SUPPORT FOR SMALL AND MEDIUM ENTERPRISE ESTABLISHMENT ACT
Wholly Amended by Act No. 8362, Apr. 11, 2007
Amended by Act No. 8466, May 17, 2007
Act No. 8635, Aug. 3, 2007
Act No. 8606, Aug. 3, 2007
Act No. 8819, Dec. 27, 2007
Act No. 8852, Feb. 29, 2008
Act No. 8974, Mar. 21, 2008
Act No. 8976, Mar. 21, 2008
Act No. 9160, Dec. 19, 2008
Act No. 9379, Jan. 30, 2009
Act No. 9401, Jan. 30, 2009
Act No. 9584, Apr. 1, 2009
Act No. 9685, May 21, 2009
Act No. 9758, jun. 9, 2009
Act No. 9770, jun. 9, 2009
Act No. 9774, jun. 9, 2009
Act No. 9889, Dec. 30, 2009
Act No. 10272, Apr. 15, 2010
Act No. 10310, May 25, 2010
Act No. 10331, May 31, 2010
Act No. 10354, jun. 8, 2010
Act No. 10533, Apr. 4, 2011
Act No. 10599, Apr. 14, 2011
Act No. 10892, Jul. 21, 2011
Act No. 11037, Aug. 4, 2011
Act No. 11483, Aug. 13, 2012
Act No. 11655, Mar. 22, 2013
Act No. 11690, Mar. 23, 2013
Act No. 11845, May 28, 2013
Act No. 12009, Aug. 6, 2013
Act No. 12246, Jan. 14, 2014
Act No. 12248, Jan. 14, 2014
Act No. 12310, Jan. 21, 2014
Act No. 12738, jun. 3, 2014
Act No. 12960, Jan. 6, 2015
Act No. 13089, Jan. 28, 2015
Act No. 13093, Jan. 28, 2015
Act No. 13158, Feb. 3, 2015
Act No. 13448, Jul. 24, 2015
Act No. 13453, Jul. 31, 2015
Act No. 13797, Jan. 19, 2016
Act No. 13868, Jan. 27, 2016
Act No. 14273, May 29, 2016
Act No. 14480, Dec. 27, 2016
Act No. 14532, Jan. 17, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15139, Nov. 28, 2017
Act No. 15421, Mar. 2, 2018
Act No. 15927, Dec. 11, 2018
Act No. 16008, Dec. 24, 2018
Act No. 16101, Dec. 31, 2018
Act No. 16172, Dec. 31, 2018
Act No. 16173, Dec. 31, 2018
Act No. 16272, Jan. 15, 2019
Act No. 16399, Apr. 23, 2019
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to the establishment of a solid industrial structure through sound development of small and medium enterprises by facilitating the establishment of small and medium enterprises and developing a firm basis for their growth.
The terms used in this Act are defined as follows: <Amended by Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016>
| 1. | The term "business startup" means the establishment of a new small and medium enterprise. The scope of business startup in such cases shall be prescribed by Presidential Decree; |
| 1-2. | The term "business re-startup" means the establishment of a new small and medium enterprise after closing an existing small and medium enterprise. The scope of business re-startup in such cases shall be prescribed by Presidential Decree; |
| 2. | The term "business starter" means a person who starts up a small and medium enterprise or a person who has been engaged in his or her business for less than seven years since commencing the business. Further details concerning the business commencements in such cases shall be prescribed by Presidential Decree; |
| 2-2. | The term "business re-starter" means a person who starts up a new small and medium enterprise again or a person in whose case seven years have not passed since the date on which the person commenced business operations of a small and medium enterprise he or she restarted up. Further details concerning the commencement of business operations in such cases shall be prescribed by Presidential Decree; |
| 2-3. | The term "business starter at early stage" means a person in whose case three years have not passed since the date on which the person commenced business operations after starting up a small and medium enterprise; |
| 4. | The term "investment company for the establishment of small and medium enterprise" means a company registered under Article 10, whose main business is to invest in business starters; |
| 4-2. | The term "accelerator" means a person registered under Article 19-2 as a person who engages mainly in the selection of business starters at early stage, etc., the investment in business starters at early stage, etc., and the specialized incubation of business starters at early stage, etc. (hereinafter referred to as "accelerator"); |
| 5. | The term "small and medium enterprise establishment investment association" means an association registered under Article 20, with its main purpose to invest in business starters and distribute benefits therefrom; |
| 6. | The term "small and medium enterprise consulting company" means a company registered under Article 31, engaged in the business of assessing and evaluating the business feasibility, etc. of small and medium enterprises; |
| 7. | The term "business incubator" means a place of business whose main purposes are to provide business starters with facilities and spaces and to assist them in business management and technology in order to enhance the possibility of success in business startup. |
| Article 3 (Scope of Application) |
| (1) | This Act shall apply to business startup: Provided, That this Act shall not apply to starting up such types of business that is clearly against the economic order and good public morals, such as gambling business. <Amended by Act No. 10533, Apr. 4, 2011; Act No. 14273, May 29, 2016; Act No. 15927, Dec. 11, 2018> |
| 1. | through 3. Deleted. <by Act No. 15927, Dec. 11, 2018> |
| (2) | The scope of the types of business under the proviso of paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 15927, Dec. 11, 2018> |
| Article 4 (Establishment of Plan to Support Business Startup) |
| (1) | The Minister of SMEs and Startups shall establish and publicly notify a plan to support starting up a small and medium enterprise for the purposes of facilitating business startup and helping business starters' growth and development. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The Government may provide business starters and persons who are engaged in the business of supporting business startup prescribed by Presidential Decree, with support as may be necessary, including but not limited to investments, contributions, subsidies, and loans. |
| (3) | The Minister of SMEs and Startups may request the head of a relevant central administrative agency or the head of a local government to provide related materials in order to formulate a plan to support business startup referred to in paragraph (1). <Newly Inserted by Act No. 10354, Jun. 8, 2010; Act No. 14839, Jul. 26, 2017> |
| Article 4-2 (Pursuit of Projects to Promote Starting Up Business) |
| (1) | The Minister of SMEs and Startups may pursue the following projects or develop and execute policies necessary to facilitate starting up small and medium enterprises and to boost the success rate in business startup for business starters: <Amended by Act No. 12009, Aug. 6, 2013; Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | Finding and nurturing competent aspiring business starters (referring to persons that intend to establish small and medium enterprises; hereinafter the same shall apply) and supporting them; |
| 2. | Supporting the commercialization of outstanding ideas of the business starters; |
| 3. | Finding and nurturing aspiring or actual business starters through enterprises, organizations, etc. relating to business startup; |
| 4. | Supporting aspiring or actual business starters to enter overseas markets; |
| 5. | Other projects prescribed by Presidential Decree, such as business startup training and expansion of the infrastructure for business startup. |
| (2) | Where the Minister of SMEs and Startups pursues projects under paragraph (1), he or she may give preferential treatment to aspiring or actual young business starters prescribed by Presidential Decree. <Newly Inserted by Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017> |
| (3) | Where the Minister of SMEs and Startups deems it necessary for pursuing projects under paragraph (1), he or she may fully or partially contribute or subsidize expenses incurred in conducting the relevant business to universities, research institutes, public institutions, organizations related to business startup, small and medium enterprises, and aspiring business starters within budgetary limits. <Amended by Act No. 13158, Feb. 3, 2015; Act No. 14839, Jul. 26, 2017> |
| (4) | Matters necessary for the procedures, methods, etc. of contribution and subsidization under paragraph (3) shall be prescribed by Presidential Decree. <Amended by Act No. 13158, Feb. 3, 2015> |
[This Article Newly Inserted by Act No. 10354, Jun. 8, 2010]
| Article 4-3 (Support for Business Re-Startup and Evaluation of Good Faith Management) |
| (1) | The Minister of SMEs and Startups may formulate a plan for supporting business re-startup of small and medium enterprises, considering characteristics of re-starters, in order to vitalize business re-startup and to increase the business success rate of re-starters. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Pursuant to the plan formulated under paragraph (1), the Minister of SMEs and Startups may pursue programs for the following services as necessary for assisting persons who intend to re-start up a business after business closure, bankruptcy, etc. in their business re-startup: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Search of entrepreneurs seeking to re-start a new small and medium enterprise with good know-how and experience and education of such persons on business re-startup; |
| 2. | Improvement of systems hindering business re-startup such as various burdens and regulation; |
| 3. | Consulting service for business re-startup, including on taxation and legal issues; |
| 4. | Expansion of facilities for supporting business re-startup, including the designation or operation of educational centers; |
| 5. | Financial support necessary for business re-startup and provision of information about financial policies; |
| 6. | Training of experts for education on business re-startup and consulting services; |
| 7. | Other programs that the Minister of SMEs and Startups deems necessary for supporting business re-startup. |
| (3) | If necessary to formulate the plan prescribed in paragraph (1), the Minister of SMEs and Startups may request the head of any related central administrative agency or the head of any local government to provide relevant data. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | The Minister of SMEs and Startups may evaluate the performance of a person who intends to re-start up a business or has re-started up a business (hereinafter referred to as "evaluation of good faith management") to find whether the person has faithfully run his or her business before re-starting up a new business without perpetrating accounting fraud, intentional default on payment, wrongful dismissal of employees, or any similar wrongdoing; and may use the outcomes of the evaluation to restrict financial support, such as contribution, subsidization, and loans, or to select persons eligible for support. <Amended by Act No. 14839, Jul. 26, 2017> |
| (5) | If necessary for the evaluation of good faith management, the Minister of SMEs and Startups may request the head of any related administrative agency to provide the following data, with the consent of the person in question: <Amended by Act No. 14839, Jul. 26, 2017> |
| 2. | Records regarding violations of labor-related statutes or regulations, including the Labor Standards Act; |
| 3. | Other data specified by Presidential Decree as those necessary for examination. |
| (6) | The Minister of SMEs and Startups may determine and publicly notify the guidelines necessary for the evaluation of good faith management. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Wholly Amended by Act No. 13868, Jan. 27, 2016]
| Article 4-4 (Support for Business Startup of Local Specialized Industry) |
| (1) | The Minister of SMEs and Startups may establish a plan to promote business startup in the business categories to which local specialized industries belong for the purpose of creating jobs in the relevant region and boosting a regional economy. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The head of a local government may pursue projects to identify, nurture, and support aspiring or actual business starters who possess skills and experiences related to local specialized industries of the relevant local government based on the plan under Paragraph (1). |
| (3) | The Minister of SMEs and Startups may request the head of a local government to submit relevant materials to establish a plan under paragraph (1), if he or she deems such necessary. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 13158, Feb. 3, 2015]
| Article 4-5 (Fact-Finding Surveys and Preparation of Statistics) |
| (1) | The Minister of SMEs and Startups shall conduct annual surveys on, among other things, the current status and actual conditions of small and medium enterprises for purposes of promoting the establishment of small and medium enterprises and efficiently formulating and implementing plans and policies provided in Articles 4 and 4-2 through 4-4. |
| (2) | The Minister of SMEs and Startups shall prepare, manage, and publicize statistics on the business startup of small and medium enterprises by referring to the fact-finding surveys and others under paragraph (1) and, if necessary, the Minister may do so in consultation with the Commissioner of the Korea National Statistical Office. |
| (3) | If necessary for conducting a fact-finding survey under paragraph (1), the Minister of SMEs and Startups may request the head of a relevant central administrative agency, the head of a local government, the head of a public institution, the representative of a startup, or the head of a relevant organization to submit materials, opinions, or the like. In such cases, the head of a relevant central administrative agency and others in receipt of such request shall comply therewith in the absence of special circumstances. |
| (4) | Matters necessary for, among other things, the scope and methods of fact-finding surveys under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 16399, Apr. 23, 2019]
| Article 4-6 (Establishing and Operating Comprehensive Management System) |
The Minister of SMEs and Startups may establish and operate a comprehensive management system for business startup to comprehensively manage and effectively provide information relating to business startup.
