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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. 8606, Aug. 3, 2007

Act No. 8635, 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

Act No. 16524, Aug. 20, 2019

Act No. 16818, Dec. 10, 2019

Act No. 16998, Feb. 11, 2020

Act No. 17003, Feb. 11, 2020

Act No. 17171, Mar. 31, 2020

Act No. 17244, Apr. 7, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
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.
 Article 2 (Definitions)
The terms used in this Act are defined as follows: <Amended on Jan. 27, 2016; May 29, 2016; Apr. 7, 2020>
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;
3. The term "small and medium enterprise" means a small and medium enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises;
4. Deleted; <Feb. 11, 2020>
4-2. Deleted; <Feb. 11, 2020>
5. Deleted; <Feb. 11, 2020>
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 on Apr. 4, 2011; May 29, 2016; Dec. 11, 2018>
1. Deleted; <Dec. 11, 2018>
2. Deleted; <Dec. 11, 2018>
3. Deleted. <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 on Dec. 11, 2018>
 Article 4 (Establishment of Plan to Support Business Startup)
(1) The Minister of SMEs and Startups shall establish a three-year-plan to support starting up a small and medium enterprise for the purposes of facilitating business startup and helping business starters' growth and development, subject to deliberation by the Small and Medium Enterprises Policy Deliberative Council under Article 20-4 of the Framework Act on Small and Medium Enterprises, and publicly notify the plan. <Amended on Jul. 26, 2017; Feb. 11, 2020>
(2) The Minister of SMEs and Startups shall establish and implement an annual action plan to facilitate business startup and help business starters' growth and development in accordance with a plan to support business startup prescribed in paragraph (1). <Newly Inserted on Feb. 11, 2020>
(3) 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. <Amended on Feb. 11, 2020>
(4) 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) and an action plan referred to in paragraph (2). <Newly Inserted on Jun. 8, 2010; Jul. 26, 2017; Feb. 11, 2020>
 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 on Aug. 6, 2013; Feb. 3, 2015; 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 on Feb. 3, 2015; 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 on Feb. 3, 2015; 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 on Feb. 3, 2015>
[This Article Newly Inserted on Jun. 8, 2010]
[Title Amended on Aug. 6, 2013]
 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 on 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 on 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 on 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 on 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 on Jul. 26, 2017>
1. Criminal record materials and investigation record materials under Article 5-2 (2) of the Act on the Lapse of Criminal Sentences (limited to criminal record materials and investigation record materials related to business management);
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 on Jul. 26, 2017>
[This Article Wholly Amended on 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 on 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 on Jul. 26, 2017>
[This Article Newly Inserted on 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 on 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 on Apr. 23, 2019]
 Article 4-7 (Vitalization of Technology-Based Startup)
(1) The Government shall formulate and promote policies necessary to vitalize technology-based startup and to strengthen the technological innovation capabilities of small and medium enterprises based on creative ideas, new technologies, etc.
(2) The Minister of SMEs and Startups may designate an institution dedicated to overall business affairs related to the formulation and promotion of policies under paragraph (1) for each region.
(3) A dedicated institution designated under paragraph (2) shall conduct the following business affairs:
1. Identifying and operating tasks for revitalizing technology-based business startup in the relevant region and promoting entrepreneurship;
2. Providing support for strengthening the technological innovation capabilities of small and medium enterprises in the relevant region, and connecting and supervising the relevant institutions and programs for such support;
3. Providing support for revitalizing an investment ecosystem of small and medium enterprises in the relevant region, and connecting and supervising the relevant institutions and programs for such support;
4. Providing consultation on law, finance, employment, patent, etc. related to aspiring business starters, business starters, or small and medium enterprises in the relevant region and support for administrative work related thereto;
5. Providing support for boosting youth employment using creative ideas, new technologies, etc., and operating educational programs;
6. Other administrative work prescribed by Presidential Decree.
(4) The Government and local governments may provide contributions or subsidies to cover all or part of the expenses incurred in operating a dedicated institution referred to in paragraph (2) and implementing projects within budgetary limits.
(5) Matters necessary for the designation, revocation of designation, and operation of dedicated institutions under paragraph (2) shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Aug. 20, 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 5-2 (Preferential Purchase by Public Institutions)
(1) The head of a public institution shall facilitate the purchase of products directly produced, services provided, and construction works performed, by business starters (hereafter in this Article referred to as "startups' products").
(2) A separate purchase plan for startups' products shall be included in a purchase plan prepared by the head of a public institution pursuant to Article 5 (1) of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets.
