The Small and Medium Business Ombudsman and the Korea SMEs and Startups Agency (KOSME) said on the 9th that they held an "S.O.S. Talk" at Farm JOA Agricultural Corporation in Iksan, North Jeolla, and discussed regulatory reform tasks for local small and midsize businesses.
S.O.S. Talk is an on-site roundtable jointly run since 2015 by the Small and Medium Business Ombudsman and the Korea SMEs and Startups Agency (KOSME) to identify regulatory difficulties on the ground for small businesses and seek ways to improve them.
Before the roundtable, Choi Seung-jae, the Small and Medium Business Ombudsman, toured Farm JOA Agricultural Corporation's frozen produce production facilities and reviewed the operation of foreign workers. On site, the frequent job changes and early resignations of foreign workers were cited as the biggest challenge causing labor shortages.
Corporations noted that even when they set up welfare programs, cases keep occurring in which skilled workers move to other business sites. They said that, due to the nature of the Employment Permit System (E-9), it takes months to secure replacement workers, causing production disruptions. They proposed support measures to encourage long-term service by nonprofessional employment (E-9) foreign workers and called for institutional changes to allow vacant public rental housing in non-capital regions and depopulated areas to be used as dormitories for foreign workers.
Ombudsman Choi said, "Right now, without foreign workers, local manufacturing corporations find it difficult to operate their factories at all," adding, "Given the limits on length of stay and skill accumulation for foreign workers, we need measures to secure a practical, long-term workforce."
The roundtable also discussed regulatory reform tasks related to regional specialized industries. The fisheries sector called for easing gear regulations on vessels participating in the total allowable catch (TAC) system. Daeil Fisheries Food noted that, while catch volume is managed by TAC, restrictions even on the shape and performance of fishing gear make efficient operations suited to field conditions difficult.
The Ministry of Oceans and Fisheries explained that, based on the Sustainable Coastal and Inshore Fisheries Development Act enacted in June, it plans to restructure the system to focus on production volume management and to ease or abolish existing input regulations.
In the agri-bio sector, opinions were also raised that the business scope of agricultural corporations should be expanded. Corporations requested institutional improvements, saying that while the agtech industry is growing, agriculture-related research and development (R&D) is not included in the business scope of agricultural corporations.
The Ministry of Agriculture, Food and Rural Affairs said it will amend the enforcement decree to allow agriculture-related R&D as an ancillary business limited to agricultural corporations that carry out production, processing, and distribution, and will promulgate it in December.
Ombudsman Choi said, "Improving unreasonable regulations is directly linked to strengthening the competitiveness of regional industries," adding, "We will continue to expand on-site, region-specific communication channels to support innovation and sustainable growth for small and midsize businesses in North Jeolla."