Korea Federation of SMEs Holds Consecutive Meetings with Presidential Candidates... Struggling to Secure Support

Held consecutive meetings with ruling party candidates recently
Conveyed opinions of small and medium enterprises, encouraged deregulation
"Support candidates who create a business-friendly environment"

[Asia Economy Reporter Kim Bo-kyung] The Korea Federation of Small and Medium Business (Kbiz) is holding consecutive meetings with presidential candidates, appealing to them to "create a country favorable for business." They are focusing on raising awareness of industry issues such as the polarization between large and small-medium enterprises and the need for regulatory reform.

On the morning of the 5th, Kim Ki-moon, chairman of Kbiz, held a meeting with small and medium business owners alongside former Deputy Prime Minister Kim Dong-yeon at the Kbiz office in Yeouido, Seoul. During his tenure, former Deputy Prime Minister Kim visited Kbiz four times and continued communication with the industry after stepping down by delivering the closing keynote speech at the '2019 Small and Medium Business Leaders Forum,' sharing his past experiences and life philosophy.

Chairman Kim stated, "If the polarization between large and small-medium enterprises is not corrected, small and medium enterprises will lose their footing, and dissatisfaction toward the political and government sectors will inevitably increase." He requested, "Please boldly abolish various regulations to increase startups and create a world where small and medium enterprises can enthusiastically conduct business." In response, former Deputy Prime Minister Kim said, "We must break the taboo of the catch-up economy and find a new path," adding, "The core is for small and venture businesses to become the main players in our economy and national wealth creation." He further emphasized, "Economic policy is a philosophy and expertise gained through deep understanding of the market, extensive contemplation, and continuous communication with economic agents."

Recently, Kbiz has been making efforts to meet presidential candidates to convey on-site difficulties and induce policy shifts after the election. As the presidential race intensifies, issues such as polarization between large and small-medium enterprises during the COVID-19 crisis, job mismatches, and a low-growth trend have emerged as key topics. Previously, Chairman Kim held discussions on industry issues with Democratic Party presidential candidates including former leader Lee Nak-yeon, former Prime Minister Chung Sye-kyun, and lawmaker Park Yong-jin. In a meeting with former leader Lee in May, he proposed the introduction of a 'Youth Worker Wage Protection Program (PPP)' to address youth employment difficulties, securing a promise for review.

Former Prime Minister Chung visited Kbiz again 40 days after his resignation. At this meeting, small and medium business owners raised issues such as differentiated application of the minimum wage, difficulties implementing the 52-hour workweek, and the "three no's" of the new economy. The "three no's" refer to ▲unfair transaction prices between large and small-medium enterprises in supply contracts ▲market imbalance between platform operators and tenants in online distribution ▲irrationality of the system inducing lowest-price bidding in procurement markets. Former Prime Minister Chung repeatedly emphasized "entrepreneurial spirit," stating, "It is important to foster entrepreneurial spirit, and if necessary, laws and systems should be improved."

Chairman Kim also worked hard to convey on-site voices during a meeting with lawmaker Park last month. Lawmaker Park expressed the opinion that "businesses are the core players of the economy," and that measures such as corporate tax reductions and income tax cuts to stimulate domestic demand are necessary.

While Kbiz has so far focused meetings mainly on ruling party candidates, it plans to proceed without distinction between ruling and opposition parties in the future. A Kbiz official said, "Regardless of party affiliation, we will support any candidate who creates a favorable environment for small and medium enterprises." This is also a strategy to secure a "promise" to include small and medium enterprise development and support policies in the candidate’s pledges and to promote them as national agenda items if elected. An industry insider interpreted this as "evidence that various regulations tightening small and medium enterprises have made it even more difficult to conduct business under the Moon Jae-in administration."

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