1. Reason for establishment

The aim is to prescribe matters delegated by Article 25(6) of the Special Act on Competitiveness Enhancement of Material, Component, and Equipment Industries and Article 5 of its Enforcement Decree and matters needed for the operation of small-but-strong companies’ projects of materials, components, and equipment.

2. Main content

A. Korea Technology Finance Corporation is designated as the exclusive agency selecting small-but-strong companies of materials, components, and equipment and operating the projects, and the work to be performed by the exclusive agency is prescribed (Article 3 of the draft).

B. Preparation of basis for Small-but-strong companies’ committee to be established and operated for the vitalization and development of small-but-strong companies’ projects (Article 4 of the draft)

C. The detailed procedures and methods, etc. of public notification, application documents, configuration of evaluation committee, and selection & evaluation, etc. for the selection of small-but-strong companies are prescribed (Articles 5 through 9 of the draft).

D. Base provisions are provided for the submission of implementation performance including the growth strategy of each small-but-strong company every 6 months for the analysis of performance of business (Article 10 of the draft)

E. Matters needed for the evaluation of performance of implemented projects and goal achievement performance in the 3rd year of selection as a small-but-strong company are prescribed (Article 11 of the draft).

F. If continuous support is needed after the lapse of designation period (5 years) of a small-but-strong company, the designation may be extended up to 2 times for a total of 5 years (2 years in the 1st extension and 3 years in the 2nd extension) (Article 12).

G. The standard for judgment on the succession of small-but-strong companies is provided in keeping with the changes in company scale including spin-off and M&A. (Article 13 of the draft)