Presidential Decree No. 29365, Dec. 11, 2018
| Article 1 (Purpose) |
| Article 2 (Criteria for Organizations of Micro Enterprises) |
| Article 3 (Composition of Committee for Deliberation on Types of Business Suitable for Livelihood) |
| (1) | The organizations or corporations representing micro enterprises, small and medium enterprises, middle-standing enterprises, or large enterprises under Article 6 (3) 1 of the Act (hereinafter referred to as "enterprise groups") shall be designated by the Minister of SMEs and Startups, considering the following requirements: |
| 1. | An organization shall have experience in representing the relevant enterprise group's interests in many types of business and items; |
| 2. | An organization shall represent organizations, business entities, or others belonging to the relevant enterprise group; |
| 3. | The scope of its business shall not be limited to any particular region or any particular type of business or item. |
| (2) | "Persons who meet the criteria prescribed by Presidential Decree" in Article 6 (3) 3 of the Act means any of the following persons: |
| 1. | Persons who have at least 10 years’ work experience as a professor of a school referred to in subparagraphs 1 through 6 of Article 2 of the Higher Education Act, specialized in any field related to industries, enterprises, micro enterprises, or consumer policies; |
| 2. | Persons who have at least 10 years’ work experience as a researcher of an officially accredited research institute, specialized in any field related to industries, enterprises, micro enterprises, or consumer policies; |
| 3. | Persons who have at least 10 years’ work experience in a field related to corporate legal affairs or business management as a licensed attorney-at-law or certified public accountant; |
| 4. | Other persons who have at least 15 years’ work experience in any field related to the economy, industries, policies on micro enterprises, or the adjustment of territories of business of enterprises. |
| (3) | Each committee member shall hold office for a term of three years and may be appointed consecutively only for another term. |
| (4) | The term of office a committee member commissioned to fill a vacancy shall fill the remaining term of his or her predecessor. |
| Article 4 (Dismissal of Committee Members) |
| 1. | Where a committee member is no longer able to perform his or her duties due to a mental or physical disability; |
| 2. | Where a committee member is found to have engaged in misconduct in connection with his or her duties; |
| 3. | Where a committee member is found unfit for office due to neglecting any of his or her duties, or due to indecent conduct or any other reason; |
| 4. | Where a committee member is no longer able to perform his or her duties due to any other unavoidable circumstance. |
| Article 5 (Challenge against Committee Members) |
| (1) | If any person (referring to an organization of micro enterprises which filed an application for designating a type of business or an item as a type of business suitable for livelihood, or a large enterprise or similar enterprise which currently engages in the relevant type of business or item or prepares the operation of such business) who has a direct interest in an issue subject to deliberation and resolution by the Committee for Deliberation on Types of Business Suitable for Livelihood under Article 6 (1) of the Act (hereinafter referred to as the "Deliberation Committee") believes that he or she can not expect for any reason, fairness from a committee member in such deliberation and resolution, such person may file a challenge against the committee member. |
| (2) | Where a challenge is filed under paragraph (1), the Deliberation Committee shall, by resolution, determine whether to accept the challenge; and the committee member against whom a challenge has been filed shall abstain from deliberation on such resolution. |
| Article 6 (Operation of Deliberation Committee) |
| (1) | The Chairperson of the Deliberation Committee (hereinafter referred to as the "Chairperson") shall represent the Deliberation Committee and administer all business operations of the Deliberation Committee. |
| (2) | If the Chairperson is unable to perform his or her duties due to any unavoidable circumstance, the committee member pre-appointed by the Chairperson shall act on his or her behalf. |
| (3) | Upon receiving a request from the Minister of SMEs and Startups or at least 1/3 of the committee members to convene a meeting, the Chairperson shall convene the meeting without delay and shall preside at the meeting. |
| (4) | Not later than seven days before holding a meeting, the Chairperson shall notify each committee member of the date, time, venue, and agenda items for the meeting. |
| (5) | A majority of the members of the Deliberation Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present. |
| (6) | If the Deliberation Committee deems it necessary for deliberating on any agenda item or performing any business affair of the Deliberation Committee, it may request a related administrative agency, organization, etc. to submit materials or opinions; or may request related public officials, experts, stakeholders, etc. to attend a meeting to hear their opinions. |
