The Ministry of Small and Medium Enterprises and Startups should establish a 'dedicated minister for microenterprises' to prepare policies for small businesses.
Song Chi-young, president of the Korea Federation of Micro Enterprise (KFME), delivered the '10 key policy tasks for overcoming the crisis of microenterprises' during a meeting with Democratic Party of Korea leader Jung Cheong-rae on the 3rd.
The meeting, held in the conference room of the Korea Federation of Micro Enterprise (KFME) in Yeongdeungpo district, Seoul, was attended by Democratic Party of Korea leader Jung Cheong-rae, Chief Deputy Chair Choi Gi-sang, National Assembly Industry, Trade, Energy, SMEs, and Startups Committee member Kim Won-yi, and National Microenterprise Committee Chair Oh Se-hee, along with the board of directors, including President Song Chi-young.
President Song expressed gratitude for Leader Jung's visit to the Korea Federation of Micro Enterprise (KFME) and mentioned the positive effects of the government's consumer coupon policy, which is playing a 'stepping stone' role in the recovery of microenterprises.
He further proposed the establishment of a 'dedicated minister for microenterprises' within the Ministry of Small and Medium Enterprises and Startups to prepare ongoing policies for small businesses. He emphasized that 'beyond temporary support, the public and private sectors must come together to overcome the crisis and restore the growth ladder for microenterprises.'
He also requested a reconsideration of the application of the Labor Standards Act to business sites with fewer than five employees, which adds to the management burden of microenterprises. Citing recent survey results from the Korea Enterprises Federation, he stated, 'If the 52-hour workweek and annual paid leave regulations are applied to business sites with fewer than five employees, an additional wage burden of 42 million won per year will arise, making it difficult for microenterprises to endure in a situation where business is down and labor costs are rising.'
In response, Leader Jung said, 'I will first review this with the policy committee,' and added, 'Since the Constitutional Court has ruled this constitutional twice, I will conduct a legal review.'
Leader Jung also emphasized 'support for closure.' He stated, 'When businesses close, they have employees and families that need more support,' and added, 'Many people can't even close their businesses because of demolition costs, and I think we need to pay more attention to these issues.'
Leader Jung also remarked, 'My first visit to the economic sector after becoming the party leader is precisely the Korea Federation of Micro Enterprise (KFME),' and stated, 'Although it's not visible, sustaining our country's economy is indeed microenterprises and small businesses, and on that foundation are Samsung, Hyundai, and SK.' He emphasized, 'It's not an exaggeration to say that if microenterprises do well, the people will do well,' and said, 'I will listen more attentively to the voices of microentrepreneurs.'
On that day, the Korea Federation of Micro Enterprise (KFME) also proposed 10 key policy tasks for overcoming the crisis of microenterprises, including ▲building a social safety net for microenterprises ▲expanding income deduction rates and limits on consumption by microenterprise business sites ▲support for digital and AI transitions for microenterprises ▲increased support for microenterprises that have closed ▲establishing customized credit assessment models ▲improving unfair transaction practices in platforms ▲opposing the expanded application of the Labor Standards Act to business sites with fewer than five employees ▲streamlining the delivery system for microenterprise policies.