ENFORCEMENT DECREE OF THE ACT ON THE PROTECTION OF AND SUPPORT FOR MICRO ENTERPRISES
Wholly Amended by Presidential Decree No. 26248, May 26, 2015
Amended by Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 26926, Jan. 22, 2016
Presidential Decree No. 27387, Jul. 26, 2016
Presidential Decree No. 27506, Sep. 22, 2016
Presidential Decree No. 27859, Feb. 13, 2017
Presidential Decree No. 28213, Jul. 26, 2017
Presidential Decree No. 29932, Jul. 1, 2019
Presidential Decree No. 30435, Feb. 18, 2020
Presidential Decree No. 31380, Jan. 5, 2021
Presidential Decree No. 31429, Feb. 2, 2021
Presidential Decree No. 32017, Sep. 29, 2021
Presidential Decree No. 32391, Feb. 7, 2022
Presidential Decree No. 32882, Aug. 23, 2022
Presidential Decree No. 32946, Oct. 4, 2022
Presidential Decree No. 33603, jun. 27, 2023
| Article 2 Deleted. <Feb. 2, 2021> |
| Article 3 Deleted. <Feb. 2, 2021> |
| Article 4 Deleted. <Feb. 2, 2021> |
| Article 4-2 (Subject of Supporting Establishment and Operation of Common Logistics Centers of Micro Enterprises) |
| (1) | “Micro enterprises exceeding the number prescribed by Presidential Decree” in Article 11 (2) of the Act means micro enterprises exceeding the number falling under any of the followings, who operate the business type prescribed by Ordinance of the Ministry of SMEs and Startups as main business, among wholesale and retail trade under the attached Table 3 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises: <Amended on Jul. 26, 2017> |
| 1. | At least 10 wholesalers; |
| 2. | At least 50 retailers. |
| (2) | The common logistics centers of micro enterprises prescribed in Article 11 (2) of the Act (hereinafter referred to as “common logistics centers”) shall conduct the following businesses to modernize the distribution system of small enterprises: |
| 1. | Common distribution business such as storage, shipping, packing, etc. of products; |
| 2. | Planning, development and group purchase of products; |
| 5. | Education and training, etc. to improve service capability of micro enterprises using common logistics centers; |
| 6. | Other business necessary to modernize the distribution system of micro enterprises. |
| (3) | Common logistics centers shall be established in accordance with the following standards: |
| 1. | Matters regarding operation shall be prescribed by articles of corporation or rules; |
| 2. | Representatives, managers, etc. shall be elected; |
| 3. | Any micro enterprise shall be allowed to join and use the center. |
| (4) | Common logistics centers shall have the following facilities: |
| 1. | Facilities for shipping, storage, and loading and unloading of freight; |
| 2. | Facilities for activities such as processing, assembling, classification, repair, packing, attaching trademark, selling, information and communications relevant to shipping, storage, and loading and unloading of freight. |
| (5) | Matters necessary for the establishment, operation and management, etc. of common logistics center shall be determined and publicly notified by the Administrator of the Small and Medium Business Administration. <Amended on Jul. 26, 2017> |
[This Article Newly Inserted on Jan. 22, 2016]
| Article 4-3 (Establishment and Operation of Support Center for Closure of Micro Enterprises) |
| (1) | The Minister of SMEs and Startups may establish and operate a support center for business closure of micro enterprises under Article 12 (2) of the Act (hereinafter referred to as "support center for business closure of micro enterprises") for each region. |
| (2) | A support center for business closure of micro enterprises shall conduct the following affairs: |
| 1. | Support for business re-startup; |
| 2. | Provision of employment training and job placement; |
| 3. | Provision of consultation on liquidation; |
| 4. | Provision of legal and tax advice related to business closure; |
| 5. | Other affairs necessary for persons closing a micro business to proceed with the procedure of closure. |
[This Article Newly Inserted on Jul. 1, 2019]
[Previous Article 4-3 moved to Article 4-4 <Jul. 1, 2019>]
| Article 4-4 (Persons Eligible for Compensation for Loss) |
| (1) | "Measures prescribed by Presidential Decree, such as restrictions on the use and operation hours of places of business" in Article 12-2 (1) of the Act means the following: Provided, That measures taken by the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu) shall be limited to those taken following prior consultation with the head of a central administrative agency who takes the measure prescribed in Article 49 (1) 2 of the Infectious Disease Control and Prevention Act (referring to the head of the Central Disaster and Safety Countermeasure Headquarters, where such Headquarters is established under the Article 14 of that Act to manage an infectious disease prescribed in subparagraph 1 (b) of Article 3 of that Act): <Amended on Feb. 7, 2022> |
