CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to balanced development of the national economy by providing for basic matters of policies for facilitating sustainable growth and business stabilization of micro enterprises and for promoting the enhancement of their social and economic status and the stabilization of employment.
| 1. | The number of full-time employees shall be less than 10 persons; |
| 2. | The number of full-time employees for each type of business, etc. shall meet the criteria prescribed by Presidential Decree. |
| (2) | For the purpose of applying paragraph (1), if a person ceases to be a micro enterprise due to the upsizing of business or any other event, it shall be deemed a micro enterprise for three years from the year immediately after the year in which such event occurs: Provided, That the same shall not apply where a person ceases to be a micro enterprise due to a merger with an enterprise other than small enterprises or any other event specified by Presidential Decree. |
| Article 3 (Responsibilities of Government and Local Governments) |
| (1) | The Government shall establish and implement a comprehensive policy on micro enterprises for the protection and autonomous development of micro enterprises. |
| (2) | Each local government shall establish and implement a policy on micro enterprises within its jurisdiction, in consideration of particular needs in its jurisdiction, according to the policy on micro enterprises under paragraph (1). |
| (3) | The Government and local governments shall continuously and stably secure financial resources necessary for the protection and promotion of micro enterprises. |
| (4) | The Government and local governments shall endeavor to raise the effect of support for micro enterprises though mutual cooperation and coordination of policies on micro enterprises. |
| Article 4 (Responsibilities of Micro Enterprises) |
| (1) | Micro enterprises shall endeavor to contribute to the development of the national economy by securing competitiveness through autonomous efforts, conducting business activities in a transparent and robust manner, and fulfilling their responsibilities to the society. |
| (2) | Micro enterprises shall endeavor to cooperate with the Government and local governments in implementing their policies and to enhance mutual cooperation. |
| Article 5 (Relationship to Other Statutes) |
| (1) | Other statutes enacted or amended for the protection and promotion of micro enterprises shall meet the purpose of this Act. |
| (2) | Except as otherwise provided in other statutes, this Act shall apply to micro enterprises. |
| Article 6 (Week of Micro Enterprises) |
In order to enhance people’s awareness of micro enterprises, improve the social and economic status of micro enterprises, and promote the relationship with local residents, the Day of Micro Enterprises shall be designated by Presidential Decree, and one week before the Day of Micro Enterprises shall be designated as the Week of Micro Enterprises.
CHAPTER II ESTABLISHMENT OF MASTER PLAN FOR SUPPORT FOR MICRO ENTERPRISES AND OPERATING SYSTEM THEREFOR
| Article 7 (Establishment and Implementation of Master Plan for Supporting Micro Enterprises) |
| (1) | The Government shall establish and implement a three-year master plan for supporting micro enterprises (hereinafter referred to as “master plan”) every three years in order to support the protection and promotion of micro enterprises. |
| (2) | In order to establish or amend a master plan, a draft master plan shall be submitted to the State Council for deliberation: Provided, That the same shall not apply where it is intended to modify any minor matter specified by Presidential Decree. |
| (3) | The master plan shall include the following matters: <Amended on Dec. 8, 2020> |
| 1. | Direction-setting for the policy on support for micro enterprises; |
| 2. | Current status, conditions, and prospects of micro enterprises; |
| 3. | The policy for the protection of micro enterprises; |
| 4. | The policy for the establishment, innovation, and promotion of micro enterprises; |
| 5. | Other matters necessary for the protection and promotion of micro enterprises. |
| (4) | Other matters necessary for the establishment and implementation of the master plan shall be prescribed by Presidential Decree. |
| Article 8 (Establishment and Implementation of Implementation Plans for Supporting Micro Enterprises and Annual Report) |
| (1) | The Government shall establish an implementation plan for supporting micro enterprises (hereinafter referred to as “implementation plan”), which the Government and local governments shall implement each year according to the master plan in order to protect and promote micro enterprises, and shall submit it along with the relevant budget to the National Assembly no later than March. |
| (2) | The Special Metropolitan City Mayor and each Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, and Special Self-Governing Province Governor (hereinafter referred to as “Mayor/Do Governor”) shall establish and implement a regional implementation plan for supporting micro enterprises (hereinafter referred to as “regional implementation plan”) every year respectively according to the master plan, in consideration of particular needs in their jurisdiction. |
| (3) | Each Mayor/Do Governor shall submit a report on the performance of the regional implementation plan in accordance with Presidential Decree. |
| (4) | The Minister of SMEs and Startups shall evaluate the performance and achievements of the implementation plan for the preceding year and submit an annual report on the policy on micro enterprises, to the National Assembly no later than the opening date of the regular session. |
