ACT ON THE PROMOTION OF TECHNOLOGY INNOVATION OF SMALL AND MEDIUM ENTERPRISES
Act No. 6482, May 24, 2001
Amended by Act No. 7219, Sep. 23, 2004
Act No. 7753, Dec. 23, 2005
Act No. 7949, Apr. 28, 2006
Act No. 8361, Apr. 11, 2007
Act No. 8387, Apr. 27, 2007
Act No. 8604, Aug. 3, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9378, Jan. 30, 2009
Act No. 9685, May 21, 2009
Act No. 10220, Mar. 31, 2010
Act No. 10597, Apr. 14, 2011
Act No. 11538, Dec. 11, 2012
Act No. 11690, Mar. 23, 2013
Act No. 11713, Mar. 23, 2013
Act No. 12006, Aug. 6, 2013
Act No. 13093, Jan. 28, 2015
Act No. 13315, May 18, 2015
Act No. 13863, Jan. 27, 2016
Act No. 14683, Mar. 21, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15344, Jan. 16, 2018
Act No. 15924, Dec. 11, 2018
Act No. 16172, Dec. 31, 2018
Act No. 16218, Jan. 8, 2019
Act No. 16816, Dec. 10, 2019
Act No. 17627, Dec. 8, 2020
Act No. 18075, Apr. 20, 2021
Act No. 18108, Apr. 20, 2021
Act No. 18425, Aug. 17, 2021
Act No. 18661, Dec. 28, 2021
Act No. 18706, Jan. 4, 2022
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to the development of the national economy through the strengthening of the technological competitiveness of small and medium enterprises by expanding infrastructure to promote technological innovation of small and medium enterprises and establishing and implementing policies related thereto.
[This Article Wholly Amended on Apr. 14, 2011]
The terms used in this Act are defined as follows: <Amended on Jan. 28, 2015; Jul. 26, 2017; Apr. 20, 2021; Dec. 28, 2021; Jan. 4, 2022>
| 3. | The term "technological innovation" means a series of processes where new added value is created by enhancing business management and productivity through the development of new technology, improvements in important parts of technology currently being utilized, or the introduction of technology from outside and by trading and commercializing the relevant outcomes; |
| 3-2. | The term "technological innovation-oriented small and medium enterprise" means a small and medium enterprise that is selected by the Minister of SMEs and Startups pursuant to Article 15 and is capable of securing technological competitiveness or has growth potential through technological innovation activities; |
| 3-3. | The term "outcome of technological innovation" means a tangible outcome such as a product (including a prototype and trial product), and equipment and a facility for research, as well as an intangible outcome such as technical data, an intellectual property right, and a copyright on research reports, all of which are obtained or drawn consequently through the process of technological innovation; |
| 3-4. | The term "commercialization" means developing, producing, or selling products by using technology or improving on related technology in the process thereof; |
| 3-5. | The term "technology transaction by a small and medium enterprise" means cases where a small and medium enterprise serves as a technology user or technology supplier and technology is transferred from its holder (including a person who has a right to dispose of such technology) to another person by means of transfer, grant of a license, technical guidance, joint research, joint venture, or merger and acquisition, etc.; |
| 4. | The term "management innovation" means developing new management techniques in terms of methods of performing duties, organizational structures, business activities, etc., or improving the significant elements of management techniques in order to enhance the competitiveness of enterprises; |
| 4-2. | The term "management innovation-oriented small and medium enterprise" means a small and medium enterprise that is selected by the Minister of SMEs and Startups under Article 15-3 and is capable of securing competitiveness or has growth potential through management innovation activities; |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 3 (Responsibilities of the Government) |
| (1) | The Government shall formulate and implement policies necessary to promote technological innovation of small and medium enterprises. |
| (2) | Each local government may formulate and implement policies to promote technological innovation of small and medium enterprises in its jurisdiction, in consideration of characteristics of the relevant jurisdiction in accordance with the policies under paragraph (1). |
| (3) | Each public research institute shall proactively endeavor to promote technological innovation of small and medium enterprises. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 4 (Relationship to Other Statutes) |
Except as otherwise provided in other statutes, the promotion of technological innovation of small and medium enterprises shall be governed by this Act.
[This Article Wholly Amended on Apr. 14, 2011]
CHAPTER II FORMULATION AND IMPLEMENTATION OF PLANS TO PROMOTE TECHNOLOGICAL INNOVATION OF SMALL AND MEDIUM ENTERPRISES
| Article 5 (Formulation of Plans to Promote Technological Innovation of Small and Medium Enterprises) |
| (1) | To promote technological innovation of small and medium enterprises, the Minister of SMEs and Startups shall formulate a plan to promote technological innovation of small and medium enterprises (hereinafter referred to as "promotion plan") every five years in accordance with a master plan for science and technology prescribed in Article 7 of the Framework Act on Science and Technology. <Amended on Jul. 26, 2017; Apr. 20, 2021> |
| (2) | A promotion plan shall contain the following: <Amended on Apr. 20, 2021> |
| 1. | Matters concerning the objectives of policies to promote technological innovation of small and medium enterprises and basic direction-setting therefor; |
| 2. | Matters concerning the improvement of systems to promote technological innovation, such as feasibility studies on tasks for technological innovation; |
| 3. | Matters concerning the protection of the outcomes of technological innovation of small and medium enterprises and the promotion of the commercialization thereof; |
| 4. | Matters concerning cooperation among small and medium enterprises and academic-industrial cooperation, etc. to promote technological innovation; |
| 5. | Matters concerning the nurturing, utilization, and education of technical human resources of small and medium enterprises; |
| 6. | Matters concerning technical evaluations and financing for technology; |
| 7. | Matters concerning the formulation, etc. of a plan for supporting technological innovation of small and medium enterprises under Article 13; |
| 8. | Matters concerning the current status of technological innovation activities of small and medium enterprises in areas other than the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act (hereinafter referred to as "non-Seoul Metropolitan area") and the improvement of systems; |
| 9. | Other matters necessary to promote technological innovation of small and medium enterprises. |
| (3) | When the Minister of SMEs and Startups formulates a promotion plan, he or she shall submit it for deliberation by the Presidential Advisory Council on Science and Technology established under the Presidential Advisory Council on Science and Technology Act. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jan. 16, 2018> |
| (4) | To formulate a promotion plan, the Minister of SMEs and Startups may request relevant data from the head of a central administrative agency implementing a project for supporting technological innovation pursuant to Article 13 (hereinafter referred to as "relevant central administrative agency"), the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor"), and the head of an institution or organization related to technical support for small and medium enterprises. <Amended on Jul. 26, 2017; Jan. 4, 2022> |
| (5) | Matters necessary for the formulation and implementation of a promotion plan shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 6 (Committee for Promoting Technological Innovation of Small and Medium Enterprises) |
| (1) | To deliberate on and arbitrate in matters concerning the promotion of technological innovation of small and medium enterprises, a Committee for Promoting Technological Innovation of Small and Medium Enterprises (hereinafter referred to as the "Committee for Promoting Technological Innovation") shall be established under the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017> |
| (2) | The Committee for Promoting Technological Innovation shall deliberate on the following matters. In such cases, it shall report the results of deliberation to the Minister of Trade, Industry and Energy: <Amended on Mar. 23, 2013; Jul. 26, 2017> |
| 1. | Matters concerning the formulation of a promotion plan; |
| 2. | Matters concerning the formulation and implementation of a plan for supporting technological innovation of small and medium enterprises under Article 13; |
| 3. | Matters requested for deliberation by the head of an implementing agency under Article 13 (1) to promote technological innovation of small and medium enterprises; |
| 4. | Matters prescribed by Presidential Decree, which are important for promoting technological innovation of small and medium enterprises. |
