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The Small and Medium Business Administration (SMBA) announced Monday that it will alleviate most regulations concerning small- and medium-sized enterprises (SMEs) and apply the sunset law to facilitate the investment of SMEs.
The SMBA will deregulate 18 regulations by 2014 and apply the sunset law with reviews to 42 regulations.
The sunset law requires regular reviews of regulations that need to be adjusted considering environmental changes.
To facilitate start-ups, recognition of investment duty for start-up investment companies and start-up investment associations and the expansion of boundaries for solitary start-ups were promoted in the first half of the year.
The deregulation of investment activities by start-up investment associations and criteria for production facilities to confirm direct production will be promoted by the second half of the year.
The SMBA also plans to look over exemptions for founders of start-up companies and regulations regarding the registration of SME consulting companies by 2014.
The broadcasting industry was also allowed when it came to solitary businesses operating in the field, including internet broadcasts, which create high-added value and allow individuals to be creative.
A grace period will be applied when a small- and medium-sized company does not fall in the category of SMEs due to a merger and acquisition (M&A) between SMEs. Start-up investment associations will also be allowed to invest in companies in which the Korea Finance Corporation has invested or the Korea New Exchange stock market to facilitate investment.
The exemption of costs for founders of small- and medium-sized companies will be expanded to some service sectors and registration regulations for SME consulting companies will be deregulated by listening to the voices of related agencies.
An SMBA official noted that the deregulation is expected to facilitate investment of start-up investment companies and associations, the M&A of SMEs and start-ups, adding that further deregulations will be promoted by listening to various opinions.
Source: Newsis (Sep. 2, 2013)
** This article was translated from the Korean.