Lee Dong-ju "Small Business Criteria Should Change from 'Number of Regular Employees' to 'Annual Sales'"
Assemblyman Dongju Lee Proposes Partial Amendment to the Small Business Basic Act
[Asia Economy Reporter Oh Ju-yeon] A bill has been proposed to change the criteria for small business owners from the existing 'number of regular employees' to 'annual sales.'
On the 11th, Lee Dong-ju, a member of the Democratic Party of Korea, announced that he had taken the lead in proposing the "Partial Amendment to the Small Business Basic Act," which reorganizes the criteria for determining small business owners.
According to the current Small Business Basic Act, small business owners are classified based on the number of regular employees. Although the 'Small and Medium Enterprise Basic Act' was amended in March 2015 to exclude the number of employees from the SME requirements, the classification criteria for small business owners still maintain the standard based on the number of regular employees.
Under this current legal system, during the COVID-19 small business owner selective support, many self-employed individuals who were practically small business owners did not receive support. Additionally, there have been criticisms that the current criteria induce a 'Peter Pan syndrome,' where businesses do not increase or even reduce employee hiring to meet government support standards.
If the amendment passes, employment will no longer be related to maintaining small business owner status, which is expected to promote long-term employment and focus support on areas where small business assistance is genuinely needed, thereby enhancing the effectiveness of small business support policies.
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Representative Lee Dong-ju said, "The static judgment criteria, which do not reflect the characteristics of our economic structure where self-employment accounts for a high proportion and employment numbers are significant, are causing much confusion in the field," and added, "We need to revitalize the employment market of the self-employed economy through the reorganization of the judgment criteria."
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