[This Article Newly Inserted by Act No. 16399, Apr. 23, 2019]
| Article 5 (Furnishing Information about Business Startup) |
The Government shall take measures necessary for providing information about funds, human resources, technology, marketing channels, conditions of business locations, etc. required for business startup and the growth and development of small and medium enterprises.
| Article 6 (Designation of Operators of Business Incubators) |
| (1) | A person who establishes and runs a business incubator (including a person who intends to establish and run such business incubator; hereinafter referred to as "operator of a business incubator") and who intends to receive various support under this Act shall meet the following requirements and obtain designation from the Minister of SMEs and Startups: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | He or she shall have the following facilities and equipment: |
| (a) | Equipment, such as testing or measuring instruments available for the use of business starters; |
| (b) | Facilities with an area of at least 500 square meters available for the use of at least 10 business starters; |
| 2. | He or she shall have at least two experts, each of whom shall be the holder of a doctorate degree in business administration, an attorney under the Attorney-at-Law Act, or any other professional specified by Presidential Decree; |
| 3. | A business plan, etc. for implementing projects of the business incubator shall meet standards prescribed by Ordinance of the Ministry of SMEs and Startups. |
| (2) | Notwithstanding the provisions of the State Property Act and other statutes or regulations, the State may grant a person who has moved into a business incubator (hereinafter referred to as “incubator tenant”) a reduction of or exemption from rent on a state-owned property, if necessary to enhance the possibility of success of their business startup. <Amended by Act No. 12009, Aug. 6, 2013> |
| (3) | Where the State grants a reduction of or exemption from rent on a state-owned property pursuant to paragraph (2), an annual rent on a state-owned property payable by the incubator tenant shall be an amount prescribed by Presidential Decree, but not exceeding the property value multiplied by at least 1/100. <Newly Inserted by Act No. 12009, Aug. 6, 2013> |
| (4) | In granting permission for the use of state-owned property, the period for permission for use thereof shall be prescribed in Article 35 of the State Property Act. <Newly Inserted by Act No. 12009, Aug. 6, 2013> |
| (5) | Notwithstanding the provisions of the Public Property and Commodity Management Act and other statutes or regulations, each local government may grant incubator tenants a reduction of or exemption from rent on public property, as prescribed by Presidential Decree. <Newly Inserted by Act No. 12009, Aug. 6, 2013> |
[Paragraphs (2), (3), and (4) of this Article are valid until December 31, 2022 pursuant to Article 2 of the Addenda to Act No. 12009 (Aug. 6, 2013)]
| Article 7 (Business Startup Training) |
The Minister of SMEs and Startups may provide business startup training courses to youths, students in universities and colleges, business starters, etc. <Amended by Act No. 14839, Jul. 26, 2017>
| Article 7-2 (Establishment and Operation of On-Campus Organizations Dedicated to Supporting Business Startup) |
| (1) | Universities and colleges may have organizations dedicated to business startup support (hereinafter referred to as “specialized business startup support organizations”), as prescribed by the school regulations, to perform projects to promote on-campus business startup. |
| (2) | The Minister of SMEs and Startups may provide specialized business startup support organizations with contributions to cover expenses incurred in operating those organizations or other necessary support. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Any specialized business startup support organization that intends to receive support under this Act shall keep its account separate from other accounts of the relevant university or college to ensure clarity in its revenue and expenditure. |
| (4) | Matters necessary for the affairs of specialized business startup support organizations and for the operation of their accounts under paragraph (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
| Article 8 (Designation of Graduate Schools of Entrepreneurship) |
| (1) | The Minister of SMEs and Startups may designate a graduate school of entrepreneurship (hereinafter referred to as "graduate school of entrepreneurship"), which aims at nurturing professionals in business startup, among the graduate schools under Article 29 (1) of the Higher Education Act to contribute to the expenses incurred in their operation, etc. within budgetary limits or to provide any other support as may be necessary. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups shall give a public notice of the matters necessary for the designation, support, etc., of graduate schools of entrepreneurship. <Amended by Act No. 14839, Jul. 26, 2017> |
| Article 9 (Preferential Funding Support) |
In granting a subsidy from the Fund for the Establishment and Promotion of Small and Medium Enterprises and Startups under Article 63 of the Small and Medium Enterprises Promotion Act (hereinafter referred to as "Fund for the Establishment and Promotion of Small and Medium Enterprises and Startups"), a person who is responsible for the management of the Fund for the Establishment and Promotion of Small and Medium Enterprises and Startups may give preference to any investment company for the establishment of a small and medium enterprise or any small and medium enterprise establishment investment association which meets the standards for the investment results, etc. prescribed by Presidential Decree. <Amended by Act No. 9160, Dec. 19, 2008; Act No. 9685, May 21, 2009; Act No. 16172, Dec. 31, 2018>
| Article 9-2 (Business Startup Policy Council) |
| (1) | The Business Startup Policy Council shall be formed as an organization affiliated to the Ministry of SMEs and Startups in order to consult with related central administrative agencies and institutions supporting business startup on matters necessary for policies on support for business startup. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The composition, functions, and operation of the Business Startup Policy Council prescribed in paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 13868, Jan. 27, 2016]
| Article 9-3 (Training of Specialized Human Resources for Investment Companies for Establishment of Small and Medium Enterprises) |
In order to promote efficient operation of investment companies for the establishment of small and medium enterprises and their investments in business starters and venture businesses, the Minister of SMEs and Startups may assist such companies with the following business activities: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | Training of specialized human resources for the investment companies for the establishment of small and medium enterprises prescribed in Article 10 (2) 3; |
| 2. | Attraction of foreign investments; |
| 3. | Other business activities specified by Presidential Decree for promoting investment in business starters and venture businesses. |
[This Article Newly Inserted by Act No. 13868, Jan. 27, 2016]
CHAPTER II INVESTMENT COMPANIES FOR THE ESTABLISHMENT OF SMALL AND MEDIUM ENTERPRISES
| Article 10 (Registration) |
| (1) | Any person who intends to receive support prescribed in this Act as a company engaged in any of the following businesses shall, as prescribed by Ordinance of the Ministry of SMEs and Startups, be registered as an investment company for the establishment of5 small and medium enterprises with the Minister of SMEs and Startups. The same shall also apply where the investment company for the establishment of small and medium enterprises intends to change important matters prescribed by Ordinance of the Ministry of SMEs and Startups, such as the name and seat of the company, among the entries registered: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 13093, Jan. 28, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | Investment in business starters; |
| 4. | Overseas investment by methods determined by the Minister of SMEs and Startups, such as acquisition of stocks of or stakes in foreign companies; |
| 5. | Investment in projects developed or designed by small and medium enterprises and operated in a way that their accounts are kept separate from other project accounts; |
| 6. | Business determined by the Minister of SMEs and Startups as businesses incidental to those under subparagraphs 1, 2, 2-2, and 3 through 5. |
| (2) | Any investment company for the establishment of small and medium enterprises shall meet all the following requirements: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9889, Dec. 30, 2009; Act No. 12009, Aug. 6, 2013; Act No. 12310, Jan. 21, 2014; Act No. 13868, Jan. 27, 2016> |
| 1. | It shall be a stock company prescribed in the Commercial Act and shall meet the criteria prescribed by Presidential Decree with regard to the amount of paid-in capital and the ratio of borrowed loans; |
| 2. | None of its executive officers shall fall under any of the following, and in such cases, items (g) and (h) shall apply to its representative director only: |
| (a) | A minor, a person under adult guardianship, or a person under limited guardianship; |
| (b) | A person declared bankrupt and not yet reinstated; |
| (c) | A person for whom five years have not passed since his or her imprisonment without labor or heavier punishment, declared by a court, was completely executed (including cases where it is deemed that execution has been completed) or exempted.; |
| (d) | A person who is under the suspension of the execution of imprisonment without labor or heavier punishment as declared by a court; |
| (e) | A person for whom five years have not passed since his or her punishment by a fine or a heavier punishment, declared by a court for violating the Act on the Regulation of Conducting Fund-Raising Business without Permission or any other statutes or regulations related to finance prescribed by Presidential Decree, was completely executed (including cases where it is deemed that execution has been completed) or exempted; |
| (f) | A person that was an executive officer of an investment company in establishment of small and medium enterprises as at the time the registration of the company was revoked by this Act and in whose case five years have not passed since the revocation of such registration (only applicable to a person who was directly responsible for occurrence of a reason for such revocation of registration or correspondingly responsible, or a person who was found unsuitable for affairs of investment in establishment of business, as a person prescribed respectively by Presidential Decree); |
| (g) | A person who has failed to repay debts within a due date in commercial transactions, such as financial transactions, as a person prescribed by Presidential Decree; |
| (h) | A large stockholder (referring to an investor prescribed by Presidential Decree; hereafter the same shall apply in this Article) or an executive officer or employee of any other investment company for the establishment of small and medium enterprises; |
| (i) | Where a reason for revocation prescribed in Article 43 arose before cancellation under Article 12, a person who was an executive officer as at the time of the cancellation of registration (only applicable to a person who was directly responsible for a reason for revocation of registration made under Article 43 or correspondingly responsible as a person prescribed by Presidential Decree) and was notified of such a reason and in whose case five years (seven years from the cancellation date of registration, where it exceeds seven years from the cancellation date of registration) have not passed from the date when such notification was received; |
| (j) | A person in whose case five years have not passed since his or her dismissal or release from office prescribed in Article 42 (1) 1; |
| 2-2. | Its large stockholders shall have social credit prescribed by Presidential Decree; |
| 3. | It shall have full-time specialized human resources and facilities meeting the standards prescribed by Presidential Decree; |
| 4. | It shall have the system preventing conflicts of interests between business startup investment companies and investors, specific investors and other investors. |
| (3) | Where a person who fails to meet the conditions required under paragraph (2) 2-2 becomes a large stockholder by newly acquiring stocks, he or she may not exercise his or her voting rights to the newly-acquired stocks. <Newly Inserted by Act No. 12009, Aug. 6, 2013> |
| (4) | Where a person who fails to meet the conditions required under paragraph (2) 2-2 becomes a large stockholder by newly acquiring stocks, the Minister of SMEs and Startups may direct him or her to dispose of the newly-acquired stocks within a period of up to six months. <Newly Inserted by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 11 (Succession to Rights and Obligations) |
| (1) | When an investment company for the establishment of small and medium enterprise transfers its business or is merged or consolidated with another company, a transferee of the business or the corporation surviving the merger or resulting from the consolidation shall succeed to the status as an investment company for the establishment of small and medium enterprise under this Act: Provided, That the foregoing shall not apply where such transferee of the business, the corporation surviving the merger or resulting from the consolidation fails to meet the requirements prescribed in the subparagraphs of Article 10 (2). |
| (2) | A person who succeeds to the status as an investment company for the establishment of small and medium enterprise pursuant to paragraph (1) shall report thereon to the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups, by no later than 30 days after the date of succession. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 12 (Cancellation of Registration upon Application) |
| (1) | An investment company for the establishment of small and medium enterprise may, if it is impossible or difficult for the company to continue the business prescribed in the subparagraphs of Article 10 (1), file an application to cancel registration as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups shall, upon receipt of an application to cancel registration in accordance with paragraph (1), cancel said registration without delay. <Amended by Act No. 14839, Jul. 26, 2017> |
| Article 13 (Publication of Registration) |
The Minister of SMEs and Startups shall, if an investment company for the establishment of small and medium enterprise falls under any of the following subparagraphs, publish such fact in the Official Gazette, and inform the general public thereof via a computer communication network, etc. without delay: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | When it has completed the registration under Article 10 (1); |
