ENFORCEMENT DECREE OF THE ACT ON THE FACILITATION OF ENTREPRENEURIAL ACTIVITIES OF PERSONS WITH DISABILITIES
Presidential Decree No. 19099, Oct. 26, 2005
Amended by Presidential Decree No. 19513, jun. 12, 2006
Presidential Decree No. 20728, Feb. 29, 2008
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 22269, Jul. 12, 2010
Presidential Decree No. 24432, Mar. 23, 2013
Presidential Decree No. 24638, jun. 28, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 26844, Dec. 31, 2015
Presidential Decree No. 27388, Jul. 26, 2016
Presidential Decree No. 28103, jun. 13, 2017
Presidential Decree No. 28213, Jul. 26, 2017
Presidential Decree No. 28337, Sep. 19, 2017
Presidential Decree No. 29450, Dec. 31, 2018
Presidential Decree No. 30509, Mar. 3, 2020
Presidential Decree No. 30789, jun. 16, 2020
Presidential Decree No. 32915, Sep. 20, 2022
Presidential Decree No. 33797, Oct. 10, 2023
| Article 2 (Definition of Enterprise Owned or Operated by Person with Disability) |
| 1. | A company prescribed by the Commercial Act, in which a person with a disability is registered as an executive officer having authority to represent the company (hereinafter referred to as “representative of the company”): Provided, That where such company has at least two representatives (hereinafter referred to as “joint representatives”), it is limited to a company for which the number of stocks (including investment shares, but excluding stocks without voting rights prescribed by Article 370 of the Commercial Act; hereinafter the same shall apply) owned by joint representatives comprised of persons with disabilities, exceeds the number of stocks owned by joint representatives comprised of persons without disabilities; |
| (a) | The number of members who are persons with disabilities shall be a majority of the total number of members; |
| (b) | The aggregate number of equity shares held by members who are persons with disabilities shall be a majority of the total number of equity shares; |
| (c) | The president of a cooperative shall be a member who is a person with a disability. |
| (2) | “Employment ratio of persons with disabilities” in subparagraph 2 (b) of Article 2 of the Act means 30/100. |
| (3) | Deleted. <Sep. 19, 2017> |
| Article 2-2 (Scope of Institutions or Organizations Requested to Correct Discriminatory Practices) |
"Institution or organization related to small and medium enterprises prescribed by Presidential Decree" in Article 4 (1) of the Act means an institution or organization determined and publicly notified by the Minister of SMEs and Startups which is funded or subsidized by the State or a local government to perform a project for supporting small and medium enterprises under statutes or regulations related to small and medium enterprises. [This Article Newly Inserted on Oct. 10, 2023]
| Article 3 (Basic Plans for Facilitation of Activities of Enterprises Owned or Operated by Persons with Disabilities) |
| (1) | To formulate a basic plan to encourage activities of enterprises owned or operated by persons with disabilities under Article 5 (1) of the Act (hereinafter referred to as "basic plan"), the Minister of SMEs and Startups shall prepare guidelines on formulating a draft basic plan and notify the heads of the relevant administrative agencies of such guidelines. |
| (2) | The heads of the relevant administrative agencies shall prepare draft basic plans for the fields under their jurisdiction in accordance with the guidelines on preparing a draft basic plan prescribed in paragraph (1) and shall submit such draft basic plans to the Minister of SMEs and Startups. |
| (3) | The Minister of SMEs and Startups shall compile the draft basic plans for the fields under his or her jurisdiction submitted pursuant to paragraph (2), finalize a basic plan following deliberation by the Committee for Facilitation of Entrepreneurial Activities of Persons with Disabilities established under Article 6 (1) of the Act (hereinafter referred to as "Committee"), and notify the heads of the relevant administrative agencies of such basic plan. |
| (4) | The heads of the relevant administrative agencies shall prepare annual draft action plans for the fields under their jurisdiction in accordance with the basic plan and shall submit such draft action plans to the Minister of SMEs and Startups no later than January 31 of each year. |
| (5) | The Minister of SMEs and Startups shall compile the annual draft action plans submitted by each administrative agency pursuant to paragraph (4), finalize an action plan to facilitate activities of enterprises owned or operated by persons with disabilities under Article 5 (3) of the Act (hereinafter referred to as "action plan") following deliberation by the Committee, and notify the heads of the relevant administrative agencies of such action plan no later than March 31 of each year. |
[This Article Wholly Amended on Oct. 10, 2023]
| Article 4 (Composition of Committee) |
| (1) | The Committee shall be composed of up to 20 members, including one chairperson. <Amended on Oct. 10, 2023> |
