Act On The Promotion Of Collaborative Cooperation Between Large Enterprises And Small-Medium Enterprises


Published: 2013-08-06

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Act is to sharpen the competitiveness of large enterprises and small-medium enterprises by consolidating win-win cooperation between them and to attain their shared growth by resolving the polarization between large enterprises and small-medium enterprises with the aim of laying the foundation for sustainable growth of the national economy.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 2 (Definitions)   print
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 11173, Jan. 17, 2012; Act No. 11690, Mar. 23, 2013>
1. The term "small-medium enterprises" means small and medium enterprises provided for in Article 2 of the Framework Act on Small and Medium Enterprises;
2. The term "large enterprises" means enterprises that are not small-medium enterprises;
3. The term "win-win cooperation" means joint activities carried out between large enterprises and small-medium enterprises, between small-medium enterprises, or between commission enterprises and commissioned enterprises in order to increase their mutual interests in sectors of technology, human resources, fund, purchase, marketing, etc.;
4. The term "transaction effected on consignment and commission" means a trade in which anyone who runs business of manufacture, construction work, processing, repair, sales or services commissions the manufacture, construction work, processing, repair, services or technology development (hereinafter referred to as "manufacture") of goods, parts, semi-finished goods and raw materials (hereinafter referred to as "goods, etc.") to any other small-medium enterprise and the commissioned small- and medium enterprise manufactures the goods, etc. in a specialized manner;
5. The term "commission enterprise" means anyone who commissions pursuant to subparagraph 4;
6. The term "commissioned enterprise" means anyone who is commissioned pursuant to subparagraph 4;
7. The term "organizations of small-medium enterprisers" means small-medium enterprise cooperatives provided for in Article 3 of the Small and Medium Enterprise Cooperatives Act and other organizations related to small-medium enterprises prescribed by Ordinance of the Ministry of Trade, Industry and Energy;
8. The term "payment replacing bills" means that a commission enterprise pays the price of delivered goods by means of an exclusive-use card for business purchase, loan against security of credit sales claims and purchase loan system under Article 7-2 (3) 5 through 7 of the Restriction of Special Taxation Act and other means of payment used as a substitute for bills, which are prescribed by Presidential Decree;
9. The term "technical data" means the method of manufacturing or producing goods, etc., and other data useful for business activities and have independent economic value, which are prescribed by Presidential Decree;
10. The term "shared growth index" means a quantitative indicator developed by evaluating the degree of shared growth between large enterprises and small-medium enterprises in order to promote their shared growth;
11. The term "business types and items suitable for small-medium enterprises (hereinafter referred to as "suitable type of business") means sectors (including service business) in which it is appropriate to carry on business in the form of small-medium enterprises so as to induce reasonable division of roles between large enterprises and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 3 (Basic Direction of Policies to Facilitate Win-Win Cooperation between Large Enterprises and Small-Medium Enterprises)   print
The Government shall develop and implement policies to facilitate win-win cooperation between large enterprises and small-medium enterprises according to the basic direction set in the following subparagraphs:
1. Guaranteeing the autonomy in win-win cooperation between large enterprises and small-medium enterprises;
2. Facilitating win-win cooperation which contributes to the mutual interests of large enterprises and small-medium enterprises;
3. Enhancing the public sector's leading role in cooperation between public institutions and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
CHAPTER II DEVELOPMENT AND IMPLEMENTATION OF PLANS TO FACILITATE WIN-WIN COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL-MEDIUM ENTERPRISES
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 Article 4 (Development of Master Plans to Facilitate Win-Win Cooperation between Large Enterprises and Small-Medium Enterprises)   print
(1) The Minister of Trade, Industry and Energy shall develop a master plan to facilitate win-win cooperation between large enterprises and small-medium enterprises (hereinafter referred to as "master plan") after consulting thereabout with the heads of relevant central administration agencies every three years. <Amended by Act No. 9978, Jan. 27, 2010; Act No. 11690, Mar. 23, 2013>
(2) The following matters shall be included in the master plan: <Amended by Act No. 9978, Jan. 27, 2010>
1. The basic direction setting of policies for facilitating win-win cooperation between large enterprises and small-medium enterprises;
2. Annual objectives of win-win cooperation between large enterprises and small-medium enterprises;
3. Matters to facilitate the sharing of achievements, exchanges of technology and human resources between large enterprises and small-medium enterprises;
4. Matters concerning selection of and support for exemplary win-win cooperation enterprises;
5. Matters concerning narrowing salary gap between large enterprises and small-medium enterprises;
6. Matters concerning cooperation of public institutions with small-medium enterprises;
7. Other matters necessary to facilitate win-win cooperation between large enterprises and small-medium enterprises.
(3) Deleted. <by Act No. 9331, Jan. 7, 2009>
(4) When it is deemed necessary to develop the master plan, the Minister of Trade, Industry and Energy may request the heads of relevant central administration agencies, the institutions and organizations related to win-win cooperation between large enterprises and small-medium enterprises to submit necessary material and present their opinions, etc. In such cases, the heads of relevant central administration agencies, the institutions and organizations related to win-win cooperation between large enterprises and small-medium enterprises shall comply therewith unless extenuating circumstances exist. <Amended by Act No. 9978, Jan. 27, 2010; Act No. 11690, Mar. 23, 2013>
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 Article 5 (Development of Implementation Plans to Facilitate Win-Win Cooperation between Large Enterprises and Small-Medium Enterprises)   print
(1) The heads of relevant central administration agencies shall develop and implement a plan to facilitate win-win cooperation between large enterprises and small-medium enterprises (hereinafter referred to as "implementation plan") according to the master plan each year.
(2) The heads of relevant central administration agencies shall submit the performance records of the implementation plan in the preceding year and the implementation plan of the current year to the Minister of Trade, Industry and Energy each year, as prescribed by Presidential Decree, and the Minister of Trade, Industry and Energy shall evaluate the performance records based on the implementation plan each year. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The heads of relevant central administration agencies may provide support necessary to carry out the implementation plan.