| 2. | When its registration is canceled pursuant to Article 12 (2); |
| 3. | When its registration is revoked pursuant to Article 43 (1). |
| Article 14 (Public Disclosure of Investment Companies for Establishment of Small and Medium Enterprises) |
| (1) | Each investment company for the establishment of small and medium enterprises shall make public disclosure of the following matters: <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14273, May 29, 2016> |
| 1. | Matters concerning its organization and human resources; |
| 2. | Matters concerning finance and profits and losses; |
| 3. | Matters concerning organization and performance of a small and medium enterprise establishment investment association; |
| 4. | Matters concerning measures to be taken where any measure for the improvement of business management is required under Article 42-2 (3) and where an order to suspend business operations or corrective order is issued, or a warning is given under Article 43 (6). |
| (2) | Matters necessary for the timing and methods of the public disclosure prescribed in paragraph (1) shall be prescribed by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
| Article 15 (Restrictions on Activities of Investment Company for Establishment of Small and Medium Enterprises) |
| (1) | No investment company for the establishment of small and medium enterprise shall engage in any of the following activities: Provided, That the foregoing shall not apply where such activity is unlikely to undermine the soundness of asset management by the investment company for the establishment of small and medium enterprise, as prescribed by Presidential Decree: <Amended by Act No. 15927, Dec. 11, 2018> |
| 1. | Investing in a company engaged in a type of business prescribed in the proviso of Article 3 (1); |
| 3. | Acquiring or owning stocks of a financial institution specified by Presidential Decree; |
| 4. | Acquiring or owning any real property other than that for business purposes within the extent prescribed by Presidential Decree, such as a business incubator (hereinafter referred to as "real property for non-business purposes"): Provided, That the foregoing shall not apply where any real property for non-business purposes is acquired as a consequence of exercising its security right; |
| 5. | Undermining the purposes of its establishment, as prescribed by Presidential Decree. |
| (2) | Any investment company for the establishment of small and medium enterprise shall, when it acquires any real property for non-business purposes as a consequence of exercising its security right in accordance with the proviso of paragraph (1) 4, dispose of such property within a period prescribed by Ordinance of the Ministry of SMEs and Startups, which shall not exceed one year. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 15-2 (Restrictions on Activities of Large Stockholders) |
| (1) | No large stockholder of an investment company for the establishment of small and medium enterprise (including his or her specially related persons prescribed by Presidential Decree; hereinafter the same shall apply) shall engage in any of the following activities for the purpose of pursuing his or her own profits against the interests of the investment company for the establishment of small and medium enterprise: |
| 1. | Requiring the investment company for the establishment of small and medium enterprise to provide materials or information not disclosed outside of the company with intent to exercise undue influence over the company: Provided, That this shall not apply to the exercise of a right under Article 466 of the Commercial Act; |
| 2. | Exercising undue influence over the investment activity or other business management of the investment company for the establishment of small and medium enterprise in collusion with other stockholders under the condition of offering economic profits or other considerations; |
| 3. | Requiring the investment company for the establishment of small and medium enterprise to commit any illegal act; |
| 4. | Requiring the investment company for the establishment of small and medium enterprise to engage in transactions with the large stockholder or a third person under conditions significantly unfavorable to the company in terms of interest rates, fees, security, etc., compared with normal terms of dealings; |
| 5. | Other activities similar to those prescribed in subparagraphs 1 through 4, as prescribed by Presidential Decree. |
| (2) | Where a large stockholder of an investment company for the establishment of small and medium enterprise is deemed to have violated paragraph (1), the Minister of SMEs and Startups may require the investment company for the establishment of small and medium enterprise or large stockholder to submit necessary materials. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
| Article 16 (Mandatory Investment by Investment Company for Establishment of Small and Medium Enterprises) |
| (1) | Any investment company for the establishment of small and medium enterprise shall disburse at least a certain amount at the ratio prescribed by Presidential Decree, not exceeding 50 percent of its paid-in capital, for a business set forth in Article 10 (1) 1, 2, 2-2, 3, and 5, by no later than three years after its registration. In computing the amount disbursed for any business set forth in subparagraphs 1, 2, 2-2, and 5 of the same paragraph in such case, only the amount spent for any purpose specified by Ordinance of the Ministry of SMEs and Startups including acquisition of newly issued stocks or unsecured convertible bonds, shall be included therein: Provided, That the foregoing shall not apply where an investment company for the establishment of small and medium enterprise organizes and runs a small and medium enterprise establishment investment association with a scale greater than that prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Any investment company for the establishment of small and medium enterprise shall maintain the required investment ratio under paragraph (1) even after three years have passed since its registration and, if an investment company for the establishment of small and medium enterprise fails to maintain the required investment ratio under paragraph (1) due to any ground acceptable to the Minister of SMEs and Startups, such as withdrawal of investment and business normalization, the Minister of SMEs and Startups may grant such company a grace period of up to one year, within which to perform the obligation of making an investment. <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| (3) | Notwithstanding paragraph (1), if an investment company for the establishment of small and medium enterprise acquires any of the business starter’s stocks (limited to cases where the business starter acquired newly-issued stocks) held by an individual or a private investment association under Article 13 of the Act on Special Measures for the Promotion of Venture Businesses for at least three years, the amount of acquisition shall be calculated towards the amount corresponding to the required investment ratio under paragraph (1). <Newly Inserted by Act No. 12009, Aug. 6, 2013> |
| Article 17 (Requirements for Overseas Investment by Investment Company for Establishment of Small and Medium Enterprises) |
| (1) | Any investment company for the establishment of small and medium enterprise that has disbursed an amount at least 10 percent of its paid-in capital for any business prescribed in Article 10 (1) 1, 2, and 2-2 for any purpose specified by Ordinance of the Ministry of SMEs and Startups in accordance with Article 16 (1) may make overseas investments in accordance with subparagraph 4 of the same paragraph within the limits of the amount disbursed for such business: Provided, That an investment company for the establishment of small and medium enterprise for which three years have elapsed since its registration may make overseas investment insofar as it has met the required investment ratio under Article 16 (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The limit on the overseas investment under paragraph (1) shall be a ratio specified by Presidential Decree, not exceeding 40 percent of the company's paid-in capital. |
| Article 18 (Borrowing of Funds) |
| (1) | An investment company for the establishment of small and medium enterprise may, if necessary for carrying on its business, borrow funds from the Government, Funds established by the Government, domestic or foreign financial institutions, foreign governments, or international organizations. |
| (2) | Each investment company for the establishment of small and medium enterprise may issue bonds within the limit of 10 times the aggregate of its total capital plus reserves to secure financial resources necessary to conduct its business. |
| Article 19 (Reporting on Settlement of Accounts) |
Each investment company for the establishment of small and medium enterprise shall submit a report on the settlement of accounts each fiscal year to the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
CHAPTER II-2 ACCELERATORS
| Article 19-2 (Registration of Accelerators) |
| (1) | If any person engaging in the business referred to in Article 19-3 or 19-4 wishes to have support under this Act, the person shall register itself as an accelerator with the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups. The same procedure shall also apply where such person intends to amend any of the material facts specified by Ordinance of the Ministry of SMEs and Startups, including the name and domicile of a corporation, among facts registered by an accelerator. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | An accelerator shall meet all the following criteria: <Amended by Act No. 14839, Jul. 26, 2017; Act No. 16173, Dec. 31, 2018> |
| 1. | An accelerator shall be either of the following corporations that meet the relevant criteria: |
| (a) | A company prescribed in the Commercial Act: The paid-in capital shall be at least the amount specified by Presidential Decree; |
| (b) | A nonprofit corporation prescribed in the Civil Act, etc.: The assets contributed to the business referred to in Article 19-3 or 19-4 shall be at least the amount specified by Presidential Decree. In such cases, the nonprofit corporation shall keep records of the business in accounts separate from those for other business lines of the nonprofit corporation in accordance with Article 113 of the Corporate Tax Act so as to clarify revenue and expenditure for the business; |
| (c) | A cooperative, etc. and social cooperative, etc. under the Framework Act on Cooperatives; and a small and medium enterprise cooperative under the Small and Medium Enterprise Cooperatives Act (hereinafter in this Article referred to as “cooperative, etc.”): The amount of its contributions to programs falling under Articles 19-3 and 19-4 shall be equal to or exceed the amount prescribed by Presidential Decree. In such cases, the cooperative, etc. shall keep the accounts of such program separate from its other programs under Article 113 of the Corporate Tax Act to clearly distinguish the revenue and expenditure of the relevant program; |
| 2. | None of its executive officers shall fall under any of the following: |
| (a) | A minor, a person under adult guardianship, or a person under limited guardianship; |
| (b) | A person declared bankrupt and not yet reinstated; |
| (c) | A person for whom five years have not passed since imprisonment without labor or heavier punishment to which he or she was sentenced was completely executed (or is deemed to have been completely executed) or was remitted; |
| (d) | A person who was sentenced to the suspension of imprisonment without labor or any heavier punishment and is still in the period of suspension; |
| (e) | A person in whose case five years have not passed yet since a fine or any heavier punishment, to which he or she was sentenced for a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission or any other finance-related statute specified by Presidential Decree, was completely executed (or is deemed to have been completely executed) or was remitted; |
| 3. | Its business plans, etc. for engaging in the business referred to in Article 19-3 or 19-4 shall meet the standards prescribed by Ordinance of the Ministry of SMEs and Startups ; |
| 4. | It shall be equipped with full-time specialized human resources and facilities that meet the standards prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-3 (Selection of Business Starters at Early Stage and Investment in Them) |
| (1) | An accelerator shall select business starters at early stage who it intends to support and shall invest in them at least the amount specified by Presidential Decree. |
| (2) | An accelerator shall select business starters at early stage prescribed in paragraph (1) through a competition for selecting business starters or by any other fair method. |
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-4 (Specialized Incubation of Business Starters at Early Stage) |
| (1) | An accelerator shall assist business starters at early stage with the following activities (hereafter referred to as "specialized incubation" in this Chapter) at least for a period specified by Presidential Decree in order to raise the possibility of success of business starters at early stage: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Development of business models; |
| 2. | Development of technologies and products; |
| 3. | Securing of facilities and places; |
| 4. | Assistance with other activities specified by Ordinance of the Ministry of SMEs and Startups. |
| (2) | An accelerator may assist business starters at early stage additionally with the following activities in order to improve the results of specialized incubation: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Alliance with investors; |
| 2. | Advertising of business starters at early stage; |
| 3. | Acquisition and merger with other companies; |
| 4. | Development of overseas markets for business starters at early stage; |
| 5. | Assistance with other activities specified by Ordinance of the Ministry of SMEs and Startups. |
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-5 (Establishment of Private Investment Associations) |
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-6 (Assistance to Business Incubators in Conversion into Accelerators) |
If a business incubator prescribed in Article 6 (1) is converted into an accelerator, the Minister of SMEs and Startups may fully or partially subsidize the expenses incurred by the business incubator in such conversion. <Amended by Act No. 14839, Jul. 26, 2017> [This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-7 (Formulation and Implementation of Measures for Nurturing Accelerators) |
The Government may formulate and implement policies necessary to nurture internationally competent accelerators.
