The Small Business Association will be designated as an affiliated organization of public officials.
The Ministry of Small and Medium Enterprises and Startups announced on the 31st that the Small Business Association will be designated as a new affiliated organization of public officials in the government gazette starting January 1, 2025.
The Small Business Association is a special corporation established under Article 24 of the Act on the Protection and Support of Small Businesses. It was founded in April 2014 with the aim of improving the social and economic status of small businesses and promoting balanced development of the national economy by credit entry for their interests.
The Ministry determined that the Small Business Association needs to become a transparent and rational organization that meets the expectations of the public and the industry. In addition, the association has been receiving government subsidies of more than 1 billion won annually, and thus applied for designated status as an affiliated organization of public officials to the Ministry of Personnel Management last October, with the association's consent.
With this designation as an affiliated organization of public officials, the Small Business Association will become subject to self-audit regulations set by the Ministry. Furthermore, all laws regarding the prohibition of solicitation and conflict of interest that apply to public officials will be applicable to the members and employees of the association.
Song Chi-young, president of the Small Business Association, said, "The Small Business Association will take this designation as an opportunity to establish a firm position as a legal economic organization representing 7.66 million small businesses in South Korea," adding, "We will work harder to enhance our credibility both internally and externally and to develop policies and projects essential for small businesses."