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ACT ON MANAGEMENT CONSULTANTS AND TECHNOLOGY CONSULTANTS

Act No. 17242, Apr. 7, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to enhance the competitiveness of small-and medium-sized enterprises by establishing a certification system for management consultants and technology consultants and thereby contribute to the development of national economy.
 Article 2 (Duties)
(1) It shall be the duty of a management consultant and a technology consultant (hereinafter referred to as “consultant”) to provide professional and comprehensive diagnosis and guidance on management and technology to small-and medium-sized enterprises.
(2) The areas of expertise and the scope of practice of a management consultant shall be as follows:
1. Personnel management: Diagnosis and guidance of personnel, organization, labor, and office management;
2. Financial management: Diagnosis and guidance of financial management and accounting;
3. Production management: Diagnosis and guidance of production and quality management;
4. Marketing management: Diagnosis and guidance of distribution, sales management and import-export business;
5. Consultancy, recommendation, investigation, analysis, assessment, and confirmation in regard to affairs described in subparagraphs 1 through 4;
6. Agency for the affairs described in subparagraph 1, 3 or 4 (referring to agency for filing applications, statements, reports, etc. to the competent authorities in accordance with SMEs-related statutes or regulations).
(3) The areas of expertise and the scope of practice of a technology consultant shall be as follows:
1. Management of technological innovation: Diagnosis and guidance of technology management, R&D, and technology advancement;
2. Management of information technology: Diagnosis and guidance of information and communication technology, system application, and software;
3. Agency for the consultancy, recommendation, investigation, analysis, assessment, confirmation, and verification in regard to affairs described in subparagraph 1 or 2 (referring to agency for filing applications, statements, reports, etc. to the competent authorities in accordance with SMEs-related statutes or regulations).
(4) The SMEs-related statutes or regulations mentioned in paragraphs (2) 6 and (3) 3 means legislation within the jurisdiction of the Ministry of SMEs and Startups and any other statutes or regulations relevant to the management or technology of small-and medium-sized enterprises, the detailed scope of which is prescribed by Presidential Decree.
CHAPTER II QUALIFICATIONS AND EXAMINATIONS FOR CONSULTANTS
 Article 3 (Qualification Requirements for Consultants)
Any person who has passed the examination for the certificate of consultant conducted under the direction of the Minister of SMEs and Startups (referring to the examination for the certificate of management consultant or technology consultant; hereinafter the same shall apply) shall hold a certificate as a consultant.
 Article 4 (Grounds for Disqualification)
Any person shall be disqualified to hold a certificate as a consultant if he or she falls under any of the following cases:
1. A person under adult guardianship;
2. A person declared bankrupt and not yet reinstated;
3. A person who has been sentenced to imprisonment without labor or greater punishment and for whom two years have not elapsed since the execution of the sentence was completed or the exemption from the execution of the sentence was made final;
4. A person who has been sentenced to suspended execution of imprisonment without labor or greater punishment, and for whom the period of suspended execution of such punishment has not expired.
 Article 5 (Qualification Examination for Consultants)
(1) A qualification examination for consultants shall be conducted under the direction of the Minister of SMEs and Startups.
(2) The qualification examination for consultants shall be divided into the first division and the second division.
(3) The Minister of SMEs and Startups may designate an organization to hold the qualification examination for consultants.
(4) The organization to hold the qualification examination for consultants may receive payment of the fees from applicants, as prescribed by Presidential Decree. In such cases, the application fees shall be used for administering the examination.
(5) Necessary matters relating to the eligibility for and subjects and method of the qualification examination for consultants under paragraph (1) and the scope of duties of the organization to hold the examination under paragraph (3), shall be prescribed by Presidential Decree.
(6) In the event that any case prescribed by Presidential Decree occurs, such as overpayment or erroneous payment of the application fees and revocation of application for the examination, the organization to hold the examination shall refund the relevant amount to the person who has paid the fees.
