SME Research Institute, New Start with Transition to Statutory Organization

'Reestablishment of the Korea Institute for Small and Medium Enterprises as the Korea Institute for Small and Medium Venture Enterprises
Legal Foundation Established for Institution... Expectation for Stable and Continuous SME Policy Research'

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Research Institute will be relaunched as the statutory Small and Medium Venture Business Research Institute. The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced that the partial amendment bill of the "Framework Act on Small and Medium Enterprises," which mainly legalizes the Small and Medium Business Research Institute as a statutory institution specializing in research and evaluation of SMEs, passed the National Assembly plenary session on the 19th.

So far, the Small and Medium Business Research Institute has contributed to policy formulation, sound development of SMEs, and enhancement of international competitiveness as an institution investigating and researching domestic and international SME-related issues. Under the current law, the Small and Medium Business Research Institute has been designated as a 'specialized research and evaluation institution' and has conducted investigations, research, and evaluations necessary for SME policies. However, it had difficulties in performing stable and continuous research functions because it had to undergo a re-designation process every three years.

Accordingly, the Ministry has established a legal basis for the Small and Medium Business Research Institute to strengthen its research functions on management strategies and policy development as a comprehensive specialized research institution for SMEs. The amendment to the "Framework Act on Small and Medium Enterprises" newly establishes provisions for the establishment of the Small and Medium Venture Business Research Institute, providing legal grounds for the institute's operation and budget.

In particular, considering its representativeness as the only dedicated research institution related to small and medium venture businesses in Korea and its role as a policy research institution of the Ministry, the name was changed from the existing "Small and Medium Business Research Institute" to "Small and Medium Venture Business Research Institute." Kim Dae-hee, the Ministry's SME Policy Officer, stated, "With the Small and Medium Business Research Institute starting anew as a statutory research institution, the research functions will be strengthened through the creation of a stable research environment, and it will serve as a specialized comprehensive research institution necessary for small and medium venture businesses."

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