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-8 (Joint Public-Private Search and Support for Business Starters) |
| (1) | The Minister of SMEs and Startups may implement projects to search for and provide support for business starters jointly with accelerators for the growth and development of business starters. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | In order to efficiently implement a project to search for and provide support for business starters prescribed in paragraph (1), the Minister of SMEs and Startups may select any of the following persons as the operator of the program (hereafter referred to as "project operator" in this Chapter"): <Amended by Act No. 14839, Jul. 26, 2017> |
| 3. | An investment companies for the establishment of small and medium enterprises prescribed in subparagraph 4 of Article 2; |
| 5. | Other persons who meet the standards determined by the Minister of SMEs and Startups. |
| (3) | The Minister of SMEs and Startups may give priority to rising stars, among business starters identified by project operators in granting subsidies to cover research and development expenses or startup funds, etc. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | Detailed criteria for the selection of project operators prescribed in paragraph (2) shall be determined by the Minister of SMEs and Startups. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
| Article 19-9 (Application Mutatis Mutandis) |
[This Article Newly Inserted by Act No. 14273, May 29, 2016]
CHAPTER III SMALL AND MEDIUM ENTERPRISE ESTABLISHMENT INVESTMENT ASSOCIATION
| Article 20 (Organization of Cooperatives) |
| (1) | Where any of the following persons and any person who does not fall under any of the following subparagraphs jointly contribute to funds in order to organize a small and medium enterprise establishment investment association, the association shall be registered with the Minister of SMEs and Startups, as prescribed by Presidential Decree. The foregoing shall also apply to an amendment to any of descriptions in the register: <Amended by Act No. 13868, Jan. 27, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | An investment company for the establishment of a small and medium enterprise; |
| (2) | Each small and medium enterprise establishment investment association shall be comprised of at least one member with unlimited liability for the cooperative's obligations (hereinafter referred to as "executive member") and members with limited liability for such obligations to the extent of their investments. In such cases, each executive member shall be a person specified in any of the following subparagraphs, and one of executive members shall be a person specified in any subparagraph of paragraph (1): <Amended by Act No. 9889, Dec. 30, 2009; Act No. 13868, Jan. 27, 2016> |
| 3. | A juristic person who manages a mutual-aid business pursuant to statutes; |
| 4. | Other persons prescribed by Presidential Decree. |
| (3) | Notwithstanding the former part of paragraph (2), an executive member shall be one person in cases where a public equity startup investment association prescribed in Article 47-2 (1) is established. <Newly Inserted by Act No. 9889, Dec. 30, 2009> |
| (4) | No executive partner of a small and medium enterprise establishment investment association shall be transformed to any of the companies specified in paragraph (1) while operating the small and medium enterprise establishment investment association. <Newly Inserted by Act No. 13868, Jan. 27, 2016> |
| (5) | Each member may invest the full amount of its investment in a lump sum or in installment, as stipulated by the by-laws of the cooperative. <Amended by Act No. 9889, Dec. 30, 2009; Act No. 13868, Jan. 27, 2016> |
| (6) | Matters necessary for the requirements for registration, management, etc. of a small and medium enterprise establishment investment association, including the amount of funds to be invested, number of members, and duration of existence shall be prescribed by Presidential Decree. <Amended by Act No. 9889, Dec. 30, 2009; Act No. 13868, Jan. 27, 2016> |
| Article 21 (Execution of Business Affairs) |
| (1) | The business affairs of a small and medium enterprise establishment investment association shall be conducted by its executive member. |
| (2) | The executive member owes a duty of care as a good manager in executing the business affairs under paragraph (1). In such cases, no executive member shall use any properties of the small and medium enterprise establishment investment association for its own or a third party's benefits. |
| (3) | Any small and medium enterprise establishment investment association shall, by no later than three years after its registration, disburse at least a certain amount at a ratio prescribed by Presidential Decree, not exceeding 50 percent of its invested funds, for any business under Article 10 (1) 1, 2, 2-2, and 5 for purposes specified by Ordinance of the Ministry of SMEs and Startups pursuant to Article 16 (1) and (3): Provided, That the Minister of SMEs and Startups may grant a grace period of up to one year for the small and medium enterprise establishment investment association to fulfill its obligation to make an investment, if any small and medium enterprise establishment investment association fails to achieve the ratio prescribed by Presidential Decree by no later than three years after its registration due to withdrawal of the invested funds or any other reason acceptable to the Minister of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9379, Jan. 30, 2009; Act No. 9889, Dec. 30, 2009; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| (4) | No executive member shall borrow any funds, make any guarantee for payment, or pledge any properties as security in executing the business affairs of the small and medium enterprise establishment investment association. |
| (5) | Article 15 shall apply mutatis mutandis to the executive member's execution of business affairs of the small and medium enterprise establishment investment association. In such cases, an "investment company for the establishment of small and medium enterprise" shall be construed as a "small and medium enterprise establishment investment association". |
| (6) | Article 17 shall apply mutatis mutandis to overseas investments made by small and medium enterprise establishment investment association. In such cases, an "investment company for the establishment of small and medium enterprise" shall be construed as the "small and medium enterprise establishment investment association"; and "paid-in capital" as "invested funds", respectively. |
| Article 22 (Management and Operation of Assets of Small and Medium Enterprise Establishment Investment Association) |
| (1) | An executive member shall manage the properties of the small and medium enterprise establishment investment association as follows: <Amended by Act No. 8635, Aug. 3, 2007> |
| 2. | He or she shall obtain approval from the general meeting of members before changing the trust business entity. |
| (2) | A trustee under paragraph (1) shall conduct the following business: |
| 1. | Safekeeping and management of properties of the small and medium enterprise establishment investment association; |
| 2. | Acquisition and disposal of properties under the instructions of the executive member to manage properties of the small and medium enterprise establishment investment association. |
| (3) | Where the executive member acquires stocks of a corporation listed in such securities market under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act as prescribed by the Minister of SMEs and Startups with properties of the small and medium enterprise establishment investment association, it shall not invest the amount exceeding 20/100 of the total amount of investment. <Amended by Act No. 8635, Aug. 3, 2007; Act No. 9379, Jan. 30, 2009; Act No. 11845, May 28, 2013; Act No. 12310, Jan. 21, 2014; Act No. 14839, Jul. 26, 2017> |
| Article 23 (Reporting on Settlement of Accounts) |
Each executive member under Article 21 (1) shall submit a report on the settlement of accounts to the Minister of SMEs and Startups by no later than three months after the end of each business year of the small and medium enterprise establishment investment association, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
| Article 24 (Executive Member's Withdrawal) |
No executive member may withdraw from the membership of the small and medium enterprise establishment investment association, unless any of the following causes and events occurs:
| 1. | When the registration of the investment company for the establishment of small and medium enterprise is revoked; |
| 2. | When the investment company for the establishment of small and medium enterprise becomes bankrupt; |
| 3. | When all members of the small and medium enterprise establishment investment association give unanimous consent for withdrawal. |
| Article 24-2 (Transfer of Shares of Members) |
| (1) | No executive partner may transfer all or some of its shares to a third party, without the consent of all other members. |
| (2) | Shares of members with limited liability are transferable according to the relevant association agreement. |
| (3) | Any person who acquires shares of a member with limited liability shall succeed to the transferor's rights and obligations to the association. |
[This Article Newly Inserted by Act No. 13868, Jan. 27, 2016]
| (1) | A small and medium enterprise establishment investment association shall be dissolved when any of the following causes or events occurs: <Amended by Act No. 9889, Dec. 30, 2009> |
| 1. | Expiration of its duration of existence; |
| 2. | Withdrawal from membership by all members with limited liability; |
| 3. | Withdrawal from membership by all executive members who are investment companies for the establishment of small and medium enterprises; |
| 4. | De-registration of all executive members who are investment companies for the establishment of small and medium enterprises; |
| 5. | Any other cause or event prescribed by Presidential Decree. |
| (2) | When any cause or event set forth in paragraph (1) 3 and 4 arises to a small and medium enterprise establishment investment association, the association may admit the investment company for the establishment of small and medium enterprise as an executive member to maintain its operation, with the unanimous consent of all members with limited liability within three months after such cause or event arises, as prescribed by Presidential Decree. <Amended by Act No. 9889, Dec. 30, 2009> |
| (3) | When a small and medium enterprise establishment investment association is dissolved, its executive member shall act as the liquidator: Provided, That any person other than the executive member may be appointed as the liquidator as stipulated in its by-laws. |
| (4) | Any debts in excess of the amount of the invested funds, if any, at the time a small and medium enterprise establishment investment association is dissolved, shall be fully repaid by the executive member. |
| Article 26 (Reporting on Results of Liquidation and De-Registration) |
| (1) | Upon completion of affairs pertaining to liquidation, a liquidator under Article 25 (3) shall submit a report on the results thereof, without delay, to the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | Upon receipt of a report under paragraph (1), the Minister of SMEs and Startups shall de-register the small and medium enterprise establishment investment association without delay. <Amended by Act No. 14839, Jul. 26, 2017> |
| Article 27 (Protection of Association's Property) |
Notwithstanding Articles 704 and 712 of the Civil Act, a creditor of a member of a small and medium enterprise establishment investment association may enforce his or her claims within the limit of the amount that such member has invested in the small and medium enterprise establishment investment association, when exercising such rights against the member.
| Article 28 (Appropriation of Earnings) |
Each small and medium enterprise establishment investment association may pay the investment company for the establishment of small and medium enterprise, acting as an executive member, such performance-based remuneration linked to investment returns as stipulated by its by-laws, and matters necessary for the formula for computing the investment returns for the payment of such performance-based remuneration and others shall be prescribed by Presidential Decree.
| Article 29 (Public Disclosure of Cooperative) |
An executive member shall keep and make available the following documents at its office for public inspection: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | By-laws of the small and medium enterprise establishment investment association; |
| 2. | Reports on the settlement of accounts for each fiscal year; |
| 3. | Other documents concerning the management of the small and medium enterprise establishment investment association publicly notified by the Minister of SMEs and Startups. |
| Article 30 (Application Mutatis Mutandis of the Civil Act) |
Except as provided in this Act, the provisions of the Civil Act governing cooperatives shall apply mutatis mutandis to a small and medium enterprise establishment investment association.