(3) A purchase plan for startups' products referred to in paragraph (2) shall include a purchase goal of at least the ratio prescribed by Presidential Decree, and the head of a public institution shall endeavor to purchase startups' products at a ratio equal to or higher than the ratio prescribed in such purchase plan.
(4) With respect to matters deemed to require improvement after checking a purchase plan under paragraph (3), the Minister of SMEs and Startups may recommend the head of a relevant public institution to improve such matters. In such cases, the head of the public institution shall reflect such recommendation in its purchase plan except under special circumstances.
(5) With respect to matters necessary for the notification of purchase plans under paragraphs (2) through (4) and purchase records for examining the implementation of such purchase plans, Article 5 (5) of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets shall apply mutatis mutandis.
[This Article Newly Inserted on Apr. 7, 2020]
 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 on Feb. 29, 2008; Mar. 23, 2013; 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 on 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 on 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 on 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 on 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 on 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 on 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 on 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 on 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 on Jul. 26, 2017>
 Article 9 Deleted. <Feb. 11, 2020>
 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 on 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 on Jan. 27, 2016]
 Article 9-3 Deleted. <Feb. 11, 2020>
 Article 9-4 (Confirmation of Startups)
(1) A person who intends to participate in preferential purchase by a public institution pursuant to Article 5-2 may file an application with the Minister of SMEs and Startups for confirmation as to whether his or her enterprise is a business starter.
(2) When the Minister of SMEs and Startups in receipt of an application pursuant to paragraph (1) examines such application and finds that the relevant enterprise is a business starter, he or she shall confirm such fact (hereinafter referred to as “confirmation of a startup”). In such cases, the Minister of SMEs and Startups may issue a certificate specifying a validity period of up to three years as prescribed by Presidential Decree.
(3) A person who is subject to revocation of confirmation of a startup as he or she falls under Article 9-5 (1) 1 shall not file an application under paragraph (1) within a period of up to one year as prescribed by Presidential Decree.
(4) Other matters necessary for procedures for confirmation of a startup, the issuance of evidential documents, etc. shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Apr. 7, 2020]
 Article 9-5 (Revocation of Confirmation of Startups)
(1) Where a person who has obtained confirmation of a startup falls under any of the following cases, the Minister of SMEs and Startups may revoke such confirmation: Provided, That in cases falling under subparagraph 1, confirmation of a startup shall be revoked:
1. Where he or she receives confirmation of a startup by fraud or other improper means;
2. Where he or she ceases to meet the requirements for a business starter under subparagraph 2 of Article 2;
3. Where he or she ceases to conduct business activities due to business closure;
4. Where he or she refuses reporting and inspection under paragragph (2) without good reason.
(2) If necessary for checking whether a person who has obtained confirmation of a startup is subject to revocation of such confirmation on any ground prescribed in paragraph (1), the Minister of SMEs and Startups may require the relevant enterprise to submit or report related materials or may order public officials under his or her control to access its place of business, office, etc. and inspect related matters.
(3) Any public official who conducts an inspection under paragraph (2) shall carry a certificate indicating his or her authority, and show such certificate to interested persons.
[This Article Newly Inserted on Apr. 7, 2020]
CHAPTER II Deleted.
 Article 10 Deleted. <Feb. 11, 2020>
 Article 11 Deleted. <Feb. 11, 2020>
 Article 12 Deleted. <Feb. 11, 2020>
 Article 13 Deleted. <Feb. 11, 2020>
 Article 14 Deleted. <Feb. 11, 2020>
 Article 15 Deleted. <Feb. 11, 2020>
 Article 15-2 Deleted. <Feb. 11, 2020>
 Article 16 Deleted. <Feb. 11, 2020>
 Article 17 Deleted. <Feb. 11, 2020>
 Article 18 Deleted. <Feb. 11, 2020>
 Article 19 Deleted. <Feb. 11, 2020>
CHAPTER II-2 STARTUP PLANNER
 Article 19-2 Deleted. <Feb. 11, 2020>
 Article 19-3 Deleted. <Feb. 11, 2020>
 Article 19-4 Deleted. <Feb. 11, 2020>
 Article 19-5 Deleted. <Feb. 11, 2020>
 Article 19-6 (Assistance to Business Incubators in Conversion into Startup Planners)
Where a business incubator prescribed in Article 6 (1) is converted into a startup planner defined in subparagraph 9 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "startup planner"), the Minister of SMEs and Startups may fully or partially subsidize necessary expenses. <Amended on Jul. 26, 2017; Feb. 11, 2020>
[This Article Newly Inserted on May 29, 2016]
[Title Amended on Feb. 11, 2020]
 Article 19-7 Deleted. <Feb. 11, 2020>
 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 startup planners for the growth and development of business starters. <Amended on Jul. 26, 2017; Feb. 11, 2020>
(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 relevant project (hereafter in this Chapter referred to as "project operator") from among startup planners: <Amended on Jul. 26, 2017; Feb. 11, 2020>
2. The Korea Venture Investment Corporation under Article 66 of the Venture Investment Promotion Act;
3. An investment company for the establishment of small and medium enterprises prescribed in subparagraph 10 of Article 2 of the Venture Investment Promotion Act;
4. A large company (referring to an enterprise that is not a small and medium enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises);