| 1. | Measures that ban gatherings in places of business and that restrict all or part of operating hours; |
| 2. | Measures to reduce the density of users in places of business, which are deliberated and decided on by the Deliberative Committee on Compensation for Losses established under Article 12-4 (1) of the Act. |
| (2) | The head of a central administrative agency who has a consultation under the proviso of paragraph (1) shall, in advance, hear the opinion of the Minister of SMEs and Startups before completing the consultation. |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-5 (Application for Compensation for Loss) |
| (1) | A person who intends to apply for compensation for loss under Article 12-2 (3) of the Act shall submit, to the Minister of SMEs and Startups, an application for compensation for loss specifying the business registration number, personal information on the representative, and other information, as prescribed by Ordinance of the Ministry of SMEs and Startups. |
| (2) | The Minister of SMEs and Startups may handle affairs regarding compensation for loss after a specialized institution or an expert in the field of compensation for loss conducts an investigation, evaluation, appraisal, etc. |
[This Article Newly Inserted on Sep. 29, 2021]
[Previous Article 4-5 moved to Article 4-14 <Sep. 29, 2021>]
| Article 4-6 (Prompt Payment of Compensation for Loss) |
Where the standards for, amounts, etc. of compensation for loss are publicly notified under Article 12-2 (6) of the Act, the Minister of SMEs and Startups may examine whether a person is eligible for the payment of compensation for loss, the amount to be paid, and other matters before an application for compensation for loss is filed under Article 12-2 (3) of the Act and may in advance refer the results of such examination for deliberation to the Deliberative Committee on Compensation for Losses established under Article 12-4 (1) of the Act in order to promptly pay compensation for loss under Article 12-2 (1) and (2) of the Act. [This Article Newly Inserted on Sep. 29, 2021]
| Article 4-7 (Recovery of Compensation for Loss) |
| 2. | Where the person receives compensation for loss by fraud or other improper means; |
| 3. | Where the person erroneously receives compensation for loss, due to an error or any other reason. |
| (2) | Where the Minister of SMEs and Startups intends to recover compensation for loss pursuant to Article 12-2 (5) of the Act, he or she shall determine whether to recover the compensation for loss and the amount to be recovered following deliberation by the Deliberative Committee on Compensation for Losses established under Article 12-4 (1) of the Act. |
| (3) | Where the Minister of SMEs and Startups determines to recover compensation for loss under paragraph (2), he or she shall notify in writing the relevant person of the following matters: |
| 1. | The reasons for recovery; |
| 2. | The amount to be recovered; |
| 4. | The institution to which the payment is made. |
| (4) | Except as provided in paragraphs (2) and (3), matters necessary for procedures, etc. for recovery shall be determined and publicly notified by the Minister of SMEs and Startups. |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-8 (Filing Objections) |
| (1) | Upon receipt of an objection filed under Article 12-3 (1) of the Act, the Minister of SMEs and Startups shall notify the person who has filed the objection of the results of a determination made under Article 12-3 (2) of the Act, within 90 days from the date of receipt of the objection: Provided, That where it is impossible to give notification within 90 days due to any unavoidable reason, the period may be extended once by up to 90 days counting from the day following the date of expiry of such period. |
| (2) | Where the Minister of SMEs and Startups extends the period of notification of the results of an objection filed under the proviso of paragraph (1), he or she shall notify the person who has filed the objection of the reasons for such extension and the extended period. |
| (3) | Except as provided in paragraphs (1) and (2), matters necessary for procedures, etc. for filing an objection shall be determined and publicly notified by the Minister of SMEs and Startups. |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-9 (Composition and Operation of Deliberative Committee on Compensation for Losses) |
| (1) | A member under Article 12-4 (3) 1 and 2 (hereinafter referred to as "commissioned member") of the Deliberative Committee on Compensation for Losses established pursuant to paragraph (1) of that Article (hereinafter referred to as the "Deliberative Committee on Compensation") shall be commissioned by the Minister of SMEs and Startups from among the following persons, taking their genders into consideration: |
