[People 人] The Troubleshooter for SMEs Who Runs Anywhere

Kim Ki-moon, Chairman of the Korea Federation of SMEs
Promotes Amendment to the Cooperative Act
Establishes Foundation for Revitalizing Joint Projects

Kim Ki-moon, President of the Korea Federation of SMEs / Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Daeseop] On the afternoon of the 20th, at the 5th-floor conference room of the Korea Federation of Small and Medium Business (Kbiz) in Yeouido, Seoul, Kim Ki-moon, chairman of Kbiz, raised his voice to an employee, saying, "Please speak clearly and precisely so that it can be easily understood (with detailed content)." It was a ceremony to sign a business agreement with seven small business organizations to expand enrollment in the Yellow Umbrella Fund, a social safety net for small and micro enterprises. He was reprimanding the person in charge for not properly explaining to the attendees.

Expanding enrollment in the Yellow Umbrella Fund is an important mutual aid system that can serve as a strong support for small and micro enterprises struggling due to the novel coronavirus disease (COVID-19). The heads of small business organizations attending the event agreed with Chairman Kim Ki-moon's remarks, saying that if the Yellow Umbrella system is explained to member companies in an easy-to-understand and detailed manner, enrollment will further increase. They also requested that he negotiate with the government to expand the income deduction amount.

Chairman Kim promised to create materials that can clearly explain the Yellow Umbrella Fund and deliver them to association heads and member companies. He also decided to improve necessary aspects to facilitate better enrollment in the Yellow Umbrella Fund.

When a reporter spoke to Chairman Kim about the situation where he reprimanded the employee after the signing ceremony, he emphasized, "You should not speak formally at such events; you must properly understand what the attendees need and speak accordingly." This is one of the reasons why Chairman Kim is known as a troubleshooter for small and medium enterprises.

The Yellow Umbrella Fund is a system he launched in September 2007. It is a system that supports small and micro enterprises in stabilizing their livelihoods and raising lump sums for business recovery. Currently, the number of registered subscribers and the amount of contributions reach 1.36 million and 14.1 trillion won, respectively.

The only person to succeed in three terms as Kbiz chairman
Launched the Yellow Umbrella Fund, a pillar for small and micro enterprises
Evaluated as 'speaking up while doing the job properly'
Famous as a 'madangbal' for extensive personnel exchanges
Represents small and medium enterprises in policy improvements such as the 52-hour workweek

Kim Ki-moon, President of the Korea Federation of SMEs / Photo by Kang Jin-hyung aymsdream@

Chairman Kim is also well known as a 'madangbal' (a person with a wide network). He has broad human relations and actively communicates the voices from the small and medium enterprise field by interacting extensively with figures from politics and other sectors. With the goal of creating a 'proud Kbiz,' he rushes to wherever there are difficulties in the field, including the government, National Assembly, and local governments.

Since taking office, Chairman Kim has worked to revitalize small and medium enterprise cooperatives, resolve labor issues, and prepare COVID-19 countermeasures through government proposals, thereby alleviating industry difficulties.

First, the revision of the 'Small and Medium Enterprise Cooperative Act,' which excludes joint business collusion application for cooperatives that have been long-awaited for over 40 years, was passed by the National Assembly, laying the foundation for revitalizing various joint businesses. Chairman Kim emphasizes connection among small and medium enterprises. The core of connection is cooperatives. Various management activities such as joint raw material purchasing and expanding public institution sales channels, which are difficult for individual companies, can be promoted through cooperatives.

If small and medium enterprises unite by industry, they can exert greater power and create a foundation for new growth. Chairman Kim traveled nationwide to raise awareness of the importance of ordinances for cooperative revitalization. As a result, 16 metropolitan local governments enacted ordinances to revitalize small and medium enterprises. Based on these ordinances, metropolitan local governments establish three-year plans for cooperative revitalization. The enactment of cooperative support ordinances has expanded cooperative support from the central government to local governments.

Chairman Kim actively communicated with the government last year and this year to reduce the burden on small and medium enterprises by limiting the increase in the minimum wage. He also led policy improvements such as granting a one-year grace period for the implementation of the 52-hour workweek system. The expansion of employment retention subsidies, extension of bank loan maturities, and expansion of special guarantees, which Kbiz actively proposed to the government, were also reflected in the government's COVID-19 emergency measures.

The chairman of Kbiz represents 3.5 million small and medium enterprises. Therefore, he is also called the 'President of Small and Medium Enterprises.' He receives various honors such as protocol equivalent to a deputy prime minister and accompanying the president on official overseas visits as one of the heads of the five major economic organizations. The term is four years. Chairman Kim was elected as the 26th chairman of Kbiz on February 26, 2019. He is the only person to have succeeded in three terms since the chairman of Kbiz began to be elected. He also served as the 23rd and 24th chairman from February 2007 to February 2015.

Kim Ki-moon, President of the Korea Federation of SMEs / Photo by Kang Jin-hyung aymsdream@

Chairman Kim does not like the title 'Jungtongryeong' (President of SMEs). He wants to be recognized as a leader who works hard for the development of small and medium enterprises and for the future. He is regarded as a giant inside and outside the SME sector. He is evaluated as someone who speaks up for the industry while properly doing what needs to be done. His three-time election as Kbiz chairman is not unrelated to this.

Chairman Kim attended the '2020 Baekdu Forum' held on the 18th and 19th in Geoje, Gyeongnam, with over 80 representatives of small and medium enterprises by industry, where he sharply criticized the government's economic perception. He pointed out, "(The Korean-style) New Deal policy is a project in which small and medium enterprises should participate extensively, but the opinions and proposals of various economic organizations such as Kbiz and the Chamber of Commerce and Industry were hardly reflected in the policy-making process."

He also expressed concern, saying, "Due to the COVID-19 crisis, 80 to 90% of small and medium enterprises are really struggling. I think it is being packaged as if the economy is doing well by only highlighting some well-performing sectors. We need to accurately recognize and view the situation."

Chairman Kim prepared this forum to devise alternatives to find opportunities amid the crisis. It is significant as Kbiz was the first among the five major economic organizations to hold an offline networking event for businesspeople after the spread of COVID-19. The forum was completed while adhering to COVID-19 prevention and containment guidelines. It could also serve as an opportunity for the exhibition and event agency industry, which is suffering from COVID-19, to revive. Kbiz has held the Baekdu Forum annually since 2010.