| (7) | The Deliberation Committee shall take and preserve minutes of each meeting and shall disclose such minutes to the public: |
| 1. | Any personal information, such as a name and resident registration number, or any matter constituting trade secret of an enterprise, where disclosing such matter is deemed likely to seriously invade privacy of an individual or impede business activities of an enterprise; |
| 2. | Any matter the disclosure of which is deemed likely to seriously impair fairness in deliberation by the Deliberation Committee; |
| 3. | Other matters determined by the Chairperson to be inappropriate for disclosure to the public. |
| (8) | The Deliberation Committee shall have one executive secretary who shall assist the Deliberation Committee in executing its business affairs; and the executive secretary shall be appointed by the Minister of SMEs and Startups from among public officials of the Ministry. |
| (9) | Allowances, travel expenses, and other necessary expenses may be paid to the Chairperson, committee members, and related persons attending a meeting, and others, within the budget: |
| (10) | Except as otherwise provided in paragraphs (1) through (9), matters necessary for operating the Deliberation Committee shall be determined by the Chairperson, following resolution by the Deliberation Committee. |
| Article 7 (Application for Designating Types of Business Suitable for Livelihood and Recommendation of Such Types of Business) |
| (1) | When any organization of micro enterprises intends to obtain a recommendation for the designation of any type of business suitable for livelihood from the National Commission for Corporate Partnership under Article 20-2 of the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises (hereinafter referred to as the "National Commission for Corporate Partnership"), pursuant to Article 7 (1) of the Act, it shall submit to the National Commission for Corporate Partnership a written request for recommendation for the designation of the type of business suitable for livelihood in attached Form 1, accompanied by the following: |
| 1. | A document certifying that the organization meets the criteria prescribed in Article 2; |
| 2. | Articles of association of the organization of micro enterprises and a list of its members; |
| 3. | A written resolution of the board of directors or a general meeting approving the application for designation of a type of business suitable for livelihood; |
| 4. | Documents substantiating that a large enterprise or similar enterprise acquired, commenced, or expanded a business for the relevant type of business or item during the latest one year; or substantiating the need for urgent protection of the relevant type of business or item due to a plan of a large enterprise or similar enterprise to acquire, commence or expand such business within one year (applicable only where an application for designating a type of business suitable for livelihood is filed pursuant to Article 7 (1) 2 of the Act). |
| (2) | When any organization of micro enterprises intends to apply for designation of a type of business suitable for livelihood pursuant to Article 7 (1) of the Act, it shall submit to the Minister of SMEs and Startups an application for designation of the type of business suitable for livelihood in attached Form 2, accompanied by the documents referred to in the subparagraphs of paragraph (1). |
| (3) | The National Commission for Corporate Partnership shall determine whether a type of business or an item regarding which an organization of micro enterprises requests recommendation for the designation of a type of business suitable for livelihood pursuant to paragraph (1) is eligible for such designation; shall prepare a written recommendation statement according to its determination; and shall submit the written statement to the Minister of SMEs and Startups within six months from the date it received a request for recommendation for the designation of a type of business suitable for livelihood pursuant to paragraph (1): |
| (4) | If any defect is found in an application for designation of a type of business suitable for livelihood or any of its accompanying documents, submitted pursuant to paragraph (2), the Minister of SMEs and Startups may request the organization of micro enterprises to amend such document within a specified period. |
| (5) | In any of the following cases, the Minister of SMEs and Startups may reject an application for designation of a type of business suitable for livelihood, submitted by an organization of micro enterprises pursuant to paragraph (2): |
| 1. | Where the organization of micro enterprises that applied for designation of a type of business suitable for livelihood fails to meet the criteria under Article 2; |
| 2. | Where the National Commission for Corporate Partnership determines that the type of business or item regarding which the organization of micro enterprises filed an application for designation of a type of business suitable for livelihood is ineligible for such designation; |
| 3. | Where the organization of micro enterprises that applied for designation of a type of business suitable for livelihood fails to amend a document within the specified period after it was requested by the Minister of SMEs and Startups to amend the document under paragraph (4). |