(4) Necessary matters concerning the development and operation of the implementation plan, and evaluation of the performance records thereof shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Articles 6 and 7 Deleted. <by Act No. 9331, Jan. 7, 2009>   print
CHAPTER III PROMOTION OF POLICIES FOR FACILITATING WIN-WIN COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL-MEDIUM ENTERPRISES
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 Article 8 (Fair Distribution of Results of Win-Win Cooperation)   print
(1) The Government may develop and implement policies to distribute a contract model (hereinafter referred to as "win-win model") under which commission enterprises support commissioned enterprises to attain their common and agreed goals, including the cost-cutting, etc. and both commissioned and commission enterprises share the results. In such cases, the scope of commissioned enterprises shall include mid-sized enterprises referred to in Article 10-2 of the Industrial Development Act, notwithstanding subparagraph 6 of Article 2. <Amended by Act No. 12002, Aug. 6, 2013>
(2) The Minister of Trade, Industry and Energy may establish the promotion headquarters of distribution of the win-win model (hereinafter referred to as "promotion headquarters") in each of the corporations or organizations prescribed by Ordinance of the Ministry of Trade, Industry and Energy in order to support the distribution of the win-win model. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The promotion headquarters shall perform the work falling under each of the following subparagraphs:
1. Research and survey of the win-win model;
2. Finding out and distribution of exemplary cases in Korea and overseas;
3. Education and consulting for enterprises that adopt the win-win model;
4. Other matters necessary to distribute the win-win model.
(4) The Minister of Trade, Industry and Energy may provide the promotion headquarters with necessary support to carry out projects referred to in each subparagraph of paragraph (3). <Amended by Act No. 11690, Mar. 23, 2013>
(5) Where a public corporation or quasi-governmental agency provided for in Article 5 of the Act on the Management of Public Institutions deems it necessary to adopt the win-win model, it my place restrictions on qualifications for participation in a bid, designate bidding participants for competitive bidding or conclude any private contract pursuant to Article 39 of the same Act.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 9 (Facilitation of Technological Cooperation between Large Enterprises and Small-Medium Enterprises)   print
(1) The Government may subsidize funds necessary to develop technologies jointly by large enterprises and small-medium enterprises, or develop the technology which requires the cooperation of large enterprises, such as a purchase agreement of large enterprises, etc. in order to facilitate technological cooperation between large enterprises and small-medium enterprises.
(2) The Minister of Trade, Industry and Energy may provide necessary support, such as budget, etc. of technology transaction institutions provided for in Article 10 of the Technology Transfer and Commercialization Promotion Act in order to facilitate the transfer of the patent rights and utility model rights of large enterprises that remain unexercised to small-medium enterprises. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 10 (Expansion of Exchange of Human Resources between Large Enterprises and Small-Medium Enterprises)   print
(1) The Government shall develop and implement policies to facilitate the exchange of human resources between large enterprises and small-medium enterprises.
(2) The Government may subsidize part of labor costs if necessary for facilitating the exchange of human resources between large enterprises and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 11 (Capital Participation, etc. of Large Enterprises in Small-Medium Enterprises)   print
(1) If it is necessary to facilitate win-win cooperation between large enterprises and small-medium enterprises to the extent of not impeding the management autonomy of small-medium enterprises, the Government may develop and implement plans which permit large enterprises to make capital participation in small-medium enterprises.
(2) The Government may subsidize the issuance of asset-backed securities, etc. provided for in subparagraph 4 of Article 2 of the Asset-Backed Securitization Act in order to support the management of commissioned enterprises, including technological development, investment in facilities, etc.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 12 (Facilitation, etc. of Cooperation between Large Enterprises and Small-Medium Enterprises in Green Management)   print
(1) The Government may develop and implement plans to facilitate the exchange of technology and information and the cooperation therein between large enterprises and small-medium enterprises in order to spread the green management to small-medium enterprises pursuant to subparagraph 5 of Article 2 of the Act on the Promotion of the Conversion into Environment-Friendly Industrial Structure and to effectively address international environment regulations.
(2) The Government may develop plans to facilitate cooperation between large enterprises and small-medium enterprises in their informatization and their exchange of technology and information, etc. and provide necessary support therefor.
(3) The Government may provide necessary support to facilitate cooperation between large enterprises and small-medium enterprises in order to expand a market for goods manufactured by small-medium enterprises, including joint marketing thereof between large enterprises and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 13 (Special Cases Concerning Prohibition on Unfair Transactions)   print
Where any large enterprise supports small-medium enterprises (excluding any company that belongs to enterprise group, etc. subject to limitations on mutual investment provided for in Article 14 of the Monopoly Regulation and Fair Trade Act) according to rational standards made public in advance by the large enterprise as prescribed by Presidential Decree in order to facilitate win-win cooperation between a large enterprise and small-medium enterprises, such support shall be deemed not to constitute a unfair transaction provided for in Article 23 (1) 7 of the Monopoly Regulation and Fair Trade Act.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 14 (Survey of Actual State of Win-Win Cooperation between Large Enterprises and Small-Medium Enterprises)   print
(1) The Minister of Trade, Industry and Energy may survey the actual state of win-win cooperation between large enterprises and small-medium enterprises, where necessary. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Trade, Industry and Energy may request large enterprises and small-medium enterprises to submit material and present their opinions, etc, if necessary to conduct the survey of the actual state referred to in paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 15 (Calculation and Publication of Win-Win Cooperation Index between Large Enterprises and Small-Medium Enterprises)   print
(1) The Minister of Trade, Industry and Energy may calculate and publish the quantified win-win cooperation index (hereinafter referred to as "win-win cooperation index") between large enterprises and small-medium enterprises after assessing the level of win-win cooperation between large enterprises and small-medium enterprises in order to facilitate win-win cooperation between large enterprises and small-medium enterprises. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Necessary matters concerning plans to calculate win-win cooperation index, publication procedures therefor, etc. shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Notwithstanding paragraph (1), if deemed necessary by the Minister of Trade, Industry and Energy, the win-win cooperation index may be replaced by the shared growth index calculated and publicly announced by the National Commission for Corporate Partnership, pursuant to Article 20-2 (2) 1. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 16 (Selection of and Subsides for Exemplary Win-Win Cooperation Enterprises)   print
(1) The Minister of Trade, Industry and Energy may prepare supporting policies, such as selecting enterprises that show good example of win-win cooperation and those who contribute to distribution of win-win cooperation (hereinafter referred to as "exemplary win-win cooperation enterprises, etc.") and granting reward to them in order to facilitate win-win cooperation between large enterprises and small-medium enterprises. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Necessary matters concerning plans to select and procedures for selecting exemplary win-win cooperation enterprises, etc. and supporting policies of such enterprises shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 17 (Consultative Counsel of Commissioned Enterprises)   print
(1) Commissioned enterprises (including secondary commissioned enterprises where the commissioned enterprises recommission part of the manufacture of the commissioned goods, etc. in order to manufacture the commissioned goods, etc.) may establish a consultative counsel of commissioned enterprises by commission enterprise, region and type of business in order to maintain equal transaction relationship with commission enterprises and to facilitate the exchange of technical information, the joint development of technologies, and other matters.