CHAPTER IV SMALL AND MEDIUM ENTERPRISE CONSULTING COMPANIES
| Article 31 (Registration of Small and Medium Enterprise Consulting Companies) |
| (1) | If any company engaged in any the following business activities intends to receive support under this Act, it shall register itself as a small and medium enterprise consulting company with the Minister of SMEs and Startups, as prescribed by Ordinance of the Ministry of SMEs and Startups. The foregoing shall also apply to any changes in important matters already registered by the company, as specified by Ordinance of the Ministry of SMEs and Startups, including the name and address of the company: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10354, Jun. 8, 2010; Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017> |
| 1. | Assessment of business feasibilities of small and medium enterprises; |
| 2. | Providing services for the improvement of business management and technology of small and medium enterprises; |
| 3. | Referral of business opportunities to small and medium enterprises; |
| 4. | Providing advice on and acting as a proxy in supplying and operating funds for small and medium enterprises; |
| 5. | Processing for business startup on behalf of others; |
| 6. | Providing advice on establishment and operation of a business incubator; |
| 7. | Other business activities incidental to those prescribed in subparagraphs 1 through 6, as specified by the Minister of SMEs and Startups. |
| (2) | Any small and medium enterprise consulting company under paragraph (1) shall satisfy all the following requirements: <Amended by Act No. 12310, Jan. 21, 2014; Act No. 16173, Dec. 31, 2018> |
| 1. | It shall be any of the following corporations that meet requirements stipulated in the relevant following item: |
| (a) | A company under the Commercial Act: Its paid-in capital shall be equal to or exceed the amount prescribed by Presidential Decree; |
| 2. | None of its executive officers shall fall under any of the following: |
| (a) | A minor, a person under adult guardianship, or a person under limited guardianship; |
| (b) | A person declared bankrupt and not yet reinstated; |
| (c) | A person for whom three years have not passed since a sentence of imprisonment without labor or heavier punishment imposed upon him or her has been fully executed (or deemed to have been fully executed) or exempted; |
| (d) | A person who is still subject to a suspension period after he or she was sentenced to a suspension of execution of imprisonment without labor or heavier punishment; |
| (e) | A person who fails to pay back any of his or her debts incurred in conducting financial or other commercial transactions within an agreed period, as prescribed by Presidential Decree; |
| 3. | It shall have professionals and facilities in compliance with the standards prescribed by Presidential Decree. |
| Article 32 (Subsidization of Service Fees) |
When a small and medium enterprise consulting company renders its service to business starters, the Minister of SMEs and Startups may grant subsidies to cover part of the service fees, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
CHAPTER V PROCEDURE FOR BUSINESS STARTUP
| Article 33 (Approval for Business Plans) |
| (1) | A business starter who intends to engage in manufacturing (referring to the manufacturing business according to the Korean Standard Industrial Classification prepared and publicly notified by the Commissioner of the Statistics Korea under Article 22 (1) of the Statistics Act) shall prepare a business plan, as prescribed by Presidential Decree, and obtain approval therefor from the head of a Si/Gun/Gu (only referring to the head of an autonomous Gu; hereinafter the same shall apply). The same shall also apply where he or she intends to change a business operator, the size of the factory site, or any other important matter prescribed by Presidential Decree. <Amended by Act No. 12009, Aug. 6, 2013; Act No. 15139, Nov. 28, 2017> |
| (3) | Upon receipt of an application for approval under paragraph (1), the head of a Si/Gun/Gu shall issue a notice as to whether the approval is granted to the applicant, within 20 days after he or she receives such application. In such cases, it shall be deemed that the approval is granted on the day immediately following the expiration of 20 days, if no notice is issued to the applicant as to whether the approval is granted. |
| (4) | The Minister of SMEs and Startups may prepare and publicly notify guidelines necessary for dealing with affairs regarding approval for the business plan under paragraph (1) to simplify the process of a business startup. <Amended by Act No. 14839, Jul. 26, 2017> |
| Article 34 (Preliminary Consultation) |
| (1) | A business starter may request the head of a Si/Gun/Gu to consult on the possibility of approval of a business plan, etc. before filing an application for approval of the business plan in accordance with Article 33 (1). |
| (2) | Matters necessary for the procedure for preliminary consultation, etc. under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 35 (Relationship to Other Statutes) |
| (1) | In granting approval for a business plan pursuant to Article 33 (1), it shall be deemed that permission, authorization, a license, approval, designation, a decision, reporting, release, or disuse (hereafter referred to as "permission, etc." in this Article) prescribed in the following subparagraphs has been obtained or completed in connection with matters on which the head of the relevant Si/Gun/Gu has discussed with the heads of other relevant administrative agencies pursuant to paragraph (4): <Amended by Act No. 8819, Dec. 27, 2007; Act No. 8976, Mar. 21, 2008; Act No. 9401, Jan. 30, 2009; Act No. 9758, Jun. 9, 2009; Act No. 10272, Apr. 15, 2010; Act No. 10331, May 31, 2010; Act No. 10354, Jun. 8, 2010; Act No. 10599, Apr. 14, 2011; Act No. 10892, Jul. 21, 2011; Act No. 12248, Jan. 14, 2014; Act No. 13797, Jan. 19, 2016; Act No. 14480, Dec. 27, 2016> |
| 4. | Deleted; <by Act No. 10272, Apr. 15, 2010> |
| 11. | Permission for use of and profits from any State-owned property prescribed in Article 30 of the State Properties Act or disuse of a road, river system, ditch or embankment prescribed in Article 40 of the same Act; |
| 14. | Permission for use of an agricultural infrastructure under the main sentence of Article 23 (1) of the Rearrangement of Agricultural and Fishing Villages Act; |
| 15. | Permission for relocation of graves installed on other person's land prescribed in Article 27 (1) of the Funeral Services, etc. Act; |
| 16. | Permission for use of and profits from any administrative property prescribed in Article 20 (1) of the Public Property and Commodity Management Act or disuse of any administrative property prescribed in Article 11 of the same Act; |
| 17. | Permission for a land transaction contract prescribed in Article 11 of the Act on Report on Real Estate Transactions, Etc. |
| (2) | In granting building permission prescribed in Article 11 of the Building Act for a factory for which a business plan has been approved pursuant to Article 33 (1), it shall be deemed that permission, authorization, approval, consent, examination or reporting prescribed in the following subparagraphs (hereafter referred to as "approval, etc." in this Article) has been obtained or completed in connection with matters on which the head of the relevant Si/Gun/Gu has consulted with the heads of other administrative agencies in accordance with paragraph (4): <Amended by Act No. 8466, May 17, 2007; Act Nos. 8974 & 8976, Mar. 21, 2008; Act No. 9770, Jun. 9, 2009; Act No. 10354, Jun. 8, 2010; Act No. 11037, Aug. 4, 2011; Act No. 11483, Aug. 13, 2012; Act No. 12246&12248, Jan. 14, 2014; Act No. 12960, Jan. 6, 2015; Act No. 13089, Jan. 28, 2015; Act No. 14532, Jan. 17, 2017; Act No. 15139, Nov. 28, 2017; Act No. 16272, Jan. 15, 2019> |
| 9. | Permission for installation of a temporary depot for explosives prescribed in Article 25 (1) of the Act on the Safety Management of Firearms, Knives, Swords, Explosives, Etc.; |
| (3) | In granting approval for the use of a building pursuant to Article 22 of the Building Act for a factory built under a business plan approved pursuant to Article 33 (1), it shall be deemed that an inspection, reporting, consent, or application (hereinafter referred to as "inspection or the like") as prescribed in the following subparagraphs has been completed or obtained in connection with matters on which the head of the competent Si/Gun/Gu has consulted with the heads of other administrative agencies pursuant to paragraph (4): <Amended by Act No. 8466, May 17, 2007; Act No. 8974, Mar. 21, 2008; Act Nos. 9770 & 9774, Jun. 9, 2009; Act No. 10354, Jun. 8, 2010; Act No. 11037, Aug. 4, 2011; Act No. 12738, Jun. 3, 2014; Act No. 12960, Jan. 6, 2015; Act No. 13089, Jan. 28, 2015; Act No. 14532, Jan. 17, 2017; Act No. 15139, Nov. 28, 2017> |
| 5. | Final inspection conducted under Article 43 of the Act on the Safety Management of Firearms, Knives, Swords, Explosives, Etc.; |
| (4) | If any matter prescribed in paragraphs (1) through (3) among matters involved in granting approval for a business plan pursuant to Article 33 or building permission and approval for use prescribed in Articles 11 (1) and 22 (1) of the Building Act falls within the authority of any other administrative agency, the head of the relevant Si/Gun/Gu shall consult in advance with the head of an administrative agency, and the head of the administrative agency shall, upon receipt of a request for consultation, present his or her opinion within a period prescribed by Presidential Decree. In such cases, it shall be deemed that the head of the administrative agency has no objection unless he or she presents his or her opinion within the prescribed period. <Amended by Act No. 8974, Mar. 21, 2008> |
| Article 36 (Consultation at Time of Enactment or Amendment of Statutes or Regulations) |
The head of the relevant administrative agency shall, when he or she intends to enact or amend any statute or regulation that governs any matter concerning approval of a business plan under Article 33, building permission under Article 11 (1) of the Building Act for a business starter's factory, or approval for use under Article 22 (1) of the said Act, consult in advance with the Minister of SMEs and Startups. <Amended by Act No. 8974, Mar. 21, 2008; Act No. 14839, Jul. 26, 2017>
| Article 37 (Revocation of Approval for Business Plans) |
| (1) | If any person who has obtained approval for his or her business plan falls under any of the following subparagraphs, the head of a Si/Gun/Gu may revoke such approval for the business plan and the building permission for a factory involved or issue an order to reinstate the relevant land to its original state: <Amended by Act No. 12009, Aug. 6, 2013> |
| 1. | If such person fails to commence construction works for the factory before expiration of the period prescribed by Presidential Decree after the date of approval of the business plan, or suspends construction works for a period no less than that prescribed by Presidential Decree after commencement of such works for the factory; |
| 3. | If such person leases to a third party the land for the site of the factory for which the business plan was approved or uses the land for any purpose other than that for the factory; |
| 4. | If such person fails to complete construction works for the factory before expiration of the period prescribed by Presidential Decree after the date of approval of the business plan. |
| (2) | If any person fails to restore the land to its original state, in violation of an order of restoration issued pursuant to paragraph (1), the head of a Si/Gun/Gu may restore it to the original state through vicarious execution. |
| (4) | The head of a Si/Gun/Gu shall hold a hearing whenever he or she intends to revoke the approval of a business plan pursuant to paragraph (1). |
| Article 38 (Establishment of Business Startup Ombudsman Office) |
| (1) | The Government may establish an office responsible for receiving and processing civil petitions filed in connection with business startup (hereinafter referred to as "small and medium enterprise startup ombudsman office") in each Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, Special Self-Governing Province or Si/Gun/Gu for the convenience of civil petitioners. <Amended by Act No. 12009, Aug. 6, 2013> |
| (2) | Necessary matters for the establishment and operation of small and medium enterprise startup ombudsman offices shall be prescribed by Presidential Decree. |
| Article 39 (Korea Institute of Startup and Entrepreneurship Development) |
| (1) | The Korea Institute of Startup and Entrepreneurship Development shall be established (hereinafter referred to as “KISED”) to promote business startup and efficiently support the growth of startups. |
| (2) | KISED shall be a corporation, and shall come into existence by making incorporation registration at the seat of the principal office of the juristic person. |
| (3) | KISED shall have its principal office under paragraph (2) at a location prescribed by its articles of incorporation, and may have branch offices, charters, or other offices as necessary and as prescribed by its articles of incorporation. |
| (4) | KISED shall implement the following programs: |
| 1. | Conducting survey and research on policies to promote business startup; |
| 2. | Providing business starters with information and support regarding funds (excluding lending of policy funds), human resources, sales channels, locations, and the like; |
| 3. | Developing, operating, and disseminating education models to promote business startup; |
| 4. | Performing fact-finding surveys and analysis on business startup; |
| 5. | Engaging in exchanges and cooperation with international organizations and foreign countries in connection with business startup; |
| 6. | Supporting startups in overseas expansion and assisting foreigners with business startup in Korea; |
| 7. | Identifying and supporting excellent aspiring business starters; |
| 8. | Providing education and support for business re-starters; |
| 9. | Assisting young business starters with education and commercialization; |
| 10. | Boosting entrepreneurship through business startup training and the like for the youth, aspiring business starters, and other persons; |
| 11. | Supporting universities, research institutes, and others in their activities to promote business startup; |
| 12. | Nurturing and supporting specialists in the field of business startup; |
| 13. | Supporting expanding the base of business startup and creating a business startup culture; |
| 14. | Building, operating, and supporting the infrastructure for business startup, such as facilities to provide assistance in promoting business startup; |
| 15. | Other programs entrusted by relevant central administrative agencies. |
| (5) | The head of a central administrative agency and the head of a local government may entrust KISED with the programs provided for in each subparagraph of paragraph (4), and may provide contributions or subsidies to cover all or part of the expenses arising therefrom. |
| (6) | A public institution, small and medium entrepreneur, individual or group may support expenses necessary for implementing programs specified in each subparagraph of paragraph (4). |