| Article 8 (Designation and Public Notice of Types of Business Suitable for Livelihood) |
| (1) | Where the National Commission for Corporate Partnership recommends the designation of a type of business suitable for livelihood pursuant to Article 7 (2) of the Act, the Minister of SMEs and Startups may request related administrative agencies, organizations, experts, and others to provide cooperation such as submission of relevant materials or their opinions as necessary for conducting fact-finding surveys or reviewing relevant policies. |
| (2) | The Minister of SMEs and Startups shall prepare materials necessary for deliberation by combining the recommendation statement submitted by the National Commission for Corporate Partnership pursuant to the latter part of Article 7 (2) of the Act, with the exception of its subparagraphs, and written opinions or other relevant materials submitted by related administrative agencies, organizations, experts, and others pursuant to paragraph (1); and shall request the Deliberation Committee to deliberate on the designation of the relevant type of business or item as a type of business suitable for livelihood. |
| (3) | When the Minister of SMEs and Startups designates the types of business suitable for livelihood under Article 7 (3) of the Act, he or she shall publicly notify the following matters in the Official Gazette and post them on the website of the Ministry of SMEs and Startups: |
| 1. | Definitions and scope of the types of business and items designated as types of business suitable for livelihood; |
| 2. | The term of designation of the types of business suitable for livelihood; |
| 3. | Limitations on the acquisition, commencement, or expansion by a large enterprise or similar enterprise of a business for a type of business suitable for livelihood and matters regarding approval, where approval is given under Article 8 (2) of the Act; |
| 4. | Other matters determined by the Minister of SMEs and Startups. |
| Article 9 (Cancellation of Designation of Types of Business Suitable for Livelihood) |
| (1) | If the Minister of SMEs and Startups determines that it is necessary to cancel the designation of a type of business suitable for livelihood under Article 7 (6) of the Act on the grounds that a type of business or an item designated as a type of business suitable for livelihood falls under any of the following, he or she may request the Deliberation Committee to deliberate on the cancellation of the designation of such type of business or item as a type of business suitable for livelihood: |
| 1. | Where it is impracticable to maintain the designation of the type of business suitable for livelihood due to significant changes in conditions of the international economy, changes in international relations, etc.; |
| 2. | Where the protection ceases to be effective due to an amendment to any other statutes, a change in the policy environment, etc.; |
| 3. | Where it is deemed necessary to cancel the designation due to any other significant changes in the market, etc. |
| (2) | Upon receiving a request for deliberation from the Minister of SMEs and Startups under paragraph (1), the Deliberation Committee shall deliberate and resolve on whether to cancel the designation of the relevant type of business or item as a type of business suitable for livelihood, considering the following: |
| 1. | Findings from a fact-finding survey on the reasons referred to in the subparagraphs of paragraph (1); |
| 2. | Opinions given by large enterprises or similar enterprises and organizations of micro enterprises, related to the relevant type of business or item; and by related administrative agencies, related organizations, experts, and others. |
| (3) | When the Minister of SMEs and Startups cancels the designation of a type of business suitable for livelihood under Article 7 (6) of the Act, he or she shall publicly notify details of the cancellation in the Official Gazette; and shall post such details on the website of the Ministry of SMEs and Startups. |
| Article 10 (Criteria and Procedures for Approval of Participation of Large Enterprises or Similar Enterprises in Business) |
| (1) | If a type of business or an item that the Minister of SMEs and Startups intends to designate and publicly notify as a type of business suitable for livelihood under Article 7 (3) of the Act falls under any of the following, he or she may approve the acquisition, commencement, or expansion by a large enterprise or similar enterprise of a business for the type of business suitable for livelihood, following deliberation and resolution by the Deliberation Committee: |
| 1. | Where the competitiveness of a large enterprise or similar enterprise that has grown from a small or medium enterprise as a result of engaging in mainly the relevant type of business or item is likely to be seriously impaired; |
| 2. | Where the goods supplied and services provided by micro enterprises for livelihood are not sufficient to meet demand related to the relevant type of business or item or are highly likely to adversely affect consumer welfare and related industries; |