| (3) | The Committee for Promoting Technological Innovation shall be comprised of at least 20 but not more than 30 members, including one Chairperson; such members shall consist of government members who are director-level public officials of the relevant central administrative agencies and the Ministry of SMEs and Startups, and civil members appointed by the Minister of SMEs and Startups, from among executive-level persons of any public implementing agency under Article 13 (1) and those with abundant knowledge and experience relating to technologies of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (4) | The Chairperson shall be elected from among and by civil members. |
| (5) | Matters necessary for the composition, operation, etc. of the Committee for Promoting Technological Innovation shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 7 (Designation of Institutions Specializing in Technology Promotion of Small and Medium Enterprises) |
| (1) | To efficiently support projects for supporting the promotion of technological innovation under Article 9, the Minister of SMEs and Startups may designate an institution that meets the standards prescribed by Presidential Decree in terms of experts, survey and research capabilities, etc. as an institution specializing in the technology promotion of small and medium enterprises (hereinafter referred to as "institution specializing in technology promotion"). <Amended on Mar. 23, 2013; Jul. 26, 2017; Dec. 10, 2019> |
| (2) | An institution specializing in technology promotion shall conduct the following affairs: <Amended on Jan. 27, 2016; Jul. 26, 2017> |
| 1. | Demand surveys, research, and planning to promote technological innovation of small and medium enterprises; |
| 2. | Evaluations and management of projects to support the promotion of technological innovation under Article 9; |
| 3. | Collection, etc. of royalties entrusted by the Minister of SMEs and Startups pursuant to Article 29. |
| (3) | The Minister of SMEs and Startups may subsidize, within the budget, expenses incurred by an institution specializing in technology promotion in conducting affairs under paragraph (2). <Amended on Jul. 26, 2017> |
| (4) | Where an institution specializing in technology promotion falls under any of the following cases, the Minister of SMEs and Startups may revoke the designation of such institution or order the institution to suspend all or some of its operations within a period of up to six months: Provided, That in cases falling under subparagraph 1, such designation shall be revoked: <Newly Inserted on Dec. 10, 2019> |
| 1. | Where the designation is made by fraud or other improper means; |
| 2. | Where the institution fails to meet the standards for designation under paragraph (1). |
| (5) | Where the Minister of SMEs and Startups intends to revoke the designation of an institution specializing in technology promotion or order such institution to suspend its operations in accordance with paragraph (4), he or she shall hold hearings. <Newly Inserted on Dec. 10, 2019> |
| (6) | Matters necessary for the designation, operation, revocation of designation, suspension of operations, etc. of an institution specializing in technology promotion shall be prescribed by Presidential Decree. <Amended on Dec. 10, 2019> |
[This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Dec. 10, 2019]
| Article 8 (Compilation of Statistics on Technologies of Small and Medium Enterprises) |
| (1) | To efficiently formulate and implement a promotion plan, the Minister of SMEs and Startups shall compile statistics on technologies of small and medium enterprises (hereinafter referred to as "statistics on technologies"). <Amended on Jul. 26, 2017> |
| (2) | Statistics on technologies shall include the following: |
| 1. | Technological competitiveness and technological levels of small and medium enterprises; |
| 2. | Bottleneck technologies and the main causes of weakness related to technologies of small and medium enterprises; |
| 3. | Analysis of trends in domestic and overseas technologies; |
| 4. | The actual conditions of technical human resources of small and medium enterprises; |
| 5. | The actual conditions of testing and examination equipment; |
| 6. | Other matters necessary to formulate a promotion plan. |
| (3) | The Statistics Act shall apply mutatis mutandis to the compilation of statistics on technologies. |
| (4) | The Minister of SMEs and Startups may delegate part of his or her authority to compile statistics on technologies to the Chairperson of the Korea Federation of Small and Medium Business established under the Small and Medium Enterprise Cooperatives Act and the head of an institution specializing in technology promotion within the scope provided in Article 37 of the Statistics Act, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017> |
| (5) | Matters necessary for concerning the scope of subject matter of the compilation of statistics on technologies, technologies to be investigated, etc. shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 8-2 (Fact-Finding Surveys and Statistical Surveys of Technological Innovation-Oriented Small and Medium Enterprises) |
| (1) | To efficiently formulate and implement a promotion plan and discover and foster technological innovation-oriented small and medium enterprises, the Minister of SMEs and Startups may annually conduct regular fact-finding surveys on their activities, funds, human resources, management, barriers to growth, use of government support, etc., and may inspect, prepare, analyze or manage statistical data on technological innovation-oriented small and medium enterprises. In such cases, the Statistics Act shall apply mutatis mutandis to the preparation and management of statistical data, except as provided in this Act. <Amended on Jul. 26, 2017> |
| (2) | If necessary to conduct fact-finding surveys and statistical surveys under paragraph (1), the Minister of SMEs and Startups may request the head of a central administrative agency, the head of a local government or the head of a public institution to provide related data. In such cases, the head of the relevant central administrative agency, etc. so requested shall comply with such request unless there is a compelling reason not to do so. <Amended on Jul. 26, 2017> |
| (3) | Matters necessary for the methods, procedures, etc. for conducting fact-finding surveys and statistical surveys under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 28, 2015]
CHAPTER III PROJECTS FOR SUPPORTING PROMOTION OF TECHNOLOGICAL INNOVATIONS OF SMALL AND MEDIUM ENTERPRISES
| Article 9 (Projects for Supporting Promotion of Technological Innovation of Small and Medium Enterprises) |
| (1) | To promote technological innovation of small and medium enterprises, the Minister of SMEs and Startups shall perform the following support projects (hereinafter referred to as "projects for supporting the promotion of technological innovation"): <Amended on Aug. 6, 2013; Jul. 26, 2017; Apr. 20, 2021> |
| 1. | Funding necessary for technological innovation; |
| 2. | Feasibility studies on tasks for technological innovation; |
| 3. | Support for technological innovation related to demand; |
| 4. | Commercialization of the outcomes of technological innovation; |
| 5. | Guidance of management and technology for technological innovation; |
| 6. | Fostering technological innovation-oriented small and medium enterprises; |
| 7. | Support for certification of foreign standards related to industry, safety, etc. and improving the quality thereof; |
| 8. | Projects for supporting the informatization of small and medium enterprises; |
| 9. | Projects for supporting academic-industrial cooperation, such as joint technology development projects by industry, academia, and research institutes; |
| 10. | Projects for supporting the promotion of technology fusion; |
| 11. | Projects for fostering local specialized industries and for supporting the development of technology necessary to innovate local industries; |
| 12. | Other matters necessary to promote technological innovation. |
| (2) | Where the Minister of SMEs and Startups deems it necessary to implement projects for supporting the promotion of technological innovation, he or she shall have a prior consultation with the heads of the relevant central administrative agencies. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 10 (Contributions to Small and Medium Entrepreneurs Innovating Technologies) |
| (1) | Where the Minister of SMEs and Startups deems it necessary to promote technological innovation of small and medium enterprises, he or she may provide contributions to a project for technological innovation performed solely by a small and medium entrepreneur or jointly with another small and medium entrepreneur who has the capability of technological innovation. <Amended on Jul. 26, 2017> |
| (2) | Matters necessary for the provision, use, management, etc. of contributions under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 10-2 (Evaluation of Projects for Supporting Promotion of Technological Innovation) |
| (1) | The Minister of SMEs and Startups shall evaluate projects for supporting the promotion of technological innovation in order to enhance the efficiency of investment in such projects and to promote the utilization of the outcomes of the projects. |