5. Other persons who meet the standards determined by the Minister of SMEs and Startups.
(3) Where a person who has been selected as a project operator under paragraph (2) falls under any of the following cases, the Minister of SMEs and Startups may revoke the selection as a project operator: Provided, That in cases falling under subparagraph 1, the selection shall be revoked: <Newly Inserted on Dec. 10, 2019>
1. Where he or she is selected by fraud or other improper means;
2. Where he or she ceases to meet the detailed criteria for selection under paragraph (5);
3. When he or she has no records of search and support for business starters for at least one year without good reason;
4. Where he or she voluntarily desires to have its selection revoked;
5. Where he or she is unable to perform the relevant project for any other reason.
(4) 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 on Jul. 26, 2017; Dec. 10, 2019>
(5) Detailed criteria for the selection of a project operator and the revocation thereof under paragraphs (2) and (3) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017; Dec. 10, 2019>
[This Article Newly Inserted on May 29, 2016]
 Article 19-9 Deleted. <Feb. 11, 2020>
CHAPTER III Deleted.
 Article 20 Deleted. <Feb. 11, 2020>
 Article 21 Deleted. <Feb. 11, 2020>
 Article 22 Deleted. <Feb. 11, 2020>
 Article 23 Deleted. <Feb. 11, 2020>
 Article 24 Deleted. <Feb. 11, 2020>
 Article 24-2 Deleted. <Feb. 11, 2020>
 Article 25 Deleted. <Feb. 11, 2020>
 Article 26 Deleted. <Feb. 11, 2020>
 Article 27 Deleted. <Feb. 11, 2020>
 Article 28 Deleted. <Feb. 11, 2020>
 Article 29 Deleted. <Feb. 11, 2020>
 Article 30 Deleted. <Feb. 11, 2020>
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 on Feb. 29, 2008; Jun. 8, 2010; Mar. 23, 2013; 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 on Jan. 21, 2014; 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;
(b) 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: The total amount of contributions paid by its members 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 on 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 on Aug. 6, 2013; Nov. 28, 2017>
(2) In granting approval for a business plan pursuant to paragraph (1), the head of a Si/Gun/Gu shall ensure that the building area of the relevant factory conforms to the standard factory area ratio prescribed in Article 8 of the Industrial Cluster Development and Factory Establishment Act.
(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 on 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 on Dec. 27, 2007; Mar. 21, 2008; Jan. 30, 2009; Jun. 9, 2009; Apr. 15, 2010; May 31, 2010; Jun. 8, 2010; Apr. 14, 2011; Jul. 21, 2011; Jan. 14, 2014; Jan. 19, 2016; Dec. 27, 2016>
1. Approval for the establishment of a factory, etc. prescribed in Article 13 (1) of the Industrial Cluster Development and Factory Establishment Act;
2. Permission for timbering, etc. prescribed in Article 14 of the Erosion Control Work Act or cancellation of the designation of an erosion control area prescribed in Article 20 of the same Act;
3. Permission for occupancy and use of public waters prescribed in Article 8 of the Public Waters Management and Reclamation Act, authorization for an implementation plan for occupancy or use of public waters prescribed in Article 17 of the same Act, license for reclamation of public waters prescribed in Article 28 of the same Act;
4. Deleted; <Apr. 15, 2010>
5. Permission for river construction works prescribed in Article 30 of the River Act or permission for occupancy prescribed in Article 33 of the same Act;
6. Permission for or reporting on conversion of a mountainous district prescribed in Articles 14 and 15 of the Mountainous Districts Management Act, permission for or reporting on temporary use of a mountainous district prescribed in Article 15-2 of the same Act, and approval for alteration of the purpose of use of a parcel of land converted from a mountainous district prescribed in Article 21 of the same Act, or permission for or reporting on timbering standing trees, etc. prescribed in Article 36 (1) and (4) of the Creation and Management of Forest Resources Act;
