Chairman Kim Ki-moon: "Immediate Support of 50 Million KRW Needed for SMEs Affected by COVID-19" (Comprehensive)

Korea Federation of SMEs New Year Press Conference

Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business (left), is giving a greeting at the 2020 New Year's press conference held on the 3rd at the Korea Federation of Small and Medium Business in Yeouido, Seoul. Photo by Korea Federation of Small and Medium Business

[Asia Economy Reporter Moon Hyewon] Kim Ki-moon, chairman of the Korea Federation of Small and Medium Business (Kbiz), stated on the 3rd regarding the spread of the novel coronavirus infection (Wuhan pneumonia), "The government-level prompt response must be made for small business owners who are struggling due to temporary sales declines," and added, "Policy authorities need to implement immediate support measures within at least 50 million won."

Chairman Kim made these remarks during his greeting at the 2020 New Year press conference held at the Korea Federation of Small and Medium Business in Yeouido, Seoul, on the morning of the same day.

He said, "There is a growing concern that damages to small and medium enterprises (SMEs) and small business owners will rapidly expand. In the era of global division of labor, if there is a disruption in the procurement of parts and materials produced in China, domestic industries will inevitably be affected," and added, "Since the World Health Organization (WHO) does not restrict international trade, we must ensure that there is no disruption in the supply of parts and materials."

He continued, "This year, 'crisis' and 'opportunity' will coexist amid challenging conditions such as the novel coronavirus, prolonged domestic demand recession, and rapid changes in the labor environment," and expressed hope that "the 21st general election will lead to the operation of an 'economic National Assembly' and a 'National Assembly for SMEs'." He also stated, "We plan to collaborate with SME organizations and expert groups to identify 260 policy tasks across nine sectors for the general election and sequentially deliver them to each political party under the name of 16 SME-related organizations before the election."

Chairman Kim pointed out the top priority policy tasks desired by the SME sector as ▲ deregulation abolition ▲ coexistence between large and small businesses ▲ revitalization of cooperatives ▲ and boosting the vitality of small business owners. Specifically, he requested improvements in environmental regulations such as the Act on Registration and Evaluation of Chemical Substances (Chemical Substances Control Act) and the Chemical Control Act to create an ecosystem for the sustainable growth of SMEs. He also emphasized the need for voluntary coexistence cooperation at the private level before enforcing binding laws.

The Korea Federation of Small and Medium Business plans to directly adjust delivery prices on behalf of individual SMEs and cooperatives through the right to negotiate delivery price adjustments. Chairman Kim said, "The disappearance of industry-specific cooperatives results in the disappearance of that industry in the country," and demanded recognition of the SME status of cooperatives, clarification of uncertain cartel application standards, and expansion of ordinances for fostering SME cooperatives to basic local governments. He further requested, "A prompt government-level response is necessary for SMEs experiencing temporary sales declines due to direct damage from the novel coronavirus," and urged policy authorities to establish a proactive special management stabilization fund (with a minimum support of 10 million won).

As a comprehensive promotion plan to revitalize the grassroots economy, he proposed ▲ establishing legal grounds to support aging distribution markets ▲ supporting social insurance premiums for small-scale small business owners ▲ smart modernization of small supermarkets ▲ and social backing against unfair practices in the online market.

On the same day, the Korea Federation of Small and Medium Business also announced the "21st General Election SME Policy Tasks." The policy tasks consist of 260 items across nine sectors: ▲ laying the foundation for future growth engines ▲ coexistence between large and small enterprises and establishment of a fair economy ▲ creating an ecosystem for the sustainable growth of SMEs ▲ revitalization of SME cooperatives ▲ boosting the vitality of small business owners for grassroots economic recovery ▲ creating an environment for more and better jobs ▲ strengthening support for new market entry beyond domestic demand ▲ SME policy tasks by industry and organization ▲ and revitalization of regional economies and local SMEs.

Specifically, to secure future growth engines, they proposed raising awareness and supporting the advancement of smart factories, flexible application of regulatory special periods to resolve uncertainties after the expiration of special permits and approval periods, and improvement of the temporary permit system. They also requested building a coexistence cooperation foundation to bridge the gap between large and small enterprises, supporting technology localization through cooperative development in the materials, parts, and equipment industry, and strengthening sanctions against unfair trade practices. For job environment creation, they included expanding flexible and selective working hour systems, implementing differentiated minimum wages by industry and scale, strengthening online exhibition projects for new market entry, and establishing safety measures for the stable operation of the Kaesong Industrial Complex in the general election tasks.

This content was produced with the assistance of AI translation services.