Korea SMEs Central Association Building 'Decent Workplaces'... Spreading 'Healthy Workplaces'

Korea Federation of SMEs
SME Awareness Improvement Project

Headquarters of the Korea Federation of Small and Medium Business

[Asia Economy Reporter Kim Daeseop] Kang Seungmuk (27), who graduated from Sogang University in February this year and was hired last month as a full-time new employee at the Korea Federation of SMEs. He applied for the Korea Federation of SMEs' 'Full-time Employment Linked Internship,' completed a two-month internship, and was converted to full-time employment as an outstanding intern.

Kang double-majored in Business Administration and International Korean Studies at university. Currently, he works in the Investment Strategy Office of the Asset Management Headquarters, handling investments of the Yellow Umbrella Fund contributions and operating profits into stocks, bonds, and alternative assets.

The Korea Federation of SMEs is an economic organization established in 1962 to represent the rights and interests of 3.6 million small and medium enterprises. Kang decided to join the Korea Federation of SMEs influenced by his past experience participating in activities to improve the perception of SMEs. From August to December 2015, Kang was active as a member of the 9th class of 'Happy SME Ambassador.' This was his first external activity in life.

'Happy SME Ambassador' is a perception improvement project for SMEs promoted by the Korea Federation of SMEs since 2010. Every year, university students are selected. Those selected as Happy SME Ambassadors introduce promising and excellent SMEs, conduct interviews with SME CEOs and employees, and widely share these through blogs, YouTube, and other platforms. It creates an atmosphere where young people correctly understand SMEs and many citizens can reflect on the importance of SMEs.

Kang said, "I prepared for employment while thinking about what I want to do and what kind of life I hope for," adding, "Through the Happy SME Ambassador activities, I became interested in policy-related affiliated organizations that play a kind of catalyst role."

The Korea Federation of SMEs plays a significant role in building a 'decent workplace' where young people want to work. It lays the foundation for expanding SME jobs desired by young job seekers and helps create an environment to support SMEs' voluntary efforts to improve workplaces. Recently, in joint research with Professor Lee Jeonghwan's team at Chungbuk National University, they developed the 'SME Healthy Workplace Self-Diagnosis Model.'

68.6% of Youth Say "High Possibility of Future Employment in SMEs"
Development of SME Healthy Workplace Self-Diagnosis Model

This model derives the 'workplace health score' based on the satisfaction levels felt by internal employees in SMEs across five areas: salary level, performance rewards, working environment, corporate soundness, and organizational culture. The workplace health score is calculated by summing the weighted satisfaction scores of 13 items across the five areas, with a total possible score of 100 points. The average workplace health score of individual employees becomes the company's workplace health score.

The weighting of each area in the workplace health score reflects the preferences of young job seekers and expert opinions. The weights are set as follows: 'Performance Rewards' (27.3%), 'Organizational Culture' (22.7%), 'Working Environment' (18.3%), 'Salary Level' (17.8%), and 'Corporate Soundness' (13.9%).

According to the Korea Federation of SMEs' '2020 National Survey on Public Favorability toward SME Jobs,' 52.6% responded that the positive image of SMEs has increased. The responses were 'No change compared to the past' (30.5%), 'Don't know' (8.6%), and 'Negative image has increased' (8.3%) in order.

The factors influencing the increase in positive image were ranked as 'Expansion of government support policies for large and small enterprises' (30.2%), 'Voluntary capacity building in response to social structural changes in SMEs' (27.2%), and 'Increase in SMEs' contribution to the national economy' (24.0%). The contribution of perception improvement to job creation in SMEs was scored 66.4 out of 100.

In the 'Youth Perception Survey on SME Employment' released last month by the Korea Federation of SMEs, 68.6% selected 'SMEs' as companies with a high possibility of future employment. When asked if they would accept a job opportunity at an SME, 38.6% of young job seekers agreed.

Hong Jonghee, Director of the Youth Hope Job Bureau at the Korea Federation of SMEs, said, "For more job seekers to want to work at SMEs, government support to improve working conditions and stability is necessary, but the SMEs' own efforts to improve are even more important."

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