| (2) | Evaluation under paragraph (1) shall include the verification of the outcomes of projects for supporting the promotion of technological innovation and the analysis of the causes of their failure. |
| (3) | Where necessary to verify the outcomes of projects for supporting the promotion of technological innovation and to analyze the causes of their failure under paragraph (2), the Minister of SMEs and Startups may conduct an on-site inspection. In such cases, the head of any institution, organization, or enterprise that has performed or participated in any project for supporting the promotion of technological innovation shall faithfully cooperate in any on-site inspection. |
| (4) | Necessary matters concerning the indicators and subject matters of, and procedures for, the evaluation under paragraph (1), and other matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 8, 2020]
| Article 11 (Contributions to Institutions Implementing Joint Technological Innovation among Industry, Academia, and Research Institutes) |
| (1) | To promote technological innovation, etc. of small and medium enterprises, the Minister of SMEs and Startups may provide contributions to a project for supporting academic-industrial cooperation performed by the following schools, institutions, or organizations jointly with small and medium entrepreneurs and to a project for technology guidance provided for small and medium enterprises: <Amended on Jul. 26, 2017; Dec. 31, 2018; Aug. 17, 2021> |
| 1. | Universities, colleges, industrial colleges, junior colleges, or technical colleges under the Higher Education Act; |
| 2. | Polytechnic colleges under the Act on the Development of Lifelong Vocational Skills of Citizens; |
| 5. | National or public research institutes; |
| 7. | Other corporations or organizations designated by the Minister of SMEs and Startups as deemed necessary to promote technological innovation, etc. |
| (2) | Matters necessary for the provision, use, management, etc. of contributions under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 11-2 (Designation of Institutes Leading Way in Supporting Small and Medium Enterprises) |
| (1) | To efficiently support joint technological innovation in small and medium enterprises through cooperation among industry, academia, and research institutes, the Minister of SMEs and Startups may designate any of the following institutes as a research institute leading the way in supporting small and medium enterprises (hereinafter referred to as "leading research institute") in consultation with the heads of relevant central administrative agencies: |
| (2) | The designation of a leading research institute shall be valid for five years from the date of designation. |
| (3) | The Minister of SMEs and Startups may subsidize all or some of the expenses incurred by a leading research institute in performing the following affairs: |
| 1. | Joint technological development with small and medium enterprises; |
| 2. | Technology transfer to small and medium enterprises; |
| 3. | Support for commercialization of ideas linked to the affairs prescribed in subparagraph 1 or 2; |
| 4. | Other affairs the Minister of SMEs and Startups deems necessary to facilitate the affairs prescribed in subparagraph 1 or 2, such as consultation, advice, and exchange support. |
| (4) | The Minister of SMEs and Startups may revoke the designation of a leading research institute for any of the following reasons deemed sufficient by him or her: Provided, That in cases falling under subparagraph 1, such designation shall be revoked: |
| 1. | Where the designation is made by fraud or other improper means; |
| 2. | Where the institute fails to meet standards for designation; |
| 3. | Where the institute produces no business performance for at least one year without good cause. |
| (5) | Necessary matters regarding the standards and procedures for the designation of institutes as leading research institutes and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 8, 2019]
[Previous Article 11-2 moved to Article 11-3 <Jan. 8, 2019>]
| Article 11-3 (Support for International Technological Cooperation by Small and Medium Enterprises) |
| (1) | To promote technological cooperation among small and medium enterprises and international organizations or foreign governments, enterprises, universities, research institutes, organizations, etc., the Minister of SMEs and Startups may promote the following projects: <Amended on Jul. 26, 2017> |
| 1. | Survey for international technological cooperation by small and medium enterprises; |
| 2. | Introduction and exchange of technologies; |
| 3. | Holding international exhibitions or academic conferences; |
| 4. | Joint technological development by and among small and medium enterprises and foreign universities, research institutes, organizations, etc.; |
| 5. | Other projects prescribed by Presidential Decree, which are necessary to promote international technological cooperation by small and medium enterprises. |
| (2) | The Minister of SMEs and Startups may designate institutions which will professionally implement the projects under paragraph (1) and may partially subsidize expenses incurred in performing such business affairs. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
[Moved from Article 11-2 <Jan. 8, 2019>]
| Article 12 (Feasibility Studies of Tasks for Technological Innovation) |
| (1) | To promote technological innovation of small and medium enterprises and to raise the chances of success, the Minister of SMEs and Startups may conduct feasibility studies of tasks for technological innovation of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may provide contributions to an institution or organization conducting feasibility studies pursuant to paragraph (1) to cover expenses incurred therein. <Amended on Jul. 26, 2017> |
| (3) | Matters necessary for the selection of an institution to conduct feasibility studies under paragraph (1), the fields of feasibility studies, subject matter of feasibility studies, etc. and for the provision, use, management, etc. of contributions under paragraph (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 13 (Formulation of Plans for Supporting Technological Innovation of Small and Medium Enterprises) |
| (1) | The heads of central administrative agencies and the heads of public institutions designated under the Act on the Management of Public Institutions whose average budget for research and development for the preceding three years is at least 30 billion won (hereinafter referred to as "implementing agency") shall formulate and implement an annual plan for supporting technological innovation of small and medium enterprises (hereinafter referred to as "plan for supporting technological innovation"). <Amended on Jan. 28, 2015> |
| (2) | The head of an implementing agency may select small and medium enterprises to perform a project for technological innovation in accordance with the relevant plan for supporting technological innovation and may fully or partially subsidize expenses incurred in performing the relevant project for technological innovation, by means of contribution, subsidization, contract, or otherwise. In such cases, he or she may give priority to supporting technological innovation-oriented small and medium enterprises under Article 15 and venture businesses under Article 2 of the Act on Special Measures for the Promotion of Venture Businesses. <Amended on May 18, 2015> |
| (3) | The Minister of SMEs and Startups may request the head of an implementing agency to provide support of at least a certain percentage of the research and development budget of such agency for technological innovation of small and medium enterprises in consideration of the characteristics of the research and development project implemented by such agency, the records of support during the preceding three years, and similar factors. In such cases, the head of the implementing agency so requested shall comply with such request unless there is a compelling reason not to do so. <Amended on May 18, 2015; Jul. 26, 2017> |
| (4) | The head of an implementing agency shall, by the end of February every year, notify the Minister of SMEs and Startups of its plan for supporting technological innovation in the relevant year and the records of support provided for technological innovation in the preceding year. <Amended on May 18, 2015; Jul. 26, 2017> |
| (5) | The Minister of SMEs and Startups shall integrate plans for supporting technological innovation and the records of support referred to in paragraph (4) shall report them to the Presidential Advisory Council on Science and Technology under the Presidential Advisory Council on Science and Technology Act and the State Council under Article 12 of the Government Organization Act; and shall submit them to the competent Standing Committee after deliberation by the Committee for Promoting Technological Innovation. <Amended on Mar. 23, 2013; May 18, 2015; Jul. 26, 2017; Jan. 16, 2018; Dec. 11, 2018> |