| (2) | The Vice Minister of SMEs and Startups shall be the chairperson of the Committee. <Amended on Jul. 26, 2017> |
| (3) | The members of the committee shall be as follows: <Amended on Jun. 12, 2006; Feb. 29, 2008; Mar. 15, 2010; Jul. 12, 2010; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Jun. 16, 2020> |
| 1. | One person respectively designated by the head of the relevant agency from among public officials in Grade III who work for the Ministry?of Strategy and Finance; the Ministry of Justice; the Ministry of the Interior and Safety; the Ministry of Trade, Industry and Energy; the Ministry of Health and Welfare; the Ministry of Employment and Labor; the Financial Services Commission; the National Tax Service; and the Public Procurement Service, or from among members in general service of the Senior Executive Service; and the Chairperson of the Korean Disabled Entrepreneurs Association prescribed by Article 11 of the Act; |
| 2. | Persons commissioned by the Minister of SMEs and Startups from among those who have extensive knowledge of and experience in small and medium enterprises and policies for persons with disabilities. |
| (4) | Members commissioned pursuant to the provisions of paragraph (3) 2 shall serve a term of two years. |
[Title Amended on Oct. 10, 2023]
| Article 4-2 (Cancellation of Designation, and Revocation of Commission, of Members) |
| (1) | A person who has designated a member of the Committee pursuant to Article 4 (3) 1 may cancel such designation, if the relevant member falls under any of the following cases: |
| 1. | Where he or she becomes unable to perform his or her duties due to mental or physical incapacity; |
| 2. | Where he or she engages in any corruption or illegality in the course of performing his or her duties; |
| 3. | Where he or she is deemed inappropriate to remain as a member due to neglect of duties, loss to dignity, or other grounds; |
| 4. | Where he or she voluntarily declares that it is difficult to perform duties as a member. |
| (2) | Where a member of the Committee prescribed by Article 4 (3) 2, falls under any of the subparagraphs of paragraph (1), the Minister of SMEs and Startups may revoke the commission of the relevant member. <Amended on Jul. 26, 2017> |
[This Article Newly Inserted on Dec. 31, 2015]
| Article 5 Deleted. <Oct. 10, 2023> |
| Article 6 (Operation of the Committee) |
| (1) | The chairperson of the Committee shall convene and preside over Committee meetings. |
| (2) | The Committee shall pass a resolution with a majority of incumbent members of the Committee present and by affirmative votes of a majority of those of the Committee present. |
| (3) | Allowances and travel expenses may be paid to members of the Committee within budgetary limits: Provided, That this shall not apply where a member of the Committee attends as a public official in a meeting of the Committee, in direct relation to duties assigned for the relevant public official. |
| (4) | One administrative secretary shall be employed to deal with administrative affairs of the Committee, but shall be appointed by the chairperson from among public officials belonging to the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017> |
| (5) | Other necessary matters concerning the operation of the Committee shall be determined by the chairperson following a resolution by the Committee. |
| Article 6-2 (Fact-Finding Surveys and Preparation of Statistics) |
| (1) | A fact-finding survey on the current status of business start-up by persons with disabilities and activities of enterprises owned or operated by persons with disabilities under Article 7 (1) of the Act (hereinafter referred to as "fact-finding survey") shall include the following matters: |
| 1. | The current status of enterprises owned or operated by persons with disabilities by type of business and region and of the gender of the representatives of such enterprises; |
| 2. | The current status of funds, employed personnel, and business management; |
| 3. | Obstacles to business start-up activities by persons with disabilities and to activities of enterprises owned or operated by persons with disabilities; |
| 4. | The current status of systems for supporting business start-up by persons with disabilities and of the utilization of systems for supporting enterprises owned or operated by persons with disabilities; |
| 5. | Other matters deemed necessary by the Minister of SMEs and Startups to understand the current status of business start-up by persons with disabilities and activities of enterprises owned or operated by persons with disabilities. |
| (2) | A fact-finding survey shall be conducted by means of either on-site survey or paper-based survey and may be conducted using information and communications networks such as electronic mail, if necessary. |
| (3) | Where the Minister of SMEs and Startups intends to conduct a fact-finding survey, he or she shall formulate a plan for such survey that includes the period, purpose, and details thereof and other matters and shall notify a person subject to the survey of the plan in advance. |
