SPECIAL ACT ON THE PROMOTION OF GROWTH AND THE STRENGTHENING OF COMPETITIVENESS OF MIDDLE-STANDING ENTERPRISES
Act No. 12307, Jan. 21, 2014
Amended by Act No. 14272, May 29, 2016
Act No. 14366, Dec. 2, 2016
Act No. 14839, Jul. 26, 2017
Act No. 15923, Dec. 11, 2018
Act No. 16207, Jan. 8, 2019
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to form a virtuous circle for the enterprise ecosystem under which small and medium enterprises can smoothly grow into middle-standing enterprises; and middle-standing enterprises into specialized global enterprises, and to contribute to creating employment and the balanced development of the national economy, by prescribing matters necessary to promote the growth and enhance the competitiveness of middle-standing enterprises.
The definition of terms used in this Act are as follows: <Amended by Act No. 14272, May 29, 2016>
| 1. | The term "middle-standing enterprise" means an enterprise meeting all of the following requirements: |
| (c) | Any other enterprise, the ownership of shares, investment relationship, etc., of which meet the standards prescribed by Presidential Decree; |
| 2. | The term "prospective middle-standing enterprise" means a small or medium enterprise prescribed by Presidential Decree that has a high probability of growing into a middle-standing enterprise and has innovative capacity; |
| 3. | The term "middle-standing business entrepreneur" means a person who runs a middle-standing enterprise. |
| Article 3 (Duties of Central and Local Governments) |
| (1) | The central and local governments shall formulate and implement policies for creating a social and economic environment in which small and medium enterprises can grow smoothly into middle-standing enterprises and then into specialized enterprises having international competitiveness (hereinafter referred to as "policies for middle-standing enterprises"). |
| (2) | The central and local governments shall allocate budget, human resources, and other resources necessary to formulate and implement policies for middle-standing enterprises. |
| (3) | In formulating and implementing policies for middle-standing enterprises, the central and local governments shall ensure they do not reduce the support provided to small and medium enterprises, and shall strive to induce and promote voluntary investments in middle-standing enterprises. |
| (4) | The central and local governments may differentiate the subject matter of each policy for middle-standing enterprises taking the following matters into consideration: |
| 1. | Effects on the national economy, such as an increase of employment, export promotion, and linkage effects among industries; |
| 2. | Characteristics of the enterprises, such as their scale and growth rate, intensity of research and development, and international competitiveness; |
| 3. | Other matters regarding innovative capacity, growth potential, etc., of the enterprises. |
| Article 4 (Duties of Middle-Standing Business Entrepreneurs) |
| (1) | Middle-standing business entrepreneurs shall show an entrepreneurial spirit and endeavor to increase international competitiveness through ceaseless innovation; while striving to contribute to the national economic development and the promotion of public welfare by fulfilling corporate social responsibility to ensure transparent management, mutually beneficial cooperation with small and medium enterprises, and the like. |
| (2) | Middle-standing business entrepreneurs shall proactively cooperate with the Government and local governments in their implementation of policies for middle-standing enterprises. |
| Article 5 (Master Plans for Promotion of Growth of Middle-Standing Enterprises) |
| (1) | The Minister of Trade, Industry and Energy shall, in cooperation with central administrative agencies, formulate plans to promote the growth of middle-standing enterprises including the following matters (hereinafter referred to as "master plan") every five years to formulate and implement policies for middle-standing enterprises: <Amended by Act No. 14839, Jul. 26, 2017> |
| 1. | Basic direction-setting for policies for middle-standing enterprises; |
| 2. | Domestic and international trends related to middle-standing enterprises, the status and prospects of their growth; |
| 3. | Systems that hinder the growth of small and medium enterprises into middle-standing enterprises, and matters regarding the improvement of the policies; |
| 4. | Matters regarding the strengthening of innovative capacity in such fields as taxation, finance, technology development, human resources, management innovation, and internationalization to advance policies for middle-standing enterprises; |
