Declining Membership... Korea Federation of SMEs Seeks Strategies to Revitalize Cooperatives

Discussion on Overcoming Stagnation in Cooperative Growth at Policy Research Forum
"Need to Expand Cooperation through Mergers and Strengthening Networks"

The Korea Federation of SMEs announced on the 25th that it held a policy research forum at its headquarters in Yeouido, Seoul, under the theme "Strategies to Increase Membership in SME Cooperatives."

This forum was organized to explore policy directions and alternatives for revitalizing cooperatives through scaling up and specialization, at a time when quantitative growth has stagnated due to factors such as changes in industrial structure and a decline in cooperative membership.

During the forum, Jang Jongik, President of the Korean Association of Cooperative Studies, Hong Jaebeom, Professor at Pukyong National University, and Yoo Hanna, Professor at Hanshin University, delivered keynote presentations on "Strategies to Increase Membership in SME Cooperatives." This was followed by a discussion among experts from academia, research institutes, and the cooperative sector on strategies to expand the scale of cooperatives.

President Jang Jongik diagnosed, "Up to now, SME policies have been implemented with a focus on products rather than industries, and on competition rather than cooperation among SMEs, which has led to further segmentation of cooperatives." He added, "Policies should be pursued to strengthen the representation of industries by promoting mergers among cooperatives and enhancing network competitiveness, thereby fostering cooperation and solidarity among SMEs." He also emphasized the need to develop the back-office functions of cooperatives, such as raw material procurement, human resources, and joint research and development (R&D).

Yoon Wisang, Director of the SME Cooperative Research Institute, which hosted the forum, stated, "Revitalizing joint projects among cooperatives will increase the utilization rate of cooperative projects, leading to an increase in membership. This will help enhance the competitiveness of entire industries and address the crisis of regional extinction." He also stressed, "It is essential to develop joint project models that encourage the participation of many SMEs, and to ensure support from the government and local governments to create a virtuous cycle."

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