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| Article 1 (Purpose) |
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The purpose of this Act is to contribute to a balanced development of the national economy by promoting free business activities of small and micro enterprises and ensuring the restructuring and management stability of their business.
[This Article Wholly Amended by Act No. 10710, May 24, 2011]
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| Article 2 (Definitions) |
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The terms used in this Act shall be defined as follows:
| 2. |
The term "micro enterprise" means a business entity that runs a small enterprise with less than ten regular workers and employs, which meets standards prescribed by Presidential Decree, such as the number of regular workers by business type. |
[This Article Wholly Amended by Act No. 10710, May 24, 2011]
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| Article 3 (Formulation of Plans for Supporting Small Enterprises) |
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| (1) |
The head of a central administrative agency, a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") shall formulate and implement plans for supporting small enterprises (hereinafter referred to as "support plans") every three years in order to support the management stability of small enterprises. |
| (2) |
When the head of a central administrative agency, and the Mayor/Do Governor formulate support plans, he/she shall separate a support plan for small enterprises from that of micro enterprises. |
| (3) |
The head of a central administrative agency and the Mayor/Do Governor shall submit their support plans and the results thereof to the Administrator of the Small and Medium Business Administration. |
| (4) |
The Administrator of the Small and Medium Business Administration shall integrate support plans and the results thereof, which are submitted pursuant to paragraph (3), formulate a comprehensive plan for small enterprises (hereinafter referred to as "comprehensive plan") and then publicly announce it through daily newspapers. |
| (5) |
The Administrator of the Small and Medium Business Administration may request the head of a central administrative agency and the Mayor/Do Governor to adjust support plans. In such cases, the head of a central administrative agency and the Mayor/Do Governor shall cooperate with it unless any extraordinary circumstance exists. |
| (6) |
In addition to the matters under paragraphs (1) through (5), detailed matters necessary to formulate support plans and comprehensive plans shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10710, May 24, 2011]
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| Article 4 (Special Cases concerning Factory Establishment) |
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| (2) |
Where a small enterprise which has a factory under subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act, the building area of which is less than 1,000㎡ or which has a place of business equivalent thereto intends to build a new factory, extend or relocate the factory in an area, other than Seoul Metropolitan Area under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act, or where a national industrial complex, general industrial complex, urban advanced industrial complex or agro-industrial complex, which includes small enterprises in the ratio of 50/100 or more, is created, the following charges shall be exempted: |
| (3) |
The building area of a factory or the area of a place of business equivalent thereto under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10701, May 24, 2011]
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| Articles 5 and 6 Deleted. <by Act No. 6314, Dec. 29, 2000> |
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| Article 7 (Establishment of Policies for Credit Guarantee Support) |
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In order to effectively provide supports for small enterprises under this Act, the Government shall establish and implement policies for credit guarantee support for small enterprises.
[This Article Wholly Amended by Act No. 10701, May 24, 2011]
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| Article 8 (Special Cases concerning Support for Small Enterprise Establishment) |
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[This Article Wholly Amended by Act No. 10701, May 24, 2011]
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| Article 8-2 (Formulation of Support Schemes for Establishment, etc. of Stock Companies) |
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If deemed necessary, the Administrator of the Small and Medium Business Administration may formulate schemes to provide supports, such as funds, management, etc., for a small enterprise which intends to change its organization from a limited company to a stock company or to establish a stock company.
[This Article Wholly Amended by Act No. 10701, May 24, 2011]
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| Article 8-3 (Support for Management Stability of Small Enterprises) |
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If deemed necessary for the management stability of small enterprises, the Administrator of the Small and Medium Business Administration may carry on the following projects:
| 1. |
Projects to provide management consulting, advice and training for small enterprises; |
| 2. |
Projects to promote the sales of products of small enterprises; |
| 3. |
Projects to provide supports for the location of small enterprises; |
| 4. |
Other projects necessary for the management stability of small enterprises. |
[This Article Wholly Amended by Act No. 10701, May 24, 2011]
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| Article 9 Deleted. <by Act No. 6314, Dec. 29, 2000> |
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| Article 10 Deleted. <by Act No. 8804, Dec. 27, 2007> |
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| Article 10-2 (Policies for Fostering Micro Enterprises) |
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In order to support the establishment of small enterprises and to promote the advancement of corporate structure (hereinafter referred to as "structural advancement"), such as a joint projects, the conversion of business, the relocation of a place of business, management rationalization, etc., the Administrator of the Small and Medium Business Administration may establish and implement policies to provide supports for a stater of a small business or a micro enterprise (hereinafter referred to as "policies for fostering micro enterprises"), such as supports for the establishment of an enterprise, the consultation on management improvement, funds, human resources, technologies, sales, exports, etc.