(2) The State or local governments may provide necessary support to vitalize the consultative council of commissioned enterprises. <Amended by Act No. 12002, Aug. 6, 2013>
(3) The Large and Small Business Cooperation Foundation referred to in Article 20 shall investigate the composition and operation of the consultative council of commissioned enterprises each year, and submit the investigation results to the Administrator of the Small and Medium Business Administration. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 18 (Narrowing Salary Gap between Large Enterprises and Small-Medium Enterprises)   print
The Government may develop and implement necessary policies, such as actively supporting efforts to negotiate the salaries between labor and management for win-win cooperation in order to narrow salary gap between large enterprises and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 19 (Facilitation of Cooperation of Public Institutions with Small-Medium Enterprises)   print
(1) Institutions prescribed by Presidential Decree (hereafter referred to as "public institutions" in this Article) among the public institutions falling under Article 4 of the Act on the Management of Public Institutions shall develop a supporting plan for small-medium enterprises and prepare the performance records of such plan each year and submit them to the Minister of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Trade, Industry and Energy may evaluate supporting plans for small-medium enterprises and the performance records of such plans, which are submitted by public institutions pursuant to paragraph (1) and notify the Minister of Strategy and Finance of the results thereof. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The Minister of Strategy and Finance may reflect the results of assessment notified under paragraph (2) in evaluating the management of public institutions.
(4) Public institutions may establish and operate an exclusive supporting organization for small-medium enterprises in order to facilitate win-win cooperation between large enterprises and small-medium enterprises.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 20 (Establishment of Large and Small Business Cooperation Foundation)   print
(1) The Government shall establish the Large and Small Business Cooperation Foundation (hereinafter referred to as the "Foundation") in order to facilitate win-win cooperation between large enterprises and small-medium enterprises.
(2) The Foundation shall carry out the following affairs: <Amended by Act No. 11690, Mar. 23, 2013>
1. Supporting the development and operation of cooperative projects between large enterprises and small-medium enterprises;
2. Supporting the management, operation and evaluation of the technological cooperation facilitation projects provided for in Article 9;
3. Supporting the establishment and operation of the consultative counsel of commissioned enterprises provided for in Article 17;
4. Supporting the fairness of transactions effected on consignment and commission provided for in Articles 21 through 24, 24-2 and 25;
5. Supporting the autonomous mediation of disputes between commission enterprises and commissioned enterprises;
6. Other affairs designated or entrusted by the Minister of Trade, Industry and Energy or the Administrator of the Small and Medium Business Administration.
(3) The Foundation shall be a juristic person, and the provisions governing incorporated foundations of the Civil Act shall apply mutatis mutandis to the Foundation with the exception of what is prescribed in this Act.
(4) The Government may subsidize funds necessary to establish and operate the Foundation within the budgetary limit.
(5) When the Foundation intends to modify its articles of association, it shall obtain authorization from the Administrator of the Small and Medium Business Administration.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 20-2 (Establishment of National Commission for Corporate Partnership)   print
(1) There shall be established a National Commission for Corporate Partnership (hereinafter referred to as the "Commission") in the Foundation in order to secure consensus in the private sector with regard to shared growth between large enterprises and small-medium enterprises and to create and proliferate culture for shared growth.
(2) The Commission shall perform business affairs concerning the following matters:
1. Matters concerning calculation and publication of the shared growth index;
2. Matters concerning the securement of consensus on and publication of suitable types of business;
3. Other matters deemed by the Commission necessary to promote shared growth in the private sector.
(3) The Commission shall perform the business affairs referred to in paragraph (2) independently and autonomously from government agencies, the Foundation, etc.
(4) Matters necessary for organizing and operating the Commission shall be determined by resolutions of the Commission.
[This Article Newly Inserted by Act No. 11173, Jan. 17, 2012]
CHAPTER IV FAIRNESS OF TRANSACTIONS EFFECTED ON CONSIGNMENT AND COMMISSION
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 Article 21 (Issuance of Written Agreement)   print
(1) When any enterprise commissions the manufacture of goods, etc. to any other enterprise, the commission enterprise shall promptly issue a written agreement in which the contents of the commission, the amount of the price of delivered goods, the payment method of the price, the payment date, the method of inspection and other necessary matters are entered to the relevant commissioned enterprise.
(2) When the commission enterprise receives goods, etc. from the commissioned enterprise, it shall promptly issue the receipt of the delivered goods regardless of whether it has inspected the goods, etc.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 22 (Payment, etc. of Price of Delivered Goods)   print
(1) The payment date for the price of the delivered goods by a commission enterprise to a commissioned enterprise shall be the shortest period of not more than 60 days from the date on which the commission enterprise receives the goods, etc. regardless of whether it has inspected the goods, etc.
(2) When the payment date for the price of the delivered goods is otherwise stipulated, the date on which the goods, etc. are received by the commission enterprise shall be deemed the date on which it is agreed to pay the price of the goods, etc. and when the payment date is set in violation of paragraph (1), the date on which 60 days lapse from the date on which the goods, etc. are received shall be deemed the date on which it is agreed to pay the price of the goods, etc.
(3) Where any commission enterprise pays the price of delivered goods, etc. after 60 days from the commission enterprise receives the goods, etc., it shall pay the interest calculated according to the interest rate prescribed by Presidential Decree within the extent of 40/100 per year for the delayed period.
(4) Where a commission enterprise pays the price of delivered goods by means of bills or payment replacing bills, it shall pay discount charge prescribed by Presidential Decree within the extent of 40/100 per year to the commissioned enterprise.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 23 (Rationalization of Inspections)   print
(1) A commission enterprise shall upgrade its inspection facilities, improve the qualification of inspectors and set objective and reasonable inspection standards in order to ensure fair and prompt inspection of goods, etc. which are delivered by the commissioned enterprise.
