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)