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BUSAN METROPOLITAN CITY ORDINANCE ON THE HONORABLE TREATMENT OF ENTREPRENEURS AND THE PROMOTION OF CORPORATE ACTIVITIES

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BUSAN METROPOLITAN CITY ORDINANCE ON THE HONORABLE TREATMENT OF ENTREPRENEURS AND THE PROMOTION OF CORPORATE ACTIVITIES

Responsible Division: Economy & Policy Division of the Digital Economy Innovation Office

Partially Amended by Ordinance No. 6187, Jul. 15, 2020

CHAPTER Ⅰ GENERAL PROVISIONS

  • Article 1 (Purpose)
  • The purpose of this Ordinance is to prescribe matters necessary for the honorable treatment of enterprises or entrepreneurs contributing to the vitalization of the economy of Busan Metropolitan City (hereinafter referred to as the "City") as well as for the promotion of corporate activities in order to build any city in which enterprises can carry on business with ease.
  • Article 2 (Definitions)
  • The definitions of terms used in this Ordinance shall be as follows: <Amended on Apr. 1, 2009>
    • The term "enterprise" means a business entity which is operated for profit within the limits of the City; <Amended on Apr. 1, 2009>
    • 2. The term "entrepreneur" means the representative or an officer of an enterprise which carries on activities within the limits of the City; <Amended on Apr. 1, 2009>
    • 3. The term "enterprise-related organization" means a spontaneous organization which is established by enterprises for the purpose of ensuring their mutual interests; <Amended on Apr. 1, 2009>
    • 4. The term "corporate ombudsman" means a person who is commissioned by the Mayor of Busan Metropolitan City (hereinafter referred to as the "Mayor") for the purpose of dealing with difficulties and proposals of enterprises; <Amended on Apr. 1, 2009>
    • 5. The term “Corporate Social Responsibility” means an activity in which an enterprise complies with the law and minimizes side effects from corporate activities to meet the expectations of the enterprise, such as the ethics and public interest of the enterprise. <Newly Inserted on Apr. 1, 2009>