| 1. | The head of a specialized institution or related organization in the field of compensation for loss or disease control; |
| 2. | A person who has served as a professor, an associate professor, or an assistant professor for at least 10 years in the field of compensation for loss or disease control; |
| 3. | A person who has served as a judge, a prosecutor, a military advocate, or an attorney-at-law for at least 10 years; |
| 4. | A person who belongs to an organization related to micro enterprises and is deemed to represent the field of micro enterprises; |
| 5. | Other persons deemed by the Minister of SMEs and Startups to have extensive knowledge of and experience in the field of compensation for loss, disease control, or micro enterprises. |
| (2) | Each member shall hold office for a term of two years and may be recommissioned for only one further term. |
| (3) | A member under Article 12-4 (3) 3 of the Act (hereinafter referred to as "ex officio member") shall be appointed by the head of the relevant agency from among members in general service of the Senior Executive Service of the following central administrative agencies: |
| 1. | The Ministry of Economy and Finance; |
| 2. | The Ministry of the Interior and Safety; |
| 3. | The Ministry of Health and Welfare; |
| 4. | The Ministry of SMEs and Startups; |
| 5. | The Ministry of the Office for Government Policy Coordination; |
| 6. | The National Tax Service; |
| 7. | The Korea Disease Control and Prevention Agency. |
| (4) | The chairperson of the Deliberative Committee on Compensation shall convene its meeting where such meeting is deemed necessary or requested by a majority of the members. |
| (5) | The chairperson of the Deliberative Committee on Compensation shall preside over the meetings convened in accordance with paragraph (4). |
| (6) | Where the chairperson of the Deliberative Committee on Compensation is unable to perform his or her duties due to any unavoidable reason, the member appointed by the chairperson in advance shall act on behalf of the chairperson. |
| (7) | A majority of the members of the Deliberative Committee on Compensation shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present. |
| (8) | A meeting of the Deliberative Committee on Compensation shall be held with the in-person attendance of members (including a video conference; hereafter in this Article, the same shall apply): Provided, That a meeting may be held in writing in the following cases: |
| 1. | Where there is no time to hold a meeting attended by members in person due to any urgent reasons, etc.; |
| 2. | Where it is impracticable to meet a quorum to hold a meeting attended by members in person due to an act of God or any other unavoidable reason. |
| (9) | Where necessary to conduct a deliberation under Article 12-4 (4) of the Act and Article 4-6 of this Decree, the Deliberative Committee on Compensation may hear the opinions of interested parties and any other person. |
| (10) | The Deliberative Committee on Compensation shall have one executive secretary who shall be appointed by the Minister of SMEs and Startups from among public officials of the Ministry. |
| (11) | Except as provided in paragraphs (1) through (10), matters necessary for the composition and operation of the Deliberative Committee on Compensation and for the composition, operation, etc. of the working committee under Article 12-4 (6) of the Act shall be determined by the chairperson of the Deliberative Committee on Compensation following its resolution. |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-10 (Exclusion and Recusal of Members of Deliberative Committee on Compensation) |
| (1) | Where a member of the Deliberative Committee on Compensation, or the spouse or a lineal ascendant or descendant of such member (including a lineal ascendant or descendant of the spouse) is a party to an agenda item of the Deliberative Committee on Compensation or a joint right holder with a party to the relevant agenda item, he or she shall be excluded from deliberation. |
| (2) | Where a member of the Deliberative Committee on Compensation is excluded from deliberation on any ground referred to in paragraph (1), he or she shall notify the Deliberative Committee on Compensation of such fact and shall recuse himself or herself from deliberation on the relevant agenda item. |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-11 (Dismissal of Commissioned Members) |
| (1) | The Minister of SMEs and Startups may dismiss a commissioned member in any of the following cases: |
| 1. | Where the member becomes unable to perform his or her duties due to a mental or physical disability; |
