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ACT ON SPECIAL MEASURES FOR THE PROMOTION OF VENTURE BUSINESSES

Act No. 5381, Aug. 28, 1997

Amended by Act No. 5529, Feb. 28, 1998

Act No. 5578, Sep. 23, 1998

Act No. 5591, Dec. 28, 1998

Act No. 5607, Dec. 30, 1998

Act No. 5758, Feb. 5, 1999

Act No. 6101, Dec. 31, 1999

Act No. 6195, Jan. 21, 2000

Act No. 6194, Jan. 21, 2000

Act No. 6416, Feb. 3, 2001

Act No. 6482, May 24, 2001

Act No. 6590, Dec. 31, 2001

Act No. 6642, Jan. 26, 2002

Act No. 6723, Aug. 26, 2002

Act No. 6705, Aug. 26, 2002

Act No. 6842, Dec. 30, 2002

Act No. 6841, Dec. 30, 2002

Act No. 6891, May 29, 2003

Act No. 7091, Jan. 20, 2004

Act No. 7289, Dec. 31, 2004

Act No. 7288, Dec. 31, 2004

Act No. 7604, Jul. 21, 2005

Act No. 7633, Jul. 29, 2005

Act No. 7868, Mar. 3, 2006

Act No. 8050, Oct. 4, 2006

Act No. 8086, Dec. 26, 2006

Act No. 8284, Jan. 26, 2007

Act No. 8362, Apr. 11, 2007

Act No. 8361, Apr. 11, 2007

Act No. 8352, Apr. 11, 2007

Act No. 8345, Apr. 11, 2007

Act No. 8602, Aug. 3, 2007

Act No. 8635, Aug. 3, 2007

Act No. 8852, Feb. 29, 2008

Act No. 8863, Feb. 29, 2008

Act No. 8871, Feb. 29, 2008

Act No. 8974, Mar. 21, 2008

Act No. 9071, Mar. 28, 2008

Act No. 9367, Jan. 30, 2009

Act No. 9401, Jan. 30, 2009

Act No. 9584, Apr. 1, 2009

Act No. 9685, May 21, 2009

Act No. 9984, Jan. 27, 2010

Act No. 12237, Jan. 14, 2014

Act No. 12592, May 20, 2014

Act No. 12927, Dec. 30, 2014

Act No. 13310, May 18, 2015

Act No. 13448, Jul. 24, 2015

Act No. 13453, Jul. 31, 2015

Act No. 14079, Mar. 22, 2016

Act No. 14122, Mar. 29, 2016

Act No. 14127, Mar. 29, 2016

Act No. 14111, Mar. 29, 2016

Act No. 14271, May 29, 2016

Act No. 14363, Dec. 2, 2016

Act No. 14681, Mar. 21, 2017

Act No. 14839, Jul. 26, 2017

Act No. 15463, Mar. 13, 2018

Act No. 15920, Dec. 11, 2018

Act No. 16172, Dec. 31, 2018

Act No. 16216, Jan. 8, 2019

Act No. 16397, Apr. 23, 2019

Act No. 16997, Feb. 11, 2020

Act No. 16998, Feb. 11, 2020

Act No. 17764, Dec. 29, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to facilitating the structural adjustment of the industry as well as to enhancing the competitiveness thereof, by promoting the conversion of existing enterprises into venture businesses and the establishment of venture businesses.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 2 (Definitions)
(1) The term "venture business" means the business which satisfies the requirements under Article 2-2. <Amended on Aug. 3, 2007>
(2) The term "investment" means the purchase of stocks, unsecured convertible bonds, or unsecured bonds with warrant, which have been issued by a stock company, or the acceptance of investments made by a limited liability company. <Amended on Aug. 3, 2007>
(3) Deleted. <Mar. 3, 2006>
(4) The term "facilities for clustering venture businesses" means such buildings designated under Article 18 for the purpose of facilitating the activities of venture businesses by collectively locating such businesses and supporting installations prescribed by Presidential Decree therein. <Amended on Aug. 3, 2007>
(5) The term "laboratory factory" means a business place which is equipped with production facilities falling into the business categories corresponding to urban-type factories under Article 28 of the Industrial Cluster Development and Factory Establishment Act in research facilities held by a university or research institute in order to promote the establishment of venture businesses. <Amended on Aug. 3, 2007>
(6) The term "venture business development and promotion zone" means an area which has the higher concentration of venture businesses than other areas and which is designated under Article 18-4 for the purpose of facilitating the activities of venture businesses by the grouping and cooperation thereof. <Amended on Aug. 3, 2007>
(7) The term "strategic alliance" means a formation of cooperative relationship with the stockholders of other enterprises or with other venture businesses in the fields of technology, facility, information, manpower, capital, etc., for the purpose of improving the productivity and strengthening the competitiveness, etc. <Amended on Aug. 3, 2007>
(8) The term "company specializing in the start-up of new technology-based businesses" means a company established mainly with the aim of industrializing technologies held by universities or research institutes and facilitating business start-up through such industrialization, which is registered pursuant to Article 11-2. <Amended on Aug. 3, 2007>
(9) The term "area for clustering new technology-based businesses" means a land held by a university or research institute, which is designated under Article 17-2 to provide business space to the founders pursuant to subparagraph 2 of Article 2 of the Support for Small and Medium Enterprise Establishment Act (hereinafter referred to as "founders"), venture businesses, etc. <Amended on Aug. 3, 2007>
[Title Amended on Aug. 3, 2007]
 Article 2-2 (Requirements for Venture Business)
(1) A venture business shall satisfy the following requirements: <Amended on Aug. 3, 2007; May 21, 2009; Jan. 27, 2010; Mar. 9, 2011; Jan. 14, 2014; Mar. 22, 2016; Mar. 29, 2016; May 29, 2016; Dec. 31, 2018; Jan. 8, 2019; Feb. 11, 2020>
1. It shall be one of the small and medium enterprises prescribed in Article 2 of the Framework Act on Small and Medium Enterprises (hereinafter referred to as "small and medium enterprises");
2. It shall fall under any of the following:
(a) An enterprise which is up to the standards prescribed by Presidential Decree concerning the total amount invested by any of the following persons (hereafter in this item referred to as "total of invested amount") and the ratio occupied by the total of invested amount in its capital, respectively:
(i) The small and medium business start-up investment company prescribed in subparagraph 10 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "small and medium business start-up investment company");
(ii) Venture investment association prescribed in subparagraph 11 of Article 2 of the Venture Investment Promotion Act (hereinafter referred to as "venture investment association");
(iii) A new technology venture capital business prescribed in the Specialized Credit Finance Business Act (hereinafter referred to as "new technology venture capital business");
(iv) The new technology venture investment association prescribed in the Specialized Credit Finance Business Act (hereinafter referred to as "new technology venture investment association");
(v) Deleted; <Feb. 11, 2020>
(vi) The Korea Venture Investment Corp. prescribed in Article 66 of the Venture Investment Promotion Act;
(vii) One who conducts technology appraisal of and invests in small and medium enterprises, as prescribed by Presidential Decree;
(viii) An individual who meets the standards prescribed by Presidential Decree, such as investment performance, career, and qualification requirements;
(b) An enterprise equipped with any of the following which is up to the standards prescribed by Presidential Decree regarding annual research and development expenses and the ratio occupied by the sum of research and development expenses in annual gross turnover and which is highly appreciated for its business performance by an institution in charge of confirming venture businesses designated under Article 25-3 (1) (hereinafter referred to as "institution in charge of confirming venture businesses"): Provided, That the standards regarding the ratio occupied by the sum of research and development expenses in annual gross turnover shall not apply to enterprises in whose case three years have not passed since their establishment:
(i) A business-affiliated research institute or a department solely responsible for research and development which is recognized under Article 14-2 (1) of the Basic Research Promotion and Technology Development Support Act;
(ii) A corporate-affiliated creative research institute or a department in charge of creation in companies recognized under Article 17-3 (1) of the Framework Act on the Promotion of Cultural Industries;
(iii) An enterprise (including one in the process of establishment) highly appreciated for its innovative technology and business growth potential by an institution in charge of confirming venture businesses.
(2) Matters necessary for the standards, methods, etc. for appraisal under the provisions of paragraph (1) 2 (b) and (c) shall be prescribed by Presidential Decree. <Amended on Feb. 11, 2020>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 3 (Decision on Business Type Excluded from Venture Business)
Notwithstanding Article 2 (1), enterprises operating businesses prescribed by Presidential Decree such as general entertainment bar business shall not be included in the category of venture business for efficacious structural arrangements in the industry and the strengthening of industrial competitiveness of the Republic of Korea. <Amended on May 18, 2015; Apr. 23, 2019>
[This Article Wholly Amended on Aug. 3, 2007]
CHAPTER II ESTABLISHMENT OF FOUNDATION FOR PROMOTION OF VENTURE BUSINESSES
SECTION 1 Establishment of Management System for Promotion of Venture Businesses
 Article 3-2 (Establishment of Venture Business Promotion Plans)
(1) To promote venture businesses, the Minister of SMEs and Startups shall formulate and implement a venture business promotion plan (hereinafter referred to as "promotion plan") every three years following consultation with the heads of related central administrative agencies. <Amended on Jul. 26, 2017>
(2) A promotion plan shall include the following: <Amended on Feb. 11, 2020>
1. Basic direction-setting for policies for promoting venture businesses;
2. Matters concerning providing assistance to venture start-ups;
3. Matters concerning establishing foundation for promoting venture businesses;
4. Matters concerning surveying and managing statistics related to venture businesses;
5. Matters concerning the public procurement of venture business products;
5-2. Matters concerning supporting venture businesses to enter overseas markets;
6. Other matters necessary for promoting venture businesses.
(3) Where necessary to formulate and implement a promotion plan, the Minister of SMEs and Startups may request the heads of related central administrative agencies or the representatives of institutions or organizations, etc. related to the promotion of venture businesses to submit data or to state their opinions. In such cases, the heads of related central administrative agencies, etc. in receipt of such request shall comply therewith unless there is a compelling reason not to do so. <Amended on Jul. 26, 2017>
[This Article Newly Inserted on Dec. 2, 2016]
 Article 3-3 (Fact-Finding Surveys)
(1) To promote venture businesses systematically and to formulate and implement promotion plans efficiently, the Minister of SMEs and Startups shall conduct annual survey on the status, actual conditions, etc. of activities of venture businesses and publicly announce the outcomes thereof. <Amended on Jul. 26, 2017>
(2) Where necessary to conduct a fact-finding survey under paragraph (1), the Minister of SMEs and Startups may request the heads of related central administrative agencies, the heads of local governments, the heads of public institutions prescribed in the Act on the Management of Public Institutions, the representatives of venture businesses, the representatives of related organizations, etc. to submit data or state their opinions, etc. In such cases, the heads of related central administrative agencies, etc. in receipt of such request shall comply therewith unless there is a compelling reason not to do so. <Amended on Jul. 26, 2017>
[This Article Newly Inserted on Dec. 2, 2016]
 Article 3-4 (Establishment and Operation of Comprehensive Management System)
(1) The Minister of SMEs and Startups may establish and operate a comprehensive management system to manage information related to venture businesses in a comprehensive manner and to provide information useful for the activities of venture businesses by laying the basis for cooperation among venture businesses.
(2) Where it is necessary for establishing and operating the comprehensive management system, the Minister of SMEs and Startups may request persons classified as follows to provide data or information falling under the relevant subparagraph. In such cases, the person so requested shall comply with such request in the absence of special circumstances:
1. Any of the following taxation information referred to in Article 81-13 of the Framework Act on National Taxes with the consent of a relevant party: The Commissioner of the National Tax Service;
(a) Opening day, date of suspension, and date of business closure;
(b) Information classified as follows:
(i) In cases of an enterprise falling under Article 2-2 (1) 2 (a): Capital;
(ii) In cases of an enterprise falling under Article 2-2 (1) 2 (b): Annual gross turnover, research and development expenses incurred for new growth engines or source technologies and general research and human resources development expenses, incurred in the relevant year under Article 10 (1) 1 and 3 of the Restriction of Special Taxation Act;
2. The number of the insured under subparagraph 1 of Article 2 of the Employment Insurance Act: The Minister of Employment and Labor;
3. Other data or information necessary for establishing and operating the comprehensive management system, as prescribed by Presidential Decree: The head of a central administrative agency, the head of a local government, the head of a public institution under the Act on the Management of Public Institutions, or the head of any other relevant institution, corporation, or organization holding the relevant data or information.
(3) Except as provided in paragraphs (1) and (2), matters necessary for establishing and operating the comprehensive management system shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Feb. 11, 2020]
SECTION 2 Efficient Supply of Capital
 Article 4 Deleted. <Feb. 11, 2020>
 Article 4-2 Deleted. <Feb. 11, 2020>
 Article 4-3 Deleted. <Feb. 11, 2020>
 Article 4-4 Deleted. <Feb. 11, 2020>
 Article 4-5 Deleted. <Feb. 11, 2020>
 Article 4-6 Deleted. <Feb. 11, 2020>
 Article 4-7 Deleted. <Feb. 11, 2020>
 Article 4-8 Deleted. <Feb. 11, 2020>
 Article 4-9 Deleted. <Feb. 11, 2020>
 Article 4-10 Deleted. <Feb. 11, 2020>
 Article 5 (Provision of Preferential Credit Guarantee)
The Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act (hereinafter referred to as the "Korea Technology Finance Corporation") shall, in guaranteeing credit, give preference to a venture business and a company specializing in the start-up of new technology-based businesses. <Amended on Mar. 29, 2016; Feb. 11, 2020>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 6 (Special Cases concerning Contributions of Industrial Property Rights)
(1) Subjects, in respect of which contributions in kind may be made to venture businesses, shall include patent rights, utility model rights, design rights, or technologies equivalent thereto and the rights of uses thereof (hereinafter referred to as "industrial property rights, etc.").
(2) Where the value of industrial property rights, etc. is appraised by the technology appraisal institution as described by Presidential Decree, the details of appraisal shall be deemed to have been appraised by the authorized appraiser in compliance with Articles 299-2 and 422 of the Commercial Act.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 7 Deleted. <Dec. 30, 1998>
 Article 8 Deleted. <Feb. 11, 2020>
 Article 9 (Special Cases concerning Restrictions on Acquisition of Stocks by Foreigners)
(1) With regard to the acquisition of stocks of a venture business by a foreigner (referring to a person who does not have domicile or temporary domicile for not less than six months in the Republic of Korea) or by a foreign corporation, etc. under Article 9 (16) of the Financial Investment Services and Capital Markets Act, Article 168 (1) through (3) of the said Act shall not apply. <Amended on Aug. 3, 2007; Jan. 30, 2009>
(2) The acquisition of stocks of a venture business by a foreigner or a foreign corporation, etc. under paragraph (1) may be restricted in accordance with the articles of incorporation of the venture business concerned.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 10 Deleted. <Dec. 28, 1998>
 Article 10-2 Deleted. <Jan. 27, 2010>
 Article 11 Deleted. <Feb. 3, 2001>
 Article 11-2 (Establishment of Companies Specializing in Start-Up of New Technology-Based Businesses)
(1) Any of the following universities or research institutes may establish a company specializing in the start-up of new technology-based businesses (hereinafter referred to as "specialized company"): <Amended on Jan. 30, 2009; Jul. 25, 2011>
1. Universities (including industry-academic cooperation groups pursuant to Article 25 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act);
2. National or public research institutes;
3. Government-invested research institutes;
4. Other research institutes prescribed by Presidential Decree in the field of science or industrial technology.
(2) In establishing a specialized company pursuant to paragraph (1), the relevant university or research institute shall register such company with the Minister of SMEs and Startups as prescribed by Presidential Decree. The same shall also apply where any registered matter is altered. <Amended on Jul. 26, 2017>
(3) Where the application for registration is filed pursuant to paragraph (2), the Minister of SMEs and Startups shall grant the registration except where the application falls under any of the following: <Amended on Jan. 30, 2009; Mar. 22, 2013; Jul. 26, 2017>
1. Where it is not a stock company pursuant to the Commercial Act;
2. Where any executive officer falls under any of the following:
(a) A person under adult guardianship or person under limited guardianship;
(b) A person who has been declared bankrupt, but has not yet been reinstated;
(c) A person who has been sentenced to imprisonment without labor or heavier punishment, and for whom five years have not yet lapsed since the execution of such sentence is terminated (including where the execution of sentence is deemed to have been terminated) or the decision to waive such sentence has been made;
(d) A person who has been sentenced to the suspension of the execution of imprisonment without labor or heavier punishment, and for whom two years have not yet lapsed since the period of suspension is terminated;
(e) A person who is under a grace period after having been sentenced to a suspended sentence of imprisonment without labor or heavier punishment;
(f) A person who is disqualified, or whose qualification is suspended according to a court ruling or other statutes;
3. Where its manpower and facilities fail to meet the standards prescribed by Presidential Decree.
(4) The specialized company shall carry on the following business: <Amended on Jan. 27, 2010; May 18, 2015; Jul. 26, 2017; Feb. 11, 2020>
1. Industrialization of technologies held by universities, research institutes or specialized companies;
2. Establishment of subsidiaries necessary to industrialize technologies pursuant to subparagraph 1: Provided, That the universities provided for in paragraph (1) 1 may not establish their subsidiaries;
3. Establishment and operation of the business incubators provided for in Article 6 (1) of the Support for Small and Medium Enterprise Establishment Act;
4. Investment in venture investment associations, new technology venture investment associations, or private investment associations under Article 2 (8) of the Venture Investment Promotion Act (hereinafter referred to as "private investment associations");
4-2. Operation of assets of private investment associations;
5. Transfer of technologies possessed by specialized companies to industrial enterprises, etc.;
6. Assistance in transferring technologies possessed by universities and research institutes to industrial enterprises, etc.;
7. Managerial and technical support for any company established by teachers, researchers, etc. of universities and research institutes;
8. Other businesses incidental to those provided for in subparagraphs 1 through 7, as determined by the Minister of SMEs and Startups.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 11-3 (Operation of Specialized Companies)
(1) A university or a research institute shall own stocks equivalent to at least 10/100 of the gross number of outstanding stocks of a specialized company established by itself. <Amended on Jan. 30, 2009; May 18, 2015>
(2) When a university or a research institute establishes a specialized company or its specialized company issues new stocks, it may make contributions in kind, such as industrial property rights, or in cash: Provided, That where the universities under Article 11-2 (1) 1 establish a specialized company by investing cash only, they shall transfer retaining technologies to the specialized company. <Amended on Jan. 30, 2009>
(3) Where necessary to perform its projects, a specialized company may borrow loans from the Government, Funds established by the Government, domestic or foreign financial institutions, foreign governments or international organizations.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 11-4 (Preferential Provision of Funds to Specialized Companies)
A person who manages the Fund for the Establishment and Promotion of Small and Medium Venture Businesses may preferentially provide funds to specialized companies. <Amended on Jan. 30, 2009; Dec. 31, 2018>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 11-5 (Special Cases concerning Specialized Companies)
(1) Articles 16 and 16-2 shall apply mutatis mutandis to where a teacher, researcher or employee of a university or a research institute is allowed a leave of absence to work as the representative, an executive officer or employee of a specialized company or concurrently holds the post or office of such representative, officer or employee.
(2) When a university or a research institute makes contributions in kind to a specialized company pursuant to Article 11-3 (2), Article 6 (2) shall apply mutatis mutandis to the assessment and appraisal of the values of industrial property rights, etc.
(3) When a research institute which is a public-service corporation prescribed in the Act on the Establishment and Operation of Public Interest Corporations registers its specialized company in compliance with Article 11-2 (2), it shall file a report thereon with the competent authorities within 30 days. When the report is made, it shall be deemed that approval of the competent authorities pursuant to Article 4 (3) of the same Act is obtained.
(4) Where a university or a research institute permits any specialized company to use industrial property rights, etc., it may grant an exclusive license, notwithstanding Article 24 (4) and (5) of the Technology Transfer and Commercialization Promotion Act. <Newly Inserted on Jan. 27, 2010>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 11-6 (Restrictions on Activities of Specialized Companies)
(1) A specialized company shall be prohibited from performing any of the following acts:
1. The act of recruiting any contributors or investors in contravention of Article 3 of the Act on the Regulation of Conducting Fund-Raising Business without Permission;
2. The act of having any such business relations with a subsidiary established by the specialized company as prescribed by Presidential Decree, such as debt guarantee;
3. Other acts prescribed by Presidential Decree, which are detrimental to the purposes of establishing the specialized company.
(2) A specialized company may establish its subsidiary pursuant to Article 11-2 (4) 2 only upon a special resolution of the general meeting of stockholders.
(3) A university or a research institute shall use any dividends, gains and surpluses accrued from investments in or contributions to its specialized company for the proper purpose business or research and development, industry-academic cooperation activities, etc. of the university or research institute, as prescribed by Presidential Decree.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 11-7 (Revocation of Registration of Specialized Companies)
Where a specialized company falls under any of the following, the Minister of SMEs and Startups may revoke its registration: Provided, That he/she shall revoke the relevant registration, where it falls under subparagraph 1: <Amended on Mar. 22, 2013; Jul. 26, 2017; Dec. 11, 2018>
1. Where it registers the company by fraud or other improper means;
2. Where it performs any act referred to in any subparagraph of Article 11-6 (1);
3. Where it falls under any of the subparagraphs of Article 11-2 (3): Provided, That this shall not apply to specialized companies falling under Article 11-2 (3) 2, in whose case grounds for revocation of their registration have ceased to exist within three months from the date said grounds for revocation arose.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 12 Deleted. <Feb. 11, 2020>
 Article 13 Deleted. <Feb. 11, 2020>
 Article 13-2 Deleted. <Feb. 11, 2020>
 Article 13-3 Deleted. <Feb. 11, 2020>
 Article 14 (Special Cases concerning Taxation)
(1) The State or local governments may afford reduction of or exemption from income tax, corporate tax, acquisition tax, property tax, registration license tax, etc. to venture businesses, as prescribed in the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, or other relevant statutes, so as to foster the growth of the venture businesses. <Amended on Mar. 31, 2010>
(2) Deleted. <Feb. 11, 2020>
(3) In any of the following cases, tax favors may be rendered as stipulated by the statutes relating to taxation. In such cases, matters necessary for verifying, etc. those eligible for the tax favors shall be prescribed by Presidential Decree:
1. Where a venture business which is a stock company makes a stock exchange with the stockholders of another stock company, or another venture business which is a stock company;
2. Where a venture business which is a stock company and another stock company make a merger.
[This Article Wholly Amended on Aug. 3, 2007]
SECTION 3 Facilitation of Business Activities and Smooth Supply of Manpower
 Article 15 (Exchange of Stocks by Venture Businesses)
(1) Any venture business (excluding a corporation which is listed in the securities exchange under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act; hereafter the same shall apply in this Article and Articles 15-2 through 15-11 and 16-3) which is a stock company may exchange the treasury stocks with stocks of principal stockholders of other stock companies (referring to stockholders retaining at least 10/100 of the gross number of issued voting stocks of the relevant corporations; hereinafter the same shall apply) or those of other venture businesses which are stock companies, for the purpose of strategic alliance, as determined by the articles of incorporation. <Amended on Aug. 3, 2007; Jan. 30, 2009; May 28, 2013>
(2) Any venture business which seeks to make a stock exchange under paragraph (1) shall acquire treasury stocks necessary for stock exchange under paragraph (1) on its own account, notwithstanding Article 341 of the Commercial Act. In such cases, the amount of acquisition shall be within the limits capable of paying a dividend under Article 462 (1) of the same Act.
(3) Any venture business which seeks to make a stock exchange under paragraph (1) shall prepare a written contract for stock exchange containing the following matters, and obtain approval at a general meeting of stockholders. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of approval by the general meeting of stockholders:
1. Details of the strategic alliance;
2. Matters related to the method, price and time of acquisition of treasury stocks;
3. Matters related to the gross amount of values, assessment, kinds and volume of the stocks to be exchanged;
4. Date of share swap;
5. Where making a stock exchange with the principal stockholders of other stock companies, the names and resident registration numbers of stockholders and the kinds and volume of stocks to be exchanged.
(4) Any venture business which seeks to make a stock exchange under paragraph (1) shall, when there exists a resolution thereon made by the board of directors, promptly notify the stockholders of the details of such resolution, and keep the written contract for stock exchange under paragraph (3) so as to make it available for a perusal.
(5) Where any venture business acquires stocks of the principal stockholders of other stock companies or those of other venture businesses pursuant to the stock exchange under paragraph (1), it shall retain them for at least one year from the date of acquisition. The same shall also apply to the principal stockholders of other stock companies who have acquired the stocks of venture businesses pursuant to the stock exchange under paragraph (1).
(6) The acquisition period of treasury stocks under paragraph (2) shall be within six months from the date of a resolution on approval of the general meeting of stockholders under paragraph (3).