| (5) | The head of the central administrative agency who is responsible for formulating an implementation plan under paragraph (1) and the Minister of SMEs and Startups who is responsible for evaluating performance under paragraph (4) may request the heads of relevant central administrative agencies and local governments to cooperate with him her in such formulation or evaluation, if necessary. The persons requested in such cases shall fully cooperate according to the request, unless a compelling reason exists not to do so. |
| (6) | Other matters necessary for the establishment and implementation of implementation plans and annual reports shall be prescribed by Presidential Decree. |
| Article 9 (Current Situation Survey and Production of Statistics) |
| (1) | In oder to efficiently establish and implement policies necessary for protecting and promoting micro enterprises, the Minister of SMEs and Startups shall conduct a current situation survey on the current status of micro enterprises, actual business conditions, etc. every year and shall publish the findings from such survey. |
| (2) | The Minister of SMEs and Startups shall produce, manage, and publish statistics on micro enterprises, referring to the current situation survey under paragraph (1), etc., and may consult with the Commissioner of Statistics Korea thereon, if necessary. |
| (3) | If necessary for conducting a current situation survey under paragraph (1) or producing and managing statistics under paragraph (2), the Minister of SMEs and Startups may request the heads of relevant central administrative agencies, Mayors/Do Governors, the heads of the public institutions under Article 4 of the Act on the Management of Public Institutions, micro enterprises, and organizations relating to micro enterprises to provide information or opinions. The persons so requested in such cases shall comply with the request, unless a compelling reason exists not to do so. |
| (5) | Other necessary matters concerning the methods, procedures, etc. for the current situation surveys under paragraph (1) and the production and management of statistics under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 10 (Committee for Deliberation on Policies for Micro Enterprises) |
| (1) | In order to deliberate on and coordinate main policies and plans relating to the protection and promotion of micro enterprises and matters concerning the implementation of such policies and plans, the Committee for Deliberation on Policies for Micro Enterprises (hereinafter referred to as the “Deliberation Committee”) shall be established within the Ministry of SMEs and Startups. |
| (2) | The Deliberation Committee shall deliberate on and coordinate the following matters: |
| 1. | Policies for support in general, including the establishment of main policies and plans for protecting and promoting micro enterprises; |
| 2. | The establishment and implementation of the master plan; |
| 3. | The establishment of the implementation plan for the pertinent year and the evaluation of performance and achievements of the implementation plan for the preceding year; |
| 4. | Coordination of main policies for protecting and promoting micro enterprises, in which two or more central administrative agencies are involved; |
| 5. | Systems, statutes and regulations relating to micro enterprises; |
| 6. | Other matters brought before it by the Chairperson for deliberation concerning policies for protecting and promoting micro enterprises. |
| (3) | The Deliberation Committee shall be composed of not more than 25 members, including one Chairperson. |
| (4) | The Deliberation Committee shall be chaired by the Minister of SMEs and Startups, and committee members shall comprise the following persons: |
| 1. | The Vice Ministers, and public officials at a rank equivalent to a Vice Minister, of the relevant central administrative agencies specified by Presidential Decree; |
| 2. | The persons commissioned by the Minister of SMEs and Startups, from among micro enterprises and persons who have considerable experience and expertise in the area of economy, industry, etc. |
| (5) | In order to efficiently assist the Deliberation Committee in discussing agenda items brought before the Deliberation Committee under paragraph (2), a working coordination council may be established. |
| (6) | The working coordination council may have special subcommittees in order to examine assigned matters with expertise. |
| (7) | Except as provided in paragraphs (1) through (6), the composition and operation of the Deliberation Committee, the working coordination council under paragraph (5), and special subcommittees under paragraph (6) and other necessary matters shall be prescribed by Presidential Decree. |
CHAPTER III POLICIES FOR SUPPORT FOR, AND PROMOTION OF, MICRO ENTERPRISES
| Article 11 (Facilitation of Business Startup and Growth) |
The Government shall implement a policy necessary to facilitate the establishment of micro enterprises in prospective areas and help newly established micro enterprises grow and develop.
| Article 12 (Assistance in Securing Workforce) |
The Government shall implement a policy necessary to train and supply workforce, improve the work environment, and improve the reputation of micro enterprises.
| Article 13 (Assistance in Improving Work Skills) |
The Government shall implement a policy necessary to improve work skills of micro enterprises and persons providing labor to micro enterprises.
