The Small and Medium Business Ombudsman on the 2nd held this year's first "growth ladder forum" at the Kensington Hotel in Yeouido, Seoul, inviting Democratic Party of Korea lawmaker Lee Un-ju to meet with leaders of eight associations related to small and medium ventures, women and youth corporations, and microbusiness owners.
The "growth ladder forum" is a gathering where the ombudsman and representatives of small and medium business associations invite senior government officials to hear on-site views and discuss ways to improve regulations and difficulties.
For the first time, a National Assembly figure was invited to this forum. Leaders of eight groups took part, including the Korea Federation of Small and Medium Enterprises, INNOBIZ Association, Main-Biz Association, Korean Women Entrepreneurs Association, Korea Women Venture Association, Venture Business Association, Korea Federation of Micro Enterprise (KFME), and Korea Federation of Convergence SMEs.
Lee Un-ju said, "What our economy needs most, in the end, is 'growth,' and what small and medium ventures, startups, and materials, parts and equipment corporations need is not simple support but a growth ladder that allows them to leap much higher."
At the forum, association leaders proposed ▲ "easing the standards for tax credits on R&D expenditure" for small and venture corporations ▲ "extending the startup support period for women CEOs who give birth and raise children" for women-owned corporations.
Kim Myeong-jin, head of the Main-Biz Association, said, "For small and medium-sized companies, the tax credit for R&D funds allows a choice between deducting 25% of current expenditure or 50% of the amount that exceeds the average expenditure of the previous year, whichever is more favorable," adding, "Because it is difficult for small and medium-sized companies' R&D expenditure to surge within one year, the 50% deduction benefit is, in effect, a hard-to-use option for small and medium-sized companies." He continued, "It is necessary to amend the Act on Restriction on Special Cases Concerning Taxation to allow an additional 25% deduction for R&D funds that exceed the average of the previous four years."
Park Chi-hyeong, vice chair of the Korean Women Entrepreneurs Association, said, "The seven years after founding are a period when corporations need concentrated investment for growth and can also receive benefits from various government support programs," proposing, "For women CEOs who give birth during this period, the startup support period should be extended by excluding the childbirth and childcare period when calculating the startup period."
Ombudsman Choi Seung-jae, responding to the Main-Biz Association's proposal, said, "If designated as a national strategic technology such as semiconductors or secondary batteries, you can use the 'pre-review system for R&D tax credits' to receive deductions of up to 50% of R&D expenditure," adding, "We will propose ways to further ease the tax credit standards for R&D expenditure."
On the agenda to extend the startup support period for women CEOs who have given birth, he said, "The proposal is meaningful in terms of 'vitalizing the women's startup ecosystem,' and since 'overcoming low birthrates' is the country's top priority, we will actively and closely consult with the Ministry of SMEs and Startups (MSS)."
In addition, the association leaders requested ▲ the introduction of a TDM (text and data mining) safe harbor for AI-utilizing corporations ▲ partial support for delivery packaging expense for microbusiness owners ▲ a reduction in excessive delivery platform fees imposed on microbusiness owners.