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-2 (Appraisal Rights of Opposing Stockholders)
(1) Any stockholder who has informed in writing the venture business of his/her intent to oppose the stock exchange before the resolution on approval of the general meeting of stockholders under Article 15 (3), may claim in writing the relevant venture business to purchase stocks owned by him/her within 10 days from the date of a resolution on approval of the general meeting of stockholders.
(2) Any venture business which has received the claim under paragraph (1) shall purchase such stocks within 2 months from the date of receiving such claim. In such cases, the said stocks shall be disposed of within six months.
(3) Article 374-2 (3) through (5) of the Commercial Act shall apply mutatis mutandis to a decision of purchasing prices of stocks under paragraph (2).
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-3 (Simplification of Merger Procedures)
(1) When any venture business which is a stock company has made a decision on merging with another stock company [in the case of a small-scale merger under Article 15-9 and a short-form merger under Article 15-10, referring to the resolution of approval by the board of directors], it shall, within one week from the day the said merger resolution has been made, give the creditors a public notice that any objection against such merger, if any, should be raised within the period of not less than 10 days, and shall make a peremptory notice on matters of the public notification to the creditors who are known to itself, notwithstanding Article 527-5 (1) of the Commercial Act.
(2) Any venture business which is a stock company may notify a convocation of the general meeting of stockholders for making a merger resolution seven days prior to the date of general meeting of stockholders, notwithstanding Article 363 (1) of the Commercial Act.
(3) Any venture business which is a stock company may, in publicly announcing a written contract for merger, etc. in order to merge with another stock company, make the period of such public announcement from seven days prior to the date of general meeting of stockholders for a merger approval to the day on which one month elapses after the date of merger, notwithstanding Article 522-2 (1) of the Commercial Act.
(4) When there exists a resolution of the board of directors relating to a merger of venture business which is a stock company, any stockholder of the venture business who is opposed to the said resolution shall, notwithstanding Article 522-3 (1) of the Commercial Act, inform the venture business in writing of his/her intention of opposing the merger prior to the general meeting of stockholders, and demand a purchase of his stocks, stating the kinds and numbers of stocks possessed by him/her.
(5) Where any venture business has received a demand under paragraph (4), it shall purchase such stocks within two months from the date of resolution by the general meeting of stockholders relating to the merger, notwithstanding Articles 374-2 (2) and 530 (2) of the Commercial Act.
(6) Article 374-2 (3) through (5) of the Commercial Act shall apply mutatis mutandis to a determination of purchase prices of stocks pursuant to paragraph (5). In such cases, the term "date of receiving a demand of paragraph (1)" in Article 374-2 (4) of the same Act shall be read as the "date of resolution by the general meeting of stockholders relating to the merger".
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-4 (Stock Exchanges by Issuing New Stocks)
(1) A venture business which is a stock company may issue new stocks and exchange them with the stocks of the major stockholders of other stock companies or stocks of other venture businesses which are stock companies, for the purpose of strategic alliance as determined by the articles of incorporation. In such cases, the major stockholders of such other stock companies or the other venture businesses which are stock companies shall become the stockholders of the relevant venture business by receiving an allotment of new stocks to be issued by the venture business for a stock exchange.
(2) A venture business seeking to make a stock exchange pursuant to paragraph (1) shall prepare a contract for stock exchange containing the following matters and obtain approval therefor from the general meeting of stockholders. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of approval of the general meeting of stockholders:
1. Details of the strategic alliance;
2. Matters concerning the value, gross amount, assessment, kinds, volume and allotments of new stocks to be exchanged;
3. Date of making the stock exchange;
4. Where making stock exchange with major stockholders of other stock companies, the names and resident registration numbers of the stockholders and the kinds and volume of stocks to be exchanged.
(3) Where the major stockholders of other stock companies or other venture businesses which are stock companies make an investment in kind in the venture business with their retained stocks through a stock exchange pursuant to paragraph (1), if a certified assessment agency prescribed by Presidential Decree has made an assessment of the price of said stocks, it shall be deemed that an inspector has made an investigation pursuant to Article 422 (1) of the Commercial Act or that a certified appraiser has made an appraisal. In such cases, Article 422 (3) and (4) of the Commercial Act shall not be applicable. <Amended on May 29, 2016>
(4) Article 15 (4) and (5) shall apply mutatis mutandis where a stock exchange is made pursuant to paragraph (1).
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-5 (Appraisal Rights by Stockholders at Time of Stock Exchange by Issuing New Stocks)
 Article 15-2 (1) through (3) shall apply mutatis mutandis to the appraisal right by the stockholders opposing stock exchanges under Article 15-4.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-6 (Special Cases concerning Stock Exchange)
(1) Where a venture business makes a stock exchange pursuant to Article 15 or 15-4, if the number of stocks to be exchanged does not exceed 50/100 of the gross number of issued stocks, approval of the general meeting of stockholders may be substituted by approval of the board of directors as determined by the articles of incorporation.
(2) A venture business seeking to make a stock exchange pursuant to paragraph (1) shall state on the written contract for stock exchange the purport that the stock exchange may be made without obtaining approval of the general meeting of stockholders under Article 15 (3) or 15-4 (2).
(3) A venture business shall make a public notification of the following matters or notify the stockholders thereof within two weeks from the date of preparing a written contract for stock exchange:
1. The main contents of the written contract for stock exchange;
2. The purport that the stock exchange is made without obtaining approval of the general meeting of the stockholders.
(4) When a stockholder who owns the stocks equivalent to 20/100 or more of the gross number of issued stocks of a venture business has notified in writing his/her intention of opposing the stock exchange under paragraph (1) within two weeks from the date of public notification or notice under paragraph (3), no stock exchanges under this Article shall be made.
(5) In cases of stock exchanges under paragraph (1), the provisions of Article 15-2 or 15-5 shall not be applicable.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-7 (Litigation for Invalidity of Stock Exchange)
Article 360-14 of the Commercial Act shall apply mutatis mutandis to the litigation for invalidity of stock exchange under Article 15 or 15-4. In such cases, "company to become a perfect parent company" in Article 360-14 (2) of the Commercial Act shall be construed as "venture business;" "company which became a perfect parent company" in paragraph (3) of the same Article as "venture business;" and "company which became a perfect subsidiary" as "other venture businesses which are stock companies".
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-8 (Special Cases concerning Takeover of Business by Other Stock Companies)
(1) Where a venture business which is a stock company transfers the whole or part of its business to another stock company (excluding the corporations listed in the securities exchange under Article 8-2 (4) 1 of the Financial Investment Services and Capital Markets Act; hereafter in this Article and Articles 15-9 through 15-11, the same shall apply), if the transfer value does not exceed 10/100 of the amount of net assets existing on the final balance sheet of the other stock company, approval of the general meeting of stockholders of the other stock company may be substituted by approval of the board of directors as determined by the articles of incorporation. <Amended on Aug. 3, 2007; Jan. 30, 2009; May 28, 2013>
(2) A venture business seeking to transfer the whole or part of its business pursuant to paragraph (1) shall state, on the written contract for transfer or takeover of business, the purport that another stock company may take over the whole or part of business of the venture business without obtaining approval from the general meeting of stockholders.
(3) Another stock company which seeks to take over the whole or part of business of a venture business under paragraph (1) shall make a public notification of the following matters or notify the stockholders thereof within two weeks from the date of preparing a written contract for transfer or takeover of business:
1. The main contents of the written contract for transfer or takeover of business;
2. The purport that the business is taken over without obtaining approval from the general meeting of the stockholders.
(4) When a stockholder who owns stocks equivalent to at least 20/100 of the gross number of issued stocks of another stock company has notified in writing his/her intention of opposing the business takeover pursuant to paragraph (1), within two weeks from the date of public notification or notice under paragraph (3), no business takeover under this Article shall be made.
(5) In the case of business takeover under paragraph (1), Article 374-2 of the Commercial Act shall not be applicable.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 15-9 (Special Cases concerning Small-Scale Merger of Venture Businesses)
(1) Where a venture business which is a stock company merges with another stock company, if the gross number of new stocks issued by a company remaining after the merger due to the merger is not more than 20/100 of the gross number of issued stocks of the stock company, approval of the general meeting of stockholders of the remaining company may be substituted by approval of the board of directors, notwithstanding Article 527-3 (1) of the Commercial Act: Provided, That where the amount to be paid to the stockholders of the company extinguished due to the merger is determined, if the amount exceeds 5/100 of the amount of net assets existing on the final balance sheet of the remaining company, this shall not apply. <Amended on Aug. 6, 2013>
(2) The appraisal rights of the stockholders opposing the merger pursuant to paragraph (1) shall not be allowed.
[This Article Newly Inserted on Aug. 3, 2007]
 Article 15-10 (Special Cases concerning Short-Form Merger of Venture Businesses)
(1) Where a venture business which is a stock company merges with another stock company, if a company remaining after the merger owns at least 80/100 of the gross number of voting stocks issued by the extinguished company, approval of the general meeting of stockholders of the extinguished company may be substituted by approval of the board of directors, notwithstanding Article 527-2 (1) of the Commercial Act. <Amended on Aug. 6, 2013>
(2) With respect to the appraisal rights of the stockholders opposing the merger pursuant to paragraph (1), Article 522-3 (2) of the Commercial Act shall apply.
[This Article Newly Inserted on Aug. 3, 2007]
 Article 15-11 (Short-Form Transfer of Business)
(1) Where a venture business which is a stock company transfers all or part of its business to another stock company, approval of the general meeting of stockholders of the company transferring its business may be substituted by approval of the board of directors, if all stockholders of the company transferring its business agree or another stock company possesses at least 90/100 of voting stocks out of the total number of stocks issued by the company transferring its business, notwithstanding Article 374 of the Commercial Act.
(2) In cases falling under paragraph (1), the purport that the company transferring its business may transfer all or part of its business without obtaining approval of the general meeting of stockholders shall be stated in the written contract for transfer or takeover.
(3) The company which intends to transfer all or part of its business under paragraph (1) shall announce or inform stockholders of the following matters within two weeks from the date when a written contract for transfer or takeover is prepared:
1. Important details of the written contract for transfer or takeover of business;
2. Its purport to transfer business without obtaining approval of the general meeting of the stockholders.
(4) Any stockholder who has informed the company, in writing, of his/her intention of opposing the transfer of business within two weeks from the date when the announcement or notification under paragraph (3) is made may request, in writing stating the kinds and number of stocks, the company to purchase stocks owned by him/her within 20 days from the date when the said two-week period has lapsed.
(5) Article 374-2 (2) through (5) of the Commercial Act shall apply mutatis mutandis to a request for purchase under paragraph (4).
[This Article Newly Inserted on Jan. 30, 2009]
[Previous Article 15-11 moved to Article 15-12 <Jan. 30, 2009>]
 Article 15-12 (Provisions Applicable Mutatis Mutandis)
Articles 15, 15-2 through 15-11 and 24 (1) 4 shall apply mutatis mutandis to founders. In such cases, "venture business" shall be construed as "founder". <Amended on Jan. 30, 2009>
[This Article Newly Inserted on Aug. 3, 2007]
[This Article Moved from Article 15-11 <Jan. 30, 2009>]
 Article 15-13 (Designation of Supporting Centers for Merger and Acquisition of Small and Medium Venture Businesses)
