1 in 2 Small and Medium Manufacturers Cite "Burden of Certification Costs and Time"

SME Central Association Announces Status of Certification Acquisition and Survey Results on Challenges in Small and Medium Manufacturing

[Asia Economy Reporter Kim Cheol-hyun] One out of two small and medium manufacturing companies feels burdened by the costs and time required to obtain certifications. On the 18th, the Korea Federation of SMEs (Chairman Kim Ki-moon) announced the results of the "Status and Challenges of Certification Acquisition in Small and Medium Manufacturing Industries" survey conducted from April 21 to 27 targeting 300 small and medium manufacturing companies nationwide.

According to the survey, the average annual total cost for obtaining and maintaining certifications in small and medium manufacturing industries in 2019 was 21.8 million KRW, and 63.7% responded that the cost was burdensome. The average time required to obtain certification was 5.5 months, with 55.7% answering that it was burdensome.

The main purposes for obtaining voluntary certifications were "mandatory requirement for supplying to public institutions" (48.3%) and "additional points for certification when supplying to public institutions" (31.7%). Regarding difficulties in the certification acquisition process, 54.7% cited "preparing for certification," 52.3% "management difficulties due to costs and time," 50.0% "high certification standards," and 41.7% "information search." As for problems and improvements in the certification system, "repetitive certification for identical products" was the highest at 41.7%, followed by "short validity periods" (36.3%) and "overlapping types of certifications" (29.7%).

The awareness of government certification support policies was surveyed as "do not know well" (58.3%), "know but do not utilize" (22.3%), and "know and utilize" (19.3%). The policies being utilized included "Product Testing Support Project," "Overseas Standard Certification Acquisition Support Project," and "Leading Company Certification Support Project," while reasons for not utilizing them included "complex paperwork," "cumbersome support procedures," and "support not significant compared to effort." The most urgent government policy to alleviate difficulties in certification acquisition was "support for certification acquisition costs" at 40.3%, followed by "simplification and standardization of documents" (39.0%) and "reorganization of certification standards" (9.0%).

Jung Wook-jo, Head of the Innovation Growth Division at the Korea Federation of SMEs, stated, "For small and medium enterprises lacking resources such as manpower and capital, complex paperwork and procedures, testing and inspection costs, time required, regular inspections, and certification renewals are significant burdens. The unreasonable aspects of the certification system that require repetitive and overlapping certifications for identical products further increase the burden on SMEs." He added, "It is necessary to reduce the burden of certification by sequentially extending validity periods, simplifying documents, consolidating certifications, reorganizing systems, lowering certification costs, and providing support starting with major certifications."

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