 Article 6 (Exemption from First Division of Examination)
(1) The following persons shall be exempt from the first division of the examination. In such cases, working experience mentioned in subparagraphs 2 and 3 means the practice of an expert in the relevant field after obtaining the license:
1. A professional engineer and a master craftsman under the National Technical Qualifications Act, a master craftsman of Korea under the Act on Encouragement of Skilled Crafts, and a national quality master under the Industrial Standardization Act and the Enforcement Decree of the same Act;
2. An engineer with at least seven years of experience and an industrial engineers with at least nine years of experience under the National Technical Qualifications Act;
3. A certified public accountant under the Certified Public Accountant Act, a certified public labor attorney under the Certified Public Labor Attorney Act, a patent attorney under the Patent Attorney Act, and a certified tax accountant under the Certified Tax Accountant Act, with at least five years of experience;
4. A person who holds a certificate as a consultant and applies for the qualification examination for consultants in a different area of expertise.
(2) An applicant who has successfully passed the first division examination shall be exempt from the first division examination in the succeeding examination; and a person who has completed a training course in accordance with Article 22 shall be exempt from the first division examination held in the relevant year and the next ensuing examination.
 Article 7 (Disciplinary Action against Exam Cheaters)
For the following persons, the Minister of SMEs and Startups shall invalidate or cancel the decision to pass the relevant examination, and suspend the eligibility for taking the qualification examination for consultants for five years from the date of such disposition:
1. A person who has cheated on a qualification examination for consultants;
2. A person who has applied for a qualification examination for consultants by improper means.
CHAPTER III REGISTRATION OF CONSULTANTS
 Article 8 (Registration of Consultants)
(1) If a person who has received a certificate as a consultant intends to engage in the practice of consultancy as described in Article 2, he or she shall register with the Minister of SMEs and Startups after receiving practical training as prescribed by Presidential Decree. In the event that any registered matter is changed, the person shall file a report on change as prescribed by Ordinance of the Ministry of SMEs and Startups.
(2) A consultant who has registered under paragraph (1) shall renew his or her registration every five years, as prescribed by Presidential Decree: Provided, That if there is a compelling reason prescribed by Presidential Decree for not doing so, such as a natural disaster or long-term stay abroad, he or she may file an application for renewal of registration within 30 days from the date the reason for non-renewal ceases to exist.
(3) A consultant who intends to renew his or her registration shall submit proof of performance of services as a consultant prescribed by Ordinance of the Ministry of SMEs and Startups. In such cases, any consultant whose performance of services fails to meet the standards prescribed by Ordinance of the Ministry of SMEs and Startups shall complete a refresher training course as prescribed by Ordinance of the Ministry of SMEs and Startups.
(4) A consultant who has not registered for renewal under paragraph (2) shall not be allowed to engage in the practice of consultancy. In such cases, when he or she has completed the renewal of registration after receiving a refresher training under the latter part of paragraph (3), the consultant may resume his or her practice from that time.
 Article 9 (Refusal of Registration)
(1) The Minister of SMEs and Startups shall refuse the registration if a person who has applied for registration or renewal of registration in accordance with Article 8 (1) or (2) falls under any of the following cases:
1. If the applicant becomes disqualified as his or her act constitutes any ground for disqualification set forth in the subparagraphs of Article 4;
2. If the applicant fails to receive practical training under Article 8 (1) or refresher training under the latter part of Article 8 (3);
3. If two years have not passed since the date the registration as a consultant was revoked under Article 10 (excluding where registration is revoked under subparagraph 1 or 2 of Article 4).
(2) If the Minister of SMEs and Startups refuses registration in accordance with paragraph (1), he or she shall notify the applicant of the reason within 30 days from the date of receipt of the application for registration.
 Article 10 (Revocation of Registration and Suspension of Right to Practice)
(1) The Minister of SMEs and Startups may revoke the registration or order a suspension of the right to practice as a consultant for a specified period not to exceed two years, if a consultant who has registered under Article 8 falls under any of the following cases: Provided, That in any case described in subparagraphs 1 through 3, the Minister shall revoke the registration:
1. If the consultant makes his or her registration or renewal of registration by fraud or other improper means;
2. If the consultant falls under any ground for disqualification listed in the subparagraphs of Article 4;
3. If the consultant dies;
4. If the consultant divulges secrets learned during the course of his or her guidance to other persons;
5. If the consultant lends his or her certificate of consultant to another person;
6. If the consultant causes material damage to another person in relation to guidance by committing an unlawful act or as a result of willful misconduct or gross negligence;
7. If the consultant violates the prohibition on concurrent holding of any other office or employment under Article 33.
(2) A consultant whose registration has been revoked under paragraph (1) must return his or her registration certificate (except in a case under paragraph (1) 3).