(1) The Minister of SMEs and Startups may designate agencies or institutions relevant to support for small and medium enterprises as a supporting center for merger and acquisition of small and medium venture businesses (hereinafter referred to as "supporting center") to efficiently support merger and acquisition of small and medium venture businesses. <Amended on Jul. 26, 2017>
(2) The duties of supporting centers shall be as listed in the following: <Amended on Jul. 26, 2017>
1. Matters pertaining to support for development of merger and acquisition plan of small and medium venture businesses;
2. Matters pertaining to collecting and providing information of enterprises and consulting support for merger and acquisition of small and medium venture businesses;
3. Matters pertaining to developing and supplying enterprise value evaluating models of small and medium venture businesses;
4. Matters pertaining to support of funds necessary for merger and acquisition of small and medium venture businesses;
5. Matters pertaining to fostering and education of experts in merger and acquisition of small and medium venture businesses;
6. Other matters determined by the Minister of SMEs and Startups to promote merger and acquisition of small and medium venture businesses.
(3) The Minister of SMEs and Startups may subsidize all or part of expenses incurred in administrating a supporting center. <Amended on Jul. 26, 2017>
(4) Except as provided in paragraphs (1) through (3), matters necessary for designation standards, procedures therefor, operation, etc. of a supporting center shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Jan. 30, 2009]
 Article 15-14 (Revocation of Designation as Supporting Centers)
Where each supporting center falls under any of the following cases, the Minister of SMEs and Startups may revoke the designation thereof: Provided, That where a case falls under subparagraph 1, the designation thereof shall be revoked: <Amended on Jul. 26, 2017>
1. Where a supporting center is designated by fraud or other improper means;
2. Where a supporting center fails to meet the designation standards under Article 15-13 (4);
3. Where a supporting center fails to perform the duties designated for not less than one month without good cause.
[This Article Newly Inserted on Jan. 30, 2009]
 Article 16 (Grant of Leave of Absence of Public Educational Officials)
(1) Any of the following persons (hereinafter referred to as "public educational official, etc.") may be allowed a leave of absence so as to work as a representative or an executive officer of a venture business or founder, notwithstanding Article 44 (1) of the Public Educational Officials Act, Article 71 (2) of the State Public Officials Act, Article 63 (2) of the Local Public Officials Act, and Article 59 (1) of the Private School Act: <Amended on Mar. 22, 2013; May 18, 2015; Mar. 13, 2018; Feb. 11, 2020>
1. Teaching staff (including a researcher at a university-affiliated institute; hereinafter the same shall apply) at a university (including a university of technology and a junior college; hereinafter the same shall apply) under the Higher Education Act;
2. Researchers at a national or public research institute (including teaching staff and researchers under Article 15 of the Korea Advanced Institute of Science and Technology Act, Article 14 of the Gwangju Institute of Science and Technology Act, Article 12-3 of the Daegu Gyeongbuk Institute of Science and Technology Act, and Article 8 of the Ulsan National Institute of Science and Technology Act; hereinafter the same shall apply);
3. Researchers at a research institute under Article 8 (1) of the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes (including researchers at affiliated research institutes; hereinafter the same shall apply);
4. Researchers at a specialized manufacturing technology research institute prescribed in Article 42 of the Industrial Technology Innovation Promotion Act.
5. Researchers at a government-funded institution under Article 2 of the Act on the Operation of Local Government-Invested or -Funded Institutions which mainly conducts research in the field of science and technology as prescribed by Presidential Decree.
(2) Any of the following persons (hereinafter referred to as "employees, etc. of public institutions") may be allowed a leave of absence so as to work as a representative or an executive officer of a venture business or founder, with permission from the head of an institution to which he/she belongs: <Newly Inserted on May 18, 2015; Feb. 11, 2020>
1. Employees of public institutions under Article 4 (1) of the Act on the Management of Public Institutions (excluding researchers under paragraph (1) 3 of this Article);
2. Employees of a specialized manufacturing technology research institute under paragraph (1) 4 (excluding researchers);
3. Employees of local government-funded institution in the field of science and technology under paragraph (1) 5 (excluding researchers).
(3) The period of leave of absence under paragraph (1) or (2) shall not exceed five years (including six months for preparing establishment): Provided, That the period of leave of absence may be extended up to one year if it is deemed necessary by the head of the institution whereto the public official, etc. belongs. In such cases, the period of leave of absence for teaching staff at a university may exceed the remaining period of his/her employment, notwithstanding Article 45 (2) of the Educational Officials Act. <Amended on Jan. 30, 2009; Dec. 30, 2014; May 18, 2015>
(4) Where public educational officials, etc. or employees, etc. of public institutions are awarded a leave of absence for at least six months in compliance with paragraph (1) or (2), it shall be deemed that there are a fixed number of extra regular staff which is equal to that of public educational officials, etc. or employees, etc. of public institutions who are awarded the leave of absence from the beginning date of leave of absence at the university, research institute, or public institution. <Amended on Mar. 22, 2013; May 18, 2015; Feb. 11, 2020>
(5) Where public educational officials, etc. or employees, etc. of public institutions resume office after taking a leave of absence under paragraph (1) or (2), the head of an institution to which they belong shall not give them any unfavorable treatment in terms of their status or salary due to the leave of absence. <Newly Inserted on Mar. 22, 2013; May 18, 2015; Feb. 11, 2020>
[This Article Wholly Amended on Aug. 3, 2007]
[Title Amended on Mar. 22, 2013]
 Article 16-2 (Special Cases concerning Concurrent Posts or Offices of Public Educational Officials)
(1) Where public educational officials, etc. or researchers at government-funded research institutes (excluding research institutes in the field of national defense) prescribed by Presidential Decree do not fall under any of the following, they may concurrently hold office or position as a representative, an executive officer or employee of a venture business or a founder referred to in subparagraph 2 of Article 2 of the Support for Small and Medium Enterprise Establishment Act, with permission from the heads of institutions to which they belong: <Amended on Mar. 22, 2013>
1. Where they intend to concurrently hold office or position in the fields which have no relation to their areas of expertise, skills, work experiences, etc.;
2. Where there is a concern that the efficient performance of duties as a public official is likely to be obstructed.
(2) Permission obtained from the head of an institute under paragraph (1) shall be deemed that permission for a concurrent post or office is granted under Article 18 (1) of the Public Educational Officials Act and Article 6 (4) of the Cooperative Research and Development Promotion Act.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 16-3 (Stock Options of Venture Businesses)
(1) When a resolution of the general meeting of stockholders is made as determined by its articles of incorporation, any venture business which is a stock company may grant a person who has contributed, or is capable of contributing, to the establishment of the venture business or the innovation in its technology and management, etc., among the following persons, the right to purchase new stocks at a particularly advantageous price and the right to purchase existing stocks of the said business as prescribed by Presidential Decree (hereafter in this Article referred to as "stock option"), notwithstanding Articles 340-2 through 340-5 of the Commercial Act. In such cases, Article 434 of the Commercial Act shall apply mutatis mutandis to the resolution of the general meeting of stockholders: <Amended on Aug. 6, 2013>
1. An executive officer or employee of the venture business (excluding persons prescribed by Presidential Decree);
2. A person prescribed by Presidential Decree who has skill or managerial ability;
3. A university or a research institute prescribed by Presidential Decree;
4. Executive officers and employees of a company acquired by the venture business (limited to where at least 30/100 of the gross number of outstanding stocks is acquired).
(2) The articles of incorporation concerning the stock options under paragraph (1) shall contain the following matters:
1. Purports that stock options may be granted in a specified case;
2. Kinds and number of stocks to be delivered by the exercise of stock options;
3. Qualifications of the persons to be granted the stock options;
4. Period for exercising stock options;
5. Purports that the stock options may be revoked by a resolution of the board of directors in a specified case.
(3) In the special resolution of the general meeting of stockholders under paragraph (1), the following matters shall be determined:
1. Names or titles of the persons to be granted the stock options;
2. Methods of granting the stock options;
3. Prices and period for exercising the stock options;
4. Kinds and number of stocks to be delivered by the exercise of stock options, with respect to each individual to be granted the stock options.
(4) Where not more than 20/100 of the total number of stocks under paragraph (2) 2 are granted as stock options to other persons than the executive officers and employees of the relevant venture business, the matters referred to in paragraph (3) 1 and 4 may be decided by the board of directors of the venture business, through a special resolution of the general meeting of stockholders, notwithstanding paragraph (3). In such cases, the grant of stock options shall be approved by a resolution of the general meeting of stockholders convoked for the first time after granting them. <Amended on Dec. 30, 2014>
(5) If a resolution is made under paragraphs (3) and (4), a venture business which seeks to grant stock options shall report the details to the Minister of SMEs and Startups, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>
(6) A person granted a stock option under paragraph (1) or (4) may exercise it only if he/she has served or held office for at least two years since the date the resolution under paragraph (1) was adopted or the date decided by the board of directors under paragraph (4), except for cases prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Dec. 30, 2014; Jul. 26, 2017>
(7) No stock option shall be transferred to another person: Provided, That when a person granted a stock option is deceased, his/her inheritor shall be deemed to be granted it. <Newly Inserted on Dec. 30, 2014>
(8) Article 350 (2), Articles 351 and 516-9 (1), (3) and (4), and the former part of Article 516-10 of the Commercial Act shall apply mutatis mutandis where new stocks are issued by exercising stock options. <Newly Inserted on Dec. 30, 2014; Dec. 29, 2020>
(9) Where the venture business which has granted a stock option acquires the treasury stocks for the purpose of delivering them to the person granted the stock option, they may exceed 10/100 of the gross number of its issued stocks, notwithstanding the main sentence of Article 341-2 (1) of the Commercial Act. <Amended on Dec. 30, 2014>
(10) Matters necessary for the grant limit, etc. of stock options shall be prescribed by Presidential Decree. <Amended on Dec. 30, 2014>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 16-4 (Provision of Information to Venture Businesses)
(1) The Government may provide a venture business with information on investments, funds, manpower, technology, markets, locations, etc. related to the establishment and business activity of the venture business, or provide other support for promoting the informatization of the venture business.
(2) The Minister of SMEs and Startups may request that the head of a central administrative agency, local government, or public agency subject to the application of the Act on the Management of Public Institutions provide data necessary for the provision of information under paragraph (1). <Amended on Jul. 26, 2017>
(3) To promote investments in a venture business by an individual or a private investment association (hereafter in this paragraph referred to as "individual, etc."), the Minister of SMEs and Startups may furnish the individual, etc. with necessary information concerning the venture business such as investment value as prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 16-5 (Special Cases concerning Limited Liability Companies Which Are Venture Businesses)
(1) Deleted. <May 18, 2015>
(2) Deleted. <May 18, 2015>
(3) A venture business which is a limited liability company may separately prescribe the standards for dividends by a resolution of the general meeting of members as determined by the articles of incorporation, notwithstanding Article 580 of the Commercial Act.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 16-6 Deleted. <May. 18, 2015>
 Article 16-7 (Special Cases concerning Use of Industrial Property Rights)
(1) Universities, research institutes, or public institutions may permit an exclusive license in the use of industrial property rights, etc. obtained from the invention during performing duties to a public educational official, etc. or an employee, etc. of public institutions who takes a leave of absence or is permitted to concurrently hold office or position under Article 16 or 16-2, notwithstanding Article 24 (4) and (5) of the Technology Transfer and Commercialization Promotion Act: Provided, That in cases of the work-for-hire invention which is completed after taking a leave of absence or concurrently holding office or position, where the relevant public educational official, etc. or employee, etc. of public institutions wishes, an exclusive license shall be granted preferentially after the mutual agreement on a fair consideration. <Amended on Jan. 27, 2010; Mar. 22, 2013; Feb. 11, 2020>