| (7) | KISED may operate a for-profit business to raise funds for attaining the purposes specified in paragraph (1). |
| (8) | Except as provided in this Act, the provisions regarding an incorporated foundation shall apply mutatis mutandis to KISED. |
[This Article Wholly Amended by Act No. 16399, Apr. 23, 2019]
| Article 39-2 (Contribution to Youth Entrepreneurship Incorporated Foundation) |
The Minister of SMEs and Startups may provide contributions or subsidies to a non-profit corporation that has obtained permission for its incorporation from the Minister of SMEs and Startups under Article 32 of the Civil Act within budgetary limits, insofar as they are mainly engaged in any of the following business to foster challenging spirit, creativity, innovation ability, etc. (hereafter referred to as "entrepreneurship" in this Article) in youths and aspiring business starters, etc.: <Amended by Act No. 14839, Jul. 26, 2017> | 1. | Plan, develop, and study projects that can promote entrepreneurship; |
| 2. | Conduct fact-finding surveys on entrepreneurship, and prepare and use statistics on entrepreneurship; |
| 3. | Develop and disseminate education courses and materials on entrepreneurship for youths and aspiring business starters, etc., and manage and operate educational projects relating thereto; |
| 4. | Create an atmosphere to spread entrepreneurship, such as discovery and spread of best practices on entrepreneurship; |
| 5. | Identify and remove obstacles to entrepreneurship and create better conditions for re-startup; |
| 6. | Engage in any other business designated and entrusted by the Minister of SMEs and Startups to foster and spread entrepreneurship. |
[This Article Newly Inserted by Act No. 10533, Apr. 4, 2011]
| Article 39-3 (Exemption from Charges and Fees) |
| (1) | A business starter who obtains approval for his or her business plan under Article 33 shall be exempted from the following charges and fees for seven years from the commencement date of the business: <Newly Inserted by Act No. 13158, Feb. 3, 2015; Act No. 16173, Dec. 31, 2018> |
| (2) | A person who starts up a small and medium enterprise in order to engage in the manufacturing business under the Korea Standard Industry Code, which is prepared and publicly notified by the Commissioner of the Korea National Statistical Office pursuant to Article 22 (1) of the Statistics Act, shall be exempted from the following charges and fees for three years from the commencement date of the business: <Amended by Act No. 10354, Jun. 8, 2010; Act No. 13158, Feb. 3, 2015; Act No. 14532, Jan. 17, 2017; Act No. 16173, Dec. 31, 2018> |
| 15. | Charges for manufacturing or importing specific substances under Article 24-2 of the Act on the Control of Manufacture of Specific Substances for the Protection of the Ozone Layer; |
| (3) | Such matters as the procedures for and methods of exemption from charges and fees under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 10354, Jun. 8, 2010; Act No. 13158, Feb. 3, 2015> |
[This Article Newly Inserted by Act No. 8606, Aug. 3, 2007]
[Paragraph (2) of this Article is valid until August 2, 2022 pursuant to paragraph (2) of the Addenda to Act No. 8606 (Aug. 3, 2007)]
| Article 39-4 (Special Treatment in Registration of Factory for Business Startup by Division of Business) |
| 1. | A person who has been an executive officer or employee of a domestic corporation shall be the representative, the largest shareholder, or the largest investor; |
| 2. | The contracts with the domestic corporation for the division of business and joint use of all or a part of a factory of the relevant domestic corporation shall be concluded in writing. |
[This Article Newly Inserted by Act No. 10354, Jun. 8, 2010]
| Article 39-5 (Installation and Operation of Support System to Help Starting Home-Based Business) |
| (1) | The Minister of SMEs and Startups may establish and operate a system which allows people to set up a business through such information and communications network as defined in subparagraph 10 of Article 2 of the Electronic Government Act (hereafter referred to as "support system to help starting a home-based business" in this Article). <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Relevant central administrative agencies and other related institutions shall provide cooperation, such as expedited processing of the related affairs under their jurisdiction, to ensure that the procedures for business startup through the support system to help starting a home-based business can be progressed smoothly. |
| (3) | The Minister of SMEs and Startups may, within budgetary limits, fully or partially subsidize the expenses incurred by the relevant central administrative agencies and other related institutions in operating individual systems linked to the support system to help starting a home-based business. <Amended by Act No. 14839, Jul. 26, 2017> |
| (4) | Matters concerning the procedures and methods necessary for installing and operating the support system to help starting a home-based business other than those provided in paragraphs (2) and (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 10354, Jun. 8, 2010]
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 40 (Reporting and Inspection) |
| (1) | If the Minister of SMEs and Startups deems it necessary, he or she may require an investment company for the establishment of a small and medium enterprise, an accelerator, the executive member of a small and medium enterprise establishment investment association, a small and medium enterprise consulting company, or the operator of a business incubator to submit a report on the status of business operations, as prescribed by Presidential Decree, and may also authorize public officials of the competent authorities to enter an office or a place of business to inspect books of accounts, documents, etc. specified by Presidential Decree, including audit reports of an investment company for the establishment of small and medium enterprises, an accelerator, or a small and medium enterprise establishment investment association, in any of the following cases: <Amended by Act No. 9584, Apr. 1, 2009; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | If necessary to check whether the investment company for the establishment of small and medium enterprises continues to fulfill the requirements for registration prescribed in Article 10 (2); |
| 2. | If necessary to check whether the investment company for the establishment of small and medium enterprises violates any restriction on its activities conducted under Article 15; |
| 3. | If necessary to check whether the investment company for the establishment of small and medium enterprises performs its investment obligation in accordance with Article 16; |
| 4. | If necessary to check whether the investment company for the establishment of small and medium enterprises satisfies the requirements for overseas investment prescribed in Article 17; |
| 5. | If necessary to check whether an accelerator continues to meet the criteria for registration made under Article 19-2 (2); |
| 6. | If necessary to check whether an accelerator has invested, in accordance with Article 19-3 (1); |
| 7. | If necessary to check whether an executive member prescribed in Article 21 has committed a violation or has fulfilled its obligation of investment; |
| 8. | If there is any of the grounds specified by Presidential Decree as similar to those set forth in subparagraphs 1 through 7. |
| (2) | Whenever an inspection is conducted pursuant to paragraph (1), the inspection plan containing the date, timing, purpose, details, etc. of the inspection shall be notified to the person who is to undergo the inspection by no later than seven days before the date of inspection: Provided, That the foregoing shall not apply where it is urgently required or it is considered impracticable to achieve the purpose of the inspection otherwise due to anticipated destruction of evidence, etc. |
| (3) | Each public official who has access for inspection pursuant to paragraph (1) shall carry an identification indicating his or her authority and present it to a relevant person, and shall deliver a document stating his or her name, timing and purpose of access, etc. to the relevant person. |
| Article 41 Deleted. <by Act No. 9584, Apr. 1, 2009> |
| Article 42 (Disciplinary Measures against Executive Officers and Employees) |
| (1) | If any investment company for the establishment of small and medium enterprises or any executive member falls under any subparagraph of Article 43 (1) or (3) (excluding subparagraph 1) and it is deemed likely to undermine the sound management of the investment company for the establishment of small and medium enterprises or the relevant small and medium enterprise establishment investment association, the Minister of SMEs and Startups may demand the imposition of any of the following reprimand on the relevant executive officer or employee of the investment company for the establishment of small and medium enterprises: <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | Dismissal or release from office; |
| 2. | Suspension of performing duties for a period of up to six months; |
| (2) | Any measure taken under paragraph (1) may be imposed concurrently with any measure taken under Article 43 (6). <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14273, May 29, 2016> |
| (3) | The Minister of SMEs and Startups may determine and publicly notify matters necessary for the standards, procedures, etc. for measures falling under each subparagraph of paragraph (1). <Newly Inserted by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| Article 42-2 (Standards for Soundness of Business Management) |
| (1) | Any investment company for the establishment of small and medium enterprise shall meet the standards for soundness of business management prescribed by Presidential Decree. |
| (2) | The Minister of SMEs and Startups may evaluate the business operations of investment companies for the establishment of small and medium enterprises to secure the soundness of business management of those companies. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | If it is deemed that an investment company for the establishment of small and medium enterprise fails to meet the standards under paragraph (1) or is not likely to maintain the soundness of business management, based on the results of evaluating the business operations under paragraph (2), the Minister of SMEs and Startups may require the investment company for the establishment of small and medium enterprise to take measures necessary for improving its business management, such as increasing its equity capital or placing limits on the distribution of dividends. <Amended by Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
| Article 43 (Revocation of Registration) |
| (1) | If an investment company for the establishment of small and medium enterprises falls under any of the following, the Minister of SMEs and Startups may revoke its registration or suspend support prescribed in this Act by up to three years as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, he or she shall revoke such registration: <Amended by Act No. 8635, Aug. 3, 2007; Act No. 12009, Aug. 6, 2013; Act No. 13158, Feb. 3, 2015; Act No. 13453, Jul. 31, 2015; Act No. 14839, Jul. 26, 2017> |
| 1. | When it has made a registration by fraud or other improper means; |
| 2. | When it has failed to meet the requirements for registration prescribed in Article 10 (2): Provided, That this shall not apply where an executive officer falls under any item of subparagraph 2 of the same paragraph (items (g) and (h) of the same subparagraph shall be applicable to the representative director only), and it appoints another person as executive officer in place of such executive officer within three months; |
| 3. | When it has discontinued an investment prescribed in Article 10 (1) 1, 2, 2-2, or 5 for any purpose specified by Ordinance of the Ministry of SMEs and Startups under Article 16 (1) for at least one year without any justifiable ground: Provided, That the same shall not apply where it has met all the requirements prescribed by Presidential Decree including the mandatory investment prescribed in Article 16 (1); |
| 4. | When conduct of business prescribed in Article 10 (1) has become difficult due to a ground attributable to the company; |
| 5. | When it has violated the duty of restrictions on acts prescribed in Article 15 (1) or violated the duty of disposal of non-business purpose real property prescribed in paragraph (2) of the same Article; |
| 6. | When its percentage of investment does not meet the percentage requirement prescribed in Article 16; |
| 7. | When it has made an overseas investment, in violation of Article 17; |
| 8. | When an executive member of the small and medium enterprise establishment investment association has used any properties of the association for his or her own benefit or benefit of the third party, in violation of Article 21 (2); |
| 10. | When it has failed to meet the requirements for reprimand prescribed in Article 42 (1) or for measures taken under Article 42-2 (3) or to take a measure imposed under paragraph (5) below; |
| (2) | In any of the following cases, the Minister of SMEs and Startups may revoke the registration of an accelerator or may suspend support prescribed in this Act to an accelerator for a period of not more than three years, as prescribed by Presidential Decree: Provided, That the registration must be revoked in cases falling under subparagraph 1: <Newly Inserted by Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017; Act No. 15927, Dec. 11, 2018> |
| 1. | If an accelerator registers itself as an accelerator by fraud or other improper means; |
| 2. | If an accelerator ceases to meet the criteria for registration prescribed in Article 19-2 (2): Provided, That this shall not apply to where an accelerator whose executive officer comes to fall under any of the items of Article 19-2 (2) 2 eliminates the cause within three months from the date such cause arises; |
| 3. | If the amount that an accelerator has invested in business starters in early stage prescribed in Article 19-3 does not meet standards; |
| 4. | If an accelerator does not provide specialized incubation service to business starters in early stage prescribed in Article 19-4; |
| 5. | If an accelerator receives, demands, or promises unjust benefits in connection with its service for searching and fostering under Article 19-8 (1). |
| (3) | If the small and medium enterprise establishment investment association falls under any of the following, the Minister of SMEs and Startups may revoke its registration or suspend support prescribed in this Act by up to three years, as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, the registration shall be revoked: <Amended by Act No. 9889, Dec. 30, 2009; Act No. 13158, Feb. 3, 2015; Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | When it has made a registration by fraud or other improper means; |
| 2. | When it has failed to meet the requirements for registration prescribed in Article 20 (6); |
| 3. | When it has violated the provisions of Article 21 (3) through (6); |
| 4. | When the registration of an investment company for the establishment of small and medium enterprises, acting as an executive member, has been revoked or cancelled; |