| (4) | Where the Minister of SMEs and Startups prepares statistics regarding business start-up by persons with disabilities and their entrepreneurial activities pursuant to Article 7 (3) of the Act, he or she may utilize statistics or other data surveyed or prepared pursuant to other statutes or regulations therefor. |
| (5) | Where the Minister of SMEs and Startups conducts a fact-finding survey or prepares statistics pursuant to Article 7 (3) of the Act, he or she shall post the results thereof on the website of the Ministry of SMEs and Startups. |
[This Article Newly Inserted on Oct. 10, 2023]
| Article 6-3 (Establishment and Operation of Specialized Workplace for Persons with Disabilities) |
| (1) | The Minister of SMEs and Startups and the head of a local government may establish and operate a specialized workplace for persons with disabilities or may provide subsidies to a person who establishes and operates such workplace to help the person cover the expenses incurred therein in order to perform the following business affairs pursuant to Article 8-2 (2) of the Act; in such cases, matters regarding the establishment and operation of a specialized workplace for persons with disabilities and provision of subsidies by the Minister of SMEs and Startups shall be determined and publicly notified by the Minister of SMEs and Startups, and matters regarding the same by a local government shall be prescribed by ordinance of the relevant local government: |
| 1. | Providing education, training, and counseling for business start-up by persons with developmental disabilities and their families; |
| 2. | Providing programs for supporting business start-up by persons with developmental disabilities and their families; |
| 3. | Providing funds for business start-up by persons with developmental disabilities and their families and helping them develop markets; |
| 4. | Other business affairs deemed necessary by the Minister of SMEs and Startups or the head of a local government to ensure self-reliance of persons with development disabilities and their families and to create jobs for them. |
| (2) | A specialized workplace for persons with disabilities under paragraph (1) shall be established in a place easily accessible by persons with developmental disabilities. |
[This Article Newly Inserted on Oct. 10, 2023]
| Article 7 (Public Notice of Financial Support Procedures) |
Where necessary for providing financial support to enterprises owned or operated by persons with disabilities pursuant to the provisions of Article 9 of the Act, the Minister of SMEs and Startups may determine and publicly notify the scope of and support procedures for, in advance, the enterprises owned or operated by persons with disabilities eligible for support. <Amended on Jul. 26, 2017>
| Article 7-2 (Preferential Purchase Ratio of Public Institutions) |
“Ratio determined by Presidential Decree” referred to in Article 9-2 (3) of the Act, means 1/100 of the total amount of products to be purchased by the relevant institution in the relevant year: Provided, That the head of a public institution which has difficulty attaining the purchase ratio of at least 1/100 due to the characteristics of the public institution may separately determine the purchase ratio in consultation with the Minister of SMEs and Startups. <Amended on Jul. 26, 2017> [This Article Newly Inserted on Jul. 26, 2016]
| Article 8 (Incorporation, etc. of Korean Disabled Entrepreneurs Association) |
| (1) | When it is intended to incorporate the Korean Disabled Entrepreneurs Association (hereinafter referred to as the "Association") pursuant to the provisions of Article 11 of the Act, an inaugural general meeting shall be held by at least five promoters who are entrepreneurs with disabilities, for the Association, with the consent of at least 100 entrepreneurs with disabilities. |
| (2) | The representative of the promoters referred to in the provisions of paragraph (1), shall file an application for permission for incorporation with the Minister of SMEs and Startups, along with the following documents: <Amended on Jul. 26, 2017> |
| 1. | A written application for permission for incorporation; |
| 2. | Articles of association; |
| 3. | Lists of promoters and consenters; |
| 4. | A written business plan and a written budget for income and expenses; |
| 5. | Certificates issued by registration offices and financial institutions, etc., regarding primary property, including an inventory of property, real estate, deposits, and securities; |
| 6. | Minutes of the inaugural general meeting. |
| (3) | The Minister of SMEs and Startups shall publicly announce the incorporation of the Association when he or she permits its incorporation. <Amended on Jul. 26, 2017> |
| (4) | Necessary administrative affairs during the period until the Association is incorporated and executive officers are appointed, shall be conducted by the promoters. |
| Article 9 (Articles of Association for the Association) |
