(1) Reasons for Proposal

Since the Special Act on Designation of the Special Act on Designation of Business Types Suitable for Microenterprises Subsistence Trade was enacted (Act No. 15687, enacted on June 12, 2018, and implemented on December 13, 2018), the amendment aims to prescribe matters mandated by the Act and necessary matters for its implementation.

(2) Major Provisions

A. Prescribe the scope of organizations of microenterprises applying for business types suitable for subsistence trade (Article 2)

Specify the scope of organizations of microenterprises as in attached Table 1, based on the ratio of microenterprises or the number of microenterprises in an organization

B. Establish deliberative committee on business types suitable for subsistence trade (Article 3 ~ Article 6)

1) The committee shall consist of 15 members; 2 members representing industries, 2 members recommended by the National Commission for Corporate Partnership, and 5 public interest members

Reflect the requirements for organizations which recommend members representing industries (microenterprises, SMEs, middle-standing enterprises, and large enterprises) and the procedures for the appointment of review members

2) A member’s term shall be three years and may serve a second term only once

3) The Committee shall hold a meeting on the request of the Minister of SMEs and Startups or more than one-third of the members of the Committee, which shall be opened with the attendance of a majority of all incumbent members and resolve matters with the consent of a majority of those present.

4) If a party directly involved in the matter is unable to expect a fair deliberation and resolution by the members, he/she may apply for a challenge against the members, which shall be determined by a resolution of the Committee.

C. Apply and designate business types suitable for subsistence trade (Article 7 ~ Article 8)

1) Organizations of microenterprises shall submit applications for business types suitable for subsistence trade through the National Commission for Corporate Partnership and the Commission shall recommend the business types suitable for subsistence trade to the Minister of SMEs and Startups, through surveys and feedback collection.

2) The Minister of SMEs and Startups shall designate and announce the business types suitable for subsistence trade through deliberation and resolution of the Committee, after integrating the recommendations of the National Commission for Corporate Partnership.

D. Cancel the designation of a business type suitable for subsistence trade (Article 9)

Allow the Minister of SMEs and Startups to cancel a business type suitable for subsistence trade through deliberation by the Committee if he/she decides that it is necessary to cancel the business type due to changes in international economic conditions and government policies

E. Prescribe matters concerning exceptional approval of a business type suitable for subsistence trade for large corporations, etc. (Article 10)

Approve the exception in the application of business types suitable for subsistence trade through deliberation and resolution of the Committee after receiving an application from an individual large enterprise, etc., if there is a reason such as an imbalance in the supply and demand of a suitable business type and the division of business area between large and microenterprises

F. Issue an order of correction against a violation by a large enterprise, etc., and impose enforcement charges for compelling performance (Article 11 ~ Article 12)

1) Order large enterprises, etc., to correct the violation, determining a period within six months (may be extended for 3 months), and make publication in the case of non-performance

2) Impose charges for compelling performance from the day of issuing the correction order to the day of performing the order pursuant to the criteria set forth in the attached Table 2

G. Recommend large enterprises, etc., which have entered a market, to restrict the business scope (Article 13)

Allow the issuance of recommendations on limiting the business scope of large enterprises, etc., even after the designation of a business type suitable for subsistence trade if the damage to microenterprises is severe