CHAPTER Ⅱ HONORABLE TREATMENT OF ENTREPRENEURS AND ASSISTANCE TO THEM

  • Article 3 (Responsibilities)
  • The Mayor shall establish and implement policies enabling entrepreneurs to be respected, including any active publicity and education on the contribution of sound corporate activities and entrepreneurs to regional society.
  • Article 4 (Enterprises or Entrepreneurs to Receive Honorable Treatment and Assistance, etc.)
  • ① Enterprises or entrepreneurs to receive honorable treatment and assistance under Article 5(hereinafter referred to as the "excellent entrepreneurs") shall be as follows: Provided, That enterprises or entrepreneurs referred to in subparagraph 3 of this paragraph shall be subject to deliberation under Article 18 ②: <Amended on Dec. 31, 2008; Apr. 1, 2009>
    • 1. Enterprises or entrepreneurs that win the grand prize for small and medium entrepreneurs, a prize for venture business operators, the grand prize for export or a commendation for social contribution awarded by the City; <Amended on Dec. 31, 2008>
    • 2. Enterprises or entrepreneurs that win official commendation of the Prime Minister or higher awarded by the Central Government on Trade Day and Commerce and Industry Day; or
    • 3. Other enterprises or entrepreneurs that fulfills their social responsibilities as an enterprise with high growth potential and contribution to regional economic development. <Amended on Apr. 1, 2009>
      • ② The Mayor shall select enterprises or entrepreneurs referred to in paragraph ① 3 at least once a year.
      • ③ The Mayor shall grant the excellent entrepreneurs referred to in paragraph
      • ① a certificate of authentication.
  • Article 5 (Honorable Treatment and Assistance)
  • ① The Mayor may render the excellent entrepreneurs the honorable treatment and assistance falling under any of the following subparagraphs: <Amended on Dec. 29, 2010>
    • 1. Special assistance in the provision of small and medium enterprise operation and promotion funds of the City as well as in credit guarantee;
    • 2. Assistance in the dispatch of overseas market exploitation groups and the participation in overseas exhibitions on a priority basis;
    • 3. Suspension of any inquiry and inspection of tax officials under Article 136 of the Basic Local Tax Act; <Amended on Dec. 29, 2010>
    • 4. Publicity of selected enterprises and entrepreneurs;
    • 5. Invitations to major events held by the City and the provision of admission tickets to cultural events or performances held by the City;
    • 6. Free use of public parking lots of the City; and
    • 7. Any other administrative or financial assistance deemed necessary by the Mayor.
      • ② The term of honorable treatment and assistance under paragraph ① of this Article shall be three years from the date on which a certificate of authentication is granted under Article 4 ③.
  • Article 6 (Exclusion from Application)
    • ① In any case in which an excellent entrepreneur falls under any of the following subparagraphs, the Mayor shall discontinue the honorable treatment of and assistance to the excellent entrepreneur: Provided, That in cases referred to in subparagraphs 1 and 5, deliberation under Article 18 ② shall be conducted: <Amended on Apr. 1, 2009>
  • 1. In any case in which the said excellent entrepreneur causes a social scandal such as the frequency of industrial accidents and occupational diseases;
  • 2. In any case in which the said excellent entrepreneur owns an enterprise belonging to a conglomerate subject to the restrictions on cross-investment between affiliates, etc. designated under Article 14 ① of the Monopoly Regulation and Fair Trade Act; <Amended on Apr. 1, 2009>
  • 3. In any case in which the said excellent entrepreneur suspends or discontinues his/her business for three or more months or is a bad dealings entity regulated by a financial institution due to dishonor, etc.; <Amended on Apr. 1, 2009>
  • 4. In any case in which the said excellent entrepreneur fails to carry on the type of business at the time of designation by making any change, etc. in the type of business; or
  • 5. In any case in which the said excellent entrepreneur causes a social scandal due to failure to fulfill social responsibilities of the enterprise. <Newly Inserted on Apr. 1, 2009>
    • ② If the Mayor intends to discontinue the honorable treatment of and assistance to the excellent entrepreneur pursuant to paragraph ①, he/she shall give the relevant excellent entrepreneur an opportunity to submit his/her opinion in advance <Newly Inserted on Apr. 1, 2009>
  • Article 7 (Management)
    • ① In order to facilitate the honorable treatment of and assistance to excellent entrepreneurs, the Mayor shall appoint a public official in exclusive charge.
    • ② The Mayor shall have a public official in exclusive charge investigate the conditions, difficulties and proposals of enterprises and shall take appropriate measures.

CHAPTER Ⅲ FOSTERAGE OF PROMISING SMALL AND MEDIUM ENTERPRISES

  • Article 8 (Small and Medium Enterprises Subject to Selection, etc.)
  • ① In order to promote corporate activities, the Mayor may, after deliberation under Article 18 ②, select small and medium enterprises of which the technology, management and sales force are excellent(hereinafter referred to as the "promising small and medium enterprises").
  • ② Enterprises to be selected as promising small and medium enterprises shall be as follows:
    • 1. Enterprises which have less than three hundred full-time regular employees and which carry on manufacturing industries or related service industries;
    • 2. Enterprises which have completed the registration of their factories within the limits of the City and have been operating them for three or more years as of the date of selection;
    • 3. Enterprises whose annual gross sales are not less than one billion won;
    • 4. Enterprises which do not exceed the average debt-equity ratio according to the type of business.
  • Article 9 (Assistance, etc.)
  • The provisions of Articles 5 through 7 shall apply mutatis mutandis to assistance to promising small and medium enterprises, the discontinuance of such assistance, and the management thereof.

CHAPTER IV PROMOTION OF CORPORATE ACTIVITIES

  • Article 10 (Assistance in Establishment of Enterprises)
  • The Mayor shall implement various policies to promote the establishment of enterprises and may provide groups for such establishment, business incubators, etc. with all or part of the operating costs thereof.
  • Article 11 (Sales and Technical Assistance)
  • ① The Mayor may provide enterprises participating in domestic or overseas publicity activities held by the City for the purpose of publicizing their products and finding a market therefor with part of the expenses, such as rental, incurred in doing so.
  • ② In order to improve the technical competence of enterprises, the Mayor shall implement industrial-educational-research technology development programs and may provide enterprises, etc. participating therein with part of the operating costs.
  • Article 12 (Assistance in Training of Personnel)
  • In order to train technical personnel on the basis of personnel requirements of enterprises, the Mayor shall develop job seeker assistance programs and may provide enterprises and educational institutions participating in the implementation of those programs with part of the necessary expenses.
  • Article 13 (Assistance in Sites)
  • The Mayor may acquire industrial sites to such an extent as the relevant budget permits and sell them in lots or lease them at cost, and may, if deemed necessary for their acquisition and management, establish and administer special accounts.
  • Article 14 (Assistance to Enterprise-related Organizations)
  • ① The Mayor shall encourage the establishment of sound enterprise-related organizations and assist them to carry out positive activities.
  • ② The Mayor may provide all or part of the expenses incurred in carrying on any business of an enterprise-related organization which is deemed necessary for the vitalization of regional economy.

