[Exclusive] Small Business Support System to Be Revised Again

Korea Federation of SMEs to Reassess Internal Operating System by End of This Month
Expanding Cooperation with Related Organizations to Provide Prompt and Effective Services
Early This Month, Established 'Management Support Group Steering Committee'... Began Supplementing Business Plans

Kim Ki-moon, President of the Korea Federation of Small and Medium Business (fourth from the left), attended the 'Small Business and Microenterprise Management Support Group Operating Committee' appointment ceremony and meeting held on the 6th at the Federation's headquarters in Yeouido, Seoul, emphasizing the need for a prompt and effective professional knowledge service support system for the committee members.

[Asia Economy Reporter Kim Daeseop] The Korea Federation of Small and Medium Business (Kbiz) is reexamining its internal operational system for supporting the management of small enterprises and small merchants and preparing improvement measures. Kbiz plans to supplement its business plan by the end of this month, focusing on significantly strengthening the activities of the steering committee related to the management support of small enterprises and small merchants.

According to the industry on the 19th, the improvement plan for Kbiz's operational system for supporting small enterprises and small merchants goes beyond the existing cooperation with functional organizations and aims to strengthen collaboration with government ministries and related institutions. This is to expand the external cooperation system as a representative channel for resolving management difficulties faced by small enterprises and small merchants, providing faster and more effective services.

Through the newly established "Small Enterprises and Small Merchants Management Support Group Steering Committee" earlier this month, Kbiz is reviewing ways to expand cooperation with the Ministry of SMEs and Startups' Business Support Group as well as to develop various support measures together with related institutions. An industry official stated, "At the first meeting of the steering committee, shortcomings in this year's business plan for supporting small enterprises and small merchants were raised, and opinions were expressed that more proactive improvement plans are needed, so we understand that supplementary work is underway."

The steering committee consists of 11 expert members from various fields including law and accounting, led by a chairman. It plays a practical decision-making and operational role, such as deliberating and resolving major matters related to the "Small Enterprises and Small Merchants Management Support Group," which Kbiz launched in 2016, and promoting cooperation with expert organizations and the government.

The Small Enterprises and Small Merchants Management Support Group has about 230 experts active. Experts affiliated with seven major professional knowledge fields?law (Korean Bar Association), labor (Korean Certified Labor Consultants Association), taxation (Korean Association of Tax Accountants), accounting (Korean Institute of Certified Public Accountants), intellectual property (Korean Patent Attorneys Association), customs (Korean Customs Brokers Association), and legal affairs (Korean Judicial Scrivener Association)?provide free consultation and advice in the form of talent donation regarding on-site difficulties faced by small enterprises and small merchants. The cumulative number of consultations through the support group has exceeded 20,000 cases. Subscribers to the "Yellow Umbrella" mutual aid system for small enterprises and small merchants can also receive assistance with document preparation and litigation representation.

Kbiz plans to clearly distinguish the scope of activities between the existing management support group and the steering committee to prevent overlapping functions. Additional members will be recruited for the steering committee. Promotion channels for supporting small enterprises and small merchants will also be strengthened. Various measures are being considered, including building new promotional platforms, enhancing non-face-to-face consultation systems, and providing regional information. This is because, although related projects such as management support for small enterprises and small merchants are operated, many do not experience them on the ground.

According to the recent survey and announcement by Kbiz titled "Survey on Policy Tasks for Small Merchants Related to COVID-19," 61.4% answered that they did not utilize support projects this year (multiple responses allowed), and 44.3% cited "not knowing that support measures exist" as the reason, indicating a need for more active promotion of support projects. Regarding the bills that the National Assembly should pass first for small merchants (multiple responses allowed), 35.0% answered "expansion of the social safety net for small merchants."

A Kbiz official said, "The newly supplemented and strengthened business plan for supporting small enterprises and small merchants will be concretized through the second steering committee meeting scheduled for next month," adding, "We plan to actively promote differentiated improvement measures starting from the second half of this year."