Article 1 (Purpose) The purpose of this Rule is to provide for matters delegated by the Seoul Metropolitan Government Ordinance on the Promotion of Social Enterprises and matters necessary for enforcing said Ordinance.

Article 2 (Designation Requirements for Seoul-Type Social Enterprises, etc.) (1) Upon receipt of an application from an entity that has fulfilled all of the following requirements, the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") may designate such entity as a Seoul-type social enterprise, after deliberation by the Seoul Metropolitan Social Enterprise Promotion Committee (hereinafter referred to as the "Committee"), in accordance with Article 5 (1) of the Seoul Metropolitan Government Ordinance on the Promotion of Social Enterprises (hereinafter refer to as the “Ordinance”):
1. That it shall assume the form of an organization prescribed by Article 8 of the Enforcement Decree of the Social Enterprise Promotion Act, such as a corporation or partnership as defined in the Civil Act, a company as defined in the Commercial Act, or a non-profit, non-governmental organization;
2. That it shall employ paid workers and engage in business activities, such as production and sale of goods or services;
3. That its primary objective shall be to realize social objectives, such as enhancing the quality of life of community residents by providing vulnerable social groups with job opportunities or social services.
(2) The criteria for determining whether the primary objective of an entity is to realize social objectives under paragraph (1) 3 shall be as follows:
1. If its primary objective is to provide employment to vulnerable social groups: The ratio of vulnerable social groups employed by such entity to the total workers of such entity, shall be at least 30/100;
2. If its primary objective is to provide services acknowledged by the Committee after deliberation under Article 3 of the Ordinance, other than social services as defined in subparagraph 4 of Article 2 of the Ordinance, to vulnerable social groups: The ratio of vulnerable social groups provided with social services by such entity, to the whole persons provided with social services by such entity, shall be at least 30/100;
3. If its primary objective is to provide vulnerable social groups with employment and social services: The sum of the ratio of vulnerable social groups employed by such entity to the total workers of such entity, and the ratio of vulnerable social groups provided with social services by such entity to the whole persons provided with social services by such entity, shall be at least 30/100.
(3) Notwithstanding paragraph (2), if it is impractical to determine whether social objectives are realized as specified in the subparagraphs of paragraph (2), the Mayor shall determine whether social objectives are realized after deliberation by the Committee.

Article 3 (Application and Procedures for Designation as Seoul-Type Social Enterprise) (1) An entity seeking to be designated as a Seoul-type social enterprise under Article 2 shall file an application for designation as Seoul-type social enterprise in attached Form 1 and the following documents necessary for examining the designation, with the Mayor:
1. A document evidencing that the entity assumes the form of an organization specified in Article 2 (1) 1;
2. Payroll register that records all paid workers and a document verifying revenue generated from its business activities under Article 2 (1) 2;
3. A business plan that shows fulfillment of the detailed criteria for determining whether the primary objective of the entity is to realize social objectives under Article 2 (1) 3;
4. Other materials, etc. as deemed required for examination for the designation of a Seoul-type social enterprise by the Committee.
(2) Upon receipt of an application for designation as Seoul-type social enterprise under paragraph (1), the Mayor shall table it for deliberation by the Committee within 60 days from the application deadline and, if it is found suitable as a Seoul-type social enterprise, deliver a certificate of designation as Seoul-type social enterprise in attached Form 2 to the applicant.

Article 4 (Cancellation of Designation as Seoul-Type Social Enterprise) (1) If an entity designated as a Seoul-type social enterprise falls under any of the following subparagraphs, the Mayor may cancel its designation as a Seoul-type social enterprise:
1. If it obtains designation by deceit or other fraudulent means;
2. If it no longer meets the designation requirements;
3. If any ground of ineligibility contrary to its business objective is found.
(2) If the Mayor intends to cancel designation of an entity as a Seoul-type social enterprise, he/she shall hold a hearing and notify the representative of the entity of the cause of revocation.

Article 5 (Detailed Procedures for Cancellation of Designation) (1) If the Mayor intends to hold a hearing under Article 4 (2), he/she shall serve a summons that states the date, time and place of such hearing on the representative of the Seoul-type social enterprise subject to the cancellation of designation as a Seoul-type social enterprise.
(2) If the representative of a Seoul-type social enterprise on whom a summons has been served under paragraph (1) is unable to attend the hearing at the scheduled date due to unavoidable circumstances, the hearing may be rescheduled.
(3) When the Mayor cancels the designation of a Seoul-type social enterprise under Article 4 (1), he/she shall notify, without delay, the representative of the Seoul-type social enterprise and the head of the relevant local government thereof, stating the reason for the cancelation.

Article 6 (Procedures for Financial Support) (1) The beneficiaries and amounts of financial support under Article 8 of the Ordinance shall be determined, within the budget, after public announcement advising the financial assistance plan and the Committee’s review of the applications filed.
(2) The financial support shall be limited to a one-year period, which may be renewed up to two years for fulling the certification requirements for social enterprises specified in Article 8 of the Social Enterprise Promotion Act.
(3) A Seoul-type social enterprise seeking financial support shall file an application for funding for Seoul-type social enterprise in attached Form 3 by appending the following documents, with the Mayor:
1. A copy of certificate of designation as Seoul-type social enterprise;
2. Payroll register that records all paid workers;
3. A copy of bank account book;
4. A business plan (including detailed uses of requested funds)
(4) A Seoul-type social enterprise shall obtain approval from the Mayor when any modification of the business plan is made after the financial support is determined under paragraph (2); and if it receives a new or additional financial assistance from the State, a government entity or organization, the amount of funding determined may be adjusted.

Article 7 (Methods of Payment) To ensure the efficient promotion of business and to achieve the goal of support, grant funds may be awarded in lump sum or installments: Provided, That if a standard entrustment agreement has been entered into with the Seoul-type social enterprise concerned, it shall be governed by the agreement.

Article 8 (Prohibition of Use for Unspecified Purpose and Recovery) (1) No Seoul-type social enterprise may use grant funds for purposes other than those specified in its business plan.
(2) If any use of grant funds for purposes other than those specified in its business plan is found as prescribed in paragraph (1), a full or partial amount of the funds may be recovered.

Article 9 (Reporting and Inspection of Business Performance, etc.) (1) A Seoul-type social enterprise provided with grant funds shall prepare a business report in attached Form 4 and submit it to the Mayor with a statement of accounts and other necessary documents attached thereto.
(2) To achieve a more appropriate allocation of grant funds, the Mayor shall guide and supervise Seoul-type social enterprises and, if deemed necessary, order Seoul-type social enterprises provided with grant funds and their members to make a necessary report or submit relevant documents.
(3) If deemed necessary after an examination of reported matters or guidance and supervision under paragraphs (1) and (2), the Mayor may issue an order for correction.

Article 10 (Operation of Consultative Body) (1) To build an exchange and cooperation network between private enterprises and organizations within a district, the Mayor may promote and support a district-level consultative body in accordance with subparagraph 1 of Article 11 of the Ordinance.
(2) To enhance the quality of social services and business competitiveness, a consultative body under paragraph (1) may promote the following activities:
1. Support for creating a close network within the consultative body;
2. Support for policy development for expanding business domains for social services and increasing their contribution ratio;
(3) If deemed necessary for promoting and supporting consultative bodies under paragraph (1), the Mayor may provide subsidies within the budget.

Article 11 (Detailed Operating Rule) In regard to matters necessary for this Rule, the Mayor may formulate and implement a separate plan.

ADDENDUM
This Rule shall enter into force on the date of its promulgation.