Root Company Representatives Meeting Minister Kwon Chil-seung Complain "Labor Shortage and Even the 52-Hour Workweek"

Meeting with Local Root Industry Leaders... Open Communication
"Expansion of Suitable Livelihood Industries... Protection of Root Industries" Opinions
Minister Kwon Chil-seung "Will Secure Competitiveness of Traditional SMEs"

[Image source=Yonhap News]

[Asia Economy Reporter Junhyung Lee] “With attention focused on ventures and information technology (IT), I thought those in the foundational industries might feel left out. Industries like electric vehicles ultimately rely on foundational industries with the necessary technology to sustain them, don’t they?”

On the 12th, Kwon Chil-seung, Minister of SMEs and Startups, visited the foundational company ‘Yongju Industry’ located in Yongin, Gyeonggi Province, and held a meeting with five local business representatives.

This visit marks Minister Kwon’s first company visit since taking office. He toured the factory and manufacturing facilities and encouraged companies in the foundational industries that have been struggling with workforce supply and securing funds due to the prolonged COVID-19 pandemic. According to the Ministry of SMEs and Startups, this visit was arranged to reaffirm Minister Kwon’s commitment to listen to on-site difficulties and suggestions and reflect them in policies.

[Image source=Yonhap News]

During the meeting, representatives from manufacturing SMEs in the Gyeonggi region freely conveyed their on-site voices to Minister Kwon. Ministry staff present actively responded, leading to lively discussions among attendees. It is said that Minister Kwon instructed not to pre-arrange the Q&A content during the meeting.

The company representatives unanimously expressed that “there are policies disconnected from the realities on the ground.” One manufacturing company representative said, “Most SMEs in the foundational industries operate on a shift basis due to poor financial conditions,” adding, “Of course, following the domestic labor shortage caused by COVID-19, it has become difficult to even find foreign workers, making it practically impossible to apply the 52-hour workweek.” He lamented, “To keep the company running, continuous work is inevitable, but this situation could make the representative a lawbreaker,” and requested, “I hope SMEs can be granted a longer grace period.”

Concerns were also raised about the aging workforce in production positions due to difficulties in hiring young workers. Another manufacturing company representative said, “We have tried various methods, including utilizing military service exemptions, but young people do not come,” adding, “We urgently hired many retirees, but since any injuries due to their pre-existing conditions are entirely the company’s responsibility, there is a sense of insecurity.” He added, “When young people come for interviews and are shown the workplace, 99% do not show up for work even after passing.”

Minister Kwon responded, “We will look for ways to transfer domestically developed technology to local workers,” and added, “Since no business can operate without foundational industries, we will review related systems.”

[Image source=Yonhap News]

There was also an opinion that the scope of livelihood-suitable industries should be expanded. A manufacturing company representative who developed eco-friendly aluminum containers said, “Seven years ago, we developed the technology, and last year, as the delivery market grew due to COVID-19, our product gained attention as a plastic alternative, attracting interest from large corporations,” adding, “If large corporations start developing on their own, (SMEs) cannot compete.” He requested, “Please expand the designation of suitable industries for SMEs within foundational industries to protect the technology and industrial groups of specialized SMEs.”

Minister Kwon stated, “Foundational companies are perceived as 3D (difficult, dangerous, dirty) industries with relatively poor working environments, and the prolonged COVID-19 pandemic likely exacerbated their difficulties,” adding, “We plan to promote five major policy tasks, including innovation support for traditional SMEs and regional SMEs.” He continued, “We will secure the competitiveness of traditional SMEs through three major projects: smart manufacturing innovation, eco-friendly process innovation, and new business transformation innovation,” and said, “We will concretize these by reflecting specific suggestions from the field.”

The Ministry of SMEs and Startups expressed its intention to consult with related ministries to incorporate the issues discussed at the meeting into policies. It plans to continue efforts to resolve difficulties faced by regional SMEs and expand communication through on-site visits.

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