 Article 11 (Notification of Revocation of Registration and Suspension of Right to Practice)
The Minister of SMEs and Startups shall notify the relevant consultant or his or her agent in writing when his or her registration is revoked or his or her right to practice is suspended under Article 10 (1): Provided, That if it is not possible to give written notification to the relevant consultant or agent due to reasons such as unknown address, such fact shall be published in the Official Gazette.
 Article 12 (Hearing)
The Minister of SMEs and Startups shall hold a hearing in order to revoke the registration of a consultant or suspend the right to practice as a consultant under Article 10 (1).
 Article 13 (Disclosure of Information)
(1) The Minister of SMEs and Startups may, for the convenience of small-and medium-sized enterprises that hire consultants, disclose necessary information registered under Article 8 (1), such as areas of expertise and acquisition of relevant certificates of consultants.
(2) The Minister of SMEs and Startups may designate and operate a corporation related to the guidance services of consultants for the efficient management of information disclosure. In such cases, the Minister of SMEs and Startups may provide registered information of consultants to the corporation so designated.
(3) All consultants registered under Article 8 (1) shall provide necessary information to the designated corporation for the disclosure of information under paragraph (1). In such cases, no consultant shall provide false information.
(4) The scope and method of disclosure of information under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.
 Article 14 (Prohibition on Use of Similar Titles)
No person shall assume the title of consultant as provided in Article 3 or use any similar title or designation thereto unless such person has registered or renewed his or her registration in accordance with Article 8 (1) or (2).
CHAPTER IV RIGHTS AND OBLIGATIONS OF CONSULTANTS
 Article 15 (Establishment of Office)
(1) A consultant who has registered under Article 8 (1) may establish an office necessary to engage in the practice of consultancy.
(2) When a consultant opens, suspends or closes his or her business, or establishes, relocates or abolishes his or her office, the consultant shall report it to the Minister of SMEs and Startups without delay.
 Article 16 (Joint Office)
(1) A consultant who has registered under Article 8 (1) may establish and operate a joint office consisting of two or more consultants in order to perform his or her duties systematically and promote public confidence.
(2) For matters regarding joint offices that are not provided in this Act, the provisions on associations in the Civil Act shall apply.
 Article 17 (Office Staff)
(1) A consultant may have office staff to assist in the proper execution of his or her duties.
(2) A consultant shall be responsible for guiding and supervising his or her office staff as provided in paragraph (1).
 Article 18 (Duty of Good Faith)
(1) A consultant shall faithfully perform his or her duties and maintain the dignity of the profession.
(2) No consultant shall intentionally conceal the truth or make a false report in the course of a professional practice.
 Article 19 (Confidentiality)
A consultant or his or her office staff, or a person who was a consultant or his or her office staff, shall not divulge any secrets learned in the course of their duties, except as otherwise provided in other statutes or regulations.
 Article 20 (Prohibition on Lending Registration Certificate)
(1) No consultant shall allow other persons to engage in the practice of consultancy using his or her name or trade name, or lend his or her certificate of consultant or registration certificate.
(2) No person shall use another person's name or trade name to engage in the practice of consultancy or borrow another person's certificate of consultant or registration certificate.
(3) No person shall offer to engage in any act prohibited in paragraph (1) or (2).
 Article 21 (Restrictions on Practice)
No consultant shall engage in the confirmation or verification business which ensues from management and technical diagnosis for any of the following persons:
1. A person (including a company; hereafter the same shall apply in this Article) or his or her spouse who served or currently serves as an executive officer or in an equivalent position, or in a position responsible for financial affairs, or a person who has served in such a position within the past one-year period;
2. A person who is currently an employee or who has been an employee within the past one-year period;
3. A person or his or her spouse who owns at least 1/100 of the total number of issued shares or total investment amount;
4. A person who has a claim or debt in the amount of 100 million won or more against the relevant consultant or his or her spouse;
5. A person who provides office to the relevant consultant free of charge or at a significantly lower price than arm’s length price;
6. A person who continuously pays remuneration to the relevant consultant for any service other than consultancy or provides special economic benefits.
