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Grievance related to the scope of SMEs
- 담당부서 : 외투기업고충처리실(고상원)
- 조회수 : 1,699

Organization : Small and Medium Business Administration (SMBA)
Regulation : Framework Act on Small and Medium Enterprises

Grievance

Grievance
□ (Background) In accordance with the revision of the Enforcement Decree of Framework Act on Small and Medium Enterprises as of December 27, 2005, companies that meet the requirements set forth in the Framework Act have been categorized into large companies since 2009 in the event that the asset size of a foreign corporation with a more than 30% share in a foreign-invested company in Korea exceeds KRW 500 billion. □ (Main Issue) Foreign companies have faced unpredictability in the classification of business types, since some companies have been included in or excluded from the scope of SMEs due to currency fluctuations despite no change in total assets of their parent company.

□ (Background) In accordance with the revision of the Enforcement Decree of Framework Act on Small and Medium Enterprises as of December 27, 2005, companies that meet the requirements set forth in the Framework Act have been categorized into large companies since 2009 in the event that the asset size of a foreign corporation with a more than 30% share in a foreign-invested company in Korea exceeds KRW 500 billion.

□ (Main Issue) Foreign companies have faced unpredictability in the classification of business types, since some companies have been included in or excluded from the scope of SMEs due to currency fluctuations despite no change in total assets of their parent company.

Resoultion and Results

Resolution and Results
□ (Resolution Process) ▶ Listened to the position of relevant agencies and discussed system improvements - (Sept. 12, 2013) Contacted Planning & Coordination Bureau of SMBA - (April 30, 2013) Visited Planning & Coordination Bureau of the SMBA to consult on system improvement - (May 21, 2013) Sent a list of companies for examination □ (Result) On January 2, 2014, the Planning & Coordination Bureau of the SMBA made a preliminary announcement on the partial revision of the Enforcement Decree of the Framework Act on Small and Medium Enterprises. - Article 7-2 (Total Assets) ③ The lesser calculated amount between the ones on which the closing rate on the last date of the immediately preceding business year or the average rate of the immediately preceding business year is applied shall be considered total assets in the event of a foreign corporation under Article 3 (1) 2 (b).

Resolution and Results

□ (Resolution Process)
▶ Listened to the position of relevant agencies and discussed system improvements
- (Sept. 12, 2013) Contacted Planning & Coordination Bureau of SMBA
- (April 30, 2013) Visited Planning & Coordination Bureau of the SMBA to consult on system improvement
- (May 21, 2013) Sent a list of companies for examination

□ (Result) On January 2, 2014, the Planning & Coordination Bureau of the SMBA made a preliminary announcement on the partial revision of the Enforcement Decree of the Framework Act on Small and Medium Enterprises.
- Article 7-2 (Total Assets) ③ The lesser calculated amount between the ones on which the closing rate on the last date of the immediately preceding business year or the average rate of the immediately preceding business year is applied shall be considered total assets in the event of a foreign corporation under Article 3 (1) 2 (b).

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