Prestigious Long-Established Companies, Construction and Finance Industries Also OK... Extension of HACCP Excellent Company Certification System

Government Announces Regulatory Innovation Measures for SMEs and Venture Companies
Various Improvement Plans Including 'Hidden Regulations' and 'Hurdle Regulations' Prepared
Regulations Revised to Reduce Corporate Burden and Enhance Competitiveness

[Asia Economy Reporter Kim Bo-kyung] The government is planning to abolish the industry restriction criteria for "Prestigious Long-Established Companies" considering recent changes in the business environment, and to introduce a system that automatically extends the certification validity period for companies excelling in HACCP (Hazard Analysis and Critical Control Points) evaluations.

On the 17th, the Ministry of SMEs and Startups announced the "1st Regulatory Innovation Plan for SMEs and Ventures" through the Economic Regulatory Innovation Task Force meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho.

This regulatory innovation for SMEs and ventures mainly consists of ▲improving "hidden regulations" that burden companies such as certification, inspection, and evaluation ▲breaking down "hurdle regulations" that hinder startups from entering new businesses ▲and enhancing competitiveness through public procurement and revitalization of SME cooperatives.

The government's goal is to prioritize and implement tasks that can be improved immediately to minimize unnecessary regulatory burdens.

First, the government will promote institutional improvements to reduce evaluation costs and time burdens and rationalize evaluation standards. It is expected that about 50,000 SMEs will benefit from improvements in 11 types of certifications and inspections.

For example, an automatic extension system for certification validity will be introduced for the top 5% of companies excelling in HACCP (food safety management certification) evaluations to ease their burden. Considering there are 207 companies in the top 5% and the average certification cost is 200,000 KRW, this could reduce the annual certification cost burden by about 40 million KRW.

Additionally, when certifying environmental labels, fees previously charged for additional products classified due to simple differences such as design or packaging units will be waived. This is expected to reduce annual certification costs by 320 million KRW.

Furthermore, the government will enhance consumer convenience by granting automobile repair businesses the authority to attach and detach vehicle registration plates, and will activate the private market by adding private accredited inspection agencies as autonomous inspection agents for high-pressure gas sales facilities.

Considering the recent disappearance of boundaries between industries and the need for industry changes due to changes in the business environment, the government has decided to abolish the industry restriction criteria for Prestigious Long-Established Companies. The plan is to amend the Small and Medium Enterprise Promotion Act by the first half of next year.

Prestigious Long-Established Companies refer to companies with over 45 years of business history that have made significant economic and social contributions and are expected to sustain growth, as confirmed by the Minister of SMEs and Startups.

Until now, industries such as construction, real estate, and finance could not be designated as Prestigious Long-Established Companies, and there had to be no change in the main industry after company establishment. Once the law is amended, companies that create new industries using information technology (IT) or secure competitiveness through industry changes in restricted industries can also become Prestigious Long-Established Companies.

An integrated platform will be established to allow a comprehensive view of excellent SME and excellent product certification system information scattered across individual ministries. The plan is to utilize the SME policy information platform "Gieop Madang" (Enterprise Yard).

To this end, it is necessary to amend the Small and Medium Enterprise Promotion Act to provide a legal basis for receiving information from certification-related ministries and agencies, and to secure a budget for system advancement.

Additionally, as part of breaking down hurdle regulations for promoting new industries, demonstration and regulatory adjustments will be pursued through regulatory sandboxes.

First, in the Jeonnam modified electric vehicle regulatory free zone, driving safety standards for converting internal combustion engine vehicles to electric vehicles will be established. This is expected to create a new eco-friendly automobile market by converting internal combustion engine vehicles to electric vehicles and contribute to carbon reduction. Jeonnam expects outcomes such as sales of 22 billion KRW, 113 new jobs, and attraction of 13 companies through this regulatory adjustment.

In the Gyeongnam regulatory free zone, inspection and charging standards for 500-ton class ships equipped with ammonia-diesel dual-fuel engines will be established. The commercialization of ammonia-fueled ships is expected to activate the eco-friendly ship equipment market. Expected effects include estimated sales of 125.1 billion KRW, 378 new jobs, and attraction of 6 companies according to local government estimates.

Moreover, various safety and technical standards will be improved in line with technological advancements. A representative example is recognizing off-chain data storage and destruction methods as personal information destruction through amendments to the Enforcement Decree of the Personal Information Protection Act, thereby activating blockchain-based logistics and tourism services.

The rated motor output limit for electric two-wheel bicycles will be relaxed from the existing 350W to 500W to facilitate hill climbing and foster the domestic high-output electric bicycle market.

Finally, the government will expand market access support through public procurement and enhance the competitiveness of SMEs by revitalizing SME cooperatives.

This includes ▲classifying traffic safety signs and guide electronic displays as the same product group when confirming direct production by SMEs ▲expanding the business area of other industry business cooperatives under the SME Cooperative Act ▲and relaxing the qualification criteria for full-time directors of SME cooperatives.

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