Small Business Association Newly Designated as a Public-Related Organization... Expectations for Fairness and Transparency Ensured

The Ministry of SMEs and Startups and the Korea Federation of Micro Enterprise Associations (hereinafter referred to as KFMEA) announced on the 31st that KFMEA will be designated and officially notified as a new public office-related organization in the government gazette starting from 2025.

A public office-related organization is a system that designates institutions or organizations with significant public interest as such, imposing certain obligations such as property registration, employment restrictions, and gift reporting. Additionally, according to the Ministry of SMEs and Startups audit regulations, it becomes an institution subject to internal audits, allowing all operations to be internally audited.

KFMEA is a special corporation established under Article 24 of the Act on the Protection and Support of Small Businesses, representing the rights and interests of small business owners. It was founded on April 30, 2014, with the aim of improving the social and economic status of small business owners and promoting balanced national economic development.

The Ministry of SMEs and Startups judged that KFMEA needs to transform into a transparent and rational organization that meets the expectations of the public and the industry. Furthermore, since KFMEA receives more than 1 billion KRW annually in government subsidies, which meets the designation criteria for public office-related organizations, the Ministry applied for KFMEA’s designation as a public office-related organization to the Ministry of Personnel Management in October this year with KFMEA’s consent.

Through this designation as a public office-related organization, KFMEA stated that it will develop and grow into a transparent, fair, and harmonious organization that practically helps small business owners and gives them hope.

With KFMEA’s new designation as a public office-related organization starting in 2025, it is expected to develop into an organization that secures external trust through establishing a firm status as the sole legal organization representing 7.66 million small business owners. Additionally, it will become subject to internal audits under the Ministry of SMEs and Startups audit regulations, and its affiliated executives and employees will be fully subject to the Anti-Graft Act and the Conflict of Interest Prevention Act, which apply to public officials.

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