"Small Business Cash Support Requires Caution" "Low Awareness of SME Regulatory Reform" Voices

Small and Medium Venture Business Research Institute to Hold Integrated Academic Conference on the 16th
Deputy Director Hong Unseon Proposes Menu-Style Policy for Small Business Owners
Lee Hongbae, President of Korea-Japan Regional Studies Association, Emphasizes 'Autonomous Supply Chain'

[Asia Economy Reporter Kim Bo-kyung] On the 16th, the Small and Medium Business Venture Institute held an integrated academic conference under the theme "Korea's Leap Forward Again, Together with Small and Medium Venture Businesses" at the Korea Federation of SMEs in Yeouido, Seoul.

Hong Un-seon, Vice President of the Small and Medium Business Venture Institute, predicted in his presentation that after the expiration of the extension for small business loan maturity and repayment deferral in September, public opinion for additional support is expected to arise.

He emphasized, "Whether the extension is continued or ended, the external environment for small business owners is not improving," adding, "When providing cash support, it is necessary to create policies with a long-term perspective." He also said, "Small business policies are micro-level policies," and "If there is even a slight misstep, it can result in gains for some and losses for others."

Vice President Hong proposed three options, emphasizing the need for a policy menu considering various targets.

The first is 'temporary cash support' suitable for small business owners experiencing temporary liquidity shortages; the second is 'significant debt adjustment' for an orderly exit of small business owners who want to close their businesses but find it difficult due to loans. The third combines these two policies and is considered suitable for small business owners attempting business transformation.

Lee Hong-bae, President of the Korea-Japan Economic Association (Professor at Dong-Eui University), presented on "The Ripple Effects of Export Controls on Korea-Japan Materials, Parts, and Equipment and Supply Chain Restructuring." He evaluated that "the prolonged export restrictions between Korea and Japan have weakened supply chains, resulting in significant losses not only to the materials, parts, and equipment industries of both countries but also to manufacturing and domestic industries."

President Lee stated, "The global supply chain in the post-pandemic era is expected to be reorganized around core materials, parts, and equipment," emphasizing the establishment of autonomous supply chains based on artificial intelligence (AI) and big data.

Choi Soo-jung, Head of the Service and Innovation Research Office at the Small and Medium Business Institute, presented overseas cases as measures to increase the perception of regulatory reform among small and medium enterprises.

Choi analyzed, "According to the regulatory reform perception results announced this year, small and medium enterprises have a relatively lower perception compared to large corporations," adding, "Although regulatory reform efforts continue with every government, the perception among small and medium enterprises remains low."

He explained, "Even when the same regulations apply, small and medium enterprises feel a heavier burden due to higher regulatory costs than large corporations," and "They also lack information and infrastructure such as specialized personnel to respond to regulations."

He referred to the regulatory innovation guidelines announced last year by the Organisation for Economic Co-operation and Development (OECD), explaining, "They seek mechanisms for broad stakeholder participation, transparency, and securing expertise."

Additionally, he said, "In the case of the UK, after Brexit, it is considering a future-leading role and emphasizes effectiveness analysis in achieving regulatory reform." According to Choi, the UK was the first to introduce a 'Regulatory Cost Management System' and focuses on efficiency by setting regulatory reduction targets over five years.

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