(2) With any goods, etc. that fail an inspection conducted under paragraph (1), the relevant commission enterprise shall promptly notify in writing the relevant commissioned enterprise of the reason for their failure.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 24 (Quality Guarantees, etc.)   print
(1) A commissioned enterprise shall endeavor to improve its facilities and technology in order to improve the quality of manufactured goods which is commissioned by a commission enterprise and to deliver goods meeting the specified standards by the delivery deadline.
(2) A commissioned enterprise shall endeavor to standardize its products, set reasonable prices utilizing a reasonable cost-calculation system and control the quality of manufactured goods.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 24-2 (Technical Data Bailment System)   print
(1) A commissioned enterprise and a commission enterprise (including an enterprise that intends to accept custody of technical data on its own or jointly with another person, in addition to the commissioned enterprise and the commission enterprise) may accept custody of technical data held by an enterprise intending to bail technical data (hereinafter referred to as "bailor enterprise") in consultations with an agency prescribed by Presidential Decree that has experts, equipment, etc. (hereinafter referred to as "bailee"). <Amended by Act No. 10399, Dec. 7, 2010>
(2) In any of the following cases, a commission enterprise may request a bailee to deliver technical data of which a commissioned enterprise takes custody:
1. Where the commissioned enterprise has agreed thereto;
2. Where it meets the conditions of delivery of technical data determined by mutual consent between the commission enterprise and the commissioned enterprise, such as where the right of the commissioned enterprise is extinguished because it has declared bankruptcy or has decided to dissolve, or it is unable to carry on business because it has closed its place of business, etc.
(3) Where the conditions of delivery of technical data determined by the Administrator of the Small and Medium Business Administration are satisfied, the bailee shall deliver technical data of a bailor enterprise to a person who requests such data. <Newly Inserted by Act No. 10399, Dec. 7, 2010>
(4) The Government may give necessary support to bailees within budgetary limits. <Amended by Act No. 10399, Dec. 7, 2010>
(5) Other matters necessary for the bailment, etc. of technical data shall be prescribed by Presidential Decree. <Amended by Act No. 10399, Dec. 7, 2010>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 24-3 (Registration of Bailment of Technical Data)   print
(1) A bailor enterprise may register the following:
1. The title, type, and production date of technical data;
2. The outline of technical data;
3. The name and address of the bailor enterprise;
4. Other matters prescribed by Presidential Decree.
(2) If any dispute occurs between the parties concerned or the parties interested with regard to technology of a bailor enterprise registered in its real name pursuant to paragraph (1), such technology shall be presumed to have been developed according to the details of the deposited goods.
[This Article Newly Inserted by Act No. 10399, Dec. 7, 2010]
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 Article 24-4 (Confidentiality)   print
No person who has been, or is currently engaged in the business of managing technical data under Article 24-2 may release secrets to any third person he/she has learned in the course of performing his/her duties.
[This Article Newly Inserted by Act No. 10399, Dec. 7, 2010]
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 Article 24-5 (Fees)   print
(1) A person who has been designated as a bailee pursuant to Article 24-2 may collect fees from a bailor enterprise, etc. with regard to the relevant business.
(2) Matters necessary for the type, rate, amount, payment method, etc. of fees referred to in paragraph (1) shall be determined by the Administrator of the Small and Medium Business Administration.
[This Article Newly Inserted by Act No. 10399, Dec. 7, 2010]
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 Article 25 (Matters to be Observed)   print
(1) Every commission enterprise shall not perform following acts when it commissions the manufacture of goods, etc. to any commissioned enterprise:
1. Refusing to accept goods, etc. or reducing the price of the delivered goods without any reason attributable to the commissioned enterprise;
2. Failing to pay the price of delivered goods until the payment date;
3. Determining the price of delivered goods, at the price considerably lower than that normally paid for the goods, etc. that are same as or similar to the goods, etc. delivered by any commissioned enterprise in their kinds;
4. Failing to increase the price of delivered goods according to the ratio of additional amount paid by the person who places an order to the commission enterprise on the grounds that the economic situation changes after the manufacture of goods, etc. is commissioned, although the commissioned enterprise needs additional costs on the same grounds;
5. Coercing the commissioned enterprise to buy the goods, etc. that are designated by the commission enterprise with the exception of cases where it is necessary to maintain or improve the quality of the goods, etc. or there exist other justifiable grounds for doing so;
6. Paying the price of delivered goods, etc. in bill that makes it difficult to get a discount from any financial institution by the payment date of the price of delivered goods;
7. Significantly reducing the quantity of ordered goods compared to the quantity of ordinarily ordered goods or discontinuing the placement of the order without any justifiable grounds although no defect is found in the goods, etc.;
8. Demanding a commissioned enterprise to receive goods manufactured by the commission enterprise in lieu of the payment of the price of the delivered goods;
9. Evading the opening of a local letter of credit on the goods, etc. on which an order has been placed by the commission enterprise for their export;
10. Evading the placement of an order on manufactured goods, etc. after having requested for the manufacture of such goods, etc. without any justifiable grounds thereof;
11. Setting objectively unreasonable standards when inspecting goods delivered by commissioned enterprises;
12. Requesting the provision of technical data without a justifiable ground;
13. Giving disadvantage to the commissioned enterprise that has requested for the deposit of technical data;
14. Reducing the quantity of the transaction of goods on consignment and commission, discontinuing the transaction of goods on consignment and commission or giving other disadvantages on the grounds that the relevant commissioned enterprise reports the acts referred to in subparagraphs 1 through 13 to any relevant agency.
(2) Where any commission enterprise requests technical data from a commissioned enterprise for justifiable grounds, it shall consult, in advance, with the relevant commissioned enterprise to decide on matters regarding the purpose of request, confidentiality provisions, reversion of rights, and compensation therefor, etc., and shall provide the commissioned enterprise with a document stating the details thereof. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
(3) A commissioned enterprise shall not perform any of the following acts when it is commissioned to manufacture the goods, etc. by any commission enterprise:
1. Violating an agreement on the quality, performance or delivery date of the goods, etc., which are commissioned by any commission enterprise;
2. Requesting for the unreasonable increase of price of goods, etc.;
3. Disrupting the order of the transaction on consignment and commission.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 26 (Request for Measures to Fair Trade Commission)   print
(1) When a commission enterprise violates Articles 21 through 23 or 25 (1) and deems that the violation falls under the provisions provided for in Articles 3, 4 through 12, 12-2, 13, 13-2, 15, 16, 16-2, 17 through 20 of the Fair Transactions in Subcontracting Act or prohibited act provided for in Article 23 (1) of the Monopoly Regulation and Fair Trade Act, the Administrator of the Small and Medium Business Administration shall request the Fair Trade Commission to take necessary measures against the commission enterprise pursuant to Article 25 of the Fair Transactions in Subcontracting Act or Article 24 of the Monopoly Regulation and Fair Trade Act.