The articles of association for the Association shall state the following:
| 3. | Location of the principal office; |
| 6. | Matters concerning executive officers; |
| 7. | Matters concerning the composition and operation of general meetings and the board of directors; |
| 8. | Matters concerning assets and accounting; |
| 9. | Matters concerning amendment of the articles of association; |
| Article 10 (Incorporation of Disabled Enterprise Business Center) |
| (1) | The Disabled Enterprise Business Center prescribed by Article 13 of the Act (hereinafter referred to as the “Business Center”) may be incorporated as an incorporated foundation under the Civil Act. |
| (2) | The Business Center shall perform the following business affairs: <Amended on Dec. 9, 2014; Jul. 26, 2017> |
| 1. | Guaranteeing and recommending enterprises owned or operated by persons with disabilities; |
| 2. | Providing information and data to enterprises owned or operated by persons with disabilities; |
| 3. | Supporting start-up businesses by persons with disabilities; |
| 4. | Providing education, training, and workshops to entrepreneurs with disabilities; |
| 5. | Facilitating managerial and marketing activities by enterprises owned or operated by persons with disabilities; |
| 6. | Operating a consulting center to help resolve difficulties faced by enterprises owned or operated by persons with disabilities; |
| 7. | Conducting research and investigation for nurturing enterprises owned or operated by persons with disabilities; |
| 8. | Projects commissioned by the Minister of SMEs and Startups, the head of a local government, or the Chairperson of the Association, for the purpose of nurturing enterprises owned or operated by persons with disabilities; |
| 9. | Other projects provided for by the articles of association for the Business Center, which support enterprises owned or operated by persons with disabilities. |
| Article 11 (Operation of Business Center) |
| (1) | The representative of the Business Center shall be appointed by the head of the Association. |
| (2) | Necessary matters concerning the organization and operation of the Business Center shall be provided for by the articles of association or operational regulations of the Business Center. |
| Article 11-2 (Verification of Enterprise Owned or Operated by Persons with Disabilities) |
| 2. | In the case of an individual business entity: |
| (a) | A partnership agreement (only applicable to a joint business entity); |
| 3. | In the case of a cooperative: |
| (2) | The Minister of SMEs and Startups, in receipt of an application under paragraph (1), shall verify the following through the joint use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That if the applicant refuses to agree to the verification of the matters under subparagraphs 2 through 4, the Minister of SMEs and Startups shall have him or her attach the copies thereof: |
| 1. | A corporation registration certificate (only applicable to a corporation); |
| 2. | A business registration certificate; |
| 3. | A certificate of the value-added tax base; |
| 4. | A certificate of a person with a disability or a certificate verifying a person of distinguished services to the State. |
| (3) | The Minister of SMEs and Startups, upon receipt of an application under paragraph (1), may conduct paper-based and on-site inspections to verify whether any enterprise is eligible as an enterprise owned or operated by a person with a disability, and may, if necessary, demand that such enterprise submit the relevant materials. |
| (4) | The Minister of SMEs and Startups, upon receipt of an application under paragraph (1), shall examine whether such application meets the requirements specified in each item of subparagraph 2 of Article 2 of the Act, and issue a certificate of verification under attached Form 2, if the relevant enterprise is verified as an enterprise owned or operated by a person with a disability. |
| (5) | Where an enterprise owned or operated by a person with a disability which is verified pursuant to paragraph (4) intends to make changes to any of the verified content, it shall file with the Minister of SMEs and Startups an application for verification or verification of changes of an enterprise owned or operated by a person with a disability, which is prescribed in attached Form 1, together with the documents proving such changes, through a purchase information network. |
| (6) | Except as provided in paragraphs (1) through (5), those necessary for verifying enterprises owned or operated by a person with a disability shall be determined and publicly notified by the Minister of SMEs and Startups. |
[This Article Newly Inserted on Sep. 19, 2017]
| Article 11-3 (Validity of Verification of Enterprises Owned or Operated by Persons with Disability) |
