Seoul City Supports Survey and Consulting for Small and Medium Enterprise Suitable Industries

Recruitment of Participating Organizations for 2 Industry Surveys and 1 Consulting Group by the 22nd
Focused Support for Basic Data Collection and Application Document Preparation for SME Suitable Industry Designation Over 3-4 Months

[Asia Economy Reporter Lim Cheol-young] # The Korea Laundromat Association attempted to designate the ‘self-service laundromat’ sector as a small and medium-sized enterprise (SME) suitable industry in 2018 but faced difficulties preparing the documents required for the application. Accordingly, they requested support from the Seoul Metropolitan Government for a fact-finding survey, receiving assistance with investigating the market structure, size, and cases of damage to small business owners caused by large corporations entering the market, as well as help with drafting the application. Finally, in April this year, they were able to submit the application to the Win-Win Growth Committee.

The Seoul Metropolitan Government supports fact-finding surveys for the designation of ‘SME Suitable Industries.’ For industries already designated, customized consulting is provided to enhance competitiveness, and for industries whose designation is about to expire, assistance is given to help them be designated as ‘Livelihood Suitable Industries,’ which can strongly prevent large corporations from entering the market.

The ‘SME Suitable Industry’ system is designed to designate sectors where SMEs can demonstrate competitiveness, promoting a rational division of roles between large corporations and SMEs. Since the abolition of the SME-exclusive industry system in 2006, indiscriminate market entry by large corporations has expanded. To protect the business areas of SMEs, the Win-Win Growth Committee introduced and has been implementing this system since 2011. The designation period is three years, with the possibility of a three-year extension through re-agreement, and recommendations such as restricting large corporations’ entry into designated industries are made.

This year, Seoul plans to accept applications for fact-finding survey support from two industry associations by the 22nd. For selected industries, a 3-4 month fact-finding survey will be conducted to provide objective basic data on the market structure, size, and damage cases to small business owners, presenting grounds for the necessity of SME suitable industry designation and supporting the preparation of documents required for application to the Win-Win Growth Committee.

Management consulting is also provided for items already designated as suitable industries. Consulting targets associations representing the industry, with one association to be selected this year. The purpose of the consulting is to enhance industry competitiveness through support for discovering business models, market development, marketing, and other business revitalization measures.

Industries whose SME suitable industry recommendation period is about to expire can apply for consulting related to preparing grounds for designation as ‘Livelihood Suitable Industries.’ ‘Livelihood Suitable Industries’ are sectors with low entry barriers and many small-scale small business owners; once designated, business acquisition, commencement, or expansion by large corporations is prohibited for five years, ensuring solid protection. Currently, ten industries (items) are designated, including noodle and cold noodle manufacturing, retail of books, newspapers, and magazines, and vending machine operation.

Industries and associations wishing to participate in the fact-finding survey and consulting can apply by the 22nd through the Seoul Metropolitan Government website. Considering the number of businesses and workers within Seoul, the necessity of support, and the association’s self-effort and willingness, support targets will be selected through interviews in May.

Kang Seok, Seoul’s Small Business Policy Officer, explained, “The core of this support is to ensure that industries mostly composed of small business owners are designated as SME suitable and livelihood suitable industries to be protected within neighborhood commercial districts. Seoul will provide multifaceted support not only to create an environment where small business owners can operate with peace of mind but also to help them enhance their competitiveness independently.”

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