(2) When the Chairman of the Fair Trade Commission receives a request referred to in paragraph (1), he/she shall preferentially examine the contents of such request and then take necessary measures.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 27 (Improvements in Unfair Transactions between Commissioned and Commission Enterprises)   print
(1) The Administrator of the Small and Medium Business Administration shall periodically survey whether commission enterprises implement Articles 21 through 23 or 25 (1) in the course of transactions effected on consignment and commission between large enterprises and small-medium enterprises, as prescribed Presidential Decree and request relevant enterprises to improve the matters requiring improvement and if they refuse to comply therewith, they shall be published.
(2) Where the Administrator of the Small and Medium Business Administration deems it necessary, paragraph (1) shall apply mutatis mutandis where small-medium enterprises, the scale of which exceeds that prescribed by Presidential Decree, commission the manufacture of goods to other small-medium enterprises.
(3) With respect to enterprises whose settlement conditions, including the increase of cash settlements, etc. are assessed to be good and to have endeavored to establish fair relation of transaction effected on consignment and commission as a result of the survey under paragraphs (1) and (2), the Administrator of the Small and Medium Business Administration may grant reward to them and provide them with necessary support.
(4) The Government may provide necessary support, such as taxation support, etc. and provide other necessary support in order to improve settlement conditions for the price of goods delivered by small-medium enterprises to large enterprises and increase the cash settlement (including the settlement in cash).
(5) The Administrator of the Small and Medium Business Administration may give black marks according to the severity of a violation and damage to the commission enterprise that has violated Articles 21 through 23 or Article 25 (1), as prescribed by Ordinance of the Ministry of Trade, Industry and Energy, and he/she may request the head of related administration agency to place restrictions on qualifications for participation in the bidding prescribed in Article 27 of the Act on Contracts to which the State is a Party, to the enterprise whose black marks exceed the standard prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 28 (Mediation of Disputes)   print
(1) Where any dispute on any of the following matters between any commission enterprises and any commissioned enterprises or between small-medium enterprise cooperatives, the commission enterprises and the commissioned enterprises as well as the small-medium enterprise cooperatives involved in disputes may request the Administrator of the Small and Medium Business Administration to mediate their disputes, as prescribed by Presidential Decree:
1. Matters concerning a written agreement and the receipt of goods provided for in Article 21;
2. Matters concerning the payment of delivered goods, etc. provided for in Article 22;
3. Matters concerning the inspection of goods, etc. provided for in Article 23;
4. Matters concerning deposit of technical data provided for in Article 24-2;
5. Matters concerning whether matters to be observed pursuant to Article 25 are complied with.
(2) Upon receiving a request for mediation referred to in paragraph (1), the Administrator of the Small and Medium Business Administration shall promptly examine the contents thereof and when it is deemed necessary to correct the matters referred to in each subparagraph of paragraph (1), recommend the relevant commission enterprise, commissioned enterprise or small-medium enterprise cooperatives to correct such matters or issue a corrective order.
(3) When the relevant commission enterprise, commissioned enterprise or small-medium enterprise cooperatives refuse to comply with a corrective order under paragraph (2), the Administrator of the Small and Medium Business Administration shall publish their names and the summary of the corrective order: Provided, That where the acts of the relevant commission enterprise fall under Article 26, the Administrator of the Small and Medium Business Administration shall request the Fair Trade Commission to take necessary measures.
(4) Necessary matters concerning the examination, recommendation for correction, and a corrective order under paragraph (2) shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 28-2 (Training Order, etc.)   print
(1) With regards to the commission enterprise which has received black marks pursuant to Article 27 (5), the Administrator of the Small and Medium Business Administration may take measures, such as a training order, etc. to relevant executives and employees, as well as a request for improvement under Article 27 (1) and (2) and recommendation for correction or corrective orders under Article 28 (2) according to the standards of black mark prescribed by Ordinance of the Ministry of Trade, Industry and Energy. In such cases, he/she may have the commission enterprise bear the expenses incurred for training. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Necessary matters concerning the detailed procedures, methods, etc. of taking measures, such as a training order, etc. shall be announced by the Administrator of the Small and Medium Business Administration.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
CHAPTER V PROTECTION OF BUSINESS ARENA OF SMALL-MEDIUM ENTERPRISES
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 Articles 29 and 30 <by Act No. 9978, Jan. 27, 2010>   print
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 Article 31 (Small and Medium Enterprise Business Coordination Council)   print
(1) The Small and Medium Enterprise Business Coordination Council (hereinafter referred to as the "Coordination Council") shall be established under the control of the Administrator of the Small and Medium Business Administration to smoothly coordinate the affairs provided for in Article 33: Provided, That if the Administrator of the Small and Medium Business Administration delegates part of his/her authority to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or the Governor of a Special Self-Governing Province (hereinafter referred to as the "Special Metropolitan City Mayor, etc." in this Article) pursuant to Article 38 (2), the small and medium enterprise business coordination council of a local government (hereinafter referred to as the "local government coordination council") shall be established under the jurisdiction of the Special Metropolitan City Mayor, etc. <Amended by Act No. 12002, Aug. 6, 2013>
(2) Necessary matters concerning the composition and operation of the Coordination Council and local government coordination councils shall be prescribed by Presidential Decree. <Amended by Act No. 12002, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 32 (Application, etc. for Business Coordination)   print
(1) Where an organization of small-medium enterprisers deems that any of the following enterprises takes over, commences or expands any business, and such act results in a decrease in the demand for goods and services supplied by a large number of small-medium enterprises of the relevant type of business and thereby adversely affects, or is likely to affect, the stabilization of the management of small-medium enterprises, it may file an application with the Administrator of the Small and Medium Business Administration for business coordination via the Korea Federation of Small and Medium Business under Article 3 (1) 4 of the Small and Medium Enterprise Cooperatives Act, as prescribed by Presidential Decree. In such cases, the application date for business coordination shall be deemed the date on which the application for business coordination is accepted by the Korea Federation of Small and Medium Business: Provided, That in cases where the organization of small-medium enterprisers involved in the relevant business type does not exist, the small-medium enterprise of the relevant business type may file an application with the Administrator of the Small and Medium Business Administration for business coordination via the Korea Federation of Small and Medium Business by obtaining consent from a specific ratio or more of the small-medium enterprises among those engaged in the same business type in the relevant region. In such cases, the scope of the relevant region and the ratio of the small-medium enterprises from which the consent should be obtained shall be prescribed by Presidential Decree: <Amended by Act No. 10399, Dec. 7, 2010; Act No. 11690, Mar. 23, 2013>
1. A large enterprise;
2. Where a large enterprise directly manages many retail stores of the same business type (which means directly managing stores at its own responsibility and for its own account at the stores it owns or rents; hereinafter the same shall apply), or where it manages any of the following businesses in which it continuously provides management guidance and supplies goods, raw materials or services to many retail stores of the same business type, a chain store determined by Ordinance of the Ministry of Trade, Industry and Energy which belongs to such business:
(a) Direct control-type chain business: Chain business in most cases of which the chain headquarters directly manages retail stores, while continuously supplying goods and providing management guidance to some retail stores that have concluded a merchant agreement with the chain headquarters (hereafter referred to as "member store" in this subparagraph);
(b) Franchise-type chain business: Chain business in which the chain headquarters that has developed its own goods or sales and management techniques determines the trade name, the method of sales, the methods of shop management and advertisement, and has its member stores manage shops in compliance with its decision and guidance;
3. A small or medium enterprise determined by Ordinance of the Ministry of Trade, Industry and Energy, which is substantially controlled by a large enterprise.