| (1) | Verification of an enterprise owned or operated by a person with a disability under the latter part of Article 18-2 (2) of the Act shall be valid for three years from the date of issuance of a certificate verifying an enterprise owned or operated by a person with a disability: Provided, That where the time limit for re-decision on the degree of disability or wound grade of the representative with a disability is within three years from such date of issuance, the validity thereof shall be from such date of issuance to the time limit for re-decision. <Amended on Dec. 31, 2018; Jun. 16, 2020> |
| (2) | A person who intends to continue to receive support under the Act after the expiry of the validity under paragraph (1) may file with the Minister of SMEs and Startups an application for re-verification of an enterprise owned or operated by a person with a disability. In such cases, Article 11-2 shall apply mutatis mutandis to procedures, methods, etc. for re-verification. |
| (3) | “Period prescribed by Presidential Decree” in Article 18-2 (3) of the Act means one year from the cancellation of the verification of an enterprise owned or operated by a person with a disability. |
[This Article Newly Inserted on Sep. 19, 2017]
| Article 11-4 (Entrustment of Business Affairs) |
| 2. | Receiving applications for verification of enterprises owned or operated by persons with disabilities under Article 18-2 (1) of the Act. |
[This Article Wholly Amended on Oct. 10, 2023]
| Article 12 (Subsidization of Expenses for Commission) |
The Minister of SMEs and Startups may subsidize necessary expenses for commission where projects are commissioned to an institution or organization related to enterprises owned or operated by persons with disabilities pursuant to the provisions of Article 19 of the Act. <Amended on Jul. 26, 2017>
| Article 12-2 Deleted. <Mar. 3, 2020> |
| Article 13 (Processing of Personally Identifiable Information) |
| 2. | Cancellation of verification of enterprises owned or operated by persons with disabilities under Article 18-3 of the Act; |
[This Article Newly Inserted on Jun. 16, 2020]
ADDENDUM <Presidential Decree No. 19099, Oct. 26, 2005>
This Decree shall enter into force on October 30, 2005.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 20728, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 3 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. <Proviso Omitted.>
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. <Proviso Omitted.>
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24432, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. <Proviso Omitted.>
Articles 2 through 17 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. <Proviso Omitted.>
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That, the amendments to the Presidential Decrees amended pursuant to Article 5 of Addenda, which were promulgated before this Decree enter into force, but the dates on which they enter into force have not yet arrived, shall respectively enter into force on the enforcement dates of the relevant Presidential Decrees. Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDUM <Presidential Decree No. 26844, Dec. 31, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 27388, Jul. 26, 2016>
This Decree shall enter into force on July 28, 2016.
ADDENDUM <Presidential Decree No. 28103, Jun. 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.
ADDENDA <Presidential Decree No. 28337, Sep. 19, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 22, 2017.
Article 2 (Transitional Measures concerning Application for Verification of Enterprise Owned or Operated by Person with Disability)
An application for verification of an enterprise owned or operated by a person with a disability, which has been filed pursuant to former Article 2 (3) before this Decree enters into force, shall be deemed to have been filed under the amended provisons of Article 11-2 (1).
ADDENDA <Presidential Decree No. 29450, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2019.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 30509, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 30789, Jun. 16, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Validity Period of Verification of Enterprises Owned or Operated by Persons with Disabilities)
The amended provisions of Article 11-3 (1) shall also apply where enterprises owned or operated by persons with disabilities have obtained verification of enterprises owned or operated by persons with disabilities before this Decree enters into force and the validity period of such verification has not expired.
ADDENDUM <Presidential Decree No. 32915, Sep. 20, 2022>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 33797, Oct. 10, 2023>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2023.
Article 2 (Special Cases concerning Deadline for Submitting Annual Action Plans)
The deadline for submitting draft action plans for the fields under the jurisdiction of the relevant administrative agencies for 2024 to formulate an action plan for 2024 shall be May 31, 2024, notwithstanding the amended provisions of Article 3 (4); and the deadline for notifying a finalized action plan for 2024 shall be July 31, 2024, notwithstanding the amended provisions of Article 3 (5).