| 6. | Deleted. <by Act No. 8606, Aug. 3, 2007> |
| (4) | If any small and medium enterprise consulting company falls under any of the following, the Minister of SMEs and Startups may revoke its registration or suspend support prescribed in this Act by up to three years, as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, the registration shall be revoked: <Amended by Act No. 13158, Feb. 3, 2015; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | When it has made a registration by fraud or other improper means; |
| 2. | When it has failed to meet the requirements for registration prescribed in Article 31 (2): Provided, That this shall not apply where an executive officer falls under any of the items of subparagraph 2 of the same paragraph, and it appoints another person as an executive officer in place of such executive officer within six months; |
| 3. | When conduct of business prescribed in Article 31 (1) has become difficult due to a ground attributable to the company; |
| 4. | When it does not continue business operations for at least one year without any justifiable grounds; |
| 5. | Deleted. <by Act No. 8606, Aug. 3, 2007> |
| (5) | If an operator of a business incubator falls under any of the following, the Minister of SMEs and Startups may revoke its designation as an operator or suspend support prescribed in this Act by up to three years, as prescribed by Presidential Decree: Provided, That if it falls under subparagraph 1, the designation shall be revoked: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11483, Aug. 13, 2012; Act No. 11690, Mar. 23, 2013; Act No. 12009, Aug. 6, 2013; Act No. 13158, Feb. 3, 2015; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | When it has been designated by fraud or other improper means; |
| 2. | When it has used funds given for other purposes; |
| 3. | When it has used the facilities and premises of the business incubator for the purposes, other than support for establishment of a small and medium enterprise; |
| 4. | When the actually executed operation of the business incubator has failed to meet the standards prescribed by Ordinance of the Ministry of SMEs and Startups; |
| 5. | When it has failed to meet the requirements for designation prescribed in Article 6 (1). |
| (6) | If an investment company for the establishment of small and medium enterprises or an executive member of a small and medium enterprise establishment investment association falls under any subparagraph of paragraph (1) or (3) (excluding paragraphs (1) 1 and (3) 1), the Minister of SMEs and Startups may take any of the following measures: <Newly Inserted by Act No. 12009, Aug. 6, 2013; Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| 1. | Suspension of business in whole or in part for a period of up to six months; |
| 2. | Order to correct the violation; |
| (7) | If a new technology venture business entity falls under any subparagraph of paragraph (1) or (3), the Minister of SMEs and Startups may request the Financial Services Commission to take the measures specified in paragraph (6) of this Article and Article 42 (1) against the relevant new technology venture business entity or any of its executive officers or employees. <Newly Inserted by Act No. 13868, Jan. 27, 2016; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
When the Minister of SMEs and Startups intends to revoke the registration of an investment company for the establishment of a small and medium enterprise, an accelerator, a small and medium enterprise establishment investment association, or a small and medium enterprise consulting company or revoke the designation of the operator of a business incubator pursuant to Article 43, he or she shall hold a hearing. <Amended by Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
| Article 45 (Delegation and Entrustment of Authority) |
| (1) | Part of the authority of the Minister of SMEs and Startups under this Act may be delegated to the heads of its subordinate agencies or 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, as prescribed by Presidential Decree. <Amended by Act No. 12009, Aug. 6, 2013; Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may entrust any part of his or her business affairs under this Act to the heads of other administrative agencies, the Korea SMEs and Startups Agency established pursuant to Article 68 of the Small and Medium Enterprises Promotion Act, investment companies for the establishment of small and medium enterprises, small and medium enterprise consulting companies, or other institutions related to small and medium enterprise, as prescribed by Presidential Decree. <Amended by Act No. 9685, May 21, 2009; Act No. 14839, Jul. 26, 2017; Act No. 16172, Dec. 31, 2018> |
| Article 46 (Prohibition on Use of Similar Names) |
Any person who is not an investment company for the establishment of small and medium enterprise or a small and medium enterprise establishment investment association shall not use the name “investment company for the establishment of small and medium enterprise” or “small and medium enterprise establishment investment association”, or any other name similar thereto.
| Article 47 (Public Notice of Work Standards) |
The Minister of SMEs and Startups may determine and publicly notify standards for support for business startup so that an investment company for the establishment of a small and medium enterprise, and accelerator, a small and medium enterprise establishment investment association, a small and medium enterprise consulting company, or the operator of a business incubator can efficiently provide business starters with their services. <Amended by Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017>
| Article 47-2 (Special Cases concerning Public Equity Startup Investment Association) |
| (1) | Articles 11 through 16, 30 through 32, 34 through 43, 48, 50 through 53, 56, 58, 60 through 65, 80 through 83, subparagraphs 2, 3 and 6 through 8 of Article 85, Articles 86 through 95, 181 through 183, 184 (1), (2), (5) through (7), 185 through 187, 218 through 223, 229 through 249, 249-2 through 249-22, 250 through 253, and 415 through 425 of the Financial Investment Services and Capital Markets Act and the Act on Corporate Governance of Financial Companies (excluding the provisions of Articles 24 through 26) shall not apply to public equity startup investment associations (referring to business startup investment associations that do not fall under private equity collective investment organizations prescribed in Article 9 (19) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) and business startup investment companies (excluding business startup investment companies conducting their business after organizing only business startup investment associations that are not public equity startup investment associations). <Amended by Act No. 13448, Jul. 24, 2015; Act No. 13453, Jul. 31, 2015> |
| (2) | Where the Minister of SMEs and Startups registers public equity startup investment associations or business startup investment companies (excluding business startup investment companies conducting their business after organizing only business startup investment associations which are not public equity startup investment associations), he or she shall, in advance, consult with the Financial Services Commission. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 14839, Jul. 26, 2017> |
| (3) | If necessary for protection of public interests or benefits of members of public equity investment cooperative of business startup, the Financial Services Commission may order a public equity investment cooperative of business startup and business startup investment company (excluding business startup investment companies conducting their businesses after organizing only the business startup investment associations that are not public equity startup investment associations) to submit data concerning their businesses or to make report thereof, or have the Governor of the Financial Supervisory Service inspect their business. <Amended by Act No. 8852, Feb. 29, 2008> |
| (4) | Where public equity startup investment associations and business startup investment companies (excluding business startup investment companies conducting their business after organizing only a business startup investment association that is not a public equity startup investment association) have violated this Act or an order issued or a disposition made under this Act or have violated the Financial Investment Services and Capital Markets Act itself or an order issued or a disposition made under the same Act or have violated the Act on Corporate Governance of Financial Companies (excluding the provisions of Articles 24 through 26), the Financial Services Commission may request the Minister of SMEs and Startups to take measures falling under any of Articles 42 (1) and 43 (1), (3) and (6), and the Minister of SMEs and Startups shall comply with such request, except in exceptional circumstances. In such cases, the Minister of SMEs and Startups shall notify the Financial Services Commission of the details of the measures taken. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 12009, Aug. 6, 2013; Act No. 13453, Jul. 31, 2015; Act No. 14273, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
[This Article Newly Inserted by Act No. 8635, Aug. 3, 2007]
| Article 48 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won: <Amended by Act No. 13868, Jan. 27, 2016> |
| 1. | A person who divulges information acquired under Article 4-3 (5) or uses such information for any purpose other than the performance of his or her duties; |
| 2. | A large stockholder who perpetrates an act specified in any subparagraph of Article 15-2 (1) for his or her own interest, in violation of the afore-said paragraph. |
| (2) | Any person who does not dispose of stocks in violation of an order for disposition issued under Article 10 (4) shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won. |
[This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
| Article 49 (Joint Penalty Provisions) |
If the representative of a corporation or an agent or employee of, or any other person employed by, the corporation or individual commits an offense provided in Article 48 in conducting the business affairs of such corporation or individual, not only shall the offender be punished, but the corporation or individual shall be punished by a fine provided in the said Article: Provided, That this 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 offense. [This Article Newly Inserted by Act No. 12009, Aug. 6, 2013]
CHAPTER VII PENALTY PROVISIONS
| Article 50 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended by Act No. 14273, May 29, 2016> |
| 1. | He or she fails to register a change in accordance with the latter part of Article 10 (1), Article 19-2 (1) or the latter part of Article 20 (1) or makes a false statement in registering a change; |
| 2. | He or she fails to submit a report on a business transfer, etc. in accordance with Article 11 (2) or 19-9 or makes a false statement in such report; |
| 3. | He or she fails to make public disclosure of an investment company for the establishment of small and medium enterprises in accordance with Article 14 or to make public disclosure of an accelerator in accordance with Article 19-9, or makes a false statement in making such public disclosure; |
| 4. | He or she fails to submit a report on the settlement of accounts in accordance with Article 19 or 23 or submits a false report thereon; |
| 5. | He or she fails to submit a report in accordance with Article 40 (1), or files a false report, or rejects, hinders, or evades an inspection provided for in the said paragraph; |
| 6. | Deleted; <by Act No. 9584, Apr. 1, 2009> |
| 7. | He or she uses any similar name, in violation of Article 46. |
| (2) | The administrative fine prescribed in paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | through (5) Deleted. <By Act No. 9379, Jan. 30, 2009> |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 9 (4) of the Addenda shall enter into force on April 27, 2007, and the amended provisions of Article 35 (2) 2, 3, and 5 and Article 35 (3) 1 shall enter into force on September 28, 2007. Article 2 (Transitional Measures concerning Enforcement Date)
Until the amended provisions of Article 35 (2) 2, 3, and 5 and Article 35 (3) 1 enter into force pursuant to the proviso of Article 1 of the Addenda, the former corresponding provisions of Article 22 (2) 2, 3, and 5 and Article 22 (3) 1 shall remain in force. Article 3 (Applicability to Management and Operation of Assets of Small and Medium Enterprise Establishment Investment Association)
The amended provisions of Article 22 (3) shall begin to apply from the first small and medium enterprise establishment investment association organized after April 1, 2005. Article 4 (Transitional Measures concerning Small and Medium Enterprise Establishment Investment Association)
| (1) | As for the small and medium enterprise establishment investment association that completed the report on their organization before April 22, 2000, the previous provisions in force before the amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 6194) entered into force shall remain in force. |
| (2) | As for the business plans approved or on which an application for approval was filed before April 22, 2000, the previous provisions in force before the amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 6194) entered into force shall remain in force. |
Article 5 (Transitional Measures concerning Grounds for Disqualifications for Executive Officers of Investment Company for Establishment of Small and Medium Enterprises)
Where any incumbent executive officer of an investment company for the establishment of small and medium enterprise as of June 26, 2002 fell under any ground for disqualification under any provision of Article 10 (2) 2 (c) through (f) owing to any ground that had arisen before June 26, 2002, Article 10 (2) 2 (c) through (f) shall not become applicable to such executive officer until his or her term of office ends: Provided, that the previous provisions of Article 7 (2) 2 in force before the amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 6675) entered into force shall be applicable to the representative director, until his or her term of office ends. Article 6 (Transitional Measures concerning Grace Period for Performing Obligations to Invest)
An investment company for the establishment of small and medium enterprise or a small and medium enterprise establishment investment association that is under the grace period granted by the Administrator of the Small and Medium Business Administration for performing its obligations to invest as of March 27, 2007, which corresponds to the enforcement date of the partially amended Act of the Support for Small and Medium Enterprise Establishment Act (Act No. 8086), shall be deemed to have been granted the grace period for performing its obligations to invest pursuant to the amended provisions of Articles 16 (2) and 21 (3). Article 7 (General Transitional Measures concerning Dispositions)
The actions done by or against an administrative agency as of the date this Act entered into force under the previous provisions of the Act shall be deemed as actions done by or against an administrative agency pursuant to the corresponding provisions of this Act.
