The Ministry of SMEs and Startups moved to strengthen the emergency economic response system amid the spread of the Middle East war.
The Ministry of SMEs and Startups (MSS) said on Apr. 1 that Minister Han Seong-sook and First Vice Minister Noh Yong-seok each held a meeting to review the impact on small business owners and a meeting to check the response system.
The Ministry of SMEs and Startups (MSS) expanded and reorganized the existing "Middle East war damage and difficulties response TF" into an "emergency economy response TF." Through this, it plans to monitor in real time the damage to small and midsize enterprises and small business owners and to prepare swift measures so that policies needed in the field are implemented without delay.
At the meeting, participants focused on response measures for plastic manufacturing SMEs struggling with crude oil supply restrictions due to the Middle East war and for small business owners suffering from rising packaging material prices.
In particular, small business owners said the management burden has risen sharply in food service and retail, where delivery accounts for a large share. The three delivery app companies attending the meeting agreed on the need for win-win cooperation and decided to explore ways to work together.
The Ministry of SMEs and Startups (MSS) is preparing response measures in light of the situation in which SMEs are experiencing difficulties such as disruptions in the supply of raw materials and parts and increases in raw material and energy expense. To ease the burden from rising costs, it is reviewing building a cooperation system with large companies, client companies, and delivery platforms. It also plans to check whether unit-price adjustment agreements linked to supply prices are being properly implemented on the ground, focusing on industries hit hard by high oil prices.
Minister Han Seong-sook said, "The prolonged Middle East war is increasing the management burden on SMEs and small business owners and creating a crisis of domestic demand slump," adding, "We will prepare a supplementary budget and concentrate policy capabilities to minimize damage to SMEs and small business owners and stabilize people's livelihoods." She added, "Given the emergency economic situation, all economic actors, including the government, industry, delivery apps, and large companies, must work together to overcome the difficulties."