| 5. | Matters regarding fair transactions and win-win cooperation, taking into consideration the characteristics of middle-standing enterprises, such as their scale and growth rate, and internationalization; |
| 6. | Other matters necessary to facilitate the growth of middle-standing enterprises. |
| (2) | The Minister of Trade, Industry and Energy may request the heads of central administrative agencies or local governments to provide data necessary to formulate a master plan. In such cases, the heads of central administrative agencies or local governments shall comply with such request, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Matters necessary for the procedures, etc., for the establishment of master plans shall be prescribed by Presidential Decree. |
| Article 6 (Implementation Plans for Promotion of Growth of Middle-Standing Enterprises) |
| (1) | The Minister of Trade, Industry and Energy shall, in consultation with the heads of central administrative agencies, formulate and execute an annual implementation plan to promote the growth of middle-standing enterprises (hereinafter referred to as "implementation plan") in accordance with the master plan. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Trade, Industry and Energy shall evaluate the performance and outcomes of the previous year's implementation plan and submit an annual report on the policies for middle-standing enterprises reflecting such evaluation results, to the National Assembly before the start of the regular session of the National Assembly. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Matters necessary for the establishment, execution, etc., of an implementation plan shall be prescribed by Presidential Decree. |
| Article 6-2 (Middle-Standing Enterprise Policy Committee) |
| (1) | To deliberate on and coordinate the following matters designed to promote the growth of middle-standing enterprises and to strengthen their competitiveness, a Middle-Standing Enterprise Policy Committee (hereinafter referred to as the "Committee") shall be established in the Ministry of Trade, Industry and Energy: |
| 1. | Matters regarding formulating master plans; |
| 2. | Matters regarding formulating and executing implementation plans; |
| 3. | Matters regarding mitigating burdens on growth in early stage of middle-standing enterprises under Article 8; |
| 4. | Matters regarding policies for middle-standing enterprises by category of business under Article 9; |
| 5. | Matters regarding policies for middle-standing enterprises by region under Article 10; |
| 6. | Matters regarding institutions and statutes or regulations related to promotion of the growth of middle-standing enterprises; |
| 7. | Matters regarding middle-standing enterprises’ social responsibilities to ensure, among other things, transparent management, job creation, and mutually beneficial cooperation with small and medium enterprises; |
| 8. | Other matters regarding promoting the growth of, and increasing competitiveness of, middle-standing enterprises, which are referred to a meeting by the Chairperson. |
| (2) | The Committee shall be comprised of not more than 25 members, including one Chairperson. |
| (3) | The Minister of Trade, Industry and Energy shall serve as the Chairperson and the following persons shall be the members of the Committee: |
| 1. | Vice ministers or vice-ministerial level public officials of relevant central administrative agencies prescribed by Presidential Decree; |
| 2. | Persons commissioned by the Minister of Trade, Industry and Energy from among those with abundant experience in and knowledge of middle-standing enterprises and the fields of economy, industry, etc.; |
| (4) | The Chairperson shall represent the Committee and have general supervision and control over its affairs. |
| (5) | The Committee may have a working committee to perform its affairs efficiently. |
| (6) | Other than matters provided in paragraphs (1) through (5), matters necessary for the composition and operation of the Committee and the working committee shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 16207, Jan. 8, 2019]
CHAPTER II PROMOTING GROWTH OF SMALL AND MEDIUM ENTERPRISES INTO MIDDLE-STANDING ENTERPRISES
| Article 7 (Strengthening of Support to Promote Growth of Small and Medium Enterprises) |
In operating programs for financial support to small and medium enterprises, such as technology development projects and funding, the central and local governments shall prepare institutions to ensure the promotion of voluntary growth from small and medium enterprises into middle-standing enterprises.