CHAPTER V TRAINING AND EDUCATION OF CONSULTANTS
 Article 22 (Training of Consultants)
(1) The Minister of SMEs and Startups may designate a managing agency to run training programs and courses for consultants (hereinafter referred to as "training courses") if deemed necessary for training consultants, taking into account the need for instructors, etc.
(2) Criteria for designating a managing agency in charge of the training courses under paragraph (1), qualification requirements for persons who are eligible to take such courses, and other matters necessary for running the training courses shall be determined by Presidential Decree.
 Article 23 (Designated Training Institutes)
(1) The Minister of SMEs and Startups may designate an institution or organization that meets the requirements for facilities, human resources, and educational performance prescribed by Presidential Decree as an institute that provides practical training under Article 8 (1) and refresher training courses under Article 8 (3) (hereinafter referred to as "designated training institute").
(2) The Minister of SMEs and Startups may revoke the designation if the designated training institute falls under any of the following cases: Provided, That in the case of subparagraph 1, the Minister shall revoke the registration:
1. If it obtains designation by fraud or other improper means;
2. If it treats a person who has not completed practical training and refresher training courses as having completed;
3. If it falls short of the standards mentioned in paragraph (1).
CHAPTER VI MANAGEMENT AND TECHNOLOGY CONSULTING CORPORATIONS
 Article 24 (Management and Technology Consulting Corporations)
(1) A consultant may establish a management and technology consulting corporation, a management consulting corporation, or a technology consulting corporation (hereinafter referred to as "consulting corporation") in order to engage in the practice of consultancy more systematically and professionally.
(2) The articles of incorporation of a consulting corporation shall include the following information:
1. Purpose of the proposed corporation;
2. Name of the proposed corporation;
3. Location of the main office and a branch office;
4. Names, resident registration numbers and addresses of members and directors;
5. Amount of one equity unit;
6. Number of equity units held by each member;
7. Total amount of capital;
8. Matters concerning the coverage of deficits;
9. Matters concerning the general meeting of members;
10. Matters concerning the representative director;
11. Matters related to practice;
12. If the corporation has determined the period of corporate existence or grounds for dissolution, such period or grounds.
 Article 25 (Registration of Consulting Corporations)
(1) A consulting corporation shall register with the Minister of SMEs and Startups in order to engage in the practice of consultancy as set forth in Article 2.
(2) A consulting corporation that wants to register under paragraph (1) shall meet the requirements for members, etc. of Article 26 and the capital requirements of Article 27 (1).
(3) The Minister of SMEs and Startups may refuse registration if a consulting corporation that has applied for registration fails to meet the requirements mentioned in paragraph (2), and may impose a specified period for supplementation if there are incomplete matters in the registration application forms.
(4) Necessary matters relating to the procedure for registration of consulting corporations, required documents, etc. under paragraph (1) shall be prescribed by Presidential Decree.
 Article 26 (Members)
(1) All members of a consulting corporation shall be a consultant who has registered or renewed their registration in accordance with Article 8.
(2) A consulting corporation shall have three or more directors.
(3) Any of the following persons shall not serve as a director of a consulting corporation:
1. A person who is not a member;
2. A person who was a director of a consulting corporation subject to revocation of its registration or business suspension under Article 36 (limited to a person who was a director at the time of revocation of registration or business suspension), and for whom three years have not passed since such revocation or is still in the suspension period;
3. A person who is in the suspension period after receiving an order to suspend the right to practice as a consultant under Article 10 (1).
(4) A consulting corporation shall have at least five consultants (referring to those who have registered or renewed their registration in accordance with Article 8) including directors. In such cases, non-director consultants (hereinafter referred to as "associate consultants") shall not fall within paragraph (3) 3.
(5) A consulting corporation shall have a representative director as prescribed by Presidential Decree.