CHAPTER Ⅴ VITALIZATION OF CORPORATE OMBUDSMAN AND SETTLEMENT OF DIFFICULTIES OF ENTERPRISES <Amended on Sep. 25, 2013>

  • Article 15 (Corporate Ombudsman)
  • ① The Mayor shall endeavor to settle difficulties of enterprises and to relax the regulation thereon and may, in order to do so, establish a corporate ombudsman.
  • ② A corporate ombudsman shall be commissioned by the Mayor from among those persons who fall under any of the following subparagraphs:
    • 1. Persons who have been engaged in the management of enterprises, have served in enterprise-related organizations, or have much professional knowledge; and
    • 2. Persons who serve or served as associate professors or higher of economics and commerce at university or college.
  • ③ In case the Mayor commissions and operates a corporate ombudsman pursuant to paragraphs ① and ②, he/she may pay necessary expenses, such as allowances, travel expenses, etc. within budgetary limits. <Newly Inserted on Sep. 25, 2013>
  • Article 16 (Duties of Corporate Ombudsman)
  • A corporate ombudsman shall perform any of the following duties:
  • 1. Investigating difficulties in the management of enterprises and proposals;
  • 2. Investigating various unreasonable regulatory matters which impede corporate activities;
  • 3. Hearing opinions of entrepreneurs concerning the implementation of small and medium enterprise policies of the Central Government and the City; and
  • 4. Other various proposals for assistance to small and medium enterprises.
  • Article 17 (Handling of Difficulties and Proposals)
  • ① A corporate ombudsman shall, without delay, notify the competent department of the City of proposals of entrepreneurs and continue to manage such proposals.
  • ② The competent department of the City shall notify a corporate ombudsman and the proposers concerned of the results of the handling of proposals.
  • ③ If the competent department of the City delays handling proposals or fails to handle them without any justifiable reason, a corporate ombudsman may take measures such as requests for inspection.
  • Article 18 (Enterprise Difficulty Settlement Support Center)
  • ① The Mayor may establish and operate the Busan Metropolitan City's Enterprise Difficulty Settlement Support Center (hereinafter referred to as the "Support Center") to perform the following duties:
    • 1. Receipt and provision of information to settle difficulties of enterprises;
    • 2. Counseling for complaints to settle difficulties of enterprises;
    • 3. Discovering and promoting successful cases of settling difficulties of enterprises;
    • 4. Operation of the enterprise difficulty settlement support team to support the investigation of visits to the site and handling of the difficulties of the enterprise;
    • 5. Other matters necessary for settlement of difficulties of enterprises.
      • ② Matters necessary for the establishment and operation of the Support Center under paragraph① shall be separately determined by the Mayor. <This Article Newly Inserted on Sep. 25, 2013>
  • Article 19 (Request for cooperation)
  • The Mayor may request the Ministry of SMEs and Venture Business, the Gu/Gun, the Busan Economic Promotion Agency, etc. to cooperate and participate in the operation of corporate ombudsman and support centers. <Amended on Aug. 1, 2018> <This Article Newly Inserted on Sep. 25, 2013>
  • Article 20 (Enterprise Difficulty Settlement Committee)
  • ① There shall be established a Busan Metropolitan City's Enterprise Difficulty Settlement Committee (hereinafter referred to as the "Committee") to settle and deliberate on difficulties of and regulatory matters concerning enterprises.
  • ② The Committee shall deliberate on any of the following matters: <Amended on Jul. 7, 2008; Apr. 1, 2009; Jul. 8, 2009; Jul. 10, 2013; Jan. 10, 2018>
    • 1. Matters necessary for the settlement of difficulties of enterprises and the relaxation of regulation thereon;
    • 2. Matters concerning difficulties of enterprises requiring the cooperation with relevant institutions;
    • 3. Matters related to Articles 4 ① 3, 6 ① 1 & 5 and 8 ①;
    • 4. Deleted; <May 29, 2019>
    • 5. Matters concerning the subparagraphs of Article 5 ① of the Busan Metropolitan City Ordinance on Support for Women’s Enterprises; <This Article Newly Inserted on Jul. 8, 2009>
    • 6. Matters concerning the subparagraphs of Article 9 ① of the Busan Metropolitan City Ordinances on the Facilitation and Support Of Entrepreneurial Activities Of Persons With Disabilities); <Newly Inserted on Jul. 10, 2013>