| 2. | Where the member commits any misconduct in connection with his or her duties; |
| 3. | Where the member is deemed unsuitable as a member due to neglect of duty, injury to dignity, damage to fairness, or any other reason; |
| 4. | Where the member voluntarily admits that it is impracticable for him or her to perform his or her duties; |
| 5. | Where the member fails to recuse himself or herself from deliberation, in violation of Article 4-10 (2). |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-12 (Requests for Provision of Information) |
| 3. | Other information deemed necessary by the Deliberative Committee on Compensation to conduct affairs related to compensation for loss, such as determining whether a person is eligible for compensation for loss and calculating compensation for loss. |
| (3) | "Persons prescribed by Presidential Decree" in the former part of Article 12-5 (3) of the Act means a specialized institution or an expert who conducts an investigation, evaluation, appraisal, etc. under Article 4-5 (2). |
[This Article Newly Inserted on Sep. 29, 2021]
| Article 4-13 (Composition of Dedicated Organizations) |
Where necessary to perform the affairs of a dedicated organization established under Article 12-6 (1) of the Act, the Minister of SMEs and Startups may request a relevant administrative agency, a corporation, or an organization to dispatch its public officials, executive officers, or employees. [This Article Newly Inserted on Sep. 29, 2021]
| Article 4-14 (Eligibility for Subsidization of Employment Insurance Premiums) |
| 1. | Deleted; <Aug. 23, 2022> |
| 2. | Deleted; <Aug. 23, 2022> |
| 3. | Deleted. <Aug. 23, 2022> |
[This Article Newly Inserted on Jul. 26, 2016]
[Moved from Article 4-5 <Sep. 29, 2021>]
| Article 5 (Scope of Materials Necessary for Establishment and Operation of Commercial Districts Information System) |
“Materials or information prescribed by Presidential Decree” in Article 13 (2) 2 of the Act means any of the following materials or information: | 1. | Materials or information regarding a place of business of authorization or permission by region; |
| 2. | Materials or information regarding population, such as population and the number of households by region; |
| 3. | Materials or information regarding transportation, such as the number of users of subway and the number of registered cars by region; |
| 4. | Materials or information regarding real estate, such as status of lease of commercial buildings by region; |
| 5. | Materials or information regarding businesses by region; |
| 6. | Materials or information regarding the amount of sales in commercial districts by region. |
| Article 5-2 (Materials or Information Necessary for Establishment and Operation of Open Big Data Platform for Micro Enterprises) |
“Materials or information prescribed by Presidential Decree” in Article 15-5 (2) 4 of the Act means any of the following materials or information: | 1. | Materials or information regarding the places of business authorized or permitted by region; |
| 2. | Materials or information regarding demographics, such as the number of populations and households by region; |
| 3. | Materials or information regarding transportation, such as the number of public transportation users and registered cars by region; |
| 4. | Materials or information regarding real estate, such as the current status of the lease and vacancy rate of commercial buildings by region; |
| 5. | Materials or information regarding business entities by region; |
| 6. | Materials or information regarding the amount of sales in commercial districts by region; |
| 7. | Materials or information regarding government-supported projects for micro enterprises; |
[This Article Newly Inserted on Jun. 27, 2023]
| Article 5-3 (Securing Data Safety) |
A person who has the right to use and profit from materials or information specified in the subparagraphs of Article 15-5 (2) of the Act (hereinafter referred to as "data, etc.") shall take the following measures to secure the reliability of data (referring to data or information processed by optical or electronic means on the open big data platform for micro enterprises under the provisions, with the exception of the subparagraphs, of Article 15-5 (1) of the Act (hereinafter referred to as “platform”); hereinafter the same shall apply) and to prevent the loss, theft, leakage, forgery, falsification, or damage of relevant data: | 1. | Formulating and implementing an internal management plan for the safe processing of data; |
| 2. | Controlling access to data and restricting the access right to data; |
| 3. | Applying encryption technology to store and transmit data safely and taking other equivalent measures; |
| 4. | Keeping login records to cope with data infringement incidents and taking measures to prevent the forgery and falsification of data; |
