Mid-sized Ombudsman Strengthens On-site Visits Amid COVID-19 Crisis

Starting with a Meeting of Small and Medium Enterprises in Incheon, Full-Scale Efforts for SMEs, Small Business Owners, and Self-Employed Begin

Park Ju-bong, the Ombudsman, is speaking at the small business owners meeting in the Gwangju-Jeonnam region last year.
[Photo by Small and Medium Business Ombudsman]

[Asia Economy Reporter Kim Jong-hwa] Park Ju-bong, the Small and Medium Business Ombudsman (vice ministerial level), has begun active efforts to overcome the difficult domestic economic situation caused by COVID-19.

On the 25th, the Ombudsman announced that he would intensify efforts for small and medium enterprises (SMEs), small business owners, and self-employed individuals, starting with the 'S.O.S Talk' meeting held at the Incheon Regional Small and Medium Venture Business Administration in Namdong-gu, Incheon, where local companies participated.

The S.O.S Talk meeting is a joint forum involving Small businesses, the Ombudsman, and the Korea SMEs and Startups Agency (KoSme) to resolve regulatory difficulties faced by SMEs. This year, it is scheduled to be held in 14 regions nationwide to overcome COVID-19 and revitalize businesses.

At the Incheon S.O.S Talk, Park Ju-bong, the Ombudsman, along with officials from the Korea SMEs and Startups Agency and local business representatives, discussed regulatory challenges and solutions arising from smart logistics projects.

Company A, which manufactures machinery and equipment in Namdong-gu, Incheon, stated, "If registered as an implementing agency for the Manufacturing SME Innovation Voucher Project, we cannot apply as a demand company even if it is in a different field," and requested, "Please relax the eligibility criteria for voucher project applications."

In response, Ombudsman Park said, "It is recognized that implementing agencies, as manufacturing SMEs, also need voucher support for non-specialized fields," and added, "After consulting with the Ministry of SMEs and Startups, it was decided to allow implementing agencies to apply as demand companies if the service provision field differs."

Ombudsman Park also added, "To enable more companies to participate in the voucher project, the application period will be extended, and to prevent any company from missing the application deadline, notifications will be sent to SMEs via text messages and emails once the announcement date is confirmed."

Company B, which manufactures machinery and equipment in Seo-gu, Incheon, appealed, "To be exempted from the installation requirement of fences (safety fences), which is the biggest burden for collaborative robots, companies must prove compliance with Korean Industrial Standards or international standards, but the content is extensive and complex, making it difficult for SMEs to handle on their own."

Ombudsman Park explained, "As a result of a proposal to the Ministry of Employment and Labor, and in consultation with the Ministry of Trade, Industry and Energy, we received a response that a simplified guideline will be distributed by the end of this year to help companies easily determine whether they are exempt from installing collaborative robot fences."

Last year, the Small and Medium Business Ombudsman, together with the Korea SMEs and Startups Agency, identified and addressed 159 difficulties through the S.O.S Talk meetings, achieving regulatory improvements in 38 cases (acceptance rate of 23.8%).

Representative cases include improving regulations to exclude mandatory labeling items such as product names and raw materials from prior review when displaying and advertising health functional foods, except for false or exaggerated claims related to functionality. Additionally, to revitalize regional investment outside the metropolitan area, in consultation with Iksan City Hall, support was improved to cover costs for purchasing new facilities and equipment even when companies entering the jurisdiction acquire factories through auctions or sales, not just new factory construction.

Ombudsman Park Ju-bong emphasized, "In response to the COVID-19 crisis, we will closely monitor the industry and business conditions and work as a regulatory improvement problem solver by consulting with relevant ministries to prepare practical alternatives that SMEs can feel on the ground."

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