| (6) | Matters necessary for the formulation and implementation of plans for supporting technological innovation and the computation of research and development budgets under paragraph (1), and subsidy rates, etc. under paragraph (3) shall be prescribed by Presidential Decree. <Amended on Jan. 28, 2015> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 13-2 (Technological Innovation Support Group for Small and Medium Enterprises) |
| (1) | To support the efficient formulation and implementation of plans for supporting technological innovation, the Minister of SMEs and Startups may establish and operate a Technological Innovation Support Group for Small and Medium Enterprises (hereinafter referred to as the "Support Group"). <Amended on Jul. 26, 2017> |
| (2) | The Support Group shall conduct the following affairs: |
| 1. | Prior examination of a plan for supporting technological innovation of an implementing agency; |
| 2. | Improvement of the formulation and implementation of a plan for supporting technological innovation; |
| 3. | Professional inspection, research, and evaluation in relation to a plan for supporting technological innovation; |
| 4. | Calculation of subsidy rates from the technological development budget of an implementing agency under Article 13 (3) for technological innovation of small and medium enterprises and the verification of subsidies provided; |
| 5. | Support for fact-finding surveys and inspection of implementation under Article 13-3 (1); |
| 6. | Other affairs necessary to support the formulation and implementation of a plan for supporting technological innovation. |
| (3) | If it is necessary for the Support Group to efficiently conduct its affairs, the Minister of SMEs and Startups may request the head of an implementing agency or the head of an institution specializing in technology promotion to second public officials, executive officers, or employees belonging thereto, respectively. <Amended on Jul. 26, 2017> |
| (4) | The Minister of SMEs and Startups may fully or partially subsidize expenses incurred in the operation of the Support Group, within the budget. <Amended on Jul. 26, 2017> |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for the composition and operation of the Support Group shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 13-3 (Inspection of Implementation) |
| (1) | To improve the effectiveness of a plan for supporting technological innovation, the Minister of SMEs and Startups may conduct a fact-finding survey of projects supporting technological innovation performed by an implementing agency pursuant to Article 13 or may inspect whether a plan for supporting technological innovation is implemented. In such cases, the Minister of SMEs and Startups may assign public officials under his or her jurisdiction to verify data concerning such implementing agency’s plan for supporting technological innovation. <Amended on Jul. 26, 2017> |
| (2) | With regard to matters deemed in need of improvement as a result of the fact-finding survey or inspection of implementation conducted under paragraph (1), the Minister of SMEs and Startups may recommend the head of the relevant implementing agency to improve such matters. <Amended on Jul. 26, 2017> |
| (3) | In receipt of a recommendation to make improvements under paragraph (2), the head of an implementing agency shall comply therewith unless there is a compelling reason not to do so and shall notify the Minister of SMEs and Startups of the result thereof within one month after receipt of such recommendation. In such cases, where the head of an implementing agency in receipt of a recommendation to make improvements cannot comply with the recommendation of the Minister of SMEs and Startups, he or she shall notify the Minister of SMEs and Startups of the reason therefor. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 14 (Support for Commercialization of Outcomes of Technological Innovation) |
| (1) | The Minister of SMEs and Startups may provide the following support to small and medium entrepreneurs who commercialize the outcomes of technological innovation, etc.: <Amended on Jul. 26, 2017; Apr. 20, 2021> |
| 1. | Funding for the manufacturing of prototypes and investment in facilities; |
| 2. | Support for testing and analysis for performance tests of products; |
| 3. | Support for the commercialization of technologies transferred to small and medium enterprises from universities, research institutes, etc.; |
| 4. | Other matters necessary to promote the commercialization of the outcomes of technological innovation. |
| (2) | Each small and medium entrepreneur who intends to obtain support pursuant to paragraph (1) shall file an application therefor with the Minister of SMEs and Startups. <Amended on Jul. 26, 2017> |
| (3) | Matters necessary for procedures for support or an application therefor, etc. under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 15 (Discovering and Fostering Technological Innovation-Oriented Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may promote projects necessary to discover and foster technological innovation-oriented small and medium enterprises (hereinafter referred to as "projects for fostering technological innovation-oriented small and medium enterprises"). In such cases, the Minister of SMEs and Startups shall endeavor to discover and foster technological innovation-oriented small and medium enterprises in non-Seoul Metropolitan areas. <Amended on Jan. 28, 2015; Jul. 26, 2017; Apr. 20, 2021> |
| (2) | Where necessary to support projects for fostering technological innovation-oriented small and medium enterprises, the Minister of SMEs and Startups may request support from public institutions. In such cases, the heads of public institutions, in receipt of a request for support, shall take measures for support unless there is a compelling reason not to do so. <Amended on Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups may provide contributions to an institution or organization that promotes projects for fostering technological innovation-oriented small and medium enterprises to cover all or some expenses incurred therein. <Amended on Jul. 26, 2017> |
| (4) | The Minister of SMEs and Startups may require an enterprise which intends to be selected as a technological innovation-oriented small and medium enterprise to bear expenses incurred in evaluations, etc. In such cases, matters necessary to calculate and pay expenses shall be determined and publicly notified by the Minister of SMEs and Startups. <Newly Inserted on Apr. 20, 2021> |
| (5) | Matters necessary for procedures for selecting and supporting technological innovation-oriented small and medium enterprises shall be prescribed by Presidential Decree. <Amended on Apr. 20, 2021> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 15-2 (Special Cases concerning Merger Procedures for Technological Innovation-Oriented Small and Medium Enterprises) |
Articles 15-3, 15-8, 15-9, 15-10 and 15-11 of the Act on Special Measures for the Promotion of Venture Businesses shall apply to merger procedures, takeover of business, small-scale merger, short-form merger, and short-form transfer of business, respectively, of a technological innovation-oriented small and medium enterprise that is a stock company. In such cases, "venture business" shall be construed as “technological innovation-oriented small and medium enterprises". [This Article Newly Inserted on Jan. 28, 2015]
[Previous Article 15-2 moved to Article 15-3 <Jan. 28, 2015>]
| Article 15-3 (Projects for Supporting Promotion of Management Innovation of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may implement the following projects to support the promotion of management innovation of small and medium enterprises (hereinafter referred to as "projects for supporting the promotion of management innovation"): <Amended on Jan. 4, 2022> |
| 1. | Discovery and fostering of management innovation-oriented small and medium enterprises; |
| 2. | Financial support for management innovation of small and medium enterprises; |
| 3. | Publicity activities regarding management innovation of small and medium enterprises; |
| 4. | Other matter necessary to promote management innovation. |
| (2) | Where deemed necessary to implement projects for supporting the promotion of management innovation, the Minister of SMEs and Startups shall have a prior consultation with the head of a relevant administrative agency. <Amended on Jan. 4, 2022> |
| (3) | Articles 8-2 and 15 (2) through (5) shall apply mutatis mutandis to the projects under paragraph (1). <Amended on Apr. 20, 2021; Jan. 4, 2022> |
[This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Jan. 4, 2022]
[Moved from Article 15-2 <Jan. 28, 2015>]
| Article 16 (Managerial and Technical Guidance) |
Matters concerning managerial and technical guidance provided by the Minister of SMEs and Startups to strengthen the technical competitiveness of small and medium enterprises shall be governed by the Small and Medium Enterprises Promotion Act. <Amended on Jul. 26, 2017> [This Article Wholly Amended on Apr. 14, 2011]
| Article 17 (Support for Certification of Foreign Standards and Quality Improvement) |
