[Jeon Du-hwan Death] Economic Sector Silent on Comments... Criticism Faced by Junggi Junganghoe

Announcement of SME Position on the 23rd... "Driving Quantitative Growth of SMEs"

Commemorative stone at the entrance of the Korea Federation of SMEs building in Yeouido, Seoul, inscribed with "Small and Medium Enterprises are the Pillars of the Nation" and "President Jeon Du-hwan." Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] While major economic organizations have remained silent regarding the death of former President Jeon Du-hwan, the small and medium-sized enterprises (SME) sector drew attention by issuing a statement.

Earlier, on the 23rd, the Korea Federation of SMEs announced the "SME Sector's Position on the Passing of Jeon Du-hwan, the 11th and 12th President."

In the statement, the Federation evaluated, "During his presidency, the late president led the quantitative growth of SMEs through the implementation of a 10-year plan for SME promotion, fostering 10,000 promising SMEs, and laws promoting SME management stability and restructuring. When the adverse effects of monopolies worsened due to large conglomerate-centered economic policies, he achieved results in protecting and nurturing SMEs through the enactment of the Fair Trade Act."

In fact, during the Fifth Republic under former President Jeon Du-hwan, various policies were promoted to stabilize SME management and protect their business areas, including the enactment of the Act on Promotion of Purchase of SME Products, the Promising SME System, the Act on Fair Transactions in Subcontracting, the SME Startup Support Act, and the introduction of the Bank of Korea’s rediscount system.

According to data analyzed by the Korea Federation of SMEs on the development process of SME promotion policies and growth contribution rates by past administrations, during the Fifth Republic, thanks to the "three lows" (low oil prices, low interest rates, low dollar), SMEs led in the number of business establishments (99.0%) and employment (72.9%), and significantly narrowed the gap with large corporations in indicators such as production (40.6%), shipments (40.7%), and added value (41.2%).

The deep connection with these policies is also reflected in a monument. At the entrance of the Korea Federation of SMEs building in Yeouido, Seoul, there is a commemorative stone inscribed with "SMEs are the cornerstone of the nation" and "President Jeon Du-hwan." This monument, installed in March 1987, has faced repeated requests for removal from various groups over the years.

Regarding the statement, a representative of the Federation said, "While the late president’s merits and faults are clear, we considered only the policies related to SMEs and their impact on the industry," adding, "We judged this as a part of history and therefore issued the statement."

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