| 5. | Installing and upgrading security programs to protect data; |
| 6. | Taking physical measures to keep data safely, such as preparing storage facilities or installing locking devices. |
[This Article Newly Inserted on Jun. 27, 2023]
| Article 5-4 (Prevention of Hazards to Products and Services Utilizing Data) |
A person who has the right to use or profit from data, etc. shall check and inspect whether any hazards have occurred to the relevant products or services, taking into account the matters determined and publicly notified by the Minister of SMEs and Startups, such as the range of data usability, in order to prevent the occurrence of hazards to products or services utilizing data pursuant to Article 15-6 (4) of the Act, and shall prepare countermeasures. [This Article Newly Inserted on Jun. 27, 2023]
| Article 5-5 (Application for Support to Facilitate Utilization of Platforms) |
A person who intends to receive support under Article 15-7 (1) of the Act shall submit to the Minister of SMEs and Startups an application for the utilization of the platforms in the form prescribed by Ordinance of the Ministry of SMEs and Startups, along with the following materials: | 1. | Plans to secure the safety of data to be shared on the platforms; |
| 2. | A new business development plan utilizing data relating to micro enterprises; |
| 3. | A plan for linking the platforms with management information services available to micro enterprises. |
[This Article Newly Inserted on Jun. 27, 2023]
| Article 6 (Establishment and Operation of Small Enterprise Support Centers) |
| (1) | The Chairperson of the Small Enterprise and Market Service prescribed in Article 17 (1) of the Act (hereinafter referred to as the “Small Enterprise and Market Service”) shall establish and operate a small enterprise support center by region under Article 17 (4) of the Act (hereinafter referred to as a "support center") based upon the management stability and growth of micro enterprises and the demand for support services to revitalization project of traditional markets, shopping districts, and commercial districts revitalization zones (hereinafter referred to as “markets, etc.”) under subparagraphs 1, 2, and 4 of Article 2 of the Special Act on the Development of Traditional Markets and Shopping Districts by region. |
| (2) | Each support center shall perform the following duties: |
| 1. | Providing information, education, and consulting for establishing micro enterprises or for improving management of micro enterprises; |
| 2. | Investigating and analyzing regional trading areas; |
| 3. | Investigating actual status of micro enterprises and collecting information related thereto; |
| 4. | Providing information, education, and consulting for modernizing facilities and management of markets, etc.; |
| 6. | Other support services for the management stability and growth of micro enterprises and the revitalization of markets, etc. that the Chairperson of the Small Enterprise and Market Service deems necessary. |
| (3) | Other necessary matters for the establishment and operation of support centers prescribed in paragraphs (1) and (2) shall be determined by the Chairperson of the Small Enterprise and Market Service, in consultation with the Administrator of the Small and Medium Business Administration. <Amended on Jul. 26, 2017> |
| Article 7 (Guidance and Supervision concerning Affairs of the Small Enterprise and Market Service) |
The Minister of SMEs and Startups may have the Small Enterprise and Market Service report matters necessary for services, accounting and property or have public officials belong to the Small Enterprise and Market Service inspect ledgers and documents of the Small Enterprise and Market Service or other articles pursuant to Article 18 (1) of the Act. <Amended on Jul. 26, 2017>
| Article 8 (Payment of Subsidies from Fund) |
| Article 9 (Grounds for Recovery of Fund) |
“Where any person uses the Fund for any purpose other than the relevant payment, and other similar cases prescribed by Presidential Decree” in Article 21 (3) of the Act means any of the following cases: | 1. | Where the Market Promotion Fund for Small Businesses (hereinafter referred to as the “Fund”) prescribed in Article 19 of the Act was used for any purpose other than the relevant payment; |
| 2. | Where the Fund was supported by a false application or other fraudulent methods. |
| Article 10 (Entrustment of Affairs concerning Operation and Management of Fund) |
| (1) | The Minister of SMEs and Startups shall entrust the Small Enterprise and Market Service with the following affairs, among affairs concerning operation and management of the Fund pursuant to Article 22 (2) of the Act: <Amended on Jul. 26, 2017> |