| 3. | Where the territory of the main business or business activities of large enterprises or similar enterprises engaging in the relevant type of business or item is separated from that of the main business or business activities of micro enterprises engaging in the same type of business or item; or it is necessary to separate the territory of such business activities for ensuring competitiveness of related industries; |
| 4. | Where mutually beneficial cooperation between large enterprises and micro enterprises are necessary for sustainably developing related industries; |
| 5. | Where the Minister of SMEs and Startups determines on any other ground that participation of large enterprises or similar enterprises in a certain type of business is inevitable in light of impact on consumer welfare and related industries. |
| (2) | Where the Minister of SMEs and Startups approves the acquisition, commencement, or expansion by a large enterprise or similar enterprise of a business for a type of business suitable for livelihood under paragraph (1), he or she may limit the scope of enterprises eligible for such approval or the scope, scale, methods, form, period, etc. of the business and business activities. |
| (3) | If any of the following inevitable reasons exists regarding a type of business or an item designated and publicly notified as a type of business suitable for livelihood under Article 7 (3) of the Act, a large enterprise or similar enterprise may apply for approval to acquire, commence, or expand the specific business to the Minister of SMEs and Startups. In such cases, a large enterprise or similar enterprise shall submit to the Minister of SMEs and Startups an application for approval to acquire, commence, or expand the business for the type of business suitable for livelihood, accompanied by a business plan and documents evidencing that it is inevitable to approve the acquisition, commencement, or expansion of the business: |
| 1. | Performance of an obligation under other statutes; |
| 2. | Response to changes in the policy environment; |
| 3. | Response to the deterioration, etc. of other business conditions of the enterprise. |
| (4) | Upon receiving an approval application under paragraph (3), the Minister of SMEs and Startups shall notify the relevant organization of micro enterprises of the receipt of the application; and may approve such application, following deliberation and resolution by the Deliberation Committee. In such cases, the Deliberation Committee shall consider the following: |
| 1. | Findings from a fact-finding survey related to the ground for the application for approval of the relevant business; |
| 2. | Results of the research or assessment of the impact of the approval of the relevant business on related micro enterprises; |
| 3. | Opinions given by large enterprises or similar enterprises and organizations of micro enterprises, related to the relevant type of business or item; and by related experts and others. |
| (5) | Where the Minister of SMEs and Startups approves the acquisition, commencement, or expansion by a large enterprise or similar enterprise of a business for a type of business suitable for livelihood under paragraph (1) or (4), he or she shall publicly notify details of such approval in the Official Gazette; and shall post the details on the website of the Ministry of SMEs and Startups. |
| Article 11 (Period of and Procedures for Corrective Orders) |
| (1) | If any large enterprise or similar enterprise acquires, commences, or expands a business for a type of business suitable for livelihood, in violation of Article 8 of the Act, the Minister of SMEs and Startups may order the large enterprise or similar enterprise under Article 9 (1) of the Act to take corrective measures within a specified period not exceeding six months: |
| (2) | Where the Minister of SMEs and Startups orders a large enterprise or similar enterprise to take corrective measures under Article 9 (1) of the Act, he or she shall issue a written order, specifying the following: |
| 1. | Details of the violation of the Act; |
| 2. | Details of the corrective order; |
| 3. | The period allowed for taking corrective measures; |
| 4. | The procedures for raising an objection against the corrective order. |
| (3) | The Minister of SMEs and Startups shall provide an opportunity to submit explanatory materials or make oral statements to a large enterprise or similar enterprise to whom he or she intends to issue a corrective order. |
| (4) | If any large enterprise or similar enterprise to whom a corrective order was issued under Article 9 (1) of the Act fails to comply with the corrective order, without justifiable grounds, the Minister of SMEs and Startups may disclose the following matters under Article 9 (2) of the Act in the Official Gazette or on the website of the Ministry of SMEs and Startups: |
| 1. | The type of business or item related to the corrective order; |
| 2. | The name and address of the enterprise violating the Act and the name of its representative; |
| 3. | Details of the violation of the Act; |
| 4. | Details of the corrective order and the period allowed for complying with such corrective order; |
| 5. | Other matters deemed by the Minister of SMEs and Startups as necessary to be disclosed. |
