SME Industry Meets with Minister of Trade, Industry and Energy to Urge Improvement in Large Corporations' Cement Price Increase Pressure

Kim Ki-moon, President of the Korea Federation of Small and Medium Business.

[Asia Economy Reporter Donghyun Choi] On the 7th, the small and medium-sized enterprises (SME) sector held a meeting with Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy at the Korea Federation of SMEs in Yeouido, Seoul, to convey 33 difficulties including the cement price increase by the ready-mixed concrete industry.

The meeting was arranged to support the SME sector, which is struggling due to the three highs (high interest rates, high exchange rates, and high prices) following COVID-19. SME representatives requested ▲improvements regarding the forced unilateral cement price hikes ▲support for establishing a joint R&D and education center for the wire industry ▲application of tax-free diesel for heavy equipment used by mining companies.

Kim Young-seok, co-chairman of the Emergency Countermeasures Committee of the Small Ready-Mixed Concrete Industry and director of the Seoul Gyeongin Ready-Mixed Concrete Industrial Cooperative, who spoke on site, said, "The small ready-mixed concrete industry is pushed to the brink due to the sudden and unilateral price increases by five major cement companies that oligopolize about 94% of the domestic cement market." He emphasized, "We request the cement industry to transparently disclose raw material suppliers and the Ministry of Trade, Industry and Energy to monitor the appropriateness of cement prices."

Kim Ki-moon, chairman of the Korea Federation of SMEs, said, "Despite the difficult economic environment comparable to the past global financial crisis, the SME sector is making continuous efforts." He added, "We expect the Ministry of Trade, Industry and Energy to play an active mediating role regarding conflicts between large and small enterprises caused by the recent sharp rise in raw material prices such as cement."

In addition, SME representatives proposed adding the textile dyeing industry to the root industries and expanding practical support for ESG (environmental, social, and governance) management for SMEs. They also submitted 13 on-site proposals and 20 written suggestions, including establishing a one-stop support system for factory establishment permits in national industrial complexes, simplifying detailed classifications of the children's product safety certification system, adding definitions by design classification, and securing grounds for public priority purchasing of service group standards to revitalize the industry through improving the SME business environment.

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy stated, "The ministry fully empathizes with the difficulties faced by the SME sector and is promoting various policies to reduce the burden on the industry." He emphasized, "We will speedily and sincerely policyize the issues raised today to ensure they are reflected."

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