(1) Reasons for Proposal

The Amendment aims to improve and supplement the operation of the Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act by improving the standards for specialized human resources which an investment company for the establishment of small and medium enterprises is required to have, since the existing standards mainly focus on qualification certificates and educational backgrounds that lack direct relationship to the investment in venture business, and as a result, degrade the expertise in such investment; and by solving matters related to the investment restrictions on investment companies for the establishment of small and medium enterprises that occur as certain FinTech business entities (business entities engaged in overseas remittance of a small amount) are categorized as a financial institution under the Enforcement Decree of the Act on Real Name Financial Transactions and Confidentiality (Amended on July 26, 2017).

(2) Major Provisions

A.  Expand the number of members of the Business Start-up Policy Council (Article 8-2)

Expand the number of members of the Business Start-up Policy Council which has been operating to discuss the direction and details of the policies on support for business startup of small and medium enterprises, from “not more than 15” to “not more than 20,” and include public officials from the Ministry of Education and the Fair Trade Commission as members of the Policy Council

B.  Amend the requirements for specialized human resources of investment companies for the establishment of small and medium enterprises (Article 9-7)

Change the focus of the requirements for specialized human resources, which an investment company for the establishment of small and medium enterprises shall have, from qualification certificates and educational backgrounds to relevant investment or work experience

C.  Add “FinTech business entity (a business entity engaged in overseas remittance of a small amount)” to the investment target of investment companies for the establishment of small and medium enterprises (Article 10-2)

Make an exemption for any business entity engaged in overseas remittance of a small amount from the scope of financial institutions for which an investment by investment companies for the establishment of small and medium enterprises is restricted

D.  Establish grounds for the handling (entrustment) of personal information related to support programs for business re-startup of small and medium enterprises (Article 32-2)

Establish the grounds on which entrusted institutions may handle personally identifiable information and sensitive information to enhance the efficiency of support programs for business re-startup of small and medium enterprises