| Article 8 (Mitigation of Burden on Growth in Early Stage of Middle-Standing Enterprises) |
| (1) | To enable small and medium enterprises to grow smoothly into middle-standing enterprises, the central and local governments shall prepare institutional and procedural measures necessary to support middle-standing enterprises, taking into consideration the scale of enterprises such as sales, and the periods since they have become middle-standing enterprises, etc. |
| (2) | Necessary measures under paragraph (1) shall include the following: |
| 1. | Financial support and tax reduction and exemption which apply only to small and medium enterprises; |
| 2. | Support for market development, technology development, human resources, export, etc., provided only to small and medium enterprises; |
| 3. | Relaxation or exclusion of application of regulations newly applicable to those that have become middle-standing enterprises. |
| Article 9 (Policies for Middle-Standing Enterprises by Category of Business) |
| (1) | The Government may formulate and implement policies for middle-standing enterprises, taking into consideration special characteristics of each category of business, such as the status and prospects of technology. |
| (2) | Policies for middle-standing enterprises by category of business under paragraph (1), shall include the following: |
| 1. | Analysis of business activities of prospective middle-standing enterprises and middle-standing enterprises (hereinafter referred to as "middle-standing enterprises, etc.") of each category of business, including technologies, human resources, business management, and market; |
| 2. | Matters regarding strengthening innovative capacity of middle-standing enterprises, etc., tailored to the characteristics of each category of business, including technology development, nurturing human resources, and globalization; |
| 3. | Matters regarding the improvement of systems to promote management activities of middle-standing enterprises, etc., taking into consideration special characteristics of each category of business; |
| 4. | Matters regarding cooperation among middle-standing enterprises, etc., by category of business. |
| (3) | Other matters necessary for the formulation and implementation of policies for middle-standing enterprises by category of business, shall be prescribed by Presidential Decree. |
| Article 10 (Policies for Middle-Standing Enterprises by Region) |
| (1) | The Government may formulate and implement policies for middle-standing enterprises by region to strengthen the regional competitiveness and to contribute to the balanced development of regions. |
| (2) | Policies for middle-standing enterprises by region under paragraph (1), shall include the following: |
| 1. | Analysis of business activities of middle-standing enterprises, etc., of each region, including technologies, human resources, business management, and market; |
| 2. | Matters regarding strengthening innovative capacity of middle-standing enterprises, etc., tailored to the characteristics of each region, including technology development, nurturing human resources, and globalization; |
| 3. | Matters regarding cooperation among middle-standing enterprises, etc., by region; |
| 4. | Matters regarding the improvement of systems, including locations, taxation, and employment of middle-standing enterprises, etc., by region. |
| (3) | Other matters necessary for the formulation and implementation of policies for middle-standing enterprises by region, shall be prescribed by Presidential Decree. |
| Article 11 (Financial Support for Middle-Standing Enterprises) |
In order to facilitate the fund-raising conditions for middle-standing enterprises, the central and local governments may prepare policies including the following:
| 1. | Matters regarding support in providing loans to and making investments, etc., in middle-standing enterprises; |
| 2. | Matters regarding vitalization of direct financing, such as the issuance of corporate bonds; |
| 3. | Other matters necessary to create conditions for raising funds by middle-standing enterprises. |
| Article 12 (Special Cases concerning Tax Reduction and Exemption) |
| Article 13 (Special Cases concerning Fairness of Transactions Effected on Consignment and Commission) |
| Article 14 (Special Cases concerning Restriction on Participation of E-Learning Business Entities which are Large Enterprises) |
| Article 15 (Special Cases concerning Family Business Succession Support) |
| Article 15-2 (Special Cases concerning Prestigious Long-Lived Enterprises) |
[This Article Newly Inserted by Act No. 14366, Dec. 2, 2016]
| Article 16 (Special Cases concerning Ombudsman for Small and Medium Enterprises) |
The Ombudsman for small and medium enterprises under Article 22 of the Framework Act on Small and Medium Enterprises may perform the affairs related to the amendment of existing regulations that affects policies for middle-standing enterprises and to the resolution of difficulties facing middle-standing enterprises.
| Article 17 (Special Cases concerning Small and Medium Venture Business M&A Support Center) |
| Article 17-2 (Special Cases concerning Technology Protection Support) |
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
| Article 17-3 (Special Cases concerning Human Resources Support) |
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
| Article 17-4 (Special Cases concerning Projects for Supporting Development of Overseas Market) |
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
| Article 17-5 (Special cases concerning Insurance for Trade Receivables) |
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
| Article 17-6 (Special Cases concerning Use of Funds) |
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
| Article 17-7 (Special Cases concerning Business Conversion) |
| (1) | In consideration of the scale of business, such as sales, middle-standing business entrepreneurs prescribed by Presidential Decree shall be construed as small and medium entrepreneurs under Articles 8, 10 through 18, 18-2, 19, 20, 31, and 32 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises. In such cases, the “Minister of SMEs and Startups” shall be construed as the “Minister of Trade, Industry and Energy” and the “support center” in Article 32 of that Act shall be construed as the “specialized institutions under Article 23 of this Act, which are entrusted with relevant affairs as prescribed by Presidential Decree.” |
[This Article Newly Inserted by Act No. 16207, Jan. 8, 2019]
CHAPTER III STRENGTHENING INNOVATIVE CAPACITY OF MIDDLE-STANDING ENTERPRISES, ETC.