[This Article Wholly Amended by Act No. 710710, May 24, 2011]
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| Article 10-3 (Survey on Actual Conditions) |
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| (1) |
The Administrator of the Small and Medium Business Administration shall conduct a survey on the actual conditions (hereinafter referred to as "survey on actual conditions"), such as the current status of the establishment of a micro enterprise, management performance, conversion of business, which is necessary to formulate the policies for fostering micro enterprises, and then publicly announce the results thereof. |
| (2) |
If necessary to conduct a survey on actual conditions, the Administrator of the Small and Medium Business Administration may require a public institution or organization of small enterprises or micro enterprises to submit data or state opinions, and the public institution or organization of small enterprises or micro enterprises, upon the receipt of such requirement, shall cooperate with it unless any extraordinary circumstance exists. |
[This Article Newly Inserted by Act No. 10710, May 24, 2011]
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| Article 10-4 (Small Enterprise Development Agency) |
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| (1) |
The Small Enterprise Development Agency (hereinafter referred to as the "Development Agency") shall be established in order to efficiently implement projects for fostering micro enterprise. |
| (2) |
The Development Agency shall be a corporation. |
| (3) |
The Development Agency shall be established by registering its establishment in the location of its main office. |
| (4) |
The Development Agency shall establish and operate small enterprise development centers by region for the purpose of providing equal services to micro enterprises. |
| (5) |
The Development Agency shall perform the following projects: |
| 1. |
Surveying and developing policies for fostering micro enterprises; |
| 2. |
Fostering professional human resources for supporting micro enterprises; |
| 3. |
Providing services of information, education, consulting, etc. to promote the establishment of micro enterprises and the structural advancement thereof; |
| 4. |
Building and operating database for supporting micro enterprises; |
| 5. |
Developing and distributing guidelines for the establishment of micro enterprises by type of business and improving shops; |
| 6. |
Supporting technological development of micro enterprises and exchange among types of business; |
| 7. |
Other projects deemed necessary by the Administrator of the Small and Medium Business Administration to efficiently formulate and promote policies for fostering micro enterprises. |
| (6) |
The Government may contribute or subsidize expenses incurred in performing the projects of the Development Agency within budgetary limits. <Amended by Act No. 11174, Jan. 17, 2012> |
| (7) |
The provisions of the Civil Act concerning incorporated foundations shall apply mutatis mutandis to the Development Agency except for those prescribed in this Act. |
| (8) |
No one who is not the Development Agency established in accordance with this Act shall use the name of the Small Enterprise Development Agency or a name similar thereto. |
[This Article Wholly Amended by Act No. 10710, May 24, 2011]
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| Article 10-5 Deleted. <by Act No. 10710, May 24, 2011> |
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| Article 10-6 (Special Cases concerning Taxation) |
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[This Article Newly Inserted by Act No. 10710, May 24, 2011]
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| Article 10-7 (Establishment of Micro Enterprise Promotion Account) |
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The Government shall establish a micro enterprise promotion account (hereinafter referred to as "account") in the fund for establishment and promotion of small and medium enterprises under the Small and Medium Enterprises Promotion Act (hereinafter referred to as "fund") in order to secure financial resources necessary to support the growth of micro enterprises, such as merchants of traditional markets, through management stabilization and structural sophistication for these enterprises.