(2) An application for business coordination referred to in paragraph (1) may be filed before an enterprise under paragraph (1) 1 through 3 (hereinafter referred to as "large enterprise, etc.") takes over, commences or expands the business: Provided, That after the large enterprise, etc. takes over, commences or expands the business, an application for business coordination shall be filed within 180 days from the relevant date. <Amended by Act No. 10399, Dec. 7, 2010; Act No. 12002, Aug. 6, 2013>
(3) Upon receiving the application referred to in paragraph (1), the Korea Federation of Small and Medium Business shall survey the fact, as prescribed by Presidential Decree, and prepare the statement of opinion on the business coordination to submit it to the Administrator of the Small and Medium Business Administration.
(4) Upon receiving the application referred to in paragraph (1), the Administrator of the Small and Medium Business Administration shall notify the large enterprise, etc. related to the relevant application of the fact.
(5) Where consensus has not been secured on suitable types of business referred to in Article 20-2 (2) 2, or where consensus thereon fails to be executed, the Commission may file an application with the Administrator of the Small and Medium Business Administration for business coordination, notwithstanding paragraphs (1) through (4) and (7), and organizations of small-medium enterprisers may also file an application with the Administrator of the Small and Medium Business Administration for business coordination through the Commission. In such cases, the Administrator of the Small and Medium Business Administration may issue a recommendation, publication, or order of execution under Articles 33 and 34; if the results of deliberation by the Coordination Council indicate transfer of business of a large enterprise, etc., he/she may issue a recommendation on transfer of business only. <Newly Inserted by Act No. 11173, Jan. 17, 2012; Act No. 12002, Aug. 6, 2013>
(6) The Coordination Council shall complete deliberating on the matters subject to business coordination within one year from the application date for business coordination referred to in the former part of paragraphs (1) and (5): Provided, That in cases where the Administrator of the Small and Medium Business Administration deems it necessary, such period may be extended by up to one year. <Amended by Act No. 11173, Jan. 17, 2012>
(7) With regard to the business coordination for which an application has been filed by the Commission pursuant to paragraph (5), the Coordination Council shall complete deliberation on the relevant business coordination matter within two months from the date of application, notwithstanding paragraph (6): Provided, That if deemed necessary by the Administrator of the Small and Medium Business Administration, such period may be extended only once by up to one month. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
(8) Organizations of small-medium enterprisers or small-medium enterprises may not apply for business coordination referred to in paragraph (1) in cases prescribed by Presidential Decree where procedure or system with similar effect as business coordination has been established for the business type or other business subject to approval, authorization, registration, etc. under other Acts and subordinate statutes. <Amended by Act No. 11173, Jan. 17, 2012>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 33 (Recommendation and Order Related to Business Coordination)   print
(1) When it is deemed necessary to secure an opportunity for the business activities of the small-medium enterprises of the relevant business type after receiving an application for the business coordination provided for in Article 32, the Administrator of the Small and Medium Business Administration may recommend the relevant large enterprise, etc. to postpone the time to take over, commence or expand the business within the fixed period of no more than three years and to reduce production items, production quantity, production facilities, etc. after undergoing deliberation by the Coordination Council: Provided, That if the initial application for business coordination is filed, the Administrator of the Small and Medium Business Administration may extend the relevant term only once up to three years and may determine the scope of extension by considering the characteristics of business types.
(2) Where the large enterprise, etc. fails to comply with the recommendation referred to in paragraph (1), the Administrator of the Small and Medium Business Administration may publish the subject matters of recommendation or contents thereof.
(3) Where the large enterprise, etc. fails to implement recommended matters without any justifiable grounds after the publication referred to in paragraph (2) is made, the Administrator of the Small and Medium Business Administration may order the relevant large enterprise, etc. to implement such recommended matters.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 34 (Rescindment of Temporary Suspension and Order for Coordination)   print
(1) Upon receiving an application for the business coordination provided for in Article 32, the Administrator of the Small and Medium Business Administration may recommend the relevant large enterprise, etc. to temporarily suspend taking over, commencing and expanding the relevant business until the time he/she notifies the results of deliberation by the Coordination Council to the relevant large enterprise, etc.
(2) Where the large enterprise, etc. fails to comply with the recommendation made by the Administrator of the Small and Medium Business Administration pursuant to paragraph (1), the Administrator may publish the subject matters of recommendation or contents thereof.