| Article 18 (Nurturing World-Class Prospective Enterprises) |
| (1) | The Government may select middle-standing enterprises, etc., which have significant effect on the national economy, such as stability of employment and increase in exports; or have outstanding innovative capacity and growth potential; and implement projects for supporting the following matters: |
| 1. | Support for formulating strategies for the promotion of growth into promising global enterprises and their mid- and long-term development; |
| 2. | Dispatch and provision of experts by field, such as technology, human resources, finance, and business management; |
| 3. | Provision of information to promote growth into promising global enterprises; |
| 4. | Provision of guidance and counseling on strategies for overseas expansion; |
| 5. | Other matters necessary to promote growth into promising global enterprises. |
| (2) | Matters necessary for procedures for the selection of middle-standing enterprises etc., and the application therefor, methods of operation, etc., under paragraph (1), shall be prescribed by Presidential Decree. |
| Article 19 (Support for Technology Innovation of Middle-Standing Enterprises) |
| (1) | In order to enhance technological competence of middle-standing enterprises, etc., the Government may implement projects for supporting the following: |
| 1. | Development of technologies aimed at entry into overseas markets; |
| 2. | Development of technologies for strengthening mid- and long-term competitiveness, creation of new business, and solution of technical difficulties; |
| 3. | Support to middle-standing enterprises, etc., by government-funded research institutes, specialized production technology research institutes, etc., for their development of technologies; |
| 4. | Joint research and technology development through industry-academia-research collaboration; |
| 5. | Facilitation of exchanges of information and technologies among enterprises, including middle-standing enterprises, etc.; |
| 6. | Matters regarding the creation and utilization of intellectual property rights, coping with disputes with regard thereto; |
| 7. | Other matters necessary to enhance technological competence of middle-standing enterprises, etc. |
| (2) | Matters necessary for the procedures and methods of operation, etc., of the support projects under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 20 (Support for Securing Human Resources of Middle-Standing Enterprises) |
| (1) | In order for middle-standing enterprises, etc., to secure and attract human resources, the Government may implement projects for supporting the following: |
| 1. | Public relations campaigns for middle-standing enterprises, etc., targeted at perspective employees and job seekers; |
| 2. | Intermediation of employment to middle-standing enterprises, etc., targeted at domestic or overseas human resources; |
| 3. | Long-term service of core human resources belonging to middle-class enterprises, etc., and boost of their morale; |
| 4. | Strengthening the capability of employees, such as in-house education of middle-standing enterprises, etc.; |
| 5. | Other matters necessary to secure and attract human resources for middle-standing enterprises, etc. |
| (2) | Matters necessary for the procedures, methods of operation, etc., of the support projects under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 21 (Promotion of Internationalization of Middle-Standing Enterprises) |
| (1) | In order to promote internationalization of middle-standing enterprises, etc., the Government may implement projects for supporting the following: |
| 1. | Development of international brands of export companies and products; |
| 2. | Consulting on overseas expansion strategy; |
| 3. | Establishment of cooperative relations with foreign enterprises; |
| 4. | Support for overseas public relations and inducing investment from overseas; |
| 5. | Other matters necessary to strengthen competitiveness through internationalization. |
| (2) | Matters necessary for the procedures, methods of operation, etc., of support projects under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 22 (Support for Management Innovation of Middle-Standing Enterprises) |
| (1) | In order to promote management innovation of middle-standing enterprises, etc., the Government may implement projects for supporting the following: |
| 1. | Development and dissemination of management innovation models of middle-standing enterprises, etc.; |
| 2. | Matters required for the instillation of entrepreneurial spirit in prospective middle-standing business entrepreneurs and middle-standing business entrepreneurs; |
| 3. | Introduction and dispersion of corporate social responsibility and sustainable business management; |
| 4. | Other matters necessary to promote management innovation of middle-standing enterprises, etc. |
| (2) | Matters necessary for the procedures, methods of operation, etc., of support projects under paragraph (1) shall be prescribed by Presidential Decree. |
CHAPTER IV CREATING FOUNDATIONS FOR STRENGTHENING COMPETITIVENESS OF MIDDLE-STANDING ENTERPRISES
| Article 23 (Specialized Institutions) |