(2) Paragraph (1) shall not apply where an invention is accomplished through the support of research and development costs by the Government, local governments, or public institutions. <Newly Inserted on Mar. 22, 2013>
[This Article Wholly Amended on Aug. 3, 2007]
SECTION 4 Efficient Supply of Sites
 Article 17 Deleted. <Mar. 3, 2006>
 Article 17-2 (Designation of Areas for Clustering New Technology-Based Businesses)
(1) The head of a university or a research institute may request the Minister of SMEs and Startups to designate a specific land held by the university or research institute as an area for clustering new technology-based businesses (hereinafter referred to as "clustering area") in which the production facilities and other support facilities of founders, venture businesses, etc. are collectively equipped. <Amended on Jul. 26, 2017>
(2) The head of a university or a research institute shall, when requesting the designation of a clustering area under paragraph (1), submit a plan for developing the clustering area containing the matters prescribed by Presidential Decree such as the name, area of designation, etc. of the clustering area.
(3) The Minister of SMEs and Startups, who is requested to designate an area as a clustering area, may designate such area as a clustering area after examining whether it meets the requirements provided for in the subparagraphs of Article 17-3. In such cases, he/she shall publicly notify the details of designation as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>
(4) When the size of an area to be designated as a clustering area pursuant to paragraph (3) is not smaller than the area prescribed by Presidential Decree, the Minister of SMEs and Startups shall consult with the Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor or the Jeju Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") who has jurisdiction over such area. <Amended on Jul. 26, 2017; Jan. 8, 2019>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 17-3 (Requirements for Designation of Clustering Areas)
The clustering area shall satisfy the following requirements:
1. The ratio of a designated area to the total floor area of the land held by the university or research institute concerned shall not exceed the ratio prescribed by Presidential Decree;
2. The area of designation shall not be less than 3,000 square meters;
3. The plan for development of the clustering area shall be feasible.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 17-4 (Special Cases concerning Clustering Areas)
(1) A clustering area may be designated in an area other than areas prescribed by Presidential Decree, such as green belts for preservation, among the areas provided for in Article 36 of the National Land Planning and Utilization Act, notwithstanding Article 76 of the said Act.
(2) A founder or a venture business may construct in the relevant clustering area the urban-type factories (referring to urban-type factories prescribed by Presidential Decree) pursuant to Article 28 of the Industrial Cluster Development and Factory Establishment Act and other related business facilities to the extent that the structural safety is not threatened, by obtaining approval from the head of the relevant university or research institute, notwithstanding Article 19 (1) of the Building Act and Article 76 (1) of the National Land Planning and Utilization Act. In such cases, approval for establishment, etc. of factories under Article 13 of the Industrial Cluster Development and Factory Establishment Act and approval for installation of manufacturing facilities under Article 14-3 of the same Act shall be deemed obtained. <Amended on Mar. 21, 2008; Jan. 27, 2010>
(3) The clustering area, the designated area of which is not smaller than the area prescribed by Presidential Decree pursuant to Article 17-2 (4) and, which is designated in an urban area shall be deemed the up-to-date city industrial complex under Article 7-2 of the Industrial Sites and Development Act.
(4) The Minister of SMEs and Startups shall be the authorized administrator (referring to the authorized administrator prescribed in Article 30 (1) of the Industrial Cluster Development and Factory Establishment Act) of the clustering area under paragraph (3). <Amended on Jul. 26, 2017>
(5) The university or research institute concerned shall be the management agency (referring to the management agency prescribed in Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act) of the clustering area under paragraph (3).
(6) The head of a university or research institute may lease part of the relevant clustering area to a founder, a venture business or the installer or operator of support facilities who intends to construct buildings (including any factory structures) or other permanent installations in the clustering area concerned, notwithstanding Articles 18 and 27 of the State Properties Act, Articles 13 and 20 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. In such cases, when the period of the lease contract (including the renewed contract) expires, the installations in question shall be donated to the relevant university or research institute or the relevant land shall be reinstated to the original state and returned, taking into consideration the types, utilities, etc. of the installations. <Amended on Jan. 30, 2009>
(7) Matters necessary for the rental fee, lease period, etc. pursuant to paragraph (6) shall be prescribed by Presidential Decree.
(8) Article 22 (1) and (3) shall apply mutatis mutandis with respect to the clustering areas.
(9) Where the head of each Si/Gun/Gu receives an application for registration of factories under paragraph (2) from a founder or venture business located in a clustering area, he/she shall register a factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Newly Inserted on Jan. 27, 2010>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 17-5 (Guidelines for Management of Clustering Areas)
The Minister of SMEs and Startups shall establish and publicly notify the guidelines for designating and managing clustering areas. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 17-6 (Revocation of Designation of Clustering Areas)
The Minister of SMEs and Startups may revoke the designation of a clustering area pursuant to Article 17-2 (3) in any of the following cases: <Amended on Jul. 26, 2017>
1. Where it is impracticable to attain the designation objectives on the grounds of business delay, poor management, etc.;
2. Where it fails to meet the requirements for designation pursuant to Article 17-3.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 18 (Designation of Facilities for Clustering Venture Businesses)
(1) A person who intends to establish the facilities for clustering venture businesses or use existing buildings as those facilities may obtain designation thereof from the Mayor/Do Governor (referring to the Mayor in cases of large cities with a population of at least 500,000 except for Seoul Special Metropolitan City, Metropolitan Cities, Special Self-Governing Cities under Article 175 of the Local Autonomy Act; hereinafter the same shall apply in this Article, Article 18-4, and Article 26) where their total floor area exceeds the total floor area prescribed by Presidential Decree. The same shall also apply to where the designated matters are modified. The same shall also apply to the alteration of designated matters. <Amended on Jan. 8, 2019>
(2) The facilities for clustering venture businesses that have been designated under paragraph (1) shall satisfy the following requirements within one year from the date they are so designated (in cases of buildings under construction, referring to the date approval for use of the buildings is granted under Article 22 of the Building Act): <Amended on Mar. 21, 2008; Jan. 30, 2009>
1. The businesses prescribed by Presidential Decree, such as venture businesses, etc., shall move in, and the number of venture businesses from among enterprises located therein shall be no less than four (no less than three in cases of an area other than the Seoul Metropolitan Area under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act);
2. The businesses prescribed by Presidential Decree, such as venture businesses, shall use at least 70/100 (50/100 in cases of an area other than the Seoul Metropolitan Area under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act) of the total floor area;
3. The facilities prescribed by Presidential Decree, such as facilities for clustering venture businesses, shall occupy the designated area which does not fall under subparagraph 2.
(3) If deemed necessary for supporting venture businesses, the Mayor/Do Governor may establish the facilities for clustering venture businesses or designate existing buildings as those facilities, so that venture businesses and their supporting installations may move therein.
(4) When the facilities for clustering venture businesses fall under any of the following cases, the Mayor/Do Governor may revoke such designation: Provided, That when they fall under subparagraph 1, he/she shall revoke such designation:
1. When they have been designated by fraud or other improper means;
2. When they fail to satisfy the requirements for designation under paragraph (1) or (2).
(5) The Mayor/Do Governor intends to revoke the designation of the facilities for clustering venture businesses under paragraph (4), he/she shall hold a hearing.
(6) Application for designation under paragraph (1) and other matters necessary for such designation shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 18-2 (Special Cases concerning Laboratory Factories)
(1) Any of the following persons may establish a laboratory factory with approval from the head of an institution (referring to the head of an institution which establishes a laboratory factory, in cases falling under subparagraph 4) to which he/she belongs, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. The same shall also apply where any approved matter is modified: <Amended on Mar. 21, 2008; Jan. 27, 2010; Jan. 26, 2012; May 18, 2015>
1. Teaching staff and students at a university under the Higher Education Act;
2. A researcher at a national or public research institute or a government-invested research institution;
3. A researcher at a research institute prescribed by Presidential Decree, which is in the field of science or industrial technology;
4. The founder of a venture business.
(2) The head of an institution to which a person who falls under any subparagraph of paragraph (1) belongs shall notify the applicant whether he/she grants an approval, within seven days from the date of the receipt of an application for approval or an application for approval for the modification. <Newly Inserted on Mar. 21, 2017>
(3) If the head of the competent institution referred to in paragraph (2) fails to notify the applicant whether he/she grants an approval within the period prescribed in the same paragraph or that the processing period is extended pursuant to statutes or regulations related to processing of civil complaints, the approval shall be deemed granted on the day following the end of such period. <Newly Inserted on Mar. 21, 2017>
(4) If approval (including approval for modification; hereafter in this paragraph the same shall apply) of a laboratory factory is obtained under paragraph (1), approval for factory establishment, etc. under Article 13 of the Industrial Cluster Development and Factory Establishment Act or approval for the installation of manufacturing facilities under Article 14-3 of the said Act shall be deemed obtained. <Newly Inserted on May 18, 2015; Mar. 21, 2017>
(5) The total floor area of a laboratory factory for the use of production facilities shall not exceed 3,000 square meters: Provided, That the same shall not apply where the standards for construction of buildings, etc. in special purpose areas under Article 76 (1) of the National Land Planning and Utilization Act are fulfilled. <Amended on May 18, 2015; Mar. 21, 2017>.
(6) The total area of a laboratory factory (where at least two laboratory factories exist, referring to their total area) shall not exceed 1/2 of the total floor area of buildings in the relevant university or research institute: Provided, That the same shall not apply where the standards for construction of buildings, etc. in special purpose areas under Article 76 (1) of the National Land Planning and Utilization Act are fulfilled. <Amended on May 18, 2015; Mar. 21, 2017>
(7) The head of a Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) shall, upon receipt of application for registration of a laboratory factory, register the factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Amended on May 18, 2015; Mar. 21, 2017>
(8) The head of a university or a research institute may allow any person who has established a laboratory factory under paragraph (1), even if he/she is voluntarily retired (graduated) from his/her office, to use the factory for a fixed period not exceeding two years from the date of such retirement (graduation). <Amended on Jan. 27, 2010; May 18, 2015; Mar. 21, 2017>
(9) Other matters necessary for the establishment, operation, etc. of a laboratory factory shall be prescribed by Presidential Decree. <Amended on May 18, 2015; Mar. 21, 2017>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 18-3 (Special Cases concerning Venture Businesses and Founders Moved into Business Incubators)
(1) A venture business or founder that has moved into a business incubator established and operated at a university or research institute which falls under any of the following may establish a urban-type factory prescribed in Article 28 of the Industrial Cluster Development and Factory Establishment Act by obtaining approval from the head of the operating agency of a business incubator, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. In such cases, approval for establishment, etc. of factories under Article 13 of the Industrial Cluster Development and Factory Establishment Act and approval for installation of manufacturing facilities under Article 14-3 of the same Act shall be deemed obtained: <Amended on Mar. 21, 2008; Jan. 27, 2010; Jan. 26, 2012; Jul. 26, 2017>
1. A business incubator which is designated by the Minister of SMEs and Startups under Article 6 (1) of the Support for Small and Medium Enterprise Establishment Act;
