"Carbon Neutrality → Concerns Over Weakened SME Competitiveness... Requirements to Be Submitted by Year-End"

Korea Federation of SMEs to Hold the 3rd Root Industry Committee Meeting on the 23rd

[Asia Economy Reporter Kim Bo-kyung] The small and medium-sized enterprise (SME) sector will submit its demands to the government regarding the government's carbon neutrality policy promotion by the end of this year. The aim is to prevent the weakening of industrial competitiveness caused by the rapidly implemented carbon neutrality policy.

The Korea Federation of SMEs held the 3rd Root Industry Committee meeting of 2021 at 11 a.m. on the 23rd at the Korea Federation of SMEs in Yeouido. The Root Industry Committee was launched last April to discuss on-site difficulties in the root industry sectors such as mold, forging, and surface treatment, and to seek countermeasures.

Fourteen chairpersons of industry-specific cooperatives in the root industry attended, including Shin Yong-moon, chairman of the Korea Mold Industry Cooperative and the committee chairman, Kang Dong-han, chairman of the Korea Forging Industry Cooperative, and Park Pyung-jae, chairman of the Korea Surface Treatment Industry Cooperative.

On this day, the committee shared the government's 2050 carbon neutrality scenario, the 2030 NDC enhancement, and the progress of SME responses, and discussed the difficulties faced by the industry related to carbon neutrality and possible countermeasures.

Yang Chan-hoe, head of the Innovation Growth Headquarters at the Korea Federation of SMEs, said, "It is efficient to promote the carbon neutrality policy through industry-specific cooperatives." He added, "We are currently collecting opinions on necessary matters such as facilities or technology development for greenhouse gas reduction by SMEs in each industry," and stated, "We plan to prepare the SME sector's demands and submit them to the government by the end of the year."

The committee members commonly pointed out issues such as △ concerns over electricity rate increases due to expanded use of renewable energy △ burden of rising raw material prices caused by global carbon neutrality promotion △ lack of detailed carbon neutrality implementation plans by industry.

As solutions, they proposed policy tasks including △ introduction of electricity rate systems dedicated to root SMEs △ adoption of delivery price linkage systems △ legalization of support grounds for SMEs related to carbon neutrality △ carbon neutrality support utilizing industry-specific cooperatives.

Chairman Shin expressed concern, saying, "I worry that the rapidly promoted carbon neutrality policy might become another regulation for SMEs already facing difficult management environments." He emphasized the need for detailed support policies, stating, "Promoting carbon neutrality without systematic and thorough policy support for root companies, which are the foundation of manufacturing, will lead to weakened industrial competitiveness."

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