(6) A member of a consulting corporation shall automatically withdraw from the corporation if he or she falls under any of the following cases:
1. If his or her registration as a consultant is revoked under Article 10;
2. If any event specified in the articles of incorporation arises;
3. If a resolution for that purpose is passed at the general meeting of members.
 Article 27 (Capital)
(1) The capital of a consulting corporation shall be 200 million won or more.
(2) If the amount obtained by subtracting the total amount of liabilities in the statement of financial position at the end of the immediately preceding business year is less than the amount of capital mentioned in paragraph (1), the consulting corporation shall increase its capital to cover such differential within six months after the end of each business year.
(3) If a consulting corporation fails to increase its capital in accordance with paragraph (2), the Minister of SMEs and Startups may order an increase of its capital stock within a specified period of time.
 Article 28 (Reserves for Damages)
(1) A consulting corporation shall set up reserves for damages or purchase a liability insurance policy for each business year as prescribed by Presidential Decree, in order to provide cover for liabilities incurred by its clients during the course of its duties.
(2) The reserves for damages or liability insurance under paragraph (1) shall not be used for purposes other than compensation for damages, or rescinded or terminated, unless approved by the Minister of SMEs and Startups.
 Article 29 (Restrictions on Investment in Other Corporations)
(1) No consulting corporation shall invest in other corporations or provide debt guarantees for other persons in excess of the amount obtained by multiplying its equity capital by the ratio prescribed by Presidential Decree.
(2) The equity capital referred to in paragraph (1) means the amount obtained by subtracting the total amount of liabilities (excluding reserves for damages under Article 28) from the total assets in the statement of financial position at the end of the immediately preceding business year.
 Article 30 (Titles)
(1) A consulting corporation shall use the title or designation “management and technology consulting corporation”, “management consulting corporation” or “technology consulting corporation”.
(2) No person other than a consulting corporation shall assume or use the title of a consulting corporation or any similar title or designation thereto.
 Article 31 (Offices)
(1) A consulting corporation may have branch offices other than the main office.
(2) The main office of a consulting corporation shall have at least two director consultants working full-time, and a branch office shall have at least one full-time director consultant.
(3) Directors and associate consultants of a consulting corporation shall not have separate offices other than the consulting corporation they are affiliated with.
 Article 32 (Methods of Engaging in Practice)
(1) A consulting corporation shall engage in the practice of consultancy in the name of the corporation and designate a consultant to be in responsible charge of the practice when engaging in any practice: Provided, That in the case of designating an associate consultant, a director in charge shall be jointly designated with the associate consultant.
(2) The trade name of a consulting corporation shall be indicated on any document prepared by the corporation in regard to its practice, and the name and seal of the consultant in charge of the business shall be affixed thereon.
 Article 33 (Prohibition on Concurrent Holding of Office)
(1) No director or associate consultant of a consulting corporation shall, for themselves or a third party, engage in the practice of consultancy within the corporation’s scope of practice, or serve as a director or an associate consultant of another consulting corporation.
(2) No person who was a director or an associate consultant of a consulting corporation shall engage in the practice of consultancy after retirement in relation to the practice performed or approved by the consulting corporation during the period of his or her serving the corporation: Provided, That this shall not apply if the consulting corporation has agreed thereto.
 Article 34 (Dissolution)
(1) A consulting corporation shall be dissolved for any of the following reasons:
1. Occurrence of an event for dissolution determined by the articles of incorporation;
2. Resolution of the general meeting of members;
3. Merger;
4. Revocation of its registration;
5. Bankruptcy;
6. Court order or judgment.
(2) A consulting corporation shall notify the Minister of SMEs and Startups when any event specified in the subparagraphs of paragraph (1) (except in a case under subparagraph 4) occurs.
 Article 35 (Notification of Change in Articles of Incorporation)
A consulting corporation shall report to the Minister of SMEs and Startups without delay, when there has been any change in matters specified in subparagraphs 1 through 4 (except for the addresses of members and directors), subparagraph 7 (only in the case of capital reduction), or subparagraph 10 or 11 of Article 24 (2), among the clauses of the articles of incorporation set out in the same paragraph.