| 1. | Preparation of a draft plan for fund operation and a written report on the settlement of accounts of the Fund; |
| 2. | Accounting affairs concerning operation and management of the Fund; |
| 3. | Operation of surplus money of the Fund; |
| 4. | Other such affairs concerning operation and management of the Fund as determined and publicly announced by the Minister of SMEs and Startups. |
| (2) | The Small Enterprise and Market Service shall report to the Minister of SMEs and Startups on detailed results of monthly operation of the Fund, including current status of operation of the Fund entrusted pursuant to paragraph (1), selection of persons entitled to support from the Fund and details of support by the 20th of the month immediately after the last month of every quarter. <Amended on Jul. 26, 2017> |
| (3) | The Small Enterprise and Market Service shall submit a written report on the settlement of accounts of the Fund of every fiscal year, attaching the following documents, to the Minister of SMEs and Startups by no later than February 20 of the immediately following fiscal year: <Amended on Jul. 26, 2017; Jan. 5, 2021> |
| 1. | Documents on the outline, status, and analysis of the Fund; |
| 2. | Statement of financial position; |
| 3. | Profit and loss statement; |
| 4. | Statement of revenues and expenditures; |
| 5. | Other documents necessary for clarifying the contents of a written report on the settlement of accounts. |
| (4) | The expenses paid by the Small Enterprise and Market Service for performing the affairs entrusted pursuant to paragraph (1) shall be borne by the Fund. |
| Article 10-2 (Criteria and Procedures for Extension of Repayment Period) |
| (1) | The Small Enterprise and Market Service may, pursuant to Article 22-2 (1) of the Act, extend the repayment period of a loan granted to a person under Article 22 (3) of the Act (hereafter in this Article referred to as "debtor") or may defer repayment in any of the following cases: |
| 1. | Where a debtor is deemed to have no remaining property after his or her property is appropriated for expenses incurred in recovering his or her loan; |
| 2. | Where it is deemed that extending the repayment period of a loan or deferring repayment could improve the ability of a debtor to repay the loan in the future; |
| 3. | Other cases deemed necessary by the Chairperson of the Small Enterprise and Market Service to recover a loan. |
| (2) | A debtor who intends to be granted an extension of the repayment period of a loan or the deferment of repayment under paragraph (1) shall submit, to the Chairperson of the Small Enterprise and Market Service, an application for such extension or deferment prescribed by Ordinance of the Ministry of SMEs and Startups, along with the documents prescribed by Ordinance of the Ministry of SMEs and Startups, to verify the matters specified in the subparagraphs of paragraph (1). |
| (3) | Upon receipt of an application under paragraph (2), the Chairperson of the Small Enterprise and Market Service shall determine whether to extend the repayment period or to defer repayment following resolution by the board of directors, and shall inform the relevant applicant of the results of such determination. |
| (4) | The Chairperson of the Small Enterprise and Market Service may conduct an on-site inspection to verify the status of the management, property, etc. of a debtor to the minimum necessary extent when determining whether to extend the repayment period, etc. under paragraph (3). |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for procedures for extending the repayment period of loans of debtors and for deferring repayment shall be determined and publicly notified by the Minister of SMEs and Startups. |
[This Article Newly Inserted on Feb. 18, 2020]
| Article 10-3 (Eligibility for Purchase of Non-Performing Loans) |
| 3. | A company invested by the Korea Asset Management Corporation to perform services specified in Article 26 (1) 1 and 2 of the Act on the Establishment of Korea Asset Management Corporation. |
[This Article Wholly Amended on Oct. 4, 2022]
| Article 11 (Organization and Operation of the Fund Operation Committee) |
| (1) | The Fund Operation Committee established under Article 23 (1) of the Act (hereinafter referred to as “Fund Operation Committee”) shall be comprised of 10 members, including one chairperson. |
| (2) | The Vice-Minister of SMEs and Startups shall be the chairperson of the Fund Operation Committee (hereinafter referred to as “chairperson”), and the members shall be commissioned or appointed by the Minister of SMEs and Startups, from among the following persons, in consideration of their gender: <Amended on Jul. 26, 2017> |
| 1. | Public officials in charge of affairs of the Fund, who are members of the Senior Executive Service under the jurisdiction of the Ministry of SMEs and Startups; |
