A Study Of Korea Small And Medium Businesses Legal System

Medium and small enterprises which are as known as SMEs are the fundamental and the core of the national industry. Especially, in Korea, compared with US, UK and any other western capitalism countries, SMEs takes up to99.9%portion in the industry.SMEs are located at all over its nation which develop the country region equally as well as creating jobs; therefore, they contribute to their national economy. Especially, they are eager to lean into promote the technology promotion so that technology promotion boost national industry’s technology promotion as well as improving its competitiveness.However, SMEs face some obstacles. First obstacle would be a lack of the capital. SMEs’ sizes are small so they always suffer from the cash flow. Second is the lacking of human sources. Compared with a big cooperation, SMEs cannot find suitable employees since with its working environment and company’s welfare system, SMEs are having a hard time to attract the workers. Also, due to the lack of the equipment and market exploitation, SMEs have the limitation of the technology promotion. For those reasons, the national should establish the legislation system and support SMEs for their technology promotion.Korea, after1997’s Asian financial crisis,2001year set up "technology development promotion for Korean SMEs" and with this, Korea supports SMEs to improve SMEs’ competitiveness.Lately, China starts to pay attention to SMEs’ technology promotion so that, China is working on the study about the technology development promotion for SMEs and its legislation system. However, most of data are from US, Germany, and Japan so it is rare to find a study about technology development promotion for Korean SMEs and Korean legislation system.This thesis will talk about technology development promotion for Korean SMEs which is not yet fully studied in China.Chapter one of this thesis will include the content about brief information about the definition of Korean SMEs and its features, its legislation feature, how SMEs has affected the economics, history of SMEs and its present condition, and how the technology promotion has affected SMEs. Chapter two of this thesis will include the content about the brief information about current state of the legislation of the technology development promotion for Korean SMEs. In this technology development promotion legislation, it can be distinguished into three parts, fundamental legislation, main technology development promotion legislation, and supporting legislation. Fundamental legislation is about constitution law and SMEs fundamental law. These two laws are not only base of the technology development promotion but also fundamental of Korean SMEs legislation system. The main technology development promotion legislation is about industry technology development promotion and SMEs technology development promotion. These are specialized in the SMEs technology development promotion. The supporting legislations are about SMALL AND MEDIUM ENTERPRISES PROMOTION ACT, SPECIAL ACT ON SUPPORT FOR HUMAN RESOURCES OF SMALL AND MEDIUM ENTERPRISES, ACT ON FACILITATION OF PURCHASE OF SAMLL AND MEDIUM ENTERPRISE-MANUFACTURED PRODUCTS AND SUPPORT FOR DEVELOPMENT OF THEIR MARKETS, KOREA TECHNOLOGY CREDIT GUARANTEE FUND ACT, ACT ON SPECIAL MEASURES FOR THE PROMOTION OF VENTURE BUSINESSES and ACT ON THE PROMOTION OF COLLABORATIVE COOPERATION BETWEEN LARGE ENTERPRISES AND SMALL-MEDIUM ENTERPRISES. They support the main technology development promotion.Chapter three of this thesis will talk about the Korean SMEs technology promotion legislation’s pros and cons. Korean SME’s legislation system is relatively perfect and it has many merits. First, it clearly regulates the obligation of the nation so that the nation must support the SMEs, the nation has an obligation to support SMEs for their development promotion. Second, it plans and precedes the technology promotion. Third, depends on the plan, it carries forward the technology promotion supporting business. Fourth, it helps to established SMEs technology promotion supporting organization so that the government supports and manages the SMEs technology promotion and form the SMEs technology promotion service network. Fifth, it plans SMEs technology promotion and performs to find out the current state of SMEs and their technology promotion situation. Sixth, it fosters and supports renovation small business. Seventh, it promotes the interaction between big cooperation and SMEs so it encourages and SMEs technology promotion ability.However, there are some shortcomings. First, there are so many legislation that it reduces the efficiency. Second, there are so many organizations that SMEs have some difficulties to find the proper one. Third, there is an unbalance of technology promotion supporting between SMEs and the enterprises of middle standing so SMEs do not want to be the middle standing enterprises. Fourth, there is not much legislation about the technology promotion protection. Fifth, the legislation of technology innovation SMEs and management innovation SMEs is not much so that it does not foster and supports efficiently. Sixth, due to excessive SMEs protection policy, it discourages the abilities of technology innovation and their will. Seventh, due to excessive major firm focus policies, it reduces the effect of the legislation.Chapter four of this thesis will talk about some suggestion for Technology development promotion for Korean SMEs, summary of this these and the conclusion of it.