The amendment to the Small and Medium Enterprise Cooperatives Act failed to clear the subcommittee on bill screening at the National Assembly. The chances of Korea Federation of Small and Medium Enterprises Chairman Kim Ki-mun serving another term also diminished. The cooperative sector and the labor union of the Korea Federation of Small and Medium Enterprises are locked in sharp conflict over the bill.
According to the Trade. Industry Energy. SMEs. and Startups Committee of the National Assembly on the 12th, the Small and Medium Enterprise Cooperatives Act amendment, spearheaded by Rep. Jeong Jin-uk of the Democratic Party of Korea and taken up as an agenda item at the Small and Medium Venture Business Subcommittee the previous day, was put on hold without a decision.
The amendment would remove the cap on consecutive terms by changing the rule that the Korea Federation of Small and Medium Enterprises chair "may serve only one consecutive term" to "may serve consecutive terms." For the term of a Small and Medium Enterprise Cooperative chair, it would change the clause "may serve only two consecutive terms" to "matters related to consecutive terms shall be set by the articles of association." If the bill passes, KBIZ Chairman Kim Ki-mun could seek an additional consecutive term.
It is known that differences between the government and lawmakers during the bill review prevented a conclusion. Some ruling party lawmakers also reportedly raised issues with the purpose of the amendment. The bill subcommittee decided to continue reviewing the amendment going forward.
There are differing views within the small and midsize business community over the amendment. The "Committee to Promote the Amendment of the Small and Medium Enterprise Cooperatives Act," composed of national federation cooperatives, national cooperatives, regional cooperatives, and business cooperatives under the Korea Federation of Small and Medium Enterprises, says it is a problem that the current law uniformly limits consecutive terms for the Korea Federation of Small and Medium Enterprises chair and Small and Medium Enterprise Cooperative chairs.
The KBIZ labor union is staging protests, saying that because term limits were introduced to prevent concentration of power and privatization of the organization from long tenures, repeal should be approached cautiously.
The Ministry of SMEs and Startups, the competent ministry, effectively expressed opposition by saying a cautious review is necessary. It cited as grounds the fact that the Ministry of Personnel Management uniquely designates and announces the Korea Federation of Small and Medium Enterprises as a public institution-related organization, unlike other economic groups such as the Korea Chamber of Commerce and Industry.