Korea Federation of SMEs Holds '2024 1st Root Industry Committee Meeting'

The Korea Federation of Small and Medium Business announced on the 5th that it held the '1st Root Industry Committee' for 2024.

The Root Industry Committee was established to devise plans to strengthen the industrial competitiveness and growth of small and medium enterprises in the root industries such as mold, casting, and heat treatment processing.

Attendees included Chairman Kim Dong-hyun, Chairman of the Gyeonggi Casting Industry Cooperative, as well as Shin Yong-moon, Chairman of the Korea Mold Industry Cooperative; Park Sang-yeop, Chairman of the Korea Steel Wire Industry Cooperative; Eun Jong-mok, Chairman of the Korea Welding Industry Cooperative; Yoon Dong-jin, Chairman of the Gyeongnam Mold Industry Cooperative; Jang Ho-seok, Chairman of the Bucheon Mold Business Cooperative; and Yang Tae-seok, Chairman of the Gyeongin Casting Industrial Complex Cooperative, representing various industry cooperatives.

At the committee meeting, discussions were held on the current issues and challenges faced by root companies. First, the shortage of technical and skilled manpower in the industry was discussed. Despite the worsening labor shortage due to a declining working-age population and aging, related support budgets are being reduced. The committee emphasized the need to advance processes and expand support for skilled foreign workers.

Next, the committee unanimously agreed that electricity fees, which constitute a high proportion of costs for root companies, should be promptly included in the delivery price linkage system. Although the delivery price linkage system to alleviate the burden of rising raw material prices on small and medium enterprises was implemented in October last year, electricity fees were excluded from the linkage, increasing the burden on the root industry.

During the meeting, a practical consultative body between the industry and Korea Electric Power Corporation (KEPCO) was formed to provide guidance on KEPCO's win-win cooperation projects for root companies and to discuss industry issues.

KEPCO introduced support projects aimed at reducing electricity costs for root companies, including ▲Energy Efficiency Improvement Support Project for Root Companies ▲Electricity Fee Consulting for Root Companies ▲Cooperative Joint Facility Replacement Project, and collected field opinions for transitioning to a ‘high-efficiency, low-consumption’ energy structure.

Kim Dong-hyun, Chairman of the Root Industry Committee, stated, “Although government support measures such as the Root Industry Promotion Plan continue, budgets for enhancing industry competitiveness, such as root industry specialized complexes and intelligent root process systems, are actually decreasing. Support projects should be prepared focusing on policies with high field demand.” He added, “Energy structure transition to using less and paying less, and alleviation of electricity cost burdens should be achieved. Not only KEPCO but also various energy suppliers such as gas and power generation companies need to take interest in support measures that root companies can feel, such as KEPCO’s support project for replacing old facilities with high-efficiency equipment.”

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