7. Permission for opening a private road prescribed in Article 4 of the Private Road Act;
8. Permission for development activities prescribed in Article 56 (1) of the National Land Planning and Utilization Act, designation of an executor of a City/Gun planning facility project prescribed in Article 86 of the same Act, or preparation of and authorization for an implementation plan prescribed in Article 88 of the same Act;
9. Permission for conversion of farmland prescribed in Article 34 (1) of the Farmland Act, reporting on conversion of farmland prescribed in Article 35 (1) of the same Act, or approval for change of purposes of use prescribed in Article 40 (1) of the same Act;
10. Permission for or report on conversion of grassland prescribed in Article 23 of the Grassland Act;
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;
12. Permission for occupancy and use of a road prescribed in Article 61 (1) of the Road Act;
13. Consultation on small environment impact assessment prescribed in the Environmental Impact Assessment 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 on May 17, 2007; Mar. 21, 2008; Jun. 9, 2009; Jun. 8, 2010; Aug. 4, 2011; Aug. 13, 2012; Jan. 14, 2014; Jan. 6, 2015; Jan. 28, 2015; Jan. 17, 2017; Nov. 28, 2017; Jan. 15, 2019; Mar. 31, 2020>
1. Permission for occupancy and use of a road prescribed in Article 61 (1) of the Road Act;
2. Permission for occupancy and use prescribed in Article 24 of the Sewerage Act or reporting on installation of a drainage system prescribed in Article 27 (3) and (4) of the same Act;
3. Reporting on installation of a private sewage treatment facility prescribed in Articles 34 (2) of the Sewerage Act;
4. Consent to building permission, etc. prescribed in Article 7 (1) of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Fire-Fighting Systems, reporting on construction works for a fire protection system prescribed in Article 13 (1) of the Fire-Fighting System Installation Business Act, or permission to build a workshop, etc. prescribed in Article 6 (1) of the Safety Control of Dangerous Substances Act;
6. Approval for or report on installation of waste treatment facilities prescribed in Article 29 (2) of the Wastes Control Act;
7. Authorization for installation of an exclusive water supply system prescribed in Articles 52 and 54 of the Water Supply and Waterworks Installation Act;
8. Authorization for or report on a plan for works for electric installations for private use prescribed in Article 8 of the Electrical Safety Management Act;
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.;
10. Building permission prescribed in Article 11 (1) of the Building Act, reporting on a building work prescribed in Article 14 (1) of the same Act, permission for or report on construction of a temporary structure prescribed in Article 20 (1) and (3) of the same Act, or reporting on erection of a structure prescribed in Article 83 (1) of the same Act;
11. Report on installation of a specific facility subject to the control of soil contamination prescribed in Article 12 of the Soil Environment Conservation Act;
12. Permission for the manufacturing business of gas appliances prescribed in Article 5 of the Safety Control and Business of Liquefied Petroleum Gas Act or permission for installation of storage facilities for liquefied petroleum gas prescribed in Article 8 of the same Act;
13. Permission to manufacture high-pressure gas and permission to install storage facilities for high-pressure gas prescribed in Article 4 of the High-Pressure Gas Safety Control Act, registration of manufacturing of containers, freezers and specific equipment prescribed in Article 5 (1) of the same Act, or report on the use of specific high-pressure gas prescribed in 20 (1) of the same Act;
14. Examination of a plan for prevention of harm and danger prescribed in Article 42 (4) of the Occupational Safety and Health Act and a process safety report prescribed in Article 45 (1) of the same Act.
