Shortcut to Body Shortcut to main menu

Invest Korea

Search

Investment News

  • Home
  • Information Center
  • Newsroom
  • Investment News
Pre-Announcement of the Revised Enforcement Decree of the Framework Act on Small and Medium Enterprises
Date
2014.04.07
Views
1411

Please refer to the following announcement regarding revisions to the Enforcement Decree of the Framework Act on Small and Medium Enterprises.


ㅇ To improve the criteria for defining foreign-invested companies as small and medium-sized enterprises through the revision of Article 7-2 (3) of the Enforcement Decree of the Framework Act on Small and Medium Enterprises.

- Under the current Framework Act on Small and Medium Enterprises, which applies to both domestic companies and foreign-invested companies (FIC), an FIC is not considered a small and medium-sized enterprise if the total assets of its overseas parent company are KRW 500 billion or more.

- In such a case, severe fluctuations in exchange rate can lead to a fluctuation in the asset value of an FIC’s parent company, resulting in the failure to be considered a small and medium-sized enterprise. To resolve this, the average exchange rate of the last five years will be applied in the asset valuation of an FIC’s parent company. (Article 7-2 (3) of the Enforcement Decree of the Framework Act on Small and Medium Enterprises)


Source: Ministry of Trade, Industry & Energy
Meta information