| (1) | To promote technological innovation of small and medium enterprises, the Minister of SMEs and Startups may perform the following projects to support the certification of foreign standards related to industries, safety, etc. (hereinafter referred to as "projects for supporting the certification of foreign standards"): <Amended on Jul. 26, 2017> |
| 1. | Projects for supporting consultation necessary to obtain the certification of foreign standards; |
| 2. | Securing and spreading foreign standards; |
| 3. | Projects for nurturing experts necessary to obtain the certification of foreign standards. |
| (2) | To improve the quality of products of small and medium enterprises, the Minister of SMEs and Startups may conduct the following activities (hereinafter referred to as "quality improvement activities"): <Amended on Jul. 26, 2017> |
| 1. | Management of a defect rate of products of small and medium enterprises; |
| 2. | Activities to nurture experts necessary to improve quality. |
| (3) | Where the Minister of SMEs and Startups deems it necessary to perform projects for supporting the certification of foreign standards and quality improvement activities, he or she may provide necessary contributions or subsidies to an institution or organization under Article 29 (2). <Amended on Jul. 26, 2017> |
| (4) | Matters necessary for selecting or supporting an implementing agency which performs projects for supporting the certification of foreign standards and quality improvement activities shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 17-2 Deleted. <Mar. 21, 2017> |
| Article 17-3 (Support for Improving Manufacturing Environment and Increasing Productivity of Small and Medium Enterprises) |
| (1) | To promote the influx of human resources into small and medium enterprises and to increase productivity by improving the manufacturing environment of small and medium enterprises, the Minister of SMEs and Startups may perform the following projects: <Amended on Jul. 26, 2017> |
| 1. | Fact-finding surveys to improve a manufacturing environment; |
| 2. | Development of facilities or equipment to improve a manufacturing environment; |
| 3. | Support for investment in facilities to create a pleasant working environment; |
| 4. | Checking, design, and improvement of the manufacturing process and development of a new manufacturing process to increase productivity; |
| 5. | Other projects deemed necessary by the Minister of SMEs and Startups to improve a manufacturing environment and to increase productivity. |
| (2) | Where the Minister of SMEs and Startups deems it necessary to perform the projects under paragraph (1), he or she may provide contributions to universities, research institutes, public institutions, small and medium enterprises, etc. to cover some expenses. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 18 (Projects for Supporting Informatization of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may perform projects for supporting the development of infrastructure for the informatization of small and medium enterprises and the spread and dissemination of information technology necessary for the informatization of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | Where the Minister of SMEs and Startups deems it necessary to efficiently perform the projects under paragraph (1), he or she may provide contributions to universities, research institutes, public institutions, non-governmental organizations, small and medium enterprises, etc. to cover expenses incurred therein. <Amended on Jul. 26, 2017> |
| (3) | Matters necessary for projects for supporting the development of infrastructure for the informatization of small and medium enterprises and the spread and dissemination of information technology under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 19 (Projects for Supporting Integrated Informatization Management System of Small and Medium Enterprises) |
| (1) | To facilitate the establishment of an integrated informatization management system of small and medium enterprises, the Minister of SMEs and Startups may perform the following projects (hereinafter referred to as "projects for supporting an integrated informatization management system"): <Amended on Jul. 26, 2017> |
| 1. | Projects for supporting the development and dissemination of a standard informatization model and compatibility with the standard model; |
| 2. | Projects for supporting consultation necessary for an integrated informatization management system of small and medium enterprises; |
| 3. | Projects for nurturing experts for an integrated informatization management system of small and medium enterprises. |
| (2) | Matters necessary for the designation of and support for an institution performing projects for supporting an integrated informatization management system shall be prescribed by Presidential Decree. |
| (3) | The Minister of SMEs and Startups may provide contributions to an institution performing projects for supporting an integrated informatization management system to cover expenses incurred therein. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 19-2 (Protection of Outcomes of Technological Innovation) |
| (1) | The Minister of SMEs and Startups may pursue support projects necessary to disseminate, proliferate, and form the basis of security technology for the protection of outcomes of technological innovation of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | Where the Minister of SMEs and Startups deems it necessary for pursuing projects under paragraph (1), he or she may provide funds or subsidies to colleges, research institutes, public institutions, non-governmental organizations, small and medium enterprises, etc. <Amended on Jul. 26, 2017> |
| (3) | Necessary matters concerning methods and procedures for supporting projects under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 11, 2012]
| Article 20 (Korea Technology and Information Promotion Agency for Small and Medium Enterprises) |
| (1) | The Korea Technology and Information Promotion Agency for Small and Medium Enterprises (hereinafter referred to as the "Technology and Information Promotion Agency") shall be established to efficiently promote technological innovation and informatization management of small and medium enterprises. |
| (2) | The Technology and Information Promotion Agency shall be established with contributions from small and medium enterprises, individuals, or organizations. |
| (3) | The Technology and Information Promotion Agency shall be a corporation and be duly formed when the registration for its incorporation is completed at the registry office having jurisdiction over its principal place of business. |
| (4) | The Technology and Information Promotion Agency shall perform the following projects: <Amended on Dec. 11, 2012> |
| 1. | Development of infrastructure for technological innovation of small and medium enterprises; |
| 1-2. | Policy research and mid-term and long-term planning for technological innovation of small and medium enterprises; |
| 2. | Discovery, survey, and analysis of demand for technological innovation projects of small and medium enterprises; |
| 3. | Dissemination and evaluation of information technology related to the promotion of informatization of small and medium enterprises; |
| 4. | Support for the development, spread, and dissemination of a standard informatization management model and compatibility with the standard model; |
| 5. | Development of infrastructure for the informatization of small and medium enterprises and the evaluation of the level thereof; |
| 6. | Education on technological innovation and informatization management of small and medium enterprises and nurturing experts; |
| 7. | Other projects entrusted by the head of the relevant central administrative agency. |
| (5) | The Government may provide funds necessary for the establishment and operation of the Technology and Information Promotion Agency within the budget, and the head of each central administrative agency and the head of each local government may require the Technology and Information Promotion Agency to perform projects specified in the subparagraphs of paragraph (4) and may provide funds or subsidies for all or some expenses incurred therein. <Newly Inserted on Dec. 11, 2012> |
| (6) | Public institutions, small and medium entrepreneurs, individuals, or organizations may provide funds necessary to perform projects specified in the subparagraphs of paragraph (4). <Amended on Dec. 11, 2012> |
| (7) | Except as provided in this Act, the provisions on incorporated foundations in the Civil Act shall apply mutatis mutandis to the Technology and Information Promotion Agency. <Amended on Dec. 11, 2012> |
[This Article Wholly Amended on Apr. 14, 2011]
CHAPTER IV EXPANSION OF INFRASTRUCTURE FOR PROMOTING TECHNOLOGICAL INNOVATIONS OF SMALL AND MEDIUM ENTERPRISES AND PREFERENTIAL TREATMENT
| Article 21 (Training and Supply of Technical Human Resources to Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may promote the following projects to train and supply technical human resources and other human resources responsible for informatization to small and medium enterprises (hereinafter referred to as "technical human resources at small and medium enterprises"): <Amended on Jan. 8, 2019> |