| (1) | The Government shall have specialized institutions for the efficient and systematic promotion of policies for middle-standing enterprises and to examine and research policies related to middle-standing enterprises. <Amended by Act No. 14272, May 29, 2016> |
| (3) | Specialized institutions may perform the following: <Amended by Act No. 14272, May 29, 2016> |
| 1. | Projects for the examination of, and research into domestic and overseas policies and systems for the formulation and implementation of policies for middle-standing enterprises; |
| 2. | Projects for the collection, sharing, and utilization of information concerning technologies, management, human resources, export, etc., of middle-standing enterprises; |
| 3. | Projects for the selection of, and support for, promising global enterprises; |
| 4. | Projects for supporting the strengthening of innovative capacity of middle-standing enterprises, such as the development of technologies, training of human resources, and internationalization; |
| 5. | Other projects necessary to promote the growth of middle-standing enterprises and to strengthen their competitiveness. |
| (4) | The Government may fully or partially contribute or subsidize the expenses incurred in performing the projects referred to in the subparagraphs of paragraph (3). |
| Article 24 (Fact-Finding Surveys and Statistical Research on Middle-Standing Enterprises) |
| (1) | In order to efficiently formulate and implement policies for middle-standing enterprises, the Minister of Trade, Industry and Energy may regularly conduct an annual fact-finding survey on the status of activities, funds, human resources, management, obstacles to growth, status of utilization of the government support, etc., of middle-standing enterprises, and examine, prepare, analyze, and manage the statistical data. In such cases, except as otherwise provided for in this Act, the Statistics Act shall apply mutatis mutandis to the preparation and management of statistical data. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | If necessary for a fact-finding survey or statistical research, the Minister of Trade, Industry and Energy may request the heads of central administrative agencies, local governments, or public institutions to provide related data. In such cases, the heads of central administrative agencies, etc., upon receipt of such request, shall comply therewith, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017> |
| (3) | Matters necessary for the methods, procedures, etc., for the fact-finding survey and statistical research under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 25 (Verification of Middle-Standing Enterprises and Issuance of Certificates Thereof) |
| (1) | An enterprise which intends to be verified as a middle-standing enterprise (hereinafter referred to as "applicant enterprise") shall apply for verification with the Minister of Trade, Industry and Energy as to whether it qualifies as one. <Newly Inserted by Act No. 15923, Dec. 11, 2018> |
| (2) | Upon receipt of an application for verification under paragraph (1), the Minister of Trade, Industry and Energy shall verify whether the applicant enterprise meets the qualifications for a middle-standing enterprise and notify the enterprise of the results of verification. In such cases, where the applicant enterprise qualifies as a middle-standing enterprise, the Minister shall issue a certificate to it. <Amended by Act No. 15923, Dec. 11, 2018> |
| (3) | An applicant enterprise shall submit, to the Minister of Trade, Industry and Energy, evidentiary materials through which it can be ascertained that the company falls under a middle-standing enterprise. <Amended by Act No. 14839, Jul. 26, 2017; Act No. 15923, Dec. 11, 2018> |
| (4) | Where deemed necessary to verify whether a company falls under a middle-standing enterprise under paragraph (2), the Minister of Trade, Industry and Energy may request the heads of related central administrative agencies, such as the Financial Services Commission and the National Tax Service, the heads of local governments, heads of public institutions, etc., to provide data necessary for the verification thereof. <Amended by Act No. 14839, Jul. 26, 2017; Act No. 15923, Dec. 11, 2018> |
| (5) | When the Minister of Trade, Industry and Energy requests taxation information from the Commissioner of the National Tax Service under paragraph (4), he or she shall specify the following matters in writing: Provided, That this shall be limited to where the taxpayer's consent is obtained: <Amended by Act No. 14839, Jul. 26, 2017; Act No. 15923, Dec. 11, 2018> |
| 1. | The number of regular workers; |
| 3. | Paid-in capital, and capital surplus; |
| 4. | Equity capital (total assets - total debt); |
| 6. | Current status of shareholders and current status of investments in other corporations. |
| (6) | A person who is requested to submit data under paragraph (4) or (5) shall comply with the request of the Minister of Trade, Industry and Energy, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017; Act No. 15923, Dec. 11, 2018> |
| Article 25-2 (Revocation of Verification of Middle-Standing Enterprises) |
