The government is recognizing micro business owners as key partners in state affairs, including by creating a dedicated Vice Minister for micro business owners. But with 1 million micro businesses closing, we are still in a crisis.
Marking one year in office, Song Chi-young, president of the Korea Federation of Micro Enterprise (KFME), held a press briefing on the 17th at the Korea Federation of Small and Medium Enterprises in Yeouido, Seoul, and announced major achievements and future tasks. Song took office as the fifth president of the Korea Federation of Micro Enterprise (KFME) in August last year.
Song said that amid difficult internal and external conditions, including the Dec. 3 martial law and U.S. tariff measures, Song felt a heavy sense of responsibility and has done their best to represent 7.9 million micro business owners. Song said, After taking office, I organized pending issues and proposed them to the government and the National Assembly, focusing on actively reflecting the voices of micro business owners in policy, adding, As a result, micro business owners have come to be recognized as key partners in state affairs.
Song said, After the launch of the Lee Jae-myung administration, the creation of a dedicated Vice Minister for micro business owners at the Ministry of SMEs and Startups, which the federation had presented as a top priority, was announced, adding, At a town hall meeting with President Lee Jae-myung in Jul., the government took up the federation's proposal to provide incentives for faithful repayers and announced a 10 trillion won Micro Business Owners Financial Support Plan, which will be a special turning point in overcoming the crisis for micro business owners.
Song also cited the introduction of a long-term installment repayment program for loan principal, expansion of the New Start Fund's coverage, excluding micro business owners from the mandatory use of kiosks for people with disabilities, extension of the sunset clause in the Distribution Industry Development Act, and reduction of credit card fees for national tax payments as cases where the federation's proposals were realized. Song added, The federation's proposals are bearing fruit through a variety of policies.
However, Song said, Micro business owners are still in a crisis, and laid out the federation's five pending tasks. They include establishing a social safety net for micro business owners, including enacting a micro business owners welfare law; founding a micro business policy institute to strengthen the capacity to develop field-oriented policies; strengthening the hub role to streamline the policy delivery system for micro business owners; supporting the build-out of digital and AI transitions for micro business owners; and opposing the expanded application of the Labor Standards Act to business sites with fewer than five employees.
Song said, We proposed to the government and the National Assembly measures including enacting a micro business owners welfare law, fully subsidizing employment insurance premiums for micro business owners below a standard income level, and introducing livelihood stabilization funds for micro business owners who close, adding, Regarding the minimum wage, differentiated application by industry must be realized, and in the era of an AI grand transition, we also need to build models of co-prosperity and cooperation between online platforms and micro business owners.
Song also said, Over the past year, the number of member organizations and regional federations joining has steadily increased, and the federation has surpassed 800,000 members, emphasizing, We will open an era of 1 million members within the term. Song added, We will ensure that the Korea Federation of Micro Enterprise (KFME) becomes a truly micro business policy hub, overcoming the crisis together with micro business owners nationwide and opening a path of hope.