This is the Monday briefing. From the materials released on Friday, October 23, I have selected three items that affect companies close to their 7th year in business, small and medium-sized enterprises (SMEs) carrying out government R&D projects, and businesses renting part of a post office building.
Today’s Key Highlights
- Ministry of SMEs and Startups plan to rationalize startup regulations: up to 5 more years of startup support after a management gap such as military service or childbirth; investment institutions recognized for venture business confirmation expanded from 21 to 23; effective date not yet set
- Amendment to the Enforcement Decree of the Act on the Promotion of Technology Innovation of SMEs: new grounds for withholding or conditionally paying grants and subsidies, and for on-site inspections; comments accepted until Sunday, December 6
- Re-announced legislative notice for the Enforcement Decree of the Special Act on the Operation of Postal Services: scope of public services handled by post offices fixed; installment-payment threshold for post office building usage fees lowered from 1 million won to 500,000 won; effective Friday, November 20
1. Startup Support Extended by Up to 5 Years for Military Service or Childbirth Gaps (Proposed)
- What is changing: On October 23, the Ministry of SMEs and Startups presented a plan to rationalize startup regulations (10 tasks) to the Regulatory Rationalization Committee. Under the Support for Small and Medium Enterprise Establishment Act, a startup is a company in business for less than 7 years, and a representative’s break for military service or childbirth is still counted toward that period. The plan creates a special rule allowing up to 5 more years of startup support programs when such an unavoidable management gap occurs. The plan also includes: ① for companies in business for less than 3 years, government R&D limits on debt ratio and capital impairment will be used as a selection evaluation criterion instead of a bar to applying; ② companies in which an accelerator holds a stake of 50% or more will also be recognized as startups; ③ startup and venture private equity funds and venture business investment trusts will be added to the investment institutions recognized for venture business confirmation (21 to 23); ④ starting an additional sole proprietorship in a different industry, or an existing corporate officer alone founding a corporation in which they hold more than 50%, will also count as a startup.
- Who is affected: Young and women entrepreneurs who paused their business for military service or childbirth, early-stage startups preparing government R&D applications, and companies preparing venture business confirmation based on private investment
- When it takes effect: Not yet set. This is a proposed plan that requires amendments to the Support for Small and Medium Enterprise Establishment Act, its Enforcement Decree, and the Enforcement Decree of the Venture Business Act; no effective date has been announced for each task.
- Administrative Agent’s Note: Startup support programs and venture business confirmation applied for now are reviewed under the current standards. If your company is approaching 7 years in business and you had a break for military service or childbirth, prepare documents proving the gap, such as a military service record certificate or childbirth-related documents, and decide when to apply after checking when the laws are amended.
- Source: Korea Policy Briefing · Ministry of SMEs and Startups: Rationalizing Startup Regulations to Accelerate the Transition to a Nation of Startups (October 23)
2. Grounds for Withholding or Conditionally Paying Technology Innovation Project Grants Clarified
- What is changing: The Ministry of SMEs and Startups issued a legislative notice for a partial amendment to the Enforcement Decree of the Act on the Promotion of Technology Innovation of SMEs (Ministry of SMEs and Startups Notice No. 2026-593). It sets out the details delegated by the law amended on September 29. According to the reasons for the proposal, settlement refunds that could not be recovered over the past 5 years total 38.6 billion won. New Article 8-3 allows grants and subsidies to be withheld or paid on conditions in the following cases: ① bankruptcy, closure, insolvency, or similar business difficulties; ② failure to fulfill obligations under the agreement; ③ misconduct under the National Research and Development Innovation Act; ④ other cases the Minister deems necessary. On-site inspections may be conducted when the use of R&D funds, settlement results, or project performance needs to be checked, and cases where recovery is difficult because of bankruptcy, closure, insolvency, or a disaster will be subject to a recovery plan.
- Who is affected: SMEs that have received or are receiving grants or subsidies for technology innovation (R&D) projects of the Ministry of SMEs and Startups
- When it takes effect: Comments accepted from Friday, October 23 to Sunday, December 6; effective on the date of promulgation (draft addendum)
- Administrative Agent’s Note: This creates a basis for withholding the next installment of grants if agreement obligations are not met or settlement records are insufficient. Companies currently carrying out projects should check the reporting deadlines in their agreements and organize R&D expense evidence (tax invoices, transfer records, and personnel cost records for participating researchers) by project from now on.
- Source: National Participatory Legislation Center · Ministry of SMEs and Startups Legislative Notice: Partial Amendment to the Enforcement Decree of the Act on the Promotion of Technology Innovation of SMEs
3. Post Office Public Services Defined, Installment Threshold for Post Office Building Fees Lowered to 500,000 Won
- What is changing: The Ministry of Science and ICT re-announced its legislative notice for a partial amendment to the Enforcement Decree of the Special Act on the Operation of Postal Services (Ministry of Science and ICT Notice No. 2026-1029). In line with the amended law taking effect on November 20, it defines the public services that administrative agencies may delegate or entrust to post offices as: ① identifying households in crisis and supporting vulnerable groups; ② preventing disasters and safety accidents; ③ supporting resource circulation and carbon neutrality; ④ on-site checks and civil petition support. It also allows data containing health information, resident registration numbers, and alien registration numbers to be processed when unavoidable for these services. For newly built or rebuilt post office buildings used under a use permit or lease, the annual usage or lease fee above which payment may be split into up to 12 installments a year is lowered from over 1 million won to over 500,000 won.
- Who is affected: Businesses using part of a newly built or rebuilt post office building under a use permit or lease, and local public corporations, local public agencies, schools, and non-profit civil organizations that Korea Post may ask to submit data for its public service delivery platform
- When it takes effect: Comments accepted from Friday, October 23 to Monday, November 2; effective Friday, November 20. The installment threshold applies to usage and lease fees imposed or billed after the effective date (draft addendum Article 2)
- Administrative Agent’s Note: Businesses in newly built or rebuilt post office buildings with annual fees over 500,000 won and up to 1 million won will also become eligible for installment payments for bills issued after November 20. When you receive a bill, contact the post office in charge before the payment deadline to ask whether installments are available and how to apply.
- Source: National Participatory Legislation Center · Ministry of Science and ICT Re-announced Legislative Notice: Partial Amendment to the Enforcement Decree of the Special Act on the Operation of Postal Services
Comment Deadlines
- Monday, November 2: Comment deadline for the amendment to the Enforcement Decree of the Special Act on the Operation of Postal Services
- Friday, November 20: Scheduled effective date of the amended Special Act on the Operation of Postal Services and its Enforcement Decree
- Sunday, December 6: Comment deadline for the amendment to the Enforcement Decree of the Act on the Promotion of Technology Innovation of SMEs
This briefing was prepared by Hwang Yunsang Administrative Agent Office based on public information. Whether it applies to an individual case should be confirmed with the competent authority.