| (5) | Before making a disclosure under Article 9 (2) of the Act, the Minister of SMEs and Startups shall notify the relevant large enterprise or similar enterprise that disclosure is to be made regarding the enterprise; and shall provide such enterprise an opportunity to submit explanatory materials or make oral statements. |
| Article 12 (Imposition and Collection of Charges for Compelling Compliance) |
| (1) | The guidelines for imposing charges for compelling compliance under Article 10 (1) of the Act shall be as prescribed in attached Table 2. |
| (2) | Upon receiving a notice to pay charges for compelling compliance under Article 10 (5) of the Act, a large enterprise or similar enterprise shall pay such charges within 30 days from the date it receives the notice to pay the charges from the Minister of SMEs and Startups. |
| (3) | Except as otherwise provided in paragraphs (1) and (2), detailed guidelines for imposing charges for compelling compliance and matters necessary for such imposition shall be determined and publicly notified by the Minister of SMEs and Startups. |
| Article 13 (Recommendations to Large Enterprises or Similar Enterprises of Restrictions on Scope of Business) |
| (1) | If a type of business or an item designated and publicly notified as a type of business suitable for livelihood under Article 7 (3) of the Act falls under any of the following cases, the Minister of SMEs and Startups may recommend that the large enterprises or similar enterprises engaging in the relevant type of business or item as at the time of designating and publicly notifying the type of business suitable for livelihood under Article 11 (1) of the Act should restrict the scope of business, in terms of the targets, scale, methods, etc. of business activities in connection with the item, volume, facilities, services, promotional activities, etc.: |
| 1. | Where separating the territory of the main business or business activities of large enterprises or similar enterprises from that of the main business or business activities of micro enterprises is necessary to ensure competitiveness of the relevant micro enterprises; |
| 2. | Where the facilities, services, and places of business already operated or provided by large enterprises or similar enterprises and the targets, scale, methods, etc. of their promotional activities, etc. have caused serious loss to micro enterprises or where such serious loss is likely to persist; |
| 3. | Where the Minister of SMEs and Startups determines that it is inevitable to restrict the scope of business of large enterprises or similar enterprises to ensure stable business management of micro enterprises and to guarantee their right to exist. |
| (2) | When the Deliberation Committee deliberates on whether to restrict the scope of business of large enterprises or similar enterprises engaging in a type of business or an item as at the time the type of business or item is designated and publicly notified as a type of business suitable for livelihood under Article 11 (1) of the Act, it shall consider the following: |
| 1. | Findings from a fact-finding survey related to the subparagraphs of paragraph (1); |
| 2. | Opinions given by large enterprises or similar enterprises and organizations of micro enterprises, related to the relevant type of business or item; and by related experts and others. |
| (3) | The Minister of SMEs and Startups may inspect the compliance status of large enterprises or similar enterprises to which restricting the scope of business is recommended under Article 11 (1) of the Act. |
| (4) | If any large enterprise or similar enterprise which received a recommendation under Article 11 (1) of the Act fails to comply with such recommendation, without justifiable grounds, the Minister of SMEs and Startups may disclose the following in the Official Gazette or on the website of the Ministry of SMEs and Startups under Article 11 (2): |
| 1. | The type of business or item regarding which it received the recommendation to restrict the scope of business; |
| 2. | The name and address of the enterprise which received such recommendation and the name of its representative; |
| 3. | Details of the recommendation and the period allowed for performing the recommended actions; |
| 4. | Details of actions recommended but unperformed; |
| 5. | Other matters deemed by the Minister of SMEs and Startups determines as necessary to be disclosed. |
| (5) | The Minister of SMEs and Startups shall notify a large enterprise or similar enterprise regarding which he or she intends to disclose information; and shall provide an opportunity to submit explanatory materials or make oral statements to such enterprise before disclosure under Article 11 (2) of the Act. |
| Article 14 (Entrustment of Business Affairs) |
| 1. | Conducting fact-finding surveys and gathering opinions under Article 9 (2); |
| 2. | Conducting fact-finding surveys, researching and assessing impacts, and gathering opinions under Article 10 (4); |
| 3. | Conducting fact-finding surveys and gathering opinions under Article 13 (2) and inspecting actual compliance under Article 13 (3). |
| Article 15 (Guidelines for Imposing Administrative Fines) |