[This Article Newly Inserted by Act No. 11174, Jan. 17, 2012]
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| Article 10-8 (Formation of Financial Resources) |
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| (1) |
The account shall be formed using any of the following financial resources: |
| 1. |
Contributions from the Government (based on 3/100 of the amount of tariffs collected in the immediately preceeding fiscal year); |
| 2. |
Cash, goods, and other property contributed by persons other than the Government and local governments; |
| 3. |
Money transferred from other funds; |
| 6. |
Revenues accruing from the operation of the account; |
| 7. |
Other earnings prescribed by Presidential Decree. |
| (2) |
The Government shall include its contributions in the expenditure budget each fiscal year within budgetary limits. |
[This Article Newly Inserted by Act No. 11174, Jan. 17, 2012]
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| Article 10-9 (Use, etc. of Account) |
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| (1) |
The account may be used for any of the following projects: |
| 1. |
Financial support for the continued growth of micro enterprises; |
| 2. |
Support for the structural improvement and business conversion in types of business overcrowded with micro enterprises; |
| 3. |
Support for the structural sophistication and informatization of micro enterprises; |
| 4. |
Support for the organization, collaboration, and franchise business of micro enterprises; |
| 5. |
Support for the fostering of innovation-type micro enterprises; |
| 6. |
Support for the establishment of business by micro enterprises, including consulting services; |
| 7. |
Support for information provision, such as development and distribution of new business models; |
| 8. |
Nurturing experts to support micro enterprises; |
| 9. |
Investigation and research on policies for fostering micro enterprises; |
| 10. |
Support for technology development by micro enterprises, and support for exchanges between types of business; |
| 11. |
Support for traditional markets and shopping districts under the Special Act on Promotion of Traditional Markets and Shopping Districts; |
| 12. |
Matters concerning the enhancement of micro enterprises' vitality, such as improving awareness of micro enterprises; |
| 13. |
Support for converting micro enterprises who have closed down business into paid workers; |
| 15. |
Expenditures for the formation, operation, and management of the account; |
| 16. |
Other projects entrusted by the Administrator of the Small and Medium Business Administration in order to support micro enterprises. |
| (3) |
The managing and operating entity of the fund may grant contributions to an agency entrusted to perform projects referred to in each subparagraph of paragraph (1), pursuant to paragraph (2), and may grant subsidies, from the account, to micro enterprises, such as merchants of traditional markets, relevant organizations, etc. |
| (4) |
Where a person using the fund uses it for any purpose other than the original expenditure purposes, the managing and operating entity of the fund may redeem the fund disbursed. |
| (5) |
The redemption of the fund referred to in paragraph (4) shall be made in the same manner as delinquent national taxes are collected. |
[This Article Newly Inserted by Act No. 11174, Jan. 17, 2012]
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| Article 10-10 (Operation and Management of Account) |
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| (1) |
The fiscal year of the account shall be the fiscal year of the Government. |
| (2) |
An agency entrusted to perform a project pursuant to Article 10-9 (2) shall formulate operation plans for the total income and total expenditure of the account each fiscal year, and submit them to the managing and operating entity of the fund by no later than two months before the beginning of each fiscal year. The same shall apply to the modifications thereof. |
| (3) |
The managing and operating entity of the fund shall submit the operation plans, which he/she received from the entrusted agency referred to in paragraph (2), to the Administrator of the Small and Medium Business Administration by no later than one month before the beginning of each fiscal year. The same shall apply to the modifications thereof. |
| (4) |
An agency entrusted to perform a project pursuant to Article 10-9 (2) shall prepare a report on the settlement of accounts, a balance sheet, and an income statement for the account each fiscal year, and submit these documents to the managing and operating entity of the fund within two months after the pertinent year elapses. |
| (5) |
The managing and operating entity of the fund shall submit to the Administrator of the Small and Medium Business Administration the report on the settlement of accounts, the balance sheet, and the income statement for the account he/she received from the entrusted agency pursuant to paragraph (4) within three months after the pertinent year elapses. |
| (6) |
Other matters necessary for the management, operation, etc. of the account shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 11174, Jan. 17, 2012]
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| Article 10-11 (Federation of Micro Enterprises) |
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| (1) |
A corporation, a cooperative, and an organization which is established with micro enterprises as its members may establish a federation of micro enterprises (hereinafter referred to as "federation"). |
| (2) |
A federation shall be a corporation, and be established by registering its establishment in the location of its main office. |
| (3) |
A federation may have the main office and branches at necessary places to smoothly implement projects by region, as determined by its articles of association. |
| (4) |
A person who intends to establish a federation shall submit its articles of association and other necessary documents to the Administrator of the Small and Medium Business Administration, and obtain permission for the establishment thereof, as prescribed by Ordinance of the Ministry of Knowledge Economy. |
| (5) |
If necessary, the Administrator of the Small and Medium Business Administration may provide guidance and supervision for business affairs of a federation. |
