Korean Management Technology Guidance Association, A New Start as a Partner for SME Innovation Growth

- Promulgation of the Act on Certified Management Consultants and Technical Consultants -

The Korea Management and Technology Consulting Association (President Kim Oh-yeon) announced that the "Act on Management Consultants and Technical Consultants," which was passed by the National Assembly on March 6, was promulgated on April 7 after the Cabinet meeting, and will be enforced one year after its promulgation.

The Act on Management Consultants and Technical Consultants, which has been promoted over the past four years, recognizes the necessity of external experts' assistance to small and medium enterprises (SMEs) in the existing Act on the Promotion of Small and Medium Enterprises, and stipulates the system of management and technical consultants who specialize in comprehensive diagnosis and guidance on management and technology of SMEs. Although management and technical consultants are official national qualifications recognized by the Ministry of SMEs and Startups, there had always been regret due to the lack of an independent law. Now, they have established themselves as professional qualification holders with an independent legal framework.

Since the introduction of the management and technical consultant system in 1986, a total of 16,176 consultants have been produced to date. Most consultants can be regarded as a group of experts with extensive experience and knowledge in their respective fields. Management and technical consultants, who are by no means inferior to any other experts, have devoted themselves to the growth and development of SMEs and small business owners for the past 35 years.

As is well known, SMEs and small business owners have faced various constraints such as costs in receiving help from professionals necessary for business management activities. However, through SME consulting support projects and on-site clinic projects utilizing consultants, management difficulties have been alleviated.

With the enactment of this Consultants Act, the perception and role of consultants who have silently supported SMEs and small business owners on the ground are expected to change significantly. Accordingly, the Korea Management and Technology Consulting Association plans to perform its original duties to strengthen the innovation capabilities of SMEs and small business owners in line with the legislative intent, while further enhancing its social responsibility as a national qualification holder.

First and foremost, to enable rapid financial support for small business owners and self-employed individuals suffering from management difficulties due to the spread of COVID-19, a volunteer policy fund group will be established centered on 19 branches nationwide to promote activities such as free consultations.

Furthermore, the Korea Management and Technology Consulting Association aims to devote efforts to establishing development strategies for the SME consulting industry. The position of the SME consulting industry must be strengthened so that SMEs and small business owners, who need external knowledge transfusion, can easily utilize it. The consulting industry can be regarded as a knowledge-based service industry with significant forward and backward effects and the potential to create quality jobs. Recently, with the rapid convergence and fusion of technologies and the rapidly changing internal and external management environment, it is difficult for SMEs to respond independently, making expert assistance absolutely necessary.

Advanced countries such as Denmark, the United Kingdom, and Japan have recognized the importance of consulting for SME growth and have strengthened SME consulting support at the government level rather than leaving it solely to market functions. In particular, Denmark views the supply shortage of consulting specialized companies as a market failure and established the Danish Growth Houses, a consulting dedicated institution, in 2005 to support SME growth through consulting support to solve information asymmetry and search cost problems faced by small enterprises during their growth process. Considering the reality that SMEs or small business owners find it difficult to afford external consulting at a huge cost, it is necessary to explore ways to appropriately utilize management and technical consultants.

Kim Oh-yeon, President of the Korea Management and Technology Consulting Association, stated, "The enactment of this Consultants Act places great expectations and responsibilities on consultants. We will strengthen self-innovation and accountability so that SMEs and small business owners can trust the expert group." He added, "As we have done for the past 35 years, management and technical consultants promise to continue standing with struggling SMEs and small business owners."