| 1. | A project to identify the current status and actual conditions of technical human resources at small and medium enterprises; |
| 2. | A project to help train and utilize technical human resources at small and medium enterprises through cooperation between industry and academia; |
| 3. | A project to train technical human resources at small and medium enterprises and to supply said resources thereto using facilities, human resources, educational programs, etc. in large enterprises, public institutions, etc.; |
| 4. | A project to train technical human resources at small and medium enterprises that fit the characteristics of such local small and medium enterprises and to supply said resources thereto through cooperation with local governments, educational institutions, etc.; |
| 5. | A project to help train and utilize female technical human resources and technical human resources with disabilities at small and medium enterprises; |
| 6. | A project to reeducate current technical human resources at small and medium enterprises; |
| 7. | A project to help utilize retired technical human resources at small and medium enterprises; |
| 8. | Other matters prescribed by Presidential Decree to train technical human resources at small and medium enterprises and to supply said resources thereto. |
| (2) | The Minister of SMEs and Startups may bear expenses incurred by local governments in promoting the projects prescribed in the subparagraphs of paragraph (1) or may provide contributions to universities, research institutes, enterprises, organizations, etc. that perform a project to cover expenses incurred therein. <Amended on Jul. 26, 2017; Jan. 8, 2019> |
| (3) | Necessary matters regarding the standards and procedures for selection of an institution promoting the projects under the subparagraphs of paragraph (1) shall be prescribed by Presidential Decree. <Amended on Jan. 8, 2019> |
[This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Jan. 8, 2019]
| Article 21-2 (Research Personnel Support for Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may engage in a research personnel support project under which the following research institutes dispatch their research personnel to small and medium enterprises to accelerate technological innovation in those enterprises: |
| 3. | Other technology-related specialized research institutes the Minister of SMEs and Startups deems necessary to accelerate technological innovation in small and medium enterprises. |
| (3) | The Minister of SMEs and Startups may finance the projects prescribed in paragraphs (1) and (2). |
| (4) | Matters regarding the methods and procedures for support for the projects prescribed in paragraphs (1) and (2), enterprises eligible for such support, and the period of such support; and matters regarding methods and standards for financial support for the projects prescribed in paragraph (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jan. 8, 2019]
| Article 22 (Provision of Information on Technical Support for Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may promote projects necessary to introduce and disseminate technologies related to small and medium enterprises and to computerize information about various technical support for small and medium enterprises so that they may efficiently use such technologies and information. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may request the heads of the relevant agencies to provide related information necessary for the computerization of information under paragraph (1), such as the kinds and scale of, and procedures for application, etc. for, technical support for small and medium enterprises. <Amended on Jul. 26, 2017> |
| (3) | If necessary for technical support for small and medium enterprises, the heads of relevant central administrative agencies and Mayors/Do Governors may request the Minister of SMEs and Startups to provide information computerized pursuant to paragraphs (1) and (2). <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 23 (Public Relations Related to Technological Innovation of Small and Medium Enterprises) |
| (1) | To create a social atmosphere on the importance of technological innovation of small and medium enterprises, the Government may conduct the following public relations activities: <Amended on Jul. 26, 2017> |
| 1. | Exhibitions and public relations on the outcomes of excellent innovative technologies of small and medium enterprises; |
| 2. | Awarding prizes to small and medium enterprises that have excellent innovative technologies and persons who have rendered distinguished services to such innovative technologies; |
| 3. | Seminars on technological innovation of small and medium enterprises and presentations of case studies on technological innovation; |
| 4. | Other activities officially announced by the Minister of SMEs and Startups as deemed necessary. |
| (2) | Matters necessary for methods of and procedures for public relations activities under paragraph (1) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 24 (Support for Technology Research Council of Small and Medium Enterprises) |
| (1) | To promote technological innovation of small and medium enterprises, the Minister of SMEs and Startups may provide support necessary for small and medium enterprises to conduct joint research by organizing a technology research council of small and medium enterprises (hereinafter referred to as "technology research council") with universities, research institutes, research cooperatives, organizations by type of business, small and medium entrepreneurs providing research services, etc. <Amended on Jul. 26, 2017; Apr. 20, 2021> |
| (2) | Small and medium enterprises that intend to organize a technology research council shall file for registration with the Minister of SMEs and Startups. <Amended on Jul. 26, 2017> |
| (3) | Matters necessary for the composition and registration of, and support for, a technology research council shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 24-2 (Support for Small Groups for Technological Innovation of Small and Medium Enterprises) |
| (1) | To promote technological innovation of small and medium enterprises, the Minister of SMEs and Startups may provide support necessary for a small and medium enterprise to organize and operate a small group for technological innovation, which is a voluntary research organization for technological innovation, jointly with experts, such as professors and researchers. <Amended on Jul. 26, 2017> |
| (2) | Matters necessary for procedures for and methods of providing support for a small group for technological innovation under paragraph (1) shall be prescribed by Ordinance of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 25 (Support for Testing and Analysis) |
| (1) | The Minister of SMEs and Startups may provide support necessary for testing and analysis for technological innovation, product certification, etc. of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | Matters necessary in relation to institutions eligible for support in testing and analysis, and procedures for and methods of providing support under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 25-2 (Support for Joint Utilization of Research Facilities and Equipment) |
| (1) | To promote technological innovation of small and medium enterprises, the Minister of SMEs and Startups may implement a project helping small and medium enterprises use and utilize research facilities and equipment held by universities, research institutes, public institutions, etc. <Amended on Jul. 26, 2017> |
| (2) | Where the Minister of SMEs and Startups deems it necessary to perform the projects under paragraph (1), he or she may provide contributions to universities, research institutes, public institutions, small and medium enterprises, etc. to cover some expenses. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 26 Deleted. <Jan. 30, 2009> |
| Article 27 (Financial and Taxation Support) |
| (1) | To ensure smooth funding for supporting technological innovation and informatization of small and medium entrepreneurs, the Government and local governments may implement necessary policy measures, such as financial support and support for credit guarantee. <Amended on Jan. 28, 2015> |
[This Article Wholly Amended on Apr. 14, 2011]
CHAPTER V SUPPORT FOR PROMOTION OF TECHNOLOGY TRANSACTIONS BY SMALL AND MEDIUM ENTERPRISES
| Article 27-2 (Promotion of Technology Transactions and Commercialization by Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may implement the following projects to promote technology transactions and commercialization by small and medium enterprises: |
| 1. | Arranging and mediating technology transactions by small and medium enterprises; |
| 2. | Collecting, analyzing, distributing, and providing information regarding technology transactions by, and technology evaluations of, small and medium enterprises; |
