The Korea Federation of Small and Medium Enterprises is reportedly pushing a system overhaul that would remove term limits for chairpersons of member cooperatives. With a bill introduced in the National Assembly to abolish the rule limiting consecutive terms for the federation's president, an internal backlash has emerged as plans to scrap term limits for cooperative chairpersons move forward.
According to KBIZ on the 4th, the federation held a regular general meeting on the 26th in Yeouido, Seoul. After adjournment, the federation reportedly briefed members who attended the meeting on a proposed Partial Amendment to the Small and Medium Enterprise Cooperatives Act that would abolish consecutive-term limits for the KBIZ president, cooperative chairpersons, and federation executives. The bill was spearheaded late last year by Jeong Jin-uk of the Democratic Party of Korea.
The executive team is said to hold the view that in some regions or certain cooperatives, it is difficult to find candidates willing to serve as chairperson, making it hard to sustain the organization, and that term limits are hindering cooperative operations.
Under current law, the federation president may serve one consecutive term, and cooperative chairpersons and presidents may serve two consecutive terms. The amendment would change the Korea Federation of Small and Medium Enterprises president's rule from "may serve only one consecutive term" to "may serve consecutive terms," removing the cap, and would revise the clause on cooperative chairpersons' terms from "may serve only two consecutive terms" to "matters concerning consecutive terms shall be set by the articles of association."
The rationale is that, when controls are possible through the general meeting and the articles of association, capping the number of consecutive terms by law could restrict organizational autonomy.
If the amendment abolishes consecutive-term limits, KBIZ President Kim Gi-moon could run again for president. Kim served as the 23rd and 24th KBIZ president from 2007 to 2015 and has held the 26th and 27th presidencies from 2019 to the present. The current term runs through Feb. next year, and upon completion, the cumulative tenure would reach 16 years, making him the "longest-serving" president. This is a result of the current rules, which limit consecutive terms to one but do not cap nonconsecutive terms.
Kim is said to have conveyed that there is no intention to seek another term.
Opinions are split over the removal of term limits. Some also warn that abolishing the limits could weaken personnel rotation.
The Korea Federation of Small and Medium Enterprises said, "Even if the amendment passes, cooperative chairpersons could still be subject to term limits if each cooperative amends its articles of association to include such provisions." It added, "Cooperatives with nationwide jurisdictions must also go through approval procedures by the Ministry of SMEs and Startups, and regional cooperatives by the heads of the respective local governments."