"Urgent Need for Supplementary Measures on the 52-Hour Workweek"... Appeal from 16 SME Organizations

Appeal Released by SME Industry "Urgent Resolution Needed"
Small and Medium Business Association Announces Position on 'Key SME Issues'

"Due to the prolonged COVID-19 pandemic, sales have plummeted and workers are gradually losing their jobs one by one. In a situation where it is uncertain when the crisis will end, urgent resolution of small and medium-sized enterprises' (SMEs) pressing issues is necessary to overcome the liquidity crisis they face and to lead proactive investment expansion and job creation after COVID-19," appeals the SME sector. The urgent key issues identified include the prompt legislative supplementation and extension of the grace period for the 52-hour workweek system, cautious legislation of the Serious Accident Punishment Act, and the establishment of a separate credit rating system for SMEs affected by COVID-19.

On the 9th, the Korea Federation of SMEs Associations (Chairman Kim Ki-moon) announced its "Position on Major SME Issues" at the Korea Federation of SMEs in Yeouido, Seoul. Sixteen SME organizations, including the Korea Federation of SMEs, the Korea Mechanical Equipment Construction Association, the Korea Women Entrepreneurs Association, the Korea Federation of Small and Medium Business, the Korea Women Venture Association, the Korea Management Innovation SME Association, and the Korea SME Convergence Central Association, participated together.

The SME sector lamented, "According to a survey by the Federation, 39% of SMEs were not prepared for the introduction of the 52-hour workweek system due to COVID-19, and 83.9% of companies that work beyond 52 hours are not prepared." The industry urged the National Assembly to promptly legislate supplementary measures for the 52-hour workweek system, such as flexible working hours and selective working hours, and requested the government to extend the grace period for certain industries affected by weather, such as shipping and construction, and for root industries suffering from chronic labor shortages.

Regarding the Serious Accident Punishment Act, the position was stated as follows: "While we agree with the law's purpose of preventing industrial accidents and emphasizing worker safety, the strengthened Industrial Safety and Health Act has already been implemented earlier this year. If penalties on business owners are enforced in addition to fines on corporations, SMEs could inevitably face closure. Therefore, legislation that considers the realities of SMEs is necessary."

Additionally, the industry expressed concerns that since most SMEs are expected to experience sales declines due to COVID-19, if next year's credit evaluations are based on this year's sales, it could lead to credit rating downgrades, increased loan interest rates, reduced credit limits, and inability to extend loan maturities. Since COVID-19 is a temporary natural disaster not attributable to the companies, the industry suggests establishing separate credit evaluation criteria, such as assessing based on the highest sales in the past three years or expanding the proportion of non-quantitative evaluations for next year's credit assessments.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, stated, "Although we overcame a major crisis through the extension of maturing SME loans, four rounds of supplementary budgets, emergency management stabilization funds, additional special guarantees, and expanded employment retention subsidies, as COVID-19 prolongs, companies' sales are sharply declining and workers are losing jobs one by one. In a situation where it is uncertain when the crisis will end, urgent resolution of SME issues is necessary to overcome the liquidity crisis they face and to lead proactive investment expansion and job creation after COVID-19," he emphasized.

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