(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 on May 17, 2007; Mar. 21, 2008; Jun. 9, 2009; Jun. 8, 2010; Aug. 4, 2011; Jun. 3, 2014; Jan. 6, 2015; Jan. 28, 2015; Jan. 17, 2017; Nov. 28, 2017; Mar. 31, 2020>
1. Final inspection conducted under Article 37 of the Sewerage Act;
2. Consent to the approval for use prescribed in Article 7 (1) of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Fire-Fighting Systems, final inspection of construction works for a fire-fighting system prescribed in Article 14 of the Fire-Fighting System Installation Business Act, or final inspection of construction works for workshops, etc. prescribed in Article 9 of the Safety Control of Dangerous Substances Act;
3. Report on the commencement of services of waste treatment facilities prescribed in Article 29 (4) of the Wastes Control Act;
4. Report on the commencement of operation of a discharging system, etc. prescribed in Article 30 (1) of the Clean Air Conservation Act and Article 37 of the Water Environment Conservation Act;
5. Final inspection conducted under Article 43 of the Act on the Safety Management of Firearms, Knives, Swords, Explosives, Etc.;
6. Conditional license for a business of manufacturing drinking spring-water prescribed in Article 23 (1) of the Management of Drinking Water Act;
7. Pre-use inspection of a private electric system prescribed in Article 9 of the Electrical Safety Management Act;
8. Final inspection of installation of storage facilities and manufacturing facilities for gas appliances prescribed in Article 36 (2) of the Safety Control and Business of Liquefied Petroleum Gas Act;
9. Final inspection of installation works for manufacturing and storage facilities of high-pressure gas and the final inspection of installation works for manufacturing facilities of containers, etc. prescribed in the provisions of Article 16 (3) of the High-Pressure Gas Safety Control Act, and the final inspection of specific high-pressure gas facilities prescribed in Article 20 of the same Act;
11. Application for change of land description prescribed in Article 64 (2) of the Act on the Establishment, Management, etc. of Spatial Data.
(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 on 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 on Mar. 21, 2008; 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 on 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;
2. If such person transfers to a third party the land for the site of the factory for which the business plan was approved, before reporting the completion of factory establishment, etc. under Article 15 of the Industrial Cluster Development and Factory Establishment Act: Provided, That this shall not apply where he or she transfers the land to the business starter;
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.
(3) The provisions of the Administrative Vicarious Execution Act shall apply to the procedures of the vicarious execution under paragraph (2).
(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 on 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 on 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 on 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 on Apr. 4, 2011]
[Previous Article 39-2 moved to Article 39-3 <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 on Feb. 3, 2015; Dec. 31, 2018>
1. Farmland preservation charges under Article 38 (1) of the Farmland Act;
2. Charges for the development of substitute grasslands under Article 23 (6) of the Grassland Act.
(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 on Jun. 8, 2010; Feb. 3, 2015; Jan. 17, 2017; Dec. 31, 2018>
2. Farmland preservation charges under Article 38 (1) of the Farmland Act;
3. Charges for the development of substitute grasslands under Article 23 (6) of the Grassland Act.
5. Basic charges under Article 35 (2) 1 of the Clean Air Conservation Act (applicable only to the businesses that emit, in the aggregate, less than 10 tons per year of air pollutants);
6. Basic effluent charges under Article 41 (1) 1 of the Water Environment Conservation Act (applicable only to the business premises from which wastewater discharged a day is less than 200 cubic meters);
7. Waste charges under Article 12 (1) of the Act on the Promotion of Saving and Recycling of Resources (applicable only to the manufacturers whose annual sales turnover is less than two billion won);
8. Water use fees under Article 19 (1) of the Act on the Improvement of Water Quality and Support for Residents of the Han River Basin;
9. Water use fees under Article 30 (1) of the Act on Water Management and Resident Support in the Geum River Basin;
10. Water use fees under Article 32 (1) of the Act on Water Management and Resident Support in the Nakdong River Basin;
11. Water use fees under Article 30 (1) of the Act on Water Management and Resident Support in the Yeongsan and Seomjin River Basins;
12. Expenses incurred in creating forest replacement resources as defined in Article 19 (1) of the Mountainous Districts Management Act;
13. Charges for causing traffic congestion under Article 36 of the Urban Traffic Improvement Promotion Act;
14. Charges for using groundwater under Article 30-3 of the Groundwater Act;
16. Charges for using deep sea water under Article 40 of the Development and Management of Deep Sea Water Act.
(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 on Jun. 8, 2010; Feb. 3, 2015>
[This Article Newly Inserted on Aug. 3, 2007]
[Moved from Article 39-2; previous Article 39-3 moved to Article 39-4 <Apr. 4, 2011>]
[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)
Where a small and medium enterprise, which starts its business by separating a part of business of a domestic corporation under subparagraph 1 of Article 2 of the Corporate Tax Act (hereafter referred to as "domestic corporation" in this Article), meets all of the following requirements, a business registration certificate issued under Article 8 of the Value-Added Tax Act shall be deemed as a document certifying registration of a factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act for two years from the date of business commencement: <Amended on Dec. 24, 2018; Dec. 31, 2018>
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 on Jun. 8, 2010]
[Moved from Article 39-3; previous Article 39-4 moved to Article 39-5 <Apr. 4, 2011>]
 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 on 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 on 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, except as provided in paragraphs (2) and (3), shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jun. 8, 2010]
[Moved from Article 39-4 <Apr. 4, 2011>]
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
 Article 40 (Reporting)
If the Minister of SMEs and Startups deems it necessary, he or she may require 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.
