SME Sector "Welcomes Passage of Subcontracting Act Amendment... Will Greatly Help Ease Management Difficulties"

2022 Budget Bill Passed in the Plenary Session
(Seoul=Yonhap News) Reporter Lee Jeong-hoon = On the morning of the 3rd, an amendment to the 2022 budget bill was approved at the plenary session held at the National Assembly. 2021.12.3 [National Assembly Press Photographers Group]
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[Asia Economy Reporter Junhyung Lee] The amendment to the Subcontracting Act passed the National Assembly plenary session on the 9th, prompting the small and medium-sized enterprises (SMEs) sector to express its welcome.

The Korea Federation of SMEs issued a statement on the 10th, saying, "Through this amendment, the Federation can negotiate subcontracting payment adjustments with large corporations on behalf of small-scale SMEs and cooperatives," adding, "It is expected to greatly help alleviate the management difficulties of SMEs currently struggling due to the recent surge in raw material prices."

The Federation also stated, "(The amendment) prevents technology theft before subcontracting contracts are concluded," and "It introduces the consent decision system currently implemented under the Fair Trade Act into the Subcontracting Act, enabling prompt relief for affected SMEs." Furthermore, it emphasized, "Along with institutional improvements to establish a fair trade order between companies, voluntary win-win cooperation efforts by large corporations are also essential," and added, "SMEs will actively participate in realizing a fair economy by complying with the Subcontracting Act."

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