| 2. | Persons deemed to have abundant expertise and experience in the field of micro enterprises, markets, etc.; |
| 3. | Other persons deemed to have abundant expertise and experience in the operation and management of the Fund. |
| (3) | The term of office of the members provided in paragraph (2) 2 and 3 shall be two years. |
| (4) | The chairperson shall represent the Fund Operation Committee and have general supervision and control of its affairs. |
| (5) | The chairperson shall convene the meeting of Fund Operation Committee and become the chairperson thereof. |
| (6) | Where the chairperson is unable to perform his or her duties due to any unavoidable cause, the member appointed by the chairperson in advance shall perform his or her duties on his or her behalf. |
| (7) | A majority of the members of the Fund Operation Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present. <Amended on Sep. 29, 2021> |
| (8) | The Fund Operation Committee shall have one assistant administrator who handles the affairs of the Fund Operation Committee, and the assistant administrator shall be appointed by the Minister of SMEs and Startups among the public officials belonging to the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017> |
| (9) | Allowances and travel expenses may be paid to members, who attend a meeting of the Fund Operation Committee, within budgetary limits: Provided, That this shall not apply where a member, who is a public official, attends a meeting in direct connection with his or her affairs. |
| (10) | Matters necessary for the operation of the Fund Operation Committee, other than those prescribed by this Decree, shall be determined by the chairperson of the Committee through a resolution by the Fund Operation Committee. |
| Article 11-2 (Dismissal of Members of Deliberative Committee) |
Where the members of the Fund Operation Committee pursuant to Article 11 (2) 2 or 3 fall under any of the following, the Minister of SMEs and Startups may dismiss the relevant member: <Amended on Jul. 26, 2017> | 1. | If a member is unable to perform his or her duties due to any mental or physical disorder; |
| 2. | If any wrongdoing is found relating to a member’s duties; |
| 3. | If it is deemed inappropriate for a member to remain in his or her position due to his or her neglect of duty, injury of dignity, etc.; |
| 4. | If a member declares he or she cannot perform his or her duties. |
[This Article Newly Inserted on Dec. 31, 2015]
| Article 12 (Delegation of Authority and Entrustment of Affairs) |
| (1) | The Minister of SMEs and Startups shall delegate the following authority to the head of a regional SMEs and Startups office under Article 28 (1) of the Act: <Newly Inserted on Sep. 29, 2021> |
| 1. | Verifying and examining information related to matters regarding persons eligible for compensation for loss, whether compensation for loss is paid, and the amount thereof under Article 12-2 (1) through (3) of the Act and the former part of paragraph (4) of that Article; |
| 2. | Verifying and examining information related to matters regarding the reduction or non-payment of compensation for loss under the latter part of Article 12-2 (4) of the Act and the recovery of compensation for loss under paragraph (5) of that Article; |
| 3. | Verifying and examining information related to matters regarding a determination as to whether to pay, increase, decrease, or recover compensation for loss related to filing of an objection filed under Article 12-3 of the Act. |
| (2) | The Minister of SMEs and Startups shall delegate the following authority to a Mayor/Do Governor under Article 28 (1) of the Act: <Newly Inserted on Sep. 29, 2021> |
| (a) | Receiving an application for compensation for loss; |
| (b) | Examining the formal requirements for documents submitted for application; |
| (a) | Receiving an objection to compensation for loss; |
| (b) | Examining the formal requirements for documents submitted for an objection; |
| (3) | The Minister of SMEs and Startups shall entrust the following affairs to the Chairperson of the Small Enterprise and Market Service pursuant to Article 28 (2) 1 of the Act: <Amended on Jan. 22, 2016; Jul. 26, 2016; Jul. 26, 2017; Jul. 1, 2019; Sep. 29, 2021> |
| 1. | Implementing projects to support the start-up of micro enterprises pursuant to Article 8 of the Act; |
| 2. | Implementing projects to support the management stability and growth of micro enterprises pursuant to Article 9 of the Act; |
| 3. | Implementing projects to support the structural sophistication of micro enterprises pursuant to Article 10 of the Act; |
| 4. | Implementing projects to support organizing of and collaboration among micro enterprises pursuant to Article 11 (1) of the Act; |
