On the 22nd, the Small and Medium Enterprises Ombudsman held a meeting with officials from new industries such as artificial intelligence (AI) and software (SW).

On that day, Choi Seung-jae, the Small and Medium Enterprises Ombudsman, stated that he held the 'SOS Talk Small and Medium Enterprises Meeting' in collaboration with the Korea SMEs and Startups Agency (KOSME) at the World Tower Building in Songpa-gu, Seoul.

The SOS Talk is a joint meeting that has been held since 2015 by the ombudsman and KOSME to address regulatory difficulties faced by small and medium enterprises. About 20 participants, including Ombudsman Choi Seung-jae, representatives of small and medium enterprises in the Seoul area, stakeholders from the AI industry, Lee Byeong-gwon, head of the Seoul District Small and Medium Enterprises Office, and Ban Jeong-sik, director of regional innovation at KOSME, were present to engage in passionate discussions aimed at finding solutions to unreasonable regulations affecting small businesses.

Choi Seung-jae, the Small and Medium Enterprises Ombudsman, conducts the 'Seoul Eastern Region Small and Medium Venture Enterprises S.O.S. Talk' on the 21st at the World Tower Building in Songpa-gu, Seoul. /Courtesy of Small and Medium Enterprises Ombudsman

In particular, this meeting was set up to intensely hear the regulations and difficulties faced by small and medium enterprises leading new industries such as AI and SW.

Representatives of the Korea Artificial Intelligence and Software Industry Association requested, 'Please establish legal grounds to facilitate the use of copyrighted works in the process of AI learning,' noting that 'it is unclear whether the use of copyrighted works in AI training constitutes fair use under copyright law, and it is difficult for AI corporations to obtain individual usage permissions,' which they argue will drastically reduce the available data.

In response, the ombudsman proposed regulatory improvements to the Ministry of Culture, Sports and Tourism, which replied that it is currently operating an AI-Copyright System Improvement Working Group involving the AI industry and rights holders to gather stakeholder opinions. The ministry plans to extract legal improvement measures considering international norms through the working group.

The Korea Artificial Intelligence and Software Industry Association also suggested postponing the application period for regulations under the basic law on AI, scheduled to take effect in January next year. It is reported that this bill will include not only provisions for promoting AI but also regulatory provisions such as responsibilities for high-impact AI and obligations for transparency and safety.

In response, the industry expressed concerns that, from the perspective of Korean corporations, which are latecomers in AI technology, proactively introducing regulatory systems could lead to trial and error that would hinder their competitiveness in the speed race.

The Ministry of Science and ICT responded, 'We will collect and reflect the opinions of various stakeholders, including related departments and the industry, during the process of establishing subordinate laws and guidelines.' It specifically mentioned that regarding concerns from the industry about fines and other regulations, 'We plan to consider flexible operational measures for the system, including a grace period.'

The ombudsman plans to continuously convey the voices of the relevant industry to the authorities to ensure that regulations do not hinder corporations in the competitive field of AI, which is attracting global attention.

In addition, participants on that day proposed various on-site regulations and difficulties, including ▲clarifying the barrier-free standards for table-order kiosks (unmanned information terminals) that can be used by socially vulnerable groups, ▲relaxing regulations under the Farming Act and Building Act to activate mobile small data centers, and ▲removing the obligation to label the manufacturer of cosmetics.

Ban Jeong-sik, director of regional innovation at KOSME, said, 'KOSME will work closely with the ombudsman at the grassroots level of small and medium enterprises to ensure that the difficulties faced in the field are reflected in policies.'

Choi Seung-jae, the ombudsman, stated, 'To improve unreasonable regulations felt by corporations and solve difficulties, we will continue to expand communication in new industries,' adding, 'I hope this meeting leads to substantial regulatory innovation and growth in the new industry.'

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