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  • Partial Amendment to the Act on the Promotion of Collaborative Cooperation Between Large Enterprises and Small-Medium Enterprises
    • Competent Ministry : Ministry of SMEs and Startups
    • Advance Publication of Legislation : 2022-07-15
    • Opinion Submission Deadline : 2022-07-29
Reasons for Proposal

Reasons for Proposal and Major Provisions

 The current Act provides a business mediation system to protect SMEs from indiscriminate entry into SMEs’ business fields by large enterprises.

 However, there have been cases in which after applying for business mediation, some large enterprises provided money to organizations of SMEs as a condition of withdrawing their application for business mediation.

 Only some organizations of SMEs can obtain financial benefits in such cases, which do not fit the purpose of the business mediation system and should be eradicated.

 Therefore, this amendment aims to eliminate concerns about the deterioration of the business mediation system by prohibiting the exchange of money and valuables between the organizations of SMEs and small and medium enterprises that have applied for business mediation and large enterprises and to prevent many different adverse effects caused by the exchange of money and valuables (Article 32 (9) and (10) and Article 41 (3) 3 and 4, respectively, newly inserted).

Major Provisions

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