Article 8 (Transitional Measure concerning Penalty Provisions and Administrative Fines)
Acts committed before this Act entered into force shall be governed by the previous provisions in application of penalty provisions and provisions relevant to the administrative fines.
Article 9 Omitted.
Article 10 (Relationship to Other Statutes or Regulations)
A citation of the previous Support for Small and Medium Enterprise Establishment Act or any provision thereof by any other statutes or regulations in force as at the time this Act entered into force, if any, shall be deemed to be a citation of this Act or corresponding provisions hereof in lieu of the previous provisions, if such corresponding provisions are contained herein.
ADDENDA <Act No. 8466, May 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8606, Aug 3, 2007>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Effective Period) The amended provisions of Article 39-3 (2) shall be applicable only to a person who starts up a business within 15 years from the date this Act enters into force. <Amended by Act No. 10354, Jun. 8, 2010; Act No. 11483, Aug. 13, 2012; Act No. 13158, Feb. 3, 2015; Act No. 15421, Mar. 2, 2018> |
| (4) | (Transitional Measures concerning Article 22 of the Statistics Act) "Article 22 (1) of the Statistics Act" in the amended provisions of Article 39-2 shall be construed as "Article 17 (1) of the Statistics Act" until October 27, 2007. |
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8819, Dec. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, that ... <omitted> ... from among the statutes amended under Article 6 of the Addenda, the amendments to the statutes, which were promulgated before this Act enters into force, but the enforcement dates of which have yet to arrive, shall enter into force on their respective enforcement dates.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8974, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 8976, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 9160, Dec. 19, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009.
Article 2 Omitted.
ADDENDUM <Act No. 9379, Jan. 30, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9758, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA <Act No. 9770, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2010. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9774, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 19 Omitted.
ADDENDUM <Act No. 9889, Dec. 30, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10272, Apr. 15, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 10310, May 25, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 10331, May 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDUM <Act No. 10354, Jun. 8, 2010>
ADDENDUM <Act No. 10533, Apr. 4, 2011>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 3 shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10892, Jul. 21, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 11037, Aug. 4, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11483, Aug. 13, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 43 (4) 3 shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Exemption from Charges and Fees)
ADDENDUM <Act No. 11655, Mar. 22, 2013>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 12009, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 10, 14, 15-2, 16 (1) (limited to portions related to the amended provisions of Article 10 (1) 5), 21 (3) (limited to portions related to the amended provisions of Article 10 (1) 5), 42, 42-2, 43 (1) and (5), 47-2 (4), 48, and 49 shall enter into force six months after the date of its promulgation. Article 2 (Term of Validity of Special Provisions for State-Owned Property)
The amended provisions of Article 6 (2) through (4) shall be valid until December 31, 2022. Article 3 (Transitional Measures concerning Administrative Dispositions)
With respect to administrative dispositions for offenses committed before this Act enters into force, the previous provisions shall prevail.
ADDENDA <Act No. 12246, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 12248, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 25 Omitted.
ADDENDA <Act No. 12310, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetent Persons)
A person under adult guardianship or a person under limited guardianship under the amended provisions of Articles 10 (2) 2 (a) and 31 (2) 2 (a) shall be deemed to include those who are already declared incompetent or quasi-incompetent and are still in the state of such incompetence or quasi-incompetence under Article 2 of the Addenda to the Civil Act, as partially amended by Act No. 10429.
ADDENDA <Act No. 12738, Jun. 3, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 12960, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13089, Jan. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 13093, Jan. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 13158, Feb. 3, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 4-2 (2) and 4-4 shall enter into force three months after this Act is promulgated. Article 2 (Applicability to Exemption from Charges and Fees)
| (1) | The amended provisions of Article 39-3 (1) shall also apply where a business was started before this Act enters into force but five years have not passed: Provided, That it shall not apply to the charges and fees that were paid or the obligation to pay which has arisen before this Act enters into force. |
| (2) | The amended provisions of Article 39-3 (2) 12 shall also apply where a business was started before this Act enters into force but three years have not passed: Provided, That it shall not apply to the charges and fees that were paid or the obligation to pay which has arisen before this Act enters into force. |
ADDENDA <Act No. 13448, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 20 Omitted.
ADDENDA <Act No. 13453, Jul. 31, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDA <Act No. 13797, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 13868, Jan. 27, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 14273, May 29, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14480, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14532, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That, from among the statutes amended under Article 6 of the Addenda, the amendments to the statutes, which were promulgated before this Act enters into force, but the enforcement dates of which have yet to arrive, shall enter into force on their respective enforcement dates.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation: Provided, That among the statutes amended by Article 5 of the Addenda, the amendments to the statutes, which were promulgated before this Act enters into force but the enforcement dates of which have not arrived yet, shall enter into force on their respective enforcement dates. |
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15139, Nov. 28, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 15421, Mar. 2, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exemption from Charges and Fees)
The amended provisions of paragraph (2) of the Addenda to the Support for Small and Medium Enterprise Establishment Act, as partially amended by Act No. 8606, shall also apply to a person who started his or her business during the period from August 3, 2017 to the enforcement date of this Act.
ADDENDA <Act No. 15927, Dec. 11, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 43 (2) 2 shall enter into force on the date of the promulgation. Articles 2 (Applicability to Revoking Registration of Accelerators)
The amended provisions of the proviso of Article 43 (2) 2 shall also apply to where an administrative disposition is imposed on an accelerator whose executive officer comes to fall under any items of Article 19-2 (2) 2 before the same amended provisions enter into force.
ADDENDA <Act No. 16008, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Act No. 16101, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 16172, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 16173, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 19-2 (2) and 31 (2) shall enter into force three months after the date of its promulgation. Article 2 (Applicability to Exemption from Charges and Fees)
| (1) | The amended provisions of Article 39-3 (1) shall also apply to where seven years have not elapsed since the commencement of business before this Act enters into force: Provided, That the same shall not apply to charges and fees that were paid or the obligation to pay which has arisen before this Act enters into force. |
| (2) | The amended provisions of subparagraphs 13 through 16 of Article 39-3 (2) shall apply to where three years have not elapsed since the commencement of business before this Act enters into force: Provided, That the same shall not apply to charges and fees that were paid or the obligation to pay which has arisen before this Act enters into force. |
ADDENDA <Act No. 16272, Jan. 15, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 21 Omitted.
ADDENDA <Act No. 16399, Apr. 23, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Establishment of the Korea Institute of Startup and Entrepreneurship Development)
| (1) | The Korea Institute of Startup and Entrepreneurship Development which is an incorporated association established under Article 32 of the Civil Act as at the time this Act enters into force (hereinafter referred to as “Oldco”) may apply for approval from the Minister of SMEs and Startups so that the Korea Institute of Startup and Entrepreneurship Development incorporated under this Act (hereinafter referred to as “Newco”) may succeed to all properties, rights and obligations of Oldco by a resolution at a general meeting of Oldco. |
| (2) | Notwithstanding provisions regarding dissolution and liquidation under the Civil Act, Oldco that has obtained approval from the Minster of SMEs and Startups under paragraph (1) shall be deemed to have been dissolved upon establishment of Newco; and Newco shall succeed to all the business, rights, obligations, and properties that belonged to Oldco. |
| (3) | The value of properties inherited by Newco under paragraph (2) shall be their book values as of the date immediately preceding the date the incorporation of Newco is registered. |
| (4) | The titles recorded in the name of Oldco in the registry or other public registers as at the time Newco is established shall be deemed to be held by Newco. |
| (5) | The executive officers and employees of Oldco as at the time Newco is established shall be deemed to be those of Newco, and the term of office for the executive officers and employees shall be counted from their prior appointment date. |
| (6) | Any action brought by or against Oldco before the establishment of Newco shall be deemed to be an action brought by or against Newco. |
| (8) | Any reference to an organization dedicated to promoting business startup in other statutes or regulations as at the time Newco is established shall be deemed a reference to Newco in lieu of Oldco. |
Article 3 (Transitional Measures concerning Approval of Program Plans)
Approvals obtained by Oldco for its programs plans, budgets, and the like from the Ministry of SMEs and Startups as at the time Newco is established shall be deemed to be approvals obtained by Newco.