Amendment to the Special Act on Support for Urban Small Manufacturers to Take Effect on the 21st

Adjustment of Comprehensive Plan Establishment Cycle to 3 Years
Implementation Plan Performance and Outcome Evaluation Conducted
Additional Regulation on Mandatory Publication of Small Business Survey Statistics

The Ministry of SMEs and Startups (Minister Lee Young) announced that the amendment to the "Special Act on Support for Urban-Type Small Manufacturers" (hereinafter referred to as the Small Manufacturers Act), which was promulgated in June, was approved at the Cabinet meeting on the 5th ahead of its enforcement on the 21st. The Small Manufacturers Act includes measures such as adjusting the cycle for establishing a comprehensive support plan for small manufacturers engaged in manufacturing with fewer than 10 employees and strengthening the effectiveness of small manufacturer policies.

The main amendments to the Small Manufacturers Act adjust the cycle for establishing the comprehensive support plan for urban-type small manufacturers from 5 years to 3 years and add provisions for hearing opinions from heads of related central administrative agencies and mayors/governors when establishing or revising the comprehensive plan. To systematically foster small manufacturers and efficiently establish and implement the comprehensive plan, provisions for conducting performance evaluations of implementation plans and submitting annual reports to the regular National Assembly every year have also been newly established. Additionally, obligations for conducting surveys on small business operators and publishing related statistics have been added.

The amended enforcement decree stipulates detailed matters necessary for the procedures and methods of establishing the comprehensive support plan for urban-type small manufacturers, as well as the establishment and promotion of implementation plans. As of 2021, there are more than 550,000 urban-type small manufacturers, employing 1,283,000 people. Urban-type small manufacturers account for 88.8% of the entire manufacturing industry and 26.1% in terms of the number of employees. The industries mainly include metal processing, food products, other machinery manufacturing, other products, clothing and accessories, and electrical equipment. Regionally, many companies are located in Gyeonggi, Seoul, Gyeongnam, Busan, and Gyeongbuk.

Jo Kyung-won, Director of Small Business Policy at the Ministry of SMEs and Startups, said, "It is significant that a legal basis has been established for better policy promotion and effective role performance in supporting small manufacturers," adding, "we will closely cooperate with related ministries and local governments to allocate more resources to support small manufacturers, and with the completion of the revision of subordinate statutes following the promulgation of the law, we will strive to strengthen the competitiveness of small manufacturers through smooth implementation."

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