Assemblyman Shin Jeong-hoon Introduces Bill to Enhance Effectiveness of Livelihood-Suitable Industry System

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Representative Shin Jeong-hoon (Jeonnam Naju·Hwasun, Democratic Party) announced on the 2nd that he has taken the lead in proposing a revision bill to the "Special Act on Designation of Suitable Business Types for Livelihood of Small Business Owners" to more actively protect the rights and interests of small business owners.

The revision bill specifies that participation by large corporations, etc., should be restricted from the time a suitable business type for livelihood is applied for and the procedure is underway, and if a large corporation operating in the relevant business or item at the time of designation does not comply with the recommended restrictions on business scope, the Minister of SMEs and Startups may issue an order to comply and impose a business suspension of up to six months.

The small business owners' livelihood-suitable business type system is implemented with the purpose of designating and protecting and fostering business types suitable for small business owners to make a living, thereby promoting management stability and income improvement for small business owners.

However, under the current system, it can take up to 15 months from the application by small business organizations for designation as a livelihood-suitable business type until the designation is made, and there is no legal device to prevent large corporations from acquiring, starting, or expanding businesses during the review period.

Moreover, the current law recommends restricting the business scope, including items, quantities, facilities, services, and sales activities, for large corporations operating in the relevant business or item at the time of designation as a livelihood-suitable business type for a period within three years. However, even if the recommendations are not followed, there are no sanctions other than simple public announcement, raising concerns about its effectiveness.

Representative Shin Jeong-hoon said, "Through this national audit, I pointed out the shortcomings of the small business owners' suitable business type system, and as a follow-up measure, I prepared the revision bill. I will strive to promote balanced development of the national economy so that small business owners can protect the livelihoods they have worked hard to build."

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