| 3. | Establishing, operating, and managing an information network to promote technology transactions and commercialization by small and medium enterprises. In such cases, there shall be a consultation with the Minister of Trade, Industry and Energy to connect such information network with the information network established and operated under Article 7 of the Technology Transfer and Commercialization Promotion Act; |
| 4. | Projects regarding technology trust management to promote technology transactions and commercialization by small and medium enterprises; |
| 5. | Purchasing and investing in technology; |
| 6. | Identifying, surveying, and analyzing demand for technology transactions by small and medium enterprises; |
| 7. | Supporting research and development related to technology transactions by small and medium enterprises; |
| 8. | Projects entrusted by the head of a central administrative agency and the head of a local government with regard to the promotion of technology transactions and commercialization by small and medium enterprises; |
| 9. | Other projects prescribed by the Minister of SMEs and Startups as necessary to promote technology transactions and commercialization by small and medium enterprises. |
| (2) | The Minister of SMEs and Startups may require the Korea Technology Finance Corporation established under Article 12 of the Korea Technology Finance Corporation Act (hereinafter referred to as the "Korea Technology Finance Corporation") to perform the projects prescribed in the subparagraphs of paragraph (1). |
| (3) | The Korea Technology Finance Corporation may receive fees when evaluating technology, mediating technology transactions, and performing other duties in relation to performing the projects under the subparagraphs of paragraph (1). |
| (4) | Matters necessary for the implementation of the projects provided in the subparagraphs of paragraph (1) and those regarding fees under paragraph (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 20, 2021]
| Article 27-3 (Establishment of Accounts and Financial Resources) |
| (1) | The Minister of SMEs and Startups may establish an account for technological innovation of small and medium enterprises (hereinafter referred to as the "account") to promote technological innovation of small and medium enterprises and may entrust the operation and management of such account. |
| (2) | Any of the following persons may provide contributions or subsidies to the account to cover all or part of expenses incurred in implementing the projects prescribed in the subparagraphs of Article 27-2 (1): |
| 1. | A central administrative agency and local government; |
| 3. | Other enterprises, organizations, etc. related to the projects prescribed in the subparagraphs of Article 27-2 (1). |
| (3) | Other matters necessary for the revenues, expenditures, operation, accounting, settlement, etc. of the account shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 20, 2021]
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
| Article 28 (Collection and Use of Royalties) |
| (1) | Where a project for technological innovation under Article 10 (1) or a project for supporting academic-industrial cooperation under Article 11 (1) is completed, the Minister of SMEs and Startups may collect a royalty from a business entity within 50/100 of the amount he or she has contributed. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups shall use royalties collected under paragraph (1) for projects for supporting the promotion of technological innovation to which he or she provides contributions under this Act. <Amended on Jul. 26, 2017> |
| (3) | Where any intellectual property right created as the outcomes of a project for technological innovation under Article 10 (1) or a project for supporting academic-industrial cooperation under Article 11 (1) falls under grounds prescribed by Presidential Decree, such as not being vested in a small and medium enterprise, the Minister of SMEs and Startups may exempt the relevant small and medium enterprise from a royalty. <Amended on Jul. 26, 2017> |
| (4) | Where a person who has performed a project for technological innovation under Article 10 (1) or a project for supporting academic-industrial cooperation under Article 11 (1) falls under grounds prescribed by Presidential Decree, such as the payment of royalties in a lump sum or the early repayment thereof, the Minister of SMEs and Startups may reduce a certain amount of such royalties. <Amended on Jul. 26, 2017> |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for the collection, exemption, reduction, etc. of royalties shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 29 (Entrustment of Affairs) |
| (1) | The Minister of SMEs and Startups may entrust some of his or her affairs under this Act to the head of an institution specializing in technology promotion, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017; Dec. 10, 2019> |
| (2) | The Minister of SMEs and Startups may entrust an institution or organization with some projects under this Act, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
[Title Amended on Dec. 10, 2019]
| Article 30 (Legal Fiction as Public Officials for Purposes of Applying Penalty Provisions) |
Members who are not public officials among the members referred to in Article 6 (3), executive officers or employees seconded to the Support Group from a public institution or an institution specializing in technology promotion which is an implementing agency under Article 13-2 (3), the head of an institution specializing in technology promotion that conducts affairs entrusted under Article 29 (1) and employees belonging thereto, and the head of an institution or organization that performs projects entrusted under paragraph (2) of that Article and employees belonging thereto shall be deemed public officials for purposes of applying Articles 129 through 132 of the Criminal Act. [This Article Wholly Amended on Apr. 14, 2011]
| Article 31 (Restrictions on Participation in Projects for Supporting Promotion of Technological Innovation) |
| (1) | Where any small and medium entrepreneur, school, institution, or organization that has participated in any project for technological innovation under Article 10 (1) or project for supporting academic-industrial cooperation under Article 11 (1), or any executive officer or employee belonging thereto, or any person in charge of research or researcher not belonging thereto falls under any of the following cases, the Minister of SMEs and Startups may restrict the participation of such person or entity in a project for supporting the promotion of technological innovation within the period of up to five years (10 years for a person whose participation in a task for a national research and development project under Article 11 of the Framework Act on Science and Technology is restricted due to the same cause of participation restriction), and may notify the heads of the relevant central administrative agencies of such participation restriction: Provided, That the period of participation restriction may be reduced in cases falling under subparagraph 1 where the fact is recognized that the research and development has been faithfully conducted: <Amended on Dec. 11, 2012; Mar. 21, 2017; Jul. 26, 2017> |
| 1. | Where a project is decided as a failed project or suspended project according to the evaluation conducted by the Minister of SMEs and Startups because the findings of research and development are extremely poor; |
| 2. | Where such person or entity divulges or leaks the details of research and development without following proper procedures; |
| 3. | Where such person or entity abandons the performance of research and development tasks without good cause; |
| 4. | Where such person or entity uses contributions for the purpose other than the designated purposes, or files a false report on the details of use; |
| 5. | Where such person or entity files an application for or registers an intellectual property right which is the findings of research and development in the name of an executive officer or employee belonging thereto, or a person in charge of research or researcher not belonging thereto without good cause; |
| 6. | Where such person or entity commits misconduct in relation to research, such as forging, altering, or plagiarizing research and development data or the outcomes thereof; |
| 7. | Where such person or entity fails or neglects to pay royalties without good cause; |
| 7-2. | Where such person or entity fails to pay the amount of project costs to be withdrawn under Article 32, without good cause; |
| 8. | Where such person or entity participates in or conducts research and development by fraud or other improper means; |
| 9. | Cases prescribed by Presidential Decree where regarding a project for technological innovation under Article 10 (1) and a project for supporting academic-industrial cooperation under Article 11 (1), the Minister of SMEs and Startups violates an agreement into which he or she has entered with a person who performs the relevant project. |
| (2) | Where any activity is performed to use contributed research and development expenses for any purpose, other than research, the Minister of SMEs and Startups may impose a penalty surcharge on the relevant small and medium entrepreneur, school, institution, organization, or an executive officer or employee belonging thereto or a person in charge of research or researcher not belonging thereto within five times the amount used for the relevant purpose, other than research, and collect the surcharge from such person or entity. <Newly Inserted on Dec. 11, 2012; Jul. 26, 2017> |
