organization of micro enterprises may file an application with the Minister of SMEs and Startups for designation of the types of business and items for which a consensus had been reached under Article 20-4 of the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises to have them designated as suitable types of business and the term of such consensus expired before the date this Act enters into force, as types of business suitable for livelihood within the period of one year from the enforcement date of this Act, upon recommendation of the National Commission for Corporate Partnership under Article 7 (2). Article 3 Omitted.