Mid-sized Ombudsman Plays Key Role as Bridge Between Government and Companies

Processed over 5,500 On-Site Regulatory Issues Last Year, Regulatory Improvements 2.7 Times Higher Than Previous Year
"Promoting Tangible Regulatory Innovation with 'Jeonsimchiji (專心致志)'?Wholehearted Dedication to One Task"

Park Ju-bong, Deputy Minister-level Small and Medium Business Ombudsman, briefing on the contents of the work report.
[Photo by Small and Medium Business Ombudsman]

[Asia Economy Reporter Kim Jong-hwa] SAC Co., Ltd., which manufactures steel plants (electric furnaces), faced severe management difficulties as orders, which reached 10 billion won in 2019, completely disappeared last year due to the spread of the novel coronavirus infection (COVID-19). To make matters worse, the contract was on the verge of collapse as Kazakhstani company officials, who were scheduled to visit Korea in November to finalize the contract, found it difficult to enter the country due to COVID-19.

Kazakhstan is one of six countries subject to strengthened quarantine measures, and quarantine exemption approval is very strict. Upon hearing this news at a regulatory difficulty consultation meeting, the Small and Medium Business Ombudsman actively requested prompt support from the Ministry of SMEs and Startups, the Office for Government Policy Coordination, the Ministry of Trade, Industry and Energy, and the Ministry of Foreign Affairs, securing cooperation for priority visa screening from the ordering party, and helped obtain quarantine exemption approval within a week.

Kazakhstani ordering party officials entered the country on November 23, conducted factory inspections with SAC Co., Ltd., and on December 10 signed a design contract for an electric furnace plant worth 4 million dollars. An order for electric furnace facility construction worth 190 million dollars is also scheduled for next May.

Last year was a year in which the Small and Medium Business Ombudsman’s role as a bridge between the government and companies stood out. Over the past year, the Ombudsman communicated 157 times with SMEs and others, handled 5,469 on-site regulatory difficulties, and improved 2,103 cases of unreasonable regulatory difficulties. The number of communications with companies was 2.1 times higher than the previous year, and the number of regulatory difficulty improvements was 2.7 times higher.

On the 26th, the Small and Medium Business Ombudsman reported these results of the "2020 Activities of the Small and Medium Business Ombudsman" at the Cabinet meeting. The Ombudsman’s main duties include improving and identifying unreasonable regulations for small and medium enterprises and resolving difficulties. It is a government agency with authority to propose and recommend improvements to regulatory difficulties, hear opinions from related agencies, conduct investigations, and recommend exemption from disciplinary action for proactive administration.

The Small and Medium Business Ombudsman is highly praised by SