"Eradicate Unfair Trade Practices by Large and Medium Enterprises"... Korea Federation of SMEs and Korean Confederation of Trade Unions Appeal to Representative Lee Nak-yeon
[Asia Economy Reporter Lee Jun-hyung] The Korea Federation of Small and Medium Business (KSMB) and the Federation of Korean Trade Unions (FKTU) urged Lee Nak-yeon, leader of the Democratic Party of Korea, to amend the Subcontracting Act to improve unfair trade practices between large corporations and small and medium enterprises (SMEs).
On the 23rd, KSMB announced that it visited the office of Leader Lee Nak-yeon along with FKTU to discuss institutional improvement measures to eradicate unfair trade practices between large corporations and SMEs. Since this year, KSMB and FKTU have jointly promoted projects such as operating a reporting center, investigations, and research to improve unfair trade practices in order to reduce the gap between large corporations and SMEs and create healthy jobs in SMEs.
The proposed amendment to the Subcontracting Act includes provisions prepared through the "Survey on Unfair Trade Practices between Large and Small-Medium Enterprises" conducted from September to November, covering the prohibition of technology theft, contract writing, and prevention of price-cutting on delivery payments.
Kim Ki-moon, chairman of KSMB, emphasized, "A small number of large corporations account for more than half of the total operating profit, and the average wage of SME workers is only 58.6% of that of large corporations, showing a significant gap," adding, "Active legislative promotion and support system establishment at the party level are necessary."
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Following this, Kim Dong-myung, chairman of FKTU, said, "The vertical exclusive transaction practices caused by the power imbalance between large corporations and SMEs are making it even harder for SMEs and SME workers," and urged, "Since realizing an 'economy where everyone prospers together' is a core national agenda, efforts such as amending related laws are needed."
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