 Article 36 (Revocation of Registration)
(1) If a consulting corporation falls under any of the following cases, the Minister of SMEs and Startups may revoke its registration or order the suspension of all or part of its business for a specified period of not more than one year: Provided, That in cases under any of subparagraphs 1 through 3, the Minister shall revoke its registration:
1. If the corporation makes its registration under Article 25 (1) by fraud or other improper means;
2. If the corporation that has failed to meet the requirements of Article 26 (1) through (4) or 27 (1) does not supplement the relevant requirements within six months (in the case of the requirements of Article 27 (1), six months after the end of the relevant business year);
3. If the corporation performs services in violation of an order to suspend business;
4. If the corporation fails to comply with an order to increase capital issued by the Minister of SMEs and Startups under Article 27 (3);
5. If the corporation violates Article 26 (5), 28, 29, 30 (1), 31 (2), 32 or 35, or any provision of Articles 17 through 21 that are applied mutatis mutandis under Article 37 (1).
(2) The Minister of SMEs and Startups shall hold a hearing to revoke the registration of a consulting corporation or order the suspension of its business under paragraph (1).
 Article 37 (Provisions Applicable Mutatis Mutandis)
(1) Articles 17 through 21 shall apply mutatis mutandis to a consulting corporation. In such cases, "consultant" shall be regarded as "consulting corporation".
(2) Except as provided in this Act regarding a consulting corporation, the provisions on private limited companies in the Commercial Act shall apply mutatis mutandis.
CHAPTER VII ASSOCIATION OF MANAGEMENT AND TECHNOLOGY CONSULTANTS
 Article 38 (Establishment of Association of Consultants)
(1) Consultants may establish an association of management and technology consultants (hereinafter referred to as the "association of consultants") in order to efficiently handle affairs related to maintaining the dignity of consultants, improving their qualifications, and operating and improving the consultant system.
(2) The association of consultants shall be a corporation.
(3) The association of consultants shall be established by registering its establishment in the location of the main office with the authorization of the Minister of SMEs and Startups.
(4) Excep as provided in this Act regarding the association of consultants, matters related to an aggregate corporation in the Civil Act shall apply mutatis mutandis.
(5) Matters necessary for the establishment of the association of consultants and application for its authorization, etc. shall be prescribed by Presidential Decree.
 Article 39 (Articles of Incorporation)
(1) The articles of incorporation of the association of consultants shall include the following information:
1. Purpose, name, and location of the office;
2. Matters concerning the representative and other executive officers;
3. Matters concerning the meetings;
4. Matters concerning the maintenance of dignity, functions, and education of consultants;
5. Matters concerning membership and withdrawal, guidance and supervision of its members;
6. Matters concerning accounting and dues;
7. Matters concerning assets;
8. Other matters necessary to achieve the purpose of the association of consultants.
(2) In order to change the articles of incorporation under paragraph (1), the association of consultants shall obtain authorization from the Minister of SMEs and Startups.
 Article 40 (Direction and Supervision)
(1) The Minister of SMEs and Startups shall direct and supervise the business of the association of consultants.
(2) If deemed necessary for supervision, the Minister of SMEs and Startups may require the association of consultants to file a report on its business or to submit data, or impose other necessary orders, and have public officials of the Ministry enter the office of the association of consultants to inspect its business conditions and documents, etc.
(3) A public official who enters or inspects in accordance with paragraph (2) shall carry a certificate prescribed by Ordinance of the Ministry of SMEs and Startups indicating his or her authority and show it to the relevant persons.
 Article 41 (Entrustment of Business)
If deemed necessary for the enforcement of this Act, the Minister of SMEs and Startups may entrust his or her business which includes practical training and refresher training for consultants to the association of consultants, as prescribed by Presidential Decree.
CHAPTER VIII PENALTY PROVISIONS
 Article 42 (Penalty Provisions)
(1) Either of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won:
1. A person who intentionally conceals the truth or makes a false report in violation of Article 18 (2) (including cases as applicable mutatis mutandis in Article 37 (1));
2. A person who divulges a secret learned in the course of duty to another person, in violation of Article 19 (including cases as applicable mutatis mutandis in Article 37 (1)).