| (3) | Where a person on whom a penalty surcharge has been imposed pursuant to paragraph (2) fails to pay such surcharge by the deadline for payment, the Minister of SMEs and Startups shall collect the surcharge in the same manner as delinquent national taxes are collected. <Newly Inserted on Dec. 11, 2012; Jul. 26, 2017> |
| (4) | Recognition of the fact of faithfully conducting a research and development activity and standards for reduction of the period of participation restriction under the proviso of paragraph (1), and standards and procedures for evaluating the findings of research and development under subparagraph 1 of that paragraph, specific criteria for the period of restrictions on participation for each reason for restrictions on participation under the subparagraphs of the aforesaid paragraph, and necessary matters concerning the amount of a penalty surcharge based on types, gravity, etc. of offenses on which the penalty surcharge under paragraph (2) is imposed shall be prescribed by Presidential Decree. <Amended on Dec. 11, 2012; Mar. 21, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
| Article 32 (Withdrawal of Contributions) |
| (1) | Where any small and medium entrepreneur, school, institution, or organization that has participated in any project for technological innovation under Article 10 (1) or project for supporting academic-industrial cooperation under Article 11 (1), or any executive officer or employee belonging thereto, or any person in charge of research or researcher not belonging thereto falls under any subparagraph of Article 31 (1), the Minister of SMEs and Startups may fully or partially withdraw project costs that he or she has contributed: Provided, That in cases falling under Article 31 (1) 1 where the fact of faithfully conducting a research and development activity is recognized, the amount of project costs to be withdrawn under this Article may be reduced. <Amended on Dec. 11, 2012; Mar. 21, 2017; Jul. 26, 2017> |
| (2) | Where a person subject to a disposition of withdrawal of project costs under paragraph (1) fails to pay the amount to be withdrawn within the payment period, the Minister of SMEs and Startups shall urge that person to pay such amount within a fixed period; and may collect such amount in the same manner as delinquent national taxes are collected, if that person still fails to do so within the fixed period. <Newly Inserted on Mar. 21, 2017; Jul. 26, 2017> |
| (3) | Standards and procedures for the withdrawal of project costs under the main clause of paragraph (1), and standards, etc. for recognizing the fact of faithfully conducting a research and development activity and for reducing the amount of project costs to be withdrawn under the proviso of that paragraph shall be prescribed by Presidential Decree. <Amended on Mar. 21, 2017> |
[This Article Wholly Amended on Apr. 14, 2011]
ADDENDA <Act No. 6482, May 24, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 Omitted.
Article 3 (Transitional Measures Following Amendments to Other Statutes)
Any activity performed under any statute amended pursuant to Article 2 of the Addenda as at the time this Act enters into force, such as the payment of contributions, collection of royalties, etc. shall be deemed to have been performed under this Act.
ADDENDA <Act No. 7219, Sep. 23, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 7753, Dec. 23, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2006.
Article 2 (Transitional Measures Following Change of Name of Information Management Institute for Small and Medium Enterprises)
| (1) | The Korea Information Management Institute for Small and Medium Enterprises as at the time this Act enters into force shall be deemed the Korea Technology and Information Promotion Agency for Small and Medium Enterprises. |
| (2) | With regard to activities performed by the Korea Information Management Institute for Small and Medium Enterprises and to other legal relationship as at the time this Act enters into force, the Korea Information Management Institute for Small and Medium Enterprises shall be deemed the Korea Technology and Information Promotion Agency for Small and Medium Enterprises. |
| (3) | The name of the Korea Information Management Institute for Small and Medium Enterprises on the register or other public books as at the time this Act enters into force shall be deemed that of the Korea Technology and Information Promotion Agency for Small and Medium Enterprises. |
ADDENDA <Act No. 7949, Apr. 28, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 7 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. 8387, Apr. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8604, Aug. 3, 2007>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
ADDENDA <Act No. 8852, Feb. 29, 2008>
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. 9378, Jan. 30, 2009>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
| (2) | (Applicability to Restrictions on Participation in Projects to Assist in Promotion of Technological Innovation) The amended provisions of Articles 31 and 32 shall also apply to persons implementing projects after receiving subsidies for project expenses under the previous provisions as at the time this Act enters into force. |
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 10597, Apr. 14, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11538, Dec. 11, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Imposition of Surcharges for Sanctions)
The amended provisions of Article 31 (2) shall begin to apply to the first act of using contributed research and development expenses for any purpose, other than research, after this Act enters into force.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11713, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 12006, Aug. 6, 2013>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 13 (3) shall enter into force on January 1, 2014.
ADDENDA <Act No. 13093, Jan. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 13 (1) and (6) shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Merger Procedures)
The amended provisions of Article 15-2 shall begin to apply to the first contract for merger, transfer of business, or takeover of business prepared after this Act enters into force. Article 3 Omitted.
ADDENDUM <Act No. 13315, May 18, 2015>
This Act shall enter into force on January 1, 2016.
ADDENDUM <Act No. 13863, Jan. 27, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14683, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Restrictions on Participation in Projects for Supporting Promotion of Technological Innovation)
The amended provisions of Article 31 shall begin to apply to the first project for technological innovation and the first project for supporting academic-industrial cooperation for which agreements are concluded after this Act enters into force. Article 3 (Transitional Measure concerning Abolishment of Quality Certification Based on Defect Rates of Products of Small and Medium Enterprises)
Notwithstanding the amended provisions of Article 17-2, the previous provisions shall apply to the small and medium enterprises which have been granted quality certification or have applied for qualification certification as at the time this Act enters into force.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute. Articles 2 through 6 Omitted.
ADDENDA <Act No. 15344, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 15924, Dec. 11, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 16172, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 16218, Jan. 8, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Research Personnel Support for Small and Medium Enterprises)
Article 3 Omitted.
ADDENDA <Act No. 16816, Dec. 10, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Hearings)
The amended provisions of Article 7 (5) shall begin to apply to the first revocation of designation of an institution specializing in technology promotion after this Act enters into force. Article 3 (Transitional Measures concerning Institutions Specializing in Technology Promotion)
The institution specializing in technology promotion designated under the previous provisions as at the time this Act enters into force shall be deemed designated under the amended provisions of Article 7 (1): Provided, That such institution shall meet the standards for designation under the amended provisions of Article 7 (1) within six months from the date this Act enters into force.
ADDENDUM <Act No. 17627, Dec. 8, 2020>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 18075, Apr. 20, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 18108, Apr. 20, 2021>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 18425, Aug. 17, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 18661, Dec. 28, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 18706, Jan. 4, 2022>
This Act shall enter into force on the date of its promulgation.