Small and Medium Business Ombudsman, "Consulting with Local Governments Selecting Institutions for Small Loans in Traditional Markets"

Traditional Market Merchants Express Difficulties in Directly Managing Loans

Jubong Park, Small and Medium Business Ombudsman.
[Photo by Small and Medium Business Ombudsman]

[Asia Economy Reporter Kim Jong-hwa] Park Ju-bong, Small and Medium Business Ombudsman (vice ministerial level), stated, "We will actively consult with the relevant local governments to select the executing agencies for the traditional market microloan project."

On the 2nd, at a 'Small Business On-site Meeting' held in Wonju, Gangwon Province, where Park Ombudsman and Intaeyeon, Secretary for Self-Employment at the Presidential Secretariat, listened to regulatory grievances from traditional merchants and small business owners in the Wonju area, Park responded to concerns that "the 'traditional market microloan' project, operated directly by the merchants' association, is facing operational difficulties due to an increase in bankruptcies and delinquencies caused by COVID-19."

At 10 a.m., Park Ombudsman and Secretary In met with merchants from traditional markets such as Wonju Free Market and Wonju Central Market at the main conference room of Wonju Shinhan Credit Union. Yang In-ho, chairman of the Wonju Free Market Merchants' Association, explained, "Since the merchants' association operates the loans directly, various difficulties arise due to conflicts of interest stemming from bankrupt and delinquent borrowers," and proposed, "The merchants' association should handle loan-related promotions to members, while the Korea Inclusive Finance Agency should directly provide loans to the merchants."

In response, Park Ombudsman said, "Following a proposal to the Korea Inclusive Finance Agency, we received a reply that most projects, except for policy inclusive finance product guarantee support, are conducted through executing agencies, so a thorough review is needed to determine whether the direct lending method aligns with the purpose of the system's introduction." He added, "According to current laws, the selection of the executing agency for the 'traditional market microloan' project can be done through consultation with Wonju City, and we will actively consult with Wonju City."

Kim Tae-cheol, branch chief of the Korea Entertainment Food Service Central Association, requested support for the Good Landlord Tax Credit, saying, "The entertainment industry was excluded from the Good Landlord Tax Credit system, which provides tax deductions for landlords who participated in rent reductions."

Park Ombudsman responded, "The Ministry of SMEs and Startups recognizes that the entertainment industry complies with government quarantine measures and faces high rent burdens, so there is a need to grant Good Landlord Tax Credit benefits. However, since the tax credit requires an amendment to the Restriction of Special Taxation Act, we plan to propose the amendment to the Ministry of Economy and Finance in November."

Additionally, attendees raised various field difficulties, including △ easing criteria for internal transactions in national research and development projects, △ flexibilization of legal regulations on small-scale workshop soap manufacturing, △ legalization of the laundry technician system, △ classification of laundry business reporting systems, △ exclusion of designated waste (waste oil, waste acid) from maintenance business restrictions, and △ establishment of mandatory education for automotive repair business operators' maintenance supervisors.

Secretary In Tae-yeon said, "It is fortunate that the warmth of recovery has been spreading since last September, and compensation for small business losses is being executed normally," adding, "The Moon Jae-in administration, as a government overcoming crises, plans to do its best until the end to help small businesses recover their management conditions."

Park Ombudsman said, "I am well aware of the hardships merchants have endured during the two years of COVID-19," and added, "As the full-scale recovery of daily life begins, we will do our utmost to support the merchants so that their difficulties are also recovered and resolved."

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