(2) Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won:
1. A person who allows other persons to engage in the practice of consultancy using his or her name or trade name, or lends his or her certificate of consultant or registration certificate, in violation of Article 20 (1) (including cases as applicable mutatis mutandis in Article 37 (1));
2. A person who uses another person's name or trade name to engage in the practice of consultancy or borrows another person's certificate of consultant or registration certificate, in violation of Article 20 (2) (including cases as applicable mutatis mutandis in Article 37 (1));
3. A person who offers to engage in any act prohibited in Article 20 (1) or (2), in violation of Article 20 (3) (including cases as applicable mutatis mutandis in Article 37 (1)).
 Article 43 (Joint Penalty Provisions)
If the representative of a corporation or an agent or employee of, or any other person employed by, the corporation or an individual commits any violations described in Article 42 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violators accordingly, be punished by a fine prescribed in the relevant Article: Provided, That this shall not apply if such corporation or individual has not been negligent in giving due attention to and supervision over the relevant affairs to prevent such violations.
 Article 44 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine of not more than three million won:
1. A person who assumes or uses the title of a consultant or a consulting corporation, or any similar title or designation thereto, in violation of Article 14 or 30 (2);
2. A person who fails to report or makes a false report in violation of Article 15 (2);
3. A person who engages in the confirmation or verification business in violation of Article 21 (including cases as applicable mutatis mutandis in Article 37 (1));
4. A person who concurrently holds office or employment in violation of Article 33.
(2) The administrative fines under paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree.
ADDENDA <Act No. 17242, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability concerning Qualification Examination)
The provisions of Article 3, 5 (1), 5 (5) and 6 (1) shall begin to apply to a qualification examination for consultants of which public announcement is made from the date this Act enters into force.
Article 3 (General Transitional Measures)
Any dispositions, procedures, and other acts taken in accordance with the previous Small and Medium Enterprises Promotion Act as matters provided in this Act before this Act enters into force shall be deemed to have been taken in accordance with the applicable provisions of this Act.
Article 4 (Transitional Measures concerning Persons Who Have Passed First Division Exam and Completed Training Courses)
A person who has passed the first division exam under Article 46 (3) of the previous Small and Medium Enterprises Promotion Act before this Act enters into force or a person who has completed a training course for consultants under the same Act, shall be deemed to have passed the first division exam or completed a training course for consultants under this Act.
Article 5 (Transitional Measures concerning Exam Cheaters)
Notwithstanding the provisions of Article 7, a person who has applied for a qualification examination for consultants by a fraudulent act or improper means before this Act enters into force, shall be governed by the previous provisions.
Article 6 (Transitional Measures concerning Qualifications and Registration of Consultants)
A person who has acquired the certificate of, or registered as, a management consultant or technology consultant under the Small and Medium Enterprises Promotion Act at the time this Act enters into force, shall be deemed to have acquired or registered as such under this Act: Provided, That a technology consultant for the field of machinery, metal, electrical and electronics engineering, textile, chemical engineering, production management, environment, or biotechnology shall be deemed to have acquired or registered as a technology consultant for the management of technological innovation; and a technology consultant for the field of information processing shall be deemed to shall be deemed to have acquired or registered as a technology consultant for management of information technology, depending on their specialized field of consultancy previously acquired.
Article 7 (Transitional Measures concerning Registration of Consulting Corporations)
Notwithstanding the provisions of Article 25, if a consulting corporation established under the previous provisions at the time this Act enters into force intends to use the title or designation referred to in Article 30, it shall register as provided in Article 25 within three years from the date this Act enters into force.
Article 8 (Transitional Measures concerning Association of Consultants)
The Korea Government Certified Consultant Association established under Article 32 of the Civil Act at the time this Act enters into force, shall be deemed to be the association of consultants established under Article 38 of this Act. In this regard, the Korea Government Certified Consultant Association shall amend its articles of incorporation to comply with the requirements of this Act and obtain authorization from the Minister of SMEs and Startups within six months from the date this Act enters into force.
Article 9 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
In applying penalty provisions and administrative fines to an act committed before this Act enters into force, the previous Small and Medium Enterprises Promotion Act shall apply.
Article 10 (Transitional Measures concerning Revocation of Registration and Business Suspension)
In applying revocation of registration and business suspension to an act committed before this Act enters into force, the previous Small and Medium Enterprises Promotion Act shall apply.
Article 11 Omitted.