| (6) |
If deemed necessary for guidance and supervision referred to in paragraph (5), the Administrator of the Small and Medium Business Administration may require a federation to submit documents, etc. In such cases, the relevant federation shall cooperate in submitting documents, etc., except in extenuating circumstances. |
| (7) |
Matters necessary for the establishment and operation of a federation and other matters shall be prescribed by Ordinance of the Ministry of Knowledge Economy. |
| (8) |
The provisions of the Civil Act concerning incorporated associations shall apply mutatis mutandis to federations, except as otherwise provided for by this Act. |
[This Article Newly Inserted by Act No. 11174, Jan. 17, 2012]
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| Article 10-12 (Projects by Federation) |
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| (1) |
A federation shall perform the following projects: |
| 1. |
Projects for mutual aid to promote friendship between micro enterprises; |
| 2. |
Providing information on the establishment of business, investment, management activities, etc. of micro enterprises; |
| 3. |
Joint business on purchase, sales, etc. for micro enterprises; |
| 4. |
Making proposals for policies to solve bottlenecks of micro enterprises; |
| 5. |
Other business determined by the articles of association to accomplish purposes of a federation. |
| (2) |
Where a federation performs a project referred to in paragraph (1), the Government and each local government may subsidize expenses incurred therein within budgetary limits. |
[This Article Newly Inserted by Act No. 11174, Jan. 17, 2012]
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| Article 11 (Delegation and Entrustment of Authority) |
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[This Article Wholly Amended by Act No. 10710, May 24, 2011]
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| Article 12 Deleted. <by Act No. 10710, May 24, 2011> |
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| Article 13 (Fines for Negligence) |
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| (1) |
A person who uses the name of the Small Enterprise Development Agency or a name similar thereto in violation of Article 10-4 (8) shall be punished by a fine for negligence not exceeding ten million won. |
| (2) |
Fines for negligence under paragraph (1) shall be imposed and collected by the Administrator of the Small and Medium Business Administration. |
[This Article Wholly Amended by Act No. 10710, May 24, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Special Cases concerning Scope of Small Enterprises)
A small enterprise, the number of regular employees of which exceeds fifty (thirty for the service business related to manufacture) after this Act enters into force, shall be deemed a small enterprise under this Act for three years from the date the number exceeds, notwithstanding subparagraph 4 of Article 2.
ADDENDA <Act No. 5758, Feb. 5, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 6194, Jan. 21, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6314, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures)
| (1) |
An enterprise which does not fall under a small enterprise pursuant to the amended provisions of subparagraph 1 of Article 2 from among small enterprises under the previous provisions of Article 2 as at the time this Act enters into force shall be deemed a small enterprise under this Act in cases where it meets the requirements under the previous provisions of each subparagraph of Article 2 not later than three years from the date this Act enters into force. |
| (2) |
A building which has obtained a use certification as a factory under the previous provisions of Article 5 as at the time this Act enters into force shall be governed by the previous provisions. |
Article 3 Omitted.
ADDENDA <Act No. 6841, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 6842, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2003.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 6950, Jul. 29, 2003>
| (1) |
(Enforcement Date) This Act shall enter into force on January 1, 2004. |
| (2) |
(Succession of Bill Insurance Account) The right, obligation, and basic property of the bill insurance account under the previous provisions as at the time this Act enters into force shall be deemed to be succeeded by the trade receivables insurance account under the amended provisions of Article 10. |
ADDENDA <Act No. 7604, Jul. 21, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM<Act No. 7743, Dec. 23, 2005>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 8337, Apr. 6, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8352, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 16 Omitted.
ADDENDA <Act No. 8362, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8804, Dec. 27, 2007>
| (1) |
(Enforcement Date) This Act shall enter into force three months after the date of its promulgation. |
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9015, Mar. 28, 2008>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 9045, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 9890, Dec. 30, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10710, May 24, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 (Transitional Measures concerning Small Enterprise Development Centers, etc.)
| (1) |
Small enterprise development centers under the previous provisions of Article 10-5 (hereinafter referred to as "former development center") before this Act enters into force shall be deemed small enterprise development centers established by the Development Agency pursuant to the amended provisions of Article 10-4 (4). |
| (2) |
The Development Agency shall succeed to property and services under the former development centers as at the time this Act enters into force. |
| (3) |
Employees under the former development centers as at the time this Act enters into force shall be deemed employees under the Development Agency. |
ADDENDUM <Act No. 11174, Jan. 17, 2012>
This Act shall enter into force on January 1, 2013: Provided
, That the amended provisions of Articles 10-11 and 10-12 shall enter into force six months after the date of its promulgation.