| (1) | Where a middle-standing enterprise falls under any of the following, the Minister of Trade, Industry and Energy may revoke the verification thereof under Article 25 (2): Provided, That in cases falling under subparagraph 1, such verification shall be revoked: |
| 1. | Where the enterprise is verified as a middle-standing enterprise by fraud or other improper means; |
| 2. | Where the enterprise fails to meet the requirements under subparagraph 1 of Article 2. |
| (2) | Where the Minister of Trade, Industry and Energy intends to revoke the verification as a middle-standing enterprise under paragraph (1), it shall hold a hearing. |
[This Article Newly Inserted by Act No. 15923, Dec. 11, 2018]
| Article 26 (Establishment and Operation of Integrated Middle-Standing Enterprise Information System) |
| (1) | To systemically maintain and manage information, data. etc., necessary to formulate and implement policies for middle-standing enterprises and to grow middle-standing enterprises, the Minister of Trade, Industry and Energy may construct and operate an integrated middle-standing enterprise information system (hereinafter referred to as "information system"). <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | The Minister of Trade, Industry and Energy may request the heads of central administrative agencies, local governments, or public institutions, to provide the following data or information, where necessary to establish and operate the information system; and may retain and use such data or information for an intended purpose. In such cases, the heads of the central administrative agencies, etc., requested to provide data or information shall comply with such request of the Minister of Trade, Industry and Energy, unless there is a compelling reason not to do so: <Amended by Act No. 14839, Jul. 26, 2017; Act No. 16207, Jan. 8, 2019> |
| (a) | Business registration number; |
| (d) | Total assets and liabilities; |
| (e) | Net profits and operating profits; |
| 2. | Other data or information the Minister of Trade, Industry and Energy deems necessary to establish and operate the information system. |
| (3) | The Minister of Trade, Industry and Energy may provide data or information in the information system to the heads of central administrative agencies, local governments, or public institutions, etc. which implement support programs for middle-standing enterprises. <Newly Inserted by Act No. 16207, Jan. 8, 2019> |
| (4) | The Minister of Trade, Industry and Energy may fully or partially subsidize the expenses incurred in operating the information system. <Amended by Act No. 14839, Jul. 26, 2017; Act No. 16207, Jan. 8, 2019> |
| Article 27 (Establishment of Association of High Potential Enterprises of Korea) |
| (1) | Middle-standing business entrepreneurs may establish an Association of High Potential Enterprises of Korea (hereinafter referred to as the "Association") to promote the sound development of middle-standing enterprises and the mutual benefit of middle-standing business entrepreneurs. |
| (2) | The Association may perform the following affairs: <Amended by Act No. 14272, May 29, 2016> |
| 1. | Exchanges and cooperation among middle-standing business entrepreneurs, and mutual-aid business; |
| 2. | Provision of information on policies and the support system for middle-standing enterprises, and on technologies and management trend; |
| 3. | Surveys and research, fact-finding surveys, and statistical research on middle-standing enterprises; |
| 4. | Identification of difficulties of middle-standing enterprises, and policy recommendation pertaining to policies for middle-standing enterprises; |
| 5. | Affairs related to exchanges and cooperation with overseas enterprises and related organizations; |
| 6. | Enhancement of the awareness of middle-standing enterprises and issuance of various types of publications; |
| 7. | Business entrusted by central administrative agencies, specialized institutions, etc., to formulate and implement policies for middle-standing enterprises; |
| 8. | Other matters prescribed by its articles of association, such as the promotion of welfare of its members and profit-making business pertaining to the purpose of the Association. |
| (3) | The Association shall be a juristic person. |
| (4) | The Association shall be established upon registration of association at the seat of its main office. |
| (5) | Middle-standing business entrepreneurs may join the Association in the manner prescribed by the articles of association of the Association. |
| (6) | Matters necessary for the establishment, operation, articles of association, supervision, etc., of the Association shall be prescribed by Presidential Decree. |
| (7) | Except as otherwise provided for in this Act, the provisions of the Civil Act, pertaining to incorporated associations, shall apply mutatis mutandis to the Association. |
| Article 28 (Improvement of Awareness) |
The Minister of Trade, Industry and Energy may implement the following projects to enhance public awareness of middle-standing enterprises, to promote growth of middle-standing enterprises, and to strengthen their competitiveness: <Amended by Act No. 14839, Jul. 26, 2017>
| 1. | Awarding prizes to outstanding middle-standing business entrepreneurs and persons who have contributed to the strengthening of competitiveness of middle-standing enterprises; |
