Small and Medium Enterprises Meet Ruling Party Floor Leader... Propose Improvements to the SME Promotion Act (Comprehensive)

About 20 Representatives from SME Groups and Industries Attend
Discussion on Tax Law Amendments and Current Issues to Facilitate Business Succession

The small and medium-sized enterprises (SME) sector met with the People Power Party's floor leadership to request an extension of the grace period for the Serious Accidents Punishment Act and the passage of the tax law amendment bill in the National Assembly.

On the morning of the 23rd, the Korea Federation of SMEs held a ‘Meeting with SME Representatives Invited by Yoon Jae-ok, Floor Leader of the People Power Party’ at the Federation’s office in Yeouido, Seoul.

During the meeting, 26 SME-related issues were discussed, including extending the grace period for the Serious Accidents Punishment Act for workplaces with fewer than 50 employees, passing the tax law amendment bill to facilitate smooth business succession, improving the payment adjustment negotiation system for suppliers, and enhancing the joint contracting system for main contractors.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, stated, “The People Power Party floor leadership and the SME sector have maintained active communication several times since last year,” and emphasized, “We ask for cooperation to ensure that the long-standing SME issues such as revitalizing business succession, improving the Serious Accidents Punishment Act, and passing the bill to exclude cooperative collusion in inter-company transactions can be passed during the last regular session of the 21st National Assembly.”

Yoon Jae-ok, Floor Leader of the People Power Party Photo by Kim Hyun-min kimhyun81@

The SME sector particularly identified the business succession bill as the top priority legislation that must be passed regardless of party lines in the 21st National Assembly. Chairman Kim said, “Currently, the installment payment period for gift tax is five years, but it should be extended to 20 years, the same as inheritance tax, to enable planned succession in the aging era, and the restriction on business type changes should also be abolished.” He added, “The government announced a tax reform plan reflecting these points this year, and we ask that the National Assembly ensure its passage.”

Concerns were also expressed regarding the Serious Accidents Punishment Act, which will apply to small businesses with fewer than 50 employees starting January 27 next year. Chairman Kim said, “According to a survey conducted by the Federation, 41% of workplaces with fewer than 50 employees responded that they cannot prepare by January next year, and even among workplaces with 50 or more employees, 34.8% are unable to comply with the law,” adding, “The grace period for small businesses with fewer than 50 employees should be extended by two more years.”

Suggestions were also made regarding the exclusion of collusion among cooperatives. Chairman Kim stated, “To fundamentally resolve polarization and inequality, the bargaining power of SMEs must be increased, and cooperatives should be able to actively engage in joint projects free from collusion in inter-company transactions that do not affect consumer interests.” He added, “A related bill has been proposed, and we hope it will be passed in this National Assembly session.”

At the meeting, about 20 representatives from SME organizations and various industries attended, including Chairman Kim Ki-moon, Jo In-ho, Chairman of the Korea Mechanical Equipment Construction Association, Yoon Geon-su, Chairman of the Korea Venture Capital Association, Lim Byung-hoon, Chairman of the Innobiz Association, and Seok Yong-chan, Chairman of the Korea Management Innovation SME Association.

From the People Power Party, Floor Leader Yoon attended along with Kim Seong-won, ruling party secretary of the National Assembly’s Industry, Trade, Energy, SMEs and Startups Committee; Lee Yang-su, Deputy Floor Leader; Jang Dong-hyuk, Floor Spokesperson; Cho Myung-hee, Deputy Floor Leader; Lee In-seon, Deputy Floor Leader; Seo Beom-su, Deputy Floor Leader; and Jeong Hee-yong, Secretary to the Floor Leader.

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