| Article 14 (Securing of Markets) |
The Government shall implement a policy necessary to secure markets to increase sales of micro enterprises, such as the modernization of transaction methods and collaboration with distribution companies.
| Article 15 (Assistance in Digitalization) |
The Government shall implement a policy necessary to promote digitalization in order to facilitate smooth transactions and business activities of micro enterprises, such as online shopping malls, electronic payment systems, and the utilization of smart and mobile devices.
| Article 16 (Facilitation of Innovation) |
The Government shall implement a policy necessary to facilitate innovative activities in order to increase income of operators of micro-enterprises, such as the development and sale of creativity-based products and the continuous operation of business establishments.
| Article 17 (Improvement of Conditions of Workplace) |
The Government and local governments shall implement a policy necessary to improve conditions of workplace of micro enterprises in order to protect operators and employees of micro enterprises.
| Article 18 (Facilitation of Globalization) |
The Government shall implement a policy necessary to facilitate the globalization of micro enterprises, such as the development of relevant businesses, the enhancement of competitiveness for exportation, and the promotion of development of overseas markets.
| Article 19 (Assistance in Systematization and Collaboration) |
| (1) | The Government shall implement a policy necessary to rationalize the formation and operation of collaborative organizations in order for micro enterprises to help each other for the growth and development of their businesses and for the reduction of cost. |
| (2) | The Government shall implement a policy necessary for projects for the collaboration of micro enterprises. |
| Article 20 (Support for Each Type of Business) |
The Government may implement a policy suitable to each type of business of micro enterprises, taking into consideration special needs of each type of business comprehensively, such as industrial structures, and the methods of production and service.
| Article 21 (Support for Commercial Districts and Clusters) |
The Government and local governments may implement a policy necessary for joint projects for facilities, equipment, systems, services, etc. in local commercial districts and clusters in which business establishments of micro enterprises are concentrated in order to enhance competitiveness of each region and to improve the efficiency of support.
| Article 22 (Support for Structural Upgrade) |
The Government shall implement a policy necessary to achieve structural upgrade of micro enterprises, such as the structural reform and business rationalization of micro enterprises.
CHAPTER IV POLICIES FOR PROTECTION OF MICRO ENTERPRISES
| Article 23 (Support for Business Stabilization) |
If a considerable number of micro enterprises are suffering, or are likely to suffer, difficulty in business management due to a sudden stagnation in the market, the Government shall implement a policy on financial support, etc. necessary for business normalization of micro enterprises.
| Article 24 (Expansion of Social Security Network and Improvement of Quality of Life) |
| (1) | The Government shall implement a policy necessary to expand a social security network of micro enterprises. |
| (2) | The Government and local governments shall implement a policy necessary to improve the level of welfare of operators of micro enterprises in order to improve the productivity of micro enterprises and promote the qualify of life of operators of micro enterprises. |
| Article 25 (Support for Closure and Re-Starting of Business) |
The Government shall implement a policy necessary to assist operators of micro enterprises who closed, or intend to close, their businesses in winding up their businesses, finding new jobs, re-starting businesses, etc.
| Article 26 (Establishment of Mutual Aid Schemes) |
| (1) | The Government may implement a policy necessary to establish mutual aid schemes to help operators of micro enterprises establish a foothold for the stabilization of life and the re-start of businesses to overcome threats to their livelihood by permanent closure of business, business shifts, aging, etc. |
| (2) | The Insurance Business Act shall not apply to the mutual aid schemes of micro enterprises under paragraph (1). |
| Article 27 (Facilitation of Fair Competition and Win-Win Cooperation) |
The Government and local governments shall implement a policy necessary to promote fair competition and win-win cooperation between micro enterprises and other enterprises that do not fall within the category of micro enterprises, etc.
| Article 28 (Protection of Business Sectors) |
| (1) | The Government and local governments shall implement a policy necessary to secure business sectors suitable to micro enterprises in order to ensure balanced development of markets and the protection of micro enterprises, taking into consideration the fields, places, time, etc. suitable for the operation of businesses in the size of micro enterprises. <Amended on Dec. 8, 2020> |
| (2) | Upon the receipt of a request from a person who intends to establish a micro enterprise, the competent local government shall provide such person with the information specified by Presidential Decree, including findings from the current situation survey under Article 9. <Newly Inserted on Dec. 8, 2020> |
| Article 29 (Support for Relief from Disasters) |
The Government and local governments may implement a policy necessary to prevent, respond to, recover from, damage that micro enterprises sustained, or are likely to sustain, in their business due to the occurrence of the disasters defined in subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety and to support such micro enterprises.
| Article 30 (Subsidization of Micro Enterprises for Employment Insurance Premiums) |
The Government may give partial subsidies to micro enterprises on the employment insurance premium under the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance and the pension insurance premium under the National Pension Act.
| Article 31 (Reduction of, or Exemption from, Taxes) |
If necessary for supporting business stabilization and growth of micro enterprises, the Government or local governments may grants a reduction or an exemption to micro enterprises on income tax, corporate tax, acquisition tax, property tax, registration license tax, etc. in accordance with the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, and other relevant statutes.