[This Article Wholly Amended on Feb. 11, 2020]
 Article 41 Deleted. <Apr. 1, 2009>
 Article 42 Deleted. <Feb. 11, 2020>
 Article 42-2 Deleted. <Feb. 11, 2020>
 Article 43 (Revocation of Registration)
(1) Deleted. <Feb. 11, 2020>
(2) Deleted. <Feb. 11, 2020>
(3) Deleted. <Feb. 11, 2020>
(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 on Feb. 3, 2015; May 29, 2016; 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. <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 on Feb. 29, 2008; Aug. 13, 2012; Mar. 23, 2013; Aug. 6, 2013; Feb. 3, 2015; May 29, 2016; 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) Deleted. <Feb. 11, 2020>
(7) Deleted. <Feb. 11, 2020>
 Article 44 (Hearings)
When the Minister of Environment intends to make any of the following dispositions, he or she shall hold a hearing:
1. Revocation of confirmation of a startup under Article 9-5;
2. Revocation of the selection as a business operator under Article 19-8 (3);
3. Revocation of registration of a small and medium enterprise consulting company or revocation of designation of an operator of a business incubator under Article 43.
[This Article Wholly Amended on Apr. 7, 2020]
 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 on Aug. 6, 2013; 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, small and medium enterprise consulting companies, or other institutions related to small and medium enterprise, as prescribed by Presidential Decree. <Amended on May 21, 2009; Jul. 26, 2017; Dec. 31, 2018; Feb. 11, 2020>
 Article 46 Deleted. <Feb. 11, 2020>
 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 a small and medium enterprise consulting company or the operator of a business incubator can efficiently provide business starters with their services. <Amended on May 29, 2016; Jul. 26, 2017; Feb. 11, 2020>
 Article 47-2 Deleted. <Feb. 11, 2020>
 Article 48 (Penalty Provisions)
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 shall be punished by imprisonment with labor for not more than five years and by a fine not exceeding 50 million won.
[This Article Wholly Amended on Feb. 11, 2020]
 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 on Aug. 6, 2013]
CHAPTER VII PENTALTY PROVISIONS
 Article 50 (Administrative Fines)
Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Apr. 7, 2020>
1. A person who fails to submit or report related materials in accordance with Article 9-5 (2), reports false materials, or refuses, obstructs, or evades an inspection under the said paragraph;
2. A person who fails to submit a report under Article 40 or submits a false report.
(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 on Jul. 26, 2017>
(3) Deleted. <Jan. 30, 2009>
(4) Deleted. <Jan. 30, 2009>
(5) Deleted. <Jan. 30, 2009>
[Moved from Article 48 <Aug. 6, 2013>]
ADDENDA <Act No. 8362, Apr. 11, 2007>
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>
(3) (Transitional Measures concerning the Water Quality and Aquatic Ecosystem Conservation Act) "The Water Quality and Aquatic Ecosystem Conservation Act" in the amended provisions of subparagraph 6 of Article 39-2 shall be construed as "the Water Quality Conservation Act" until November 17, 2007.
(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>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 39-2 and the amended provisions of paragraph (2) of the Addenda to the Act No. 8606 for amendment of the Support for Small and Medium Enterprise Establishment Act shall enter into force on August 3, 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)
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 starts up a business before this Act enters into force after August 3, 2012.
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.
(2) Omitted.
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.
(7) The designation of Oldco as a public institution by the Minister of Economy and Finance under the Act on the Management of Public Institutions shall be deemed to be the designation of 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.
ADDENDA <Act No. 16524, Aug. 20, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures)
A specialized agency designated under Article 16-4 (3) of the previous Framework Act on Science and Technology as at the time this Act enters into force shall be deemed designated as a dedicated institution under the amended provisions of Article 4-7 (2).
ADDENDUM <Act No. 16818, Dec. 10, 2019>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16998, Feb. 11, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 17003, Feb. 11, 2020>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 17171, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 17244, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Preferential Purchase by Public Institutions)
The amended provisions of Article 5-2 shall begin to apply from the year following the year in which evidential documents for confirmation of startups are issued under the amended provisions of Article 9-4 on or after the date this Act enters into force.