| 6. | Establishing and operating a consultation center to protect and support micro enterprises sustaining losses on any unfair transaction pursuant to Article 15 of the Act; |
| 7. | Deleted. <Feb. 2, 2021> |
| (4) | The Minister of SMEs and Startups may, pursuant to Article 28 (2) 6 of the Act, entrust affairs related to the calculation of compensation for loss for deliberation by the Deliberative Committee on Compensation under Article 12-4 of the Act to the heads of the following institutions in charge of protecting and supporting micro enterprises: <Newly Inserted on Sep. 29, 2021> |
| 1. | A non-profit corporation established under the Civil Act or other statutes to conduct affairs related to compensation for loss; |
| 2. | Any other institution publicly notified by the Minister of SMEs and Startups as deemed to have expertise in compensation for loss. |
| (5) | Where the Minister of SMEs and Startups entrusts affairs under paragraph (4), he or she shall publicly notify the head of an institution entrusted with such affairs and the entrusted affairs. <Newly Inserted on Sep. 29, 2021> |
[Title Amended on Sep. 29, 2021]
| Article 13 (Handling of Personally Identifiable Information) |
Where the Minister of SMEs and Startups (including a person to whom the authority of the Minister of SMEs and Startups is entrusted pursuant to Article 12) deems it inevitable in performing the following affairs, he or she may handle data containing a resident registration number or a foreigner registration number prescribed in subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended on Jul. 26, 2017> | 1. | Affairs regarding the projects to support the start-up of micro enterprises pursuant to Article 8 of the Act; |
| 2. | Affairs regarding the projects to support the management stability and growth of micro enterprises pursuant to Article 9 of the Act; |
| 3. | Affairs regarding the projects to support the structural sophistication of micro enterprises pursuant to Article 10 of the Act; |
| 4. | Affairs regarding the projects to support organizing of and collaboration among micro enterprises pursuant to Article 11 (1) of the Act; |
| 5. | Affairs regarding the projects to support micro enterprises which have closed a business pursuant to Article 12 of the Act; |
| 6. | Affairs regarding the operation of a consultation center to protect and support micro enterprises suffering from losses caused by any unfair transaction pursuant to Article 15 of the Act. |
| Article 14 (Criteria for Imposition of Administrative Fines) |
ADDENDA <Presidential Decree No. 26248, May 26, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 28, 2015.
Article 2 (Applicability concerning Redemption of Fund)
The amended provision of subparagraph 2 of Article 9 shall apply, beginning with the fund spent after this Decree enters into force. Article 3 (Transitional Measures concerning Micro Enterprise Development Center)
Article 4 (Transitional Measures concerning Fund Operation Committee)
Article 5 (Transitional Measures concerning Administrative Fines)
No measures of imposing administrative fines against violations before this Decree enters into force shall be included in the calculation of the number of violations under the amended provision of the attached Table.
Article 6 Omitted.
Article 7 (Relationship to other Statutes)
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 26926, Jan. 22, 2016>
This Decree shall enter into force on January 29, 2016.
ADDENDUM <Presidential Decree No. 27387, Jul. 26, 2016>
This Decree shall enter into force on July 28, 2016.
ADDENDA <Presidential Decree No. 27506, Sep. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 23, 2016.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 27859, Feb. 13, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 28213, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Presidential Decree No. 29932, Jul. 1, 2019>
This Decree shall enter into force on July 1, 2019.
ADDENDUM <Presidential Decree No. 30435, Feb. 18, 2020>
This Decree shall enter into force on February 21, 2020.
ADDENDUM <Presidential Decree No. 31380, Jan. 5, 2021>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 31429, Feb. 2, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 5, 2021.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 32017, Sep. 29, 2021>
This Decree shall enter into force on October 8, 2021.
ADDENDA <Presidential Decree No. 32391, Feb. 7, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Compensation for Loss)
ADDENDUM <Presidential Decree No. 32882, Aug. 23, 2022>
This Decree shall enter into force three months after the date of its promulgation.
ADDENDUM <Presidential Decree No. 32946, Oct. 4, 2022>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 33603, Jun. 27, 2023>
This Decree shall enter into force on July 4, 2023.