(3) Where the recommendation is not implemented without any justifiable grounds even after the public announcement under paragraph (2) is made, the Administrator of the Small and Medium Business Administration may order the implementation thereof to the relevant large enterprise, etc., following deliberation by the Coordination Council. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
(4) When the Administrator of the Small and Medium Business Administration deems that the grounds for issuing an order are changed or extinguished before such order is executed after such order is issued pursuant to Article 33 (3) or 34 (3), he/she shall rescind all or part of the details of coordination after undergoing deliberation by the Coordination Council.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 34-2 (Support for Small-Medium Enterprises of Business Type under Business Coordination)   print
The Government may support the small-medium enterprises of the business types under business coordination with the matters necessary for the improvement in business activities such as the upgrade in facilities of small-medium enterprises of the relevant business type, the advancement in technology, etc. with the aim to sharpen the competitiveness of the relevant small-medium enterprises, within the scope of budget.
[This Article Newly Inserted by Act No. 9331, Jan. 7, 2009]
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 Article 35 (Transfer of Large Enterprise's Business to Small-Medium Enterprise)   print
The large enterprise, etc., which runs any of the following business shall endeavor to transfer such business to any small-medium enterprise for the purpose of increasing industrial efficiency through the rational sharing of the role with the small-medium enterprises: <Amended by Act No. 9978, Jan. 27, 2010>
1. Deleted; <by Act No. 9978, Jan. 27, 2010>
2. The type of business subject to recommendation or implementation of orders provided for in Article 33;
3. Other types of business and the items of business which are recognized by the Administrator of the Small and Medium Business Administration as being appropriate for small-medium enterprises.
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 Article 36 (Support for Small-Medium Enterprises that Take over Large Enterprises' Businesses)   print
The Government may provide following support to small-medium enterprises that take over the business of large enterprises, etc.: <Amended by Act No. 10252, Apr. 12, 2010>
1. Subsidization of the start-up fund provided for in Article 4 (2) of the Support for Small and Medium Enterprise Establishment Act;
2. Preferential occupancy of cooperative industrial complexes and knowledge-based industry center, etc.;
3. Preferential subsidization of technology-development fund, etc.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 37 (Support for Large Enterprises, etc. that Transfer their Businesses)   print
When the businesses transferred by a large enterprise, etc. to small-medium enterprises meet the standards prescribed by Presidential Decree, the Government may provide such large enterprises, etc. with financial and taxation support.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
CHAPTER VI SUPPLEMENTARY PROVISIONS
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 Article 38 (Delegation and Entrustment of Authority or Duties)   print
(1) The Minister of Trade, Industry and Energy may delegate part of his/her authority under this Act to the Administrator of the Small and Medium Business Administration or commission part of his/her authority to the Foundation, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Administrator of the Small and Medium Business Administration may delegate part of his/her authority under this Act to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or the Governor of a Special Self-Governing Province or entrust part of his/her authority to ministers in charge by business type, as prescribed by Presidential Decree. <Amended by Act No. 12002, Aug. 6, 2013>
(3) The Administrator of the Small and Medium Business Administration may entrust part of his/her authority under this Act to the Korea Federation of Small and Medium Business, the Small Business Corporation or the Foundation, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 39 (Keeping Documents)   print
(1) Commission enterprises, commissioned enterprises or small-medium enterprise cooperatives shall keep documents pertaining to transactions effected on consignment and commission.
(2) Necessary matters concerning the scope of the documents referred to in paragraph (1) and the period of keeping such documents shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 9978, Jan. 27, 2010]
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 Article 40 (Submission of Material, etc.)   print
(1) If deemed necessary in any of the following cases, the Administrator of the Small and Medium Business Administration may request the relevant small-medium enterprises and the relevant large enterprises, etc. to submit material and have his/her public officials enter offices, places of business, factories, etc. to inspect books, documents, facilities and other goods: <Amended by Act No. 9978, Jan. 27, 2010>
1. Where he/she intends to understand the actual state of transactions effected on consignment and commission provided for in Articles 21 through 24, 24-2 and 25;
2. Deleted; <by Act No. 9978, Jan. 27, 2010>
3. Where he/she receives an application for business coordination pursuant to Article 32;
4. Where he/she finds it necessary to ensure the fairness of transactions effected on consignment and commission and protect the business arena of small-medium enterprises.
(2) Where inspections referred to in paragraph (1) are conducted, the Administrator of the Small and Medium Business Administration shall notify the person to be inspected of the inspection plan stating the date, purposes, details of inspection, etc. by not later than seven days prior to the scheduled inspection: Provided, That the same shall apply to where the emergent inspection is required and it is recognized that any prior notice might cause the destruction of any evidence, etc. to make it impossible to attain the purpose of such inspection. <Amended by Act No. 9978, Jan. 27, 2010>
(3) Public officials who conducts an inspection referred to in paragraph (1) shall carry their certificates indicating their authority and produce them to related persons and deliver a document stating the names of the relevant public officials, the entry and exit hours and the purposes of the entry and exit to related persons. <Amended by Act No. 9978, Jan. 27, 2010>
CHAPTER VII PENAL PROVISIONS
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 Article 41 (Penal Provisions)   print
(1) A person who acquires another person's technical data by wrongful means, including theft, and registers it pursuant to Article 24-3 shall be punished by imprisonment for not more than five years, or by a fine equivalent to the amount which is at least twice but not more than ten times the proprietary benefits taken therefrom.
(2) A person who fails to fulfill an order issued pursuant to Article 33 (3) shall be punished by imprisonment for not more than two years, or by a fine not exceeding 150 million won. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
(3) Any of the following persons shall be punished by imprisonment for not more than one year, or by a fine not exceeding 50 million won: <Amended by Act No. 12002, Aug. 6, 2013>
1. A person who violates a duty of confidentiality under Article 24-4;
2. A person who fails to fulfill a corrective order under Article 28 (2) by the time one month elapses after the publication provided for in the main sentence of Article 28 (3) is made;
3. Deleted. <by Act No. 12002, Aug. 6, 2013>
[This Article Wholly Amended by Act No. 10399, Dec. 7, 2010]
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 Article 42 (Joint Penal Provisions)   print
When the representative of a corporation, or an agent, employee, or other workers of a corporation or an individual commits the act of violating the provisions of Article 41 in connection with the business of the corporation or the individual, such corporation and such individual shall be punished by a fine under the respective Article in addition to the punishment of the actor: Provided, That in cases where the relevant corporation or the individual has paid due attention or faithfully supervised the relevant business with an aim to prevent such violation, the same shall not apply. <Amended by Act No. 9331, Jan. 7, 2009>
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 Article 43 (Fines for Negligence)   print
(1) Any of the following persons shall be punished by a fine for negligence not exceeding five million won: <Amended by Act No. 8454, May 17, 2007; Act No. 9978, Jan. 27, 2010>
1. A person who fails to carry out measures, such as a training order, etc. under Article 28-2;
2. A person who fails to keep documents pursuant to Article 39 (1) or entered false matters in the documents;
3. A person who fails to submit material provided for in Article 40, submits false material or refuses, interferes with or evades an inspection.