    • 6-2. Matters concerning subparagraphs of Article 5 ① of the Busan Metropolitan City Ordinance on the Fosterage and Support of Local Enterprises; and
    • 7. Other matters which the Mayor refers to the Committee for deliberation and with respect to which he/she deems it necessary to do so. <Amended on Jul. 7, 2008; Jul. 8, 2009>
      • ③ The Committee shall be composed of not more than fifteen members including one Chairperson and one Vice-Chairperson.
      • ④ The Chairperson shall be the Mayor of the Ministry of Economy, and the Vice-Chairperson shall be appointed by the Chairperson from among the members and the members shall be commissioned or appointed by the Mayor from among those persons who fall under any of the following subparagraphs: <Amended on Jul. 7, 2008; Jul. 6, 2010, Sep. 25, 2013; Aug. 1, 2018>
    • 1. Officers or staff members of enterprise-related special local administrative agencies such as regional small and medium and venture business administrations; <Amended on Aug. 1, 2018>
    • 2. Officers or staff members of institutions funded by the Central Government or the City, including the Small Business Corporation;
    • 3. Officers or staff members of financial institutions, including the Bank of Korea;
    • 4. Entrepreneurs or members of enterprise-related organizations;
    • 5. Public officials belonging to the City; and
    • 6. Other persons who have much knowledge and experience on the regional economy.
      • ⑤ Members shall hold office for a term of two years and may be commissioned or appointed consecutively for a further term: Provided, That a member who is commissioned or appointed to fill a vacancy occurring prior to the expiration of the term of office of his/her predecessor shall hold office for the remainder of that term.
      • ⑥ The Chairperson shall convene and preside over meetings of the Committee. <Newly Inserted on Jul. 15, 2020>
      • ⑦ A member designated in advance by the Chairperson shall act on his/her behalf, if the Mayor is unable to perform his/her duties for any unavoidable reasons. <Newly Inserted on Jul. 15, 2020>
      • ⑧ The chairperson shall convene a meeting when a majority of the incumbent members attend a meeting, and shall pass resolutions with the concurrence of a majority of the members present. <Newly Inserted on Jul. 15, 2020>
      • ⑨ In order to deal with general affairs of the Committee, it shall have one secretary and one clerk, who shall be the public official in charge of enterprise assistance affairs and any other junior public official shall be in charge of enterprise assistance affairs, respectively <Amended on Jul. 15, 2020>
      • ⑩ Allowances, travel expenses and other necessary expenses may be paid to the members of the Committee who are not public officials belonging to the City, to such an extent as the relevant budget permits. <Amended on Jul. 15, 2020>
      • ⑪ Other necessary matters concerning the operation of the Committee shall be determined by the Chairperson, subject to the resolution of the Committee. <Amended on Jul. 15, 2020>
  • Article 21 (Awards)
  • The Mayor may award prizes to institutions or organizations, etc. which contributed to settle difficulties of enterprises pursuant to the Busan Metropolitan City Ordinance on Awards. <This Article Newly Inserted on Sep. 25, 2013>
  • Addendum
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Addenda (Ordinance on Establishment of Administrative Organizations) <Jul. 7, 2008>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 2 (Amendment of other Ordinances)
  • ① ~ (54) Omitted.
  • (55) Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows: Among the parts other than those referred to in the subparagraphs of Article 18④, the “Director-General of Economic Promotion” shall be amended to the “Director-General of Economic and Industrial Affairs”
  • (56) Omitted.
  • Addenda (Ordinance on Establishment of Administrative Organizations) <Jul. 7, 2008>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Article 2
  • Omitted.
  • Article 3 (Amendment of other Ordinances)
  • Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • Article 18②4 shall be referred to as subparagraph 5, and subparagraph 4 shall be newly inserted in the same paragraph as follows:
  • 4. Matters concerning the management and administration of the Small and Medium Business Development Fund of Busan Metropolitan City under the Ordinance on the Busan Metropolitan City’s Small and Medium Business Development Fund ② ~ ③ Omitted.
  • Addenda (Ordinance on the Small and Medium Business Development Fund) <Jul. 7, 2008>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Article 2 (Amendment of other Ordinances)
  • ① Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as fol
  • The phrase “win the grand prize for export” in Article 4 ① 1 shall be amended to ”win the grand prize for export or a commendation for social contribution“
  • ② Omitted.
  • Addendum <Apr. 1, 2009>
  • This Ordinance shall enter into force on the date of its promulgation.
  • Addenda (Ordinance on Promotion and Support of Social Contribution) <Dec. 31, 2008>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Article 2 (Amendment of other Ordinances)
  • Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • Article 18 ② 5 shall be referred to as subparagraph 6, and subparagraph 5 shall be newly inserted in the same paragraph as follows:
  • 5. Matters concerning the subparagraphs of Article 5 ① of the Busan Metropolitan City Ordinance on Support for Women’s Enterprises;
  • Addenda (Ordinance on Support or Women’s Enterprises) <Jul. 8, 2009>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 2
  • Omitted.
  • Article 3 (Amendment of other Ordinances)
  • ① ~ (20) Omitted.
  • (21) Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • In Article 18 ④, the "Director-General of the Economic and Industrial Affairs Office" shall be amended to the "Head of the Economic and Industry Division“ (22) ~ (36) Omitted.
  • Addenda (Ordinance on Support or Women’s Enterprises) <Jul. 8, 2009>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on Jan. 1, 2014.
  • Article 2 ~ Article 3
  • Omitted.
  • Article 4 (Amendment of Other Ordinances)
  • ① Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • In Article 5 ① 3, "Article 64 of the Act on Local Taxes" shall be amended to "Article 136 of the Framework Act on Local Taxes“ ② ~ ③ Omitted.
  • Addenda (Ordinance on Establishment of Administrative Organizations) <Jul. 6, 2010>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Article 2 (Amendment of other Ordinances)
  • Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • Article 18 ② 6 shall be referred to as subparagraph 7, and subparagraph 6 shall be newly inserted in the same paragraph as follows:
  • 6. Matters concerning the subparagraphs of Article 9 ① of the Busan Metropolitan City Ordinances on the Facilitation and Support Of Entrepreneurial Activities Of Persons With Disabilities.
  • Addendum <Sep. 25, 2013>
  • This Ordinance shall enter into force on the date of its promulgation.
  • Addenda (Ordinances on the Promotion and Support of Local Enterprises) <Jan. 10, 2018>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Article 2 (Amendment of other Ordinances)
  • ① Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • Subparagraphs 6-2 of Article 20 ② shall be newly inserted as follows:
  • 6-2 Matters concerning each subparagraph of Article 5 ① of the Busan Metropolitan Government Ordinances on the Promotion and Support of Local Enterprises;
  • ② Omitted.
  • Addenda (Ordinance on Establishment of Administrative Organizations) <Aug. 1, 2018>
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force on the date of its promulgation.
  • Article 2
  • Omitted.
  • Article 3 (Amendment of other Ordinances)
  • ① ~ (72) Omitted.
  • (73) Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • In Article 19, the "Small and Medium Business Administration" shall be amended to the "Ministry of SMEs and Startups", and the "Local Small and Medium Business Administration" in Article 20 ④ 1 shall be amended to the "Local Small and Medium Venture Business Administration“
  • (74) ~ (95) Omitted.
  • Addenda (Ordinance on Busan Metropolitan City’s Small and Medium Enterprises Development Fund) <May. 29, 2019>)
  • Article 1 (Enforcement Date)
  • This Ordinance shall enter into force one month after the date of its promulgation.
  • Article 2 (Amendment of other Ordinances)
  • Some provisions of the Busan Metropolitan City Ordinance on the Honorable Treatment of entrepreneurs and the promotion of corporate activities shall be amended as follows:
  • Article 20 ② 4 shall be deleted.
  • Addendum <Jul. 15, 2020>
  • This Ordinance shall enter into force on the date of its promulgation.
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