| 2. | Public relations campaigns concerning the roles and contribution of middle-standing enterprises to the development of the national economy; |
| 3. | Deleted; <by Act No. 16207, Jan. 8, 2019> |
| 4. | Other projects necessary to enhance the awareness of middle-standing enterprises. |
| Article 28-2 (Middle-Standing Enterprise Week) |
| (1) | To build a sense of pride among middle-standing business entrepreneurs and to raise public awareness about the importance of middle-standing enterprises, one week each year shall be designated as Middle-Standing Enterprise Week as prescribed by Presidential Decree. |
| (2) | The State and local governments may host celebratory events that adequately reflect the intent of the Middle-Standing Enterprise Week. |
| (3) | Matters necessary for hosting events for the Middle-Standing Enterprise Week shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 16207, Jan. 8, 2019]
CHAPTER V SUPPLEMENTARY PROVISIONS AND PENALTY PROVISIONS
| Article 29 (Delegation or Entrustment of Authority or Business Affairs) |
| (1) | Part of the authority of the Minister of Trade, Industry and Energy bestowed under this Act, may be delegated to the heads of local governments, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017> |
| (2) | Part of the affairs of the Minister of Trade, Industry and Energy under this Act, may be entrusted to specialized institutions, the Association, or institutions or organizations related to the formulation and implementation of policies for middle-standing enterprises. <Amended by Act No. 14272, May 29, 2016; Act No. 14839, Jul. 26, 2017> |
| Article 30 (Legal Fiction as Public Official in Application of Penalty Provisions) |
Executive officers or employees of an institution or organization engaged in the affairs entrusted by the Minister of Trade, Industry and Energy under Article 29, shall be deemed public officials for the purposes of penalty provisions of Articles 129 through 132 of the Criminal Act. <Amended by Act No. 14839, Jul. 26, 2017>
| Article 31 (Administrative Fines) |
| (1) | A person who is not a small and medium business entrepreneur and who participates in policies for middle-standing enterprises by submitting materials referred to in Article 25 (3) by fraud shall be subject to an administrative fine of not exceeding five million won. <Amended by Act No. 15923, Dec. 11, 2018> |
| (2) | The administrative fines under paragraph (1) shall be imposed and collected by the heads of the agencies that implement policies for middle-standing enterprises, as prescribed by the Presidential Decree. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Term of Validity)
This Act shall remain in force for 10 years from the date it enters into force.
Article 3 (Transitional Measures concerning Verification of Middle-Standing Enterprises)
Article 4 (Transitional Measures concerning Establishment of Association of High Potential Enterprises of Korea)
| (1) | The Association of High Potential Enterprises of Korea, which is an associations incorporated under Article 32 of the Civil Act, may file an application with the Administrator of the Small and Medium Business Administration to allow the Association of High Potential Enterprises of Korea established under this Act, to succeed to all its rights and obligations by resolution of its general assembly. |
| (3) | The value of the property to be succeeded to by the Association of High Potential Enterprises of Korea incorporated under paragraph (2), shall be the book value as of the day immediately preceding the registration of its establishment. |
| (4) | The title of the Association of High Potential Enterprises of Korea, which is an incorporated association, indicated on registers or other public records as at the time this Act enters into force, shall be deemed the title of the Association of High Potential Enterprises of Korea incorporated under this Act. |
| (5) | Any act done by the Association of High Potential Enterprises of Korea, which is an association incorporated under Article 32 of the Civil Act, before this Act enters into force, shall be deemed an act done by the Association of High Potential Enterprises of Korea incorporated under this Act. |
Articles 5 Omitted.
Article 6 (Relationship to Other Statutes or Regulations)
Where any other statute or regulation cites any of the previous provisions of the Industrial Development Act, as at the time this Act enters into force, it shall be deemed to cite the relevant provisions of this Act, if they exist, in lieu of the previous provisions.
ADDENDUM <Act No. 14272, May 29, 2016>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 14366, Dec. 2, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended by Article 5 of the Addenda, amendments to the Acts, which were promulgated before this Act enters into force but the enforcement dates of which have not arrived yet, shall enter into force on the enforcement dates of the respective Acts. Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15923, Dec. 11, 2018>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 16207, Jan. 8, 2019>
This Act shall enter into force six months after the date of its promulgation.