(2) A person who fails to fulfill an order referred to in Article 34 (3) shall be punished by a fine for negligence not exceeding 50 million won. <Newly Inserted by Act No. 12002, Aug. 6, 2013>
(3) Fines for negligence referred to in paragraphs (1) and (2) shall be imposed and collected by the Administrator of the Small and Medium Business Administration, as prescribed by Presidential Decree. <Amended by Act No. 9978, Jan. 27, 2010; Act No. 12002, Aug. 6, 2013>
(3) through (5) Deleted <by Act No. 9978, Jan. 27, 2010>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its prom ulgation.
Article 2 (Repeal Other Act)
Article 3 (General Transitional Measures)
In case where the previous provisions of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation (hereinafter referred to as the "previous Act") fall under the provisions of this Act, any disposition taken and any act performed pursuant to the provisions of the previous Act shall be deemed to be taken and performed pursuant to this Act.
Article 4 (Period of Validity)
The provisions of Articles 29, 30, subparagraph 1 of 35, 40 (1) 2 and subparagraphs 2 and 3 of 41 shall be valid on or before December 31, 2006 and the "business other than the inherent type of business" in Article 32 (1) shall be made the"business" beginning on January 1, 2007.
Article 5 (Transitional Measures Concerning Consultative Council of Commissioned Enterprises)
The consultative council of commissioned enterprises provided for in the provisions of Article 17 of the previous Act at the time of the enforcement of this Act shall be deemed the consultative council of commissioned enterprises provided for in the provisions of Article 17.
Article 6 (Special Case Concerning Large and Small Business Cooperation Foundation)
The Large and Small Business Cooperation Foundation that has been established pursuant to the provisions of Article 16 of the previous Act shall be deemed the Foundation provided for in the provisions of Article 20.
Article 7 (Transitional Measures Concerning Arbitration of Disputes)
The dispute case for which an application is filed for its arbitration pursuant to the provisions of Article 25 of the previous Act and which is pending at the time of the enforcement of this Act shall be deemed the dispute for which an application is filed for its arbitration pursuant to the provisions of Article 28.
Article 8 (Transitional Measures Concerning Business Coordination, etc.)
The application filed for the business coordination, the recommendation made and the order issued for the business coordination and the recommendation made for the temporal suspension pursuant to the provisions of Articles 6 through 8 of the previous Act at the time of the enforcement of this Act shall be all deemed to be filed, made, issued and made pursuant to the provisions of Articles 32 through 34.
Article 9 (Transitional Measures Concerning Inherent Types of Business of Small-Medium Enterprises)
(1) The inherent types of business of small-medium enterprises, which are designated pursuant to the provisions of Article 3 (1) of the previous Act at the time of the enforcement of this Act shall be deemed to be designated pursuant to the provisions of Article 29 (1).
(2) The large enterprises, etc. that run the inherent types of business of small-medium enterprises provided for in the provisions of Article 29 at the time of the enforcement of this Act shall each make a report to the Administrator of the Small and Medium Business Administration under the conditions as prescribed by Ordinance of the Ministry of Commerce, Industry and Energy: Provided, That the same shall not apply to anyone who has made a report pursuant to the provisions of Article 2 of the Addenda of the Adjustment of Projects for Small and Medium Enterprises Act amended by Act No. 3653, the provisions of Article 7 (2) of the Adjustment of Projects for Small and Medium Enterprises Act, the provisions of Article 4 of the Addenda of the Act on the Protection of the Business Sphere of Small and Medium Enterprises and Promotion of Their Cooperation amended by Act No. 4898 and the provisions of Article 4 (2) of the previous Act.
(3) Anyone who has failed to make a report required by the provisions of paragraph (2) shall be punished by a fine for negligence not exceeding five million won and the provisions of Article 43 (2) through (5) shall apply mutatis mutandis to the procedures and ways for imposing and collecting the fine for negligence.
Article 10 (Transitional Measures Concerning Penal Provisions, etc.)
The application of the penal provisions and the fine for negligence to the act performed prior to the enforcement of this Act shall be governed by the provisions of the previous Act.
Article 11 Omitted.
ADDENDA <Act No. 8108, Dec. 28, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 8454, May 17, 2007>
This Act shall enter into force three months after the date of its promulgation: Provided, That theation.
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. 9013, Mar. 28, 2008>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) Omitted.
ADDENDA <Act No. 9331, Jan. 7, 2009>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures Concerning Business Coordination) The application for business coordination, the recommendation on or the order for business coordination filed and made before this Act enters into force shall be deemed the application for business coordination, the recommendation on or the order for business coordination under this Act.
ADDENDA <Act No. 9931, Jan. 13, 2010>
Article 1(Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 9978, Jan. 27, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10252, Apr. 12, 2010>
Article 1(Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 10399, Dec. 7, 2010>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Applicability concerning Application, etc. for Business Coordination) The amended provisions of Article 32 (1) shall apply where an application for business coordination is filed on or after the date this Act enters into force.
ADDENDA <Act No. 11173, Jan. 17, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning National Commission for Corporate Partnership)
(1) The Commission on National Commission for Corporate Partnership established in accordance with the articles of association of the Foundation as at the time this Act enters into force shall be deemed established pursuant to the amended provisions of Article 20-2.
(2) The suitable types of business on which consensus has been secured by the National Commission for Corporate Partnership, which was established in accordance with the articles of association of the Foundation before this Act enters into force, shall be deemed agreed upon and published pursuant to the amended provisions of Article 20-2 (2) 2.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12002, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Article 2 (Applicable Cases concerning Business Coordination for Suitable Types of Business)
The amended provisions of Article 32 (7) shall apply starting from the first business coordination for which an application is filed after this Act enters into force.