CHAPTER V ESTABLISHMENT OF BASIS FOR POLICIES ON MICRO ENTERPRISES
| Article 32 (Establishment of Specialized Research and Evaluation Institute) |
| (1) | The Government may establish a specialized research and evaluation institute who shall perform surveys, research, and evaluations necessary for establishing policies on micro enterprises, including the investigation of the current situation of micro enterprises. |
| (2) | The Government may give contributions or subsidies to the specialized research and evaluation institute under paragraph (1) for expenses necessary for performing surveys, research, and evaluations. |
| Article 33 (Special Case concerning Ombudsman for Small and Medium Enterprises) |
| Article 34 (Formation of Organizations of Micro Enterprises) |
| (1) | Micro enterprises may establish an organization for promoting common interests and enhancing their social and economic status. |
| (2) | The organization under paragraph (1) may present its opinions to the heads of relevant central administrative agencies, the heads of local governments, or the ombudsman for small and medium enterprise under Article 22 of the Framework Act on Small and Medium Enterprises with regard to the rectification of unreasonable systems affecting micro enterprises, matters concerning fair trading, etc. |
| Article 35 (Establishment of Support Institution) |
| (1) | The Government and local governments may establish a support institution for micro enterprises in order for micro enterprises to secure comprehensive competitiveness. |
| (2) | The Government and local governments may give contributions or subsidies, full or partial, for expenses necessary for the operation of the support institution for micro enterprises. |
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 36 (Submission of Information for Identification of Micro Enterprises) |
| (1) | A person who intends to participate in policies on micro enterprises shall submit information with which the person can be identified as a micro enterprise to the central administrative agency or local government that implements the policies (hereinafter referred to as “institution implementing policies on micro enterprises”). |
| (2) | If the Minister of SMEs and Startups considers that it is necessary to identify micro enterprises, he or she may request the relevant central administrative agencies, including the National Tax Service, local governments, public institutions, etc. to submit information necessary for identification. |
| (3) | When the Minister of SMEs and Startups requests the Commissioner of the National Tax Service to submit tax information under paragraph (2), he or she shall make such request in writing, specifying the following matters: |
| 1. | The number of full-time employees; |
| 2. | The amount of turnover; |
| 3. | The total value of assets. |
| (4) | The persons who are requested to submit information under paragraphs (2) and (3) shall comply with such request, unless a compelling reason exists not to do so. |
| Article 37 (Administrative Fines) |
| (1) | A person who participates in policies for micro enterprises, although the person is not a micro enterprise, by falsifying the information under Article 36 shall be subject to an administrative fine not exceeding five million won. |
| (2) | The administrative fines under paragraph (1) shall be imposed and collected by the head of each institution implementing policies on micro enterprises in accordance with Presidential Decree. |
ADDENDA <Act No. 16954, Feb. 4, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Transitional Measure concerning Day of Micro Enterprises)
Article 3 (Transitional Measure concerning Master Plan and Other Plans for Support for Micro Enterprises)
Article 4 (Transitional Measure concerning Current Situation Survey)
Article 5 (Transitional Measure concerning Relief from Damage Caused by Accidents and Disasters)
Article 6 (Transitional Measures concerning Cooperation of Micro Enterprises and Formation of Organization)
The organization established under Article 16 of the previous Act on the Protection of and Support for Micro Enterprises before this Act enters into force shall be deemed to have been established under this Act, and the opinions presented by such organizations shall be deemed to have been presented under this Act. Article 7 Omitted.
Article 8 (Relationship to Other Statutes and Regulations)
A citation of any provision of the previous Act on the Protection of and Support for Micro Enterprises by other statutes and regulations in force as at the time this Act enters into force shall be deemed a citation of the relevant provision of this Act, in lieu of such previous provision, if such relevant provision exists here.
ADDENDA <Act No. 17153, Mar. 31, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 4 (3) of the Addenda shall enter into force on February 5, 2021.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 17623, Dec. 8, 2020>
This Act shall enter into force three months after the date of its promulgation.