2. A business incubator which is recognized by the head of a central administrative agency or local government.
(2) The head of Si/Gun/Gu shall, upon receipt of application for registration of a factory from a venture business or founder that has moved into a business incubator under paragraph (1), register a factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act.
(3) The business incubator established and operated at a university or research institute shall be deemed the facility group pursuant to Article 19 (4) 2 of the Building Act. <Amended on Mar. 21, 2008>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 18-4 (Designation of Venture Business Development and Promotion Zones)
(1) If necessary for the development of venture businesses, the Mayor/Do Governor may request the Minister of SMEs and Startups to designate any certain area in districts under his/her jurisdiction as a venture business development and promotion zone (hereinafter referred to as "promotion zone"). <Amended on Jul. 26, 2017>
(2) If the Minister of SMEs and Startups designates the promotion zone under paragraph (1), he/she shall publicly notify the details of such designation as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>
(3) If any promotion zone that is designated pursuant to paragraph (1) falls under any of the following cases, the Minister of SMEs and Startups may cancel such designation: <Amended on Jul. 26, 2017>
1. Where the plan for developing the promotion zone is infeasible;
2. Where it is impracticable to attain the designation objectives on the grounds of business delay, poor management, etc.
(4) Necessary matters concerning the requirements and procedures for the designation under paragraph (1), the support for the promotion zone, etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 18-5 (Support for Promotion Zones)
(1) For the purpose of vitalizing the promotion zone, the Minister of SMEs and Startups may favorably support local governments, which have had the promotion zone designated in their jurisdictional districts, in supporting the raising of funds for the development of local small and medium enterprises under Article 62-17 of the Small and Medium Enterprises Promotion Act. <Amended on Mar. 29, 2016; Jul. 26, 2017>
(2) The State or a local government may preferentially support any venture business, that is located in the promotion zone or moves therein, with funds or other necessary matters.
(3) The State or a local government may provide a person who establishes and manages the facilities for clustering venture businesses in the promotion zone and an operator of a business incubator with all or part of funds required by them, or may favorably support.
(4) Article 22 shall apply mutatis mutandis to any venture business and its supporting installations in the promotion zone.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 19 (Sale of State or Public Properties)
(1) If deemed necessary for developing, establishing and operating facilities for clustering venture businesses, the State or local governments may sell or lease, by free contract, State or public properties to a person who has established or operated the facilities for clustering venture businesses, notwithstanding the provisions of the State Properties Act or the Public Property and Commodity Management Act.
(2) Matters necessary for the selling price, rental fee, lease period, etc. of State properties, pursuant to paragraph (1), shall be determined by the Presidential Decree.
(3) The State or local governments may trust real estates that are State-owned general property or public miscellaneous property with a trust business entity, on condition that such properties shall be leased to venture businesses. In such cases, Article 58 of the State Property Act shall apply mutatis mutandis to the trust of public real estates. <Amended on Aug. 3, 2007; Jan. 30, 2009; Mar. 22, 2013>
(4) The State, local governments, or educational foundations of private schools may lease State or public lands or a part of the land of a university to a person who has established or operated the facilities for clustering venture businesses, and allow him/her to construct buildings or other permanent installations, notwithstanding Article 18 of the State Properties Act, Articles 13 and 20 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. In such cases, lease conditions shall be defined in consideration of the types, utilities, etc. of the installations concerned to the effect that such installations shall be donated to the State, local governments, or educational foundations of private schools, or that such lands shall be restored to the original state and returned at the end of the lease period. <Amended on Jan. 30, 2009>
(5) A person who has established or operated the facilities for clustering venture businesses may allow other persons to use or make profits upon installations built in compliance with paragraph (4) on condition that such installations are used for the same purposes as leased, notwithstanding Article 30 (2) of the State Property Act, Article 35 of the Public Property and Commodity Management Act, the Higher Education Act, and the Private School Act. <Amended on Jan. 30, 2009>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 20 (Bearing of Installation Expenses)
The State or local governments may bear all or some of expenses incurred in the development of areas and the installation of facilities for clustering venture businesses.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 21 (Special Cases concerning Prohibition from Construction)
(1) Deleted. <Mar. 3, 2006>
(2) Facilities for clustering venture businesses may be built in areas provided for in Article 36 of the National Land Planning and Utilization Act (excluding those prescribed by Presidential Decree, such as green belt areas, etc.), notwithstanding Article 76 (1) of the National Land Planning and Utilization Act. <Amended on Aug. 3, 2007>
(3) A person who has moved within the facilities for clustering venture businesses may establish a factory prescribed by Presidential Decree to the extent that the structural safety is not threatened, notwithstanding Article 19 (1) of the Building Act, Article 76 (1) of the National Land Planning and Utilization Act, and Article 36 (1) of the Special Act on Promotion of Special Research and Development Zones. In such case, approval of factory establishment, etc. under Article 13 of the Industrial Cluster Development and Factory Establishment Act or approval for the installation of manufacturing facilities under Article 14-3 of the said Act shall be deemed obtained. <Amended on Aug. 3, 2007; Mar. 21, 2008; Jan. 26, 2012>
(4) The head of a Si/Gun/Gu shall, upon receipt of application for registration of a factory under paragraph (3) from the person who has moved within the facilities for clustering venture businesses, make a registration of the factory under Article 16 of the Industrial Cluster Development and Factory Establishment Act. <Amended on Aug. 3, 2007>
[Title Amended on Aug. 3, 2007]
 Article 22 (Exemption from Various Charges)
(1) Facilities for clustering venture businesses shall be exempted from the charges provided for in the following: <Amended on Sep. 23, 1998; Feb. 5, 1999; Jan. 26, 2002; Dec. 30, 2002; Jul. 21, 2005; Mar. 3, 2006; Apr. 11, 2007; Aug. 3, 2007; Mar. 28, 2008>
2. Deleted; <Aug. 3, 2007>
3. Expenses for the creation of substitute forest resources under Article 19 of the Mountainous Districts Management Act;
4. Charges for the preservation of farmland under Article 38 of the Farmland Act;
5. Expenses for the creation of substitute grassland under Article 23 of the Grassland Act;
(2) Deleted. <Mar. 3, 2006>
(3) A person who intends to construct facilities for clustering venture businesses may not place artistic decoration, notwithstanding Article 9 of the Culture and Arts Promotion Act. <Amended on Aug. 3, 2007>
[Title Amended on Aug. 3, 2007]
CHAPTER III Deleted.
 Article 23 Deleted. <Aug. 3, 2007>
Chapter IV Supplementary Provisions
 Article 24 (Special Cases concerning Issuance of Stocks by Former Venture Businesses)
(1) Where an enterprise which once was a venture business is no longer one, each of the following conducts performed as at the time the relevant enterprise was a venture business shall be deemed valid: <Amended on Jan. 30, 2009>
1. Contributing industrial property rights, etc. under Article 6;
2. Acquiring stocks of the relevant enterprise by a foreigner, a foreign corporation, etc. under Article 9;
3. Deleted; <Jan. 27, 2010>
4. Exchanging stocks, etc. under Articles 15, 15-2 through 15-11;
5. Granting a stock option under Article 16-3;
6. Establishing a venture business with employees of not less than 50 but not more than 300 under Article 16-5.
(2) Even where a venture business, which has moved into the facilities for clustering venture businesses, is no longer one, it is still allowed to move in there.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 25 (Confirmation as to Whether to Be Categorized as Venture Businesses or Not)
(1) Any venture business which seeks to receive supports under this Act may request the head of an institution in charge of confirming venture businesses to make confirmation as to whether it may be categorized as a venture business or not. <Amended on Mar. 29, 2016; Feb. 11, 2020>
(2) From the date of receipt of the request under paragraph (1), the head of the institution in charge of confirming venture businesses shall make confirmation as to whether the business may be categorized as a venture business or not through the deliberation by the venture business confirmation committee under Article 25-4 (1) (hereinafter referred to as the "venture business confirmation committee") within the period prescribed by Ordinance of the Ministry of SMEs and Startups, and give notice on the result of confirmation to the requester. In such cases, when the relevant business is a venture business, the head of the institution in charge of confirming venture businesses shall issue the certificate of venture business with a valid period fixed as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017; Feb. 11, 2020>
(3) The head of the institution in charge of confirming venture businesses may disclose information on the venture businesses confirmed as prescribed by Presidential Decree to secure the transparency in confirming venture businesses: Provided, That none of the following information shall be disclosed:
2. Matters concerning personal information, such as the resident registration numbers of representatives.
(4) The head of the institution in charge of confirming venture businesses may have the one seeking the confirmation for a venture business pay for the costs for confirmations under paragraphs (1) and (2). In such cases, matters necessary for estimating the costs and for the payment shall be determined and publicly notified by the Minister of SMEs and Startups. <Newly Inserted on Apr. 23, 2019>
(5) Matters necessary for the procedures for confirmation, etc. under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jul. 26, 2017; Apr. 23, 2019>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 25-2 (Revocation of Confirmation of Venture Businesses)
(1) Where a venture business falls under any of the following, the head of the institution in charge of confirming venture businesses may revoke the confirmation under Article 25 (2) through the deliberation by the venture business confirmation committee: Provided, That when it falls under subparagraph 1, he/she shall revoke such designation: <Amended on Jan. 27, 2010; Feb. 11, 2020>
1. Where it has obtained the confirmation of being a venture business by fraud or other improper means;
2. Where it has failed to satisfy the requirements for a venture business under Article 2-2:
3. Where no business activities have been performed for the period prescribed by Presidential Decree due to suspension or discontinuation of business or bankruptcy, etc.;
4. Where the representative, largest stockholder, or largest investing member, etc. has caused damages to the stockholders, members, or interested parties, etc. in connection with the business management, such as misappropriating or concealing the business property, etc., as prescribed by Presidential Decree.
(2) The head of the institution in charge of confirming venture businesses shall hold a hearing when he/she intends to revoke the confirmation of being a venture business under paragraph (1).
[This Article Wholly Amended on Aug. 3, 2007]
 Article 25-3 (Designation of Institutions in charge of Confirming Venture Businesses)
(1) The Minister of SMEs and Startups may designate an institution or organization that meets the requirements prescribed by Presidential Decree, such as professional human resources and a dedicated organization, as an institution in charge of confirming venture businesses to efficiently perform the affairs related to confirming venture businesses.
(2) One who intends to be designated as an institution in charge of confirming venture businesses shall file an application with the Minister of SMEs and Startups as prescribed by Ordinance of the Ministry of SMEs and Startups.
(3) Where any institution in charge of confirming venture businesses falls under any of the following, the Minister of SMEs and Startups may revoke the designation of such institution or order to make corrections within a fixed period not exceeding three months, and where no such correction is implemented, he/she may suspend all or some of the institution's affairs for a fixed period not exceeding six months: Provided, That the designation must be revoked in cases falling under subparagraph 1:
1. Where the institution has obtained the designation by fraud or other improper means;
2. Where the institution no longer meets the requirements for designation under paragraph (1);
3. Where the institution violates any of the terms and conditions of designation in performing its business.
(4) No institution in charge of confirming venture businesses whose designation is revoked under paragraph (3) shall apply for the designation of an institution in charge of confirming venture businesses for three years from the date of such revocation.
(5) Except as provided in paragraphs (1) through (4), matters necessary for the procedures for, and methods of, designation of an institution in charge of confirming venture businesses, corrective orders, suspension of business, and revocation of designation shall be prescribed by Ordinance of the Ministry of SMEs and Startups.
[This Article Newly Inserted on Feb. 11, 2020]
