“Regulatory Improvement and Support Expansion Needed for Revitalization of Small and Medium Enterprise Cooperatives”

‘Junggi Cooperative, The Power of Connecting Small and Medium Enterprises’ Forum

[Asia Economy Reporter Moon Hyewon] The Korea Federation of Small and Medium Business (KBIZ) held a forum titled “Small and Medium Enterprise Cooperatives, the Power of Connection Among SMEs” on the 13th at the 1st Conference Room of the Korea Federation of Small and Medium Business in Yeouido, Seoul.

The forum was organized to discuss policy alternatives with government and industry experts based on the research results on SME cooperatives by the Policy Research Team of the KBIZ SME Research Institute, which opened in February this year.

The forum was moderated by Na Kyunghwan, Vice President of Industry-Academia Cooperation at Dankook University, and featured presentations by Song Jaeil, Professor of Law at Myongji University; Jeon Byeonguk, Tax Specialist Professor at the University of Seoul; and Yoon Byungseop, Professor of Convergence Industry at Seoul Venture University.

Professor Song stated, “While cooperatives under the Framework Act on Cooperatives are recognized as SMEs under the Framework Act on Small and Medium Enterprises, considering SME cooperatives as SMEs only at the discretion of policy measures violates the constitutional principle of prohibition of excessive restrictions on the fundamental rights of SME cooperatives,” adding, “It is also discrimination against the constitutional principle of equality.”

He further argued that since the recognition of SME status is determined at the discretionary judgment of government agencies without clear standards, legal amendments are necessary.

Professor Yoon proposed, “To allow SME cooperatives to manage industrial complexes, related regulations should be eased to lower entry barriers, and clear legal grounds are needed so that distribution markets can receive support for facility modernization.”

Kim Gimun, Chairman of KBIZ, said, “SME cooperatives serve as a focal point to practice solidarity and collaboration among SMEs,” and added, “We have conveyed the SME sector’s position to the 21st National Assembly that SME cooperatives should be equally recognized with cooperatives under the Framework Act on Cooperatives in government support policies.”

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