 Article 25-4 (Venture Business Confirmation Committee)
(1) To deliberate on the following matters fairly and objectively, the institution in charge of confirming venture businesses shall have a venture business confirmation committee comprised of private-sector experts, etc.:
1. Confirmation as to whether to be categorized as venture businesses or not under Article 25;
2. Revocation of confirmation of venture businesses under Article 25-2;
3. Other matters necessary for the confirmation of venture businesses and revocation of such confirmation.
(2) The venture business confirmation committee shall be comprised of not more than 50 members including the chairperson, and shall be opened with the attendance of at least the number of members prescribed by Presidential Decree within 10 members, and resolutions shall be passed with the consent of at least 2/3 of the members present.
(3) The chairperson shall represent the committee and shall exercise overall control of its affairs.
(4) The members of the venture business confirmation committee shall be commissioned by the head of the institution in charge of confirmation of venture businesses from among persons with abundant knowledge and experience in the fields of technology, business, etc. related to venture businesses.
(5) Matters necessary for the organization and operation of the venture business confirmation committee under paragraphs (1) through (4) shall be prescribed by Ordinance of the Ministry of SMEs and Startups.
[This Article Newly Inserted on Feb. 11, 2020]
 Article 25-5 (Objection against Confirmation of Venture Businesses)
(1) Where a person notified of the results of verification under Article 25 is dissatisfied with such results, he/she may file an objection in writing with the head of the institution in charge of confirming venture businesses within 30 days from the date he/she is notified thereof.
(2) The head of the institution in charge of confirming venture businesses shall notify the person who filed the objection of the result of deliberation on the relevant objection within the period prescribed by Ordinance of the Ministry of SMEs and Startups from the date of receipt of the objection: Provided, That if it is impracticable to give notice within a fixed period due to extenuating circumstances, the period may be extended only once by up to the period specified by Ordinance of the Ministry of SMEs and Startups.
(3) Matters necessary for the procedure and methods of filing the objection shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Feb. 11, 2020]
 Article 26 (Report)
(1) Deleted. <Feb. 11, 2020>
(2) Deleted. <Feb. 11, 2020>
(3) Deleted. <Feb. 11, 2020>
(4) If the Minister of SMEs and Startups deems it necessary for the enforcement of this Act, he/she may ask the institution in charge of confirming venture businesses to file a report on the actual record, etc. for the confirmation of venture businesses and the revocation of such confirmation under Articles 25 and 25-2, or have the public officials under his/her jurisdiction enter the relevant agency inspect the books and other documents. In such cases, the public officials conducting the inspection shall carry certificates of their competence and present them to the parties concerned. <Amended on Jul. 26, 2017>
(5) The Mayor/Do Governor may ask the person who has obtained a designation of the facilities for clustering venture businesses under Article 18 to submit the information on the current status of location and operational situations as to the said facilities.
(6) When the head of the institution in charge of confirming venture businesses deems it necessary for the confirmation of a venture business, the revocation of such confirmation, etc. pursuant to Articles 25 and 25-2, he/she may ask the venture business to submit the information required for the actual status of operations.
(7) The Minister of SMEs and Startups may have a university, research institute or public institution submit the information on the actual results of permission for the leaves of absence or concurrent posts or offices of the public educational officials, etc. or employees, etc. of public institutions, and of approval for establishment of laboratory factories, under Articles 16, 16-2 and 18-2. <Amended on May 18, 2015; Jul. 26, 2017; Feb. 11, 2020>
(8) The Minister of SMEs and Startups may have a specialized company submit the materials relating to those provided for in the subparagraphs of Article 11-2 (4) or its settlement statement for every fiscal year. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 27 (Delegation or Entrustment of Authority)
The authority of the Minister of SMEs and Startups prescribed in this Act may, as prescribed by Presidential Decree, be partially delegated to the head of agency under his/her control or the Mayor/Do Governor, or be partially entrusted to the head of other administrative agencies, or institutions or associations relating to small and medium enterprises prescribed by Presidential Decree. <Amended on Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 28 Deleted. <Feb. 11, 2020>
 Article 29 (Hearings)
When the Minister of SMEs and Startups intends to take any of the following dispositions, he/she shall hold a hearing thereon: <Amended on Jan. 30, 2009; Jul. 26, 2017; Feb. 11, 2020>
1. Deleted; <Feb. 11, 2020>
2. The cancellation of the designation of any promotion zone under Article 18-4;
3. The revocation of the registration of any specialized company under Article 11-7;
4. The revocation of the designation of any clustering area under Article 17-6;
5. The revocation of the designation of any supporting center under Article 15-14;
6. The revocation of the designation of any institution in charge of confirming venture businesses under Article 25-3 (3).
[This Article Wholly Amended on Aug. 3, 2007]
 Article 30 Deleted. <Feb. 11, 2020>
 Article 30-2 (Legal Fiction as Public Officials in Application of Penalty Provisions)
For the purposes of Articles 129 through 132 of the Criminal Act, any of the following persons shall be deemed a public official: <Amended on Feb. 11, 2020>
1. Executive officers and employees of the institution in charge of confirming venture businesses who engage in the affairs of confirming venture businesses and canceling such confirmation under Articles 25 and 25-2;
2. Members of the venture business confirmation committee inder Article 25-4.
[This Article Wholly Amended on Aug. 3, 2007]
 Article 30-3 (Procedures for Dissatisfaction)
Any administrative appeal under the provisions of the Administrative Appeals Act may be raised against the confirmation of venture business or cancellation of such confirmation under Articles 25 and 25-2. In such cases, the supervisory administrative agency for confirmation and revocation of confirmation of venture business shall be the Minister of SMEs and Startups. <Amended on Feb. 29, 2008; Jul. 26, 2017>
[This Article Wholly Amended on Aug. 3, 2007]
 Article 31 Deleted. <Feb. 11, 2020>
 Article 31-2 (Re-Examination of Regulation)
The Minister of the Interior and Safety shall examine whether it is appropriate to abolish, grant leniency or maintain the standards for revocation of designation of clustering areas under Article 17-6 every three years, counting from January 1, 2015 (referring to the period that ends on the day before the base date of every third year).
[This Article Wholly Amended on Feb. 11, 2020]
CHAPTER V PENALTY PROVISIONS
 Article 32 Deleted. <Feb. 11, 2020>
ADDENDA <Act No. 5381, Aug. 28, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on 10/1/1997.
Article 2 (Period of Validity)
This Act shall be valid until December 31, 2027. <Amended by Aug. 3, 2007; Dec. 2, 2016>
Article 3 (Special Cases concerning Scope of New Technology Venture Capital Businesses)
With regard to the application of Article 2 (1) 1 (c) and (d) above, a new technology venture capital business or the Venture Business Investment Association shall be treated as a new technology venture capital business or the Venture Business Investment Association under subparagraphs 4 and 10 of Article 2 of the Financial Assistance to New Technology Businesses Act by December 31, 1997 respectively.
Article 4 (Transitional Measures on Termination of Period of Validity)
(1) At the time the period of validity of this Act has expired, Article 10 or 11 shall continue to apply to Venture Business, which has issued stock with the value of less than 5,000 won per share according to Article 10 (1) above and been subject to Articles 191-2 through 191-5, and 191-8 through 191-10 of the Securities and Exchange Act pursuant to Article 11, even after the termination of the period of validity of this Act.
(2) With regard to the undergoing projects of technology development and supporting measures according to the support plans of technology development pursuant to Article 15 at the time the period of validity of this Act has expired, the provisions of this Act shall continue to apply until such projects of technology development and supporting measures are finished.
(3) As for the teaching staff at a university or researchers at national or public research institutes who are on leave of absence in accordance with Article 16 at the time the period of validity of this Act has expired, the provisions of this Act shall continue to apply until such period of leave expires.
(4) As for an exclusive complex for venture businesses and collective complex for technology research designated as such in accordance with Articles 17 and 18 at the time when the period of validity of this Act has expired, the provisions of this Act shall continue to apply even after the termination of the period of validity of this Act.
ADDENDA <Act No. 5529, Feb. 28, 1998>
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. 5578, Sep. 23, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force three months on the date of its promulgation.
Articles 2 through 3 Omitted.
ADDENDA <Act No. 5591, Sep. 28, 1998>
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. 5607, Jul. 30, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of promulgation.
Article 2 (Transitional Measures on Termination of Period of Validity)
(1) With respect to a venture business which is established with capital of less than fifty million won under the amended provisions of Article 10-2, which is subject to the application of Articles 189-2 and 189-3 of the Securities and Exchange Act under the amended provisions of Article 11, or which grants a stock option under the amended provisions of Article 16-3, as of December 31, 2007 on which the term of validity of this Act expires, the amended provisions of Articles 10-2, 11, and 16-3 shall continue to apply even after January 1, 2008.
(2) A teacher at a university or a researcher at a state or public research institute who concurrently holds a position or office under the amended provisions of Article 16-2, as of December 31, 2007 on which the term of validity of this Act expires, may continue to concurrently hold the position or office until the term of the position or office expires.
(3) Where a teacher or researcher establishes and registers a laboratory factory as factory under the amended provisions of Article 18-2, as of December 31, 2007 on which the term of validity of this Act expires, the amended provisions of Article 18-2 shall continue to apply to the laboratory factory even after January 1, 2008.
(4) Where a person who has moved into an establishment assistance center establishes and registers a municipal model factory as factory under the amended provisions of Article 18-3, as of December 31, 2007 on which the term of validity of this Act expires, the amended provisions of Article 18-3 shall continue to apply to the municipal model factory even after January 1, 2008.
ADDENDA <Act No. 5758, Feb. 5, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on 1/1/2000.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 6101, Jun. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on 1/1/2000. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6194, Jan. 21, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force three months on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6195, Jan. 21, 2000>
This Act shall enter into force on the date of promulgation.
ADDENDA <Act No. 6416, Feb. 3, 2001>
(1) (Enforcement Date) This Act shall enter into force on 5/1/2001.
(2) (Applicability to Private Investment Associations) The amended provisions of Article 13 shall apply, beginning with the first private investment association registered with the Administrator of the Small and Medium Business Administration after this Act enters into force.
ADDENDA <Act No. 6482, Jun. 24, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force six moths after the date of its promulgation.
Articles 2 through 3 Omitted.
ADDENDA <Act No. 6590, Jun. 31, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on 3/1/2002. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 6642, Jan. 26, 2002>
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. 6705, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force three months on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6723, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on 11/1/2002.
Article 2 (Transitional Measures on Termination of Period of Validity)
With regard to the venture business which has exchanged stocks under the amended provisions of Article 15 as of December 31, 2007 when the valid period of this Act expires, and the venture business incorporated by making the gross number of members not less than 50 but not more than 300 under the amended provisions of Article 16-5, the amended provisions of Articles 15 and 16-5 shall continuously apply even after January 1, 2008.
Article 3 (Transitional Measures for Confirmation of Venture Businesses)
(1) Any enterprise which has been confirmed as a venture business under the previous provisions of Article 25 as at the time this Act enters into force shall be deemed to have been confirmed as a venture business under the amended provisions of to Article 25 not later than the valid period under the previous provisions.
(2) In applying the matters as to the requirements for venture businesses under the amended provisions of Article 25-2 (1) 2 to the venture business for which a confirmation has been fictionalized under the provisions of paragraph (1), the previous provisions of Article 2 shall govern, notwithstanding the amended provisions of Article 2-2.
ADDENDA <Act No. 6841, Jul. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2003.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 6842, Jul. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on 7/1/2003.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 6891, May 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 34 Omitted.
ADDENDA <Act No. 7091, Jan. 20, 2004>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Applicability to Stock Exchange, Merger and Business Transfer or Takeover) The amended provisions of Articles 15, 15-3 through 15-8 shall apply from the portion of the first preparation of a written contract for stock exchange, merger and business transfer or takeover after the enforcement of this Act.
ADDENDA <Act No. 7288, Jun. 31, 2004>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures concerning Registration of Korea Venture Fund That Is Already Established) The Korea Venture Fund that is established as at the time this Act enters into force shall be deemed registered pursuant to this Act.
(3) (Transitional Measures concerning Fund of Funds for Small and Medium Enterprise Investment upon Expiration of Effective Period) The amended provisions of Article 4-2 shall continue to apply to the Fund of Funds for Small and Medium Enterprise Investment that is established as of December 31, 2007 when the effective period of this Act expires pursuant to the amended provisions of Article 4-2 by the time when the period of existence expires even after January 1, 2008.
ADDENDA <Act No. 7289, Jun. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six moths after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 7604, Jul. 21, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 7633, Jul. 29, 2005>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 2-2, 4-2, 4-3, 4-7 and 4-8 shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Establishment of Dedicated Company) Dasan Venture, Inc. established pursuant to the previous provisions before this Act enters into force shall be deemed as the dedicated company established pursuant to the amended provisions of Article 4-7 (1).
(3) (Applicability to Revocation of Registration of Private Investment Associations) The amended provisions of subparagraph 3 of Article 13-3 shall begin to apply to the first private investment association organized after this Act enters into force.
ADDENDA <Act No. 7868, Mar. 3, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 2-2 (1) 3 (c) (i) shall begin to apply to what is guaranteed or loaned first after this Act enters into force.
Article 3 (Transitional Measures for Confirmation of Venture Businesses)
(1) The business that is confirmed as a venture business under the previous provisions of Article 25 as at the time this Act enters into force shall be considered to have been confirmed as a venture business under the amended provisions of Article 25 until its effective period.
(2) The previous provisions shall govern the application of the provisions of Article 25-2 (1) 2 to the venture businesses under the provisions of paragraph (1), notwithstanding the amended provisions of Article 2-2.
(3) For any investment by the agency under the amended provisions of Article 2-2 (1) 3 (a) (vii) as at the time this Act enters into force, the computation of invested amount and period under the provisions of the main sentence of the same item shall be based on the date this Act enters into force.
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on 1/1/2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8086, Jun. 26, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 8284, Jan. 26, 2007>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures concerning Report on Korea Venture Fund Which Has Been Established and Registered) The Korea Venture Fund which has been established and registered pursuant to the previous provisions before this Act enters into force shall be deemed to have been reported pursuant to the amended provisions of Article 4-3.
ADDENDA <Act No. 8345, Apr. 11, 2007>
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. 8352, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 16 Omitted.
ADDENDA <Act No. 8361, Apr. 11, 2007>
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. 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 ... <omitted> ... on April 27, 2007.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8602, Aug. 3, 2007>
(1) (Enforcement Date)This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
(2) (Applicability to Small-Scale Merger and Short-Form Merger) The amended provisions of Articles 15-9 through 15-11 shall apply to a written contract for merger which is prepared on or after this Act enters into force.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force one and half years after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 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> ... among the Acts amended pursuant to Article 6 of the Addenda, the amendments to the Acts promulgated before this Act enters into force, but the enforcement dates of which have yet to arrive, shall enter into force on the dates on which the respective Acts take effect.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8871, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of promulgation.
Articles 2 through 5 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 13 through 14 Omitted.
ADDENDA <Act No. 9071, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on 1/1/2009. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9367, Jan. 30, 2009>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 9 (1) shall enter into force on 2/4/2009.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Decree 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 5/8/2009.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9984, Jan. 27, 2010>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 10-2, 16-5 (2) and 24 (1) 3 shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on 1/1/2011.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10303, Jun. 17, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 10445, Mar. 9, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 10907, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 3 Omitted.
ADDENDA <Act No. 11232, Jan. 26, 2012>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 11660, Mar. 22, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 11-2 (excluding Article 11-2 (3) 2 (a)) and 11-7 shall enter into force on the date of its promulgation, and the amended provisions of Article 11-2 (3) 2 (a) on July 1, 2013.
Article 2 (Transitional Measures concerning Incompetent, etc.)
The persons under adult guardianship and persons under limited guardianship prescribed in the amended provisions of Article 11-2 (3) 2 (a) shall be deemed to include those for whom the declaration of incompetency or quasi-incompetency remains effective under Article 2 of the Addenda of the Civil Act (Act No. 10429).
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Act shall enter into 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 from the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 12004, Aug. 6, 2013>
This Act shall enter into force on the date of promulgation.
ADDENDA <Act No. 12237, Jan. 14, 2014>
This Article shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 12592, Jun. 20, 2014>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 12927, Jul. 30, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 16-3 shall enter into force on the date of its promulgation.
Article 2 (Applicability to Public Educational Officials)
The amended provisions of the main sentence of Article 16 (2) shall apply to a public educational official, etc. who files a leave of absence after this Act enters into force.
Article 3 (Applicability to Ex Post Facto Approval from General Meeting of Shareholders)
The amended provisions of the latter part of Article 16-3 (4) shall apply to cases of granting stock options after the amended provisions of the same Article enters into force.
Article 4 (Transitional Measures concerning Extension of Period of Leave of Absence of Public Educational Officials)
Notwithstanding the amended provisions of the proviso to Article 16 (2), the extension of the period of leave of absence of a public educational official, etc. who has been granted a leave of absence under the main sentence of the previous provisions of Article 16 (2) before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 13310, Mar. 18, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 3 and 13 (1) and (9) shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Administrative Dispositions against Private Investment Associations)
The amended provisions of Article 13-3 shall apply where the relevant violation is committed after this Act enters into force: Provided, That the amended provisions of Article 13-3 (2) shall also apply to any violation which falls under paragraph (1) 2 through 5 of the same Article before this Act enters into force.
Article 3 (Applicability to Administrative Dispositions against Korea Venture Fund)
The amended provisions of Article 28 shall apply where the relevant violation is committed after this Act enters into force.
ADDENDA <Act No. 13448, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months from 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 one year after the date of its promulgation.
Articles 2 through 18 Omitted.
ADDENDA <Act No. 14079, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 3 Omitted.
ADDENDA <Act No. 14111, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14127, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 14271, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provision of Articles 4-3 and 28 shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Administrative Dispositions against Private Investment Associations)
The amended provisions of Article 13-3 shall apply where the relevant violation is committed after this Act enters into force.
Article 3 (Applicability to Administrative Dispositions against Korea Venture Fund)
The amended provisions of Article 28 shall apply where the relevant violation is committed after the same amended provisions enter into force.
Article 4 Omitted.
Article 5 (Relationships with other Acts)
Where any other statute or regulation cites the previous provisions of the Act on Special Measures for the Promotion of Venture Businesses as at the time this Act enters into force, it shall be deemed to cite the relevant provisions of this Act in lieu of the previous provisions, if provisions corresponding thereto exist in this Act.
ADDENDA <Act No. 14363, Jun. 2, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of promulgation.
Article 2 (Applicability to Venture Business Promotion Plans)
The amended provisions of Article 3-2 shall begin to apply from the venture business promotion plan for 2018.
ADDENDA <Act No. 14681, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Approval for Establishment of Laboratory Factories and Approval for Modification)
The amended provisions of Article 18-2 (2) and (3) shall begin to apply from the first application for approval or approval for modification filed after this Act enters into force.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into on the date of its promulgation: Provided, That the amended provisions of any Act, which is amended pursuant to Article 5 of the Addenda and promulgated before this Act enters into force but the enforcement date of which has yet to arrive, shall enter into force on the enforcement date of such Act.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 15463, Mar. 13, 2018>
This Act shall enter into force on the date of promulgation.
ADDENDA <Act No. 15920, Jun. 11, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of promulgation.
Article 2 (Applicability to Revocation of Registration of Specialized Companies)
The amended provisions of Article 11-7 (3) shall begin to apply to the first administrative disposition imposed on a specialized company that falls under Article 11-2 (3) 2 before this Act enters into force.
ADDENDA <Act No. 16172, Jun. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months from the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 16216, Jan. 8, 2019>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Designation of Special Building Zones)
The amended provisions of Article 18 shall begin to apply from the first application filed for approval for attracting games after this Act enters into force.
ADDENDUM <Act No. 16397, Apr. 23, 2019>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 25 (4) shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 16997, Feb. 11, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the amended provisions of Article 16 (1) 5, Article 16 (2), (4), and (5), Article 16-7 (1) and Article 26 (7) shall enter into force three months after the date of the promulgation.
Article 2 (Preparation for Enforcement of Act)
(1) Where the Minister of SMEs and Startups deems it necessary to enforce this Act, he/she may designate an institution in charge of confirming venture businesses pursuant to the amended provisions of Article 25-3 before this Act enters into force.
(2) Where it is deemed necessary for the enforcement of this Act, the institution in charge of confirming venture businesses designated pursuant to paragraph (1) may constitute and operate the venture business confirmation committee pursuant to the amended provisions of Article 25-4 before this Act enters into force.
Article 3 (Transitional Measures concerning Confirmation as to Whether to Be Categorized as Venture Businesses)
(1) If an application is filed for confirmation of a venture business before this Act enters into force and the confirmation process is underway as at the time this Act enters into force, former provisions shall apply to the requirements of a venture business, the institution in charge of confirming venture businesses, the procedures for confirming a venture business, or the issuance of the certificate of a venture business, notwithstanding the amended provisions of Articles 2-2 and 25.
(2) Notwithstanding the amended provisions of Articles 2-2 and 25, any enterprise confirmed as a venture business before this Act enters into force shall be governed by the former provisions until the valid period of the certificate of venture business issued under the former provisions (including the certificate issued under paragraph (1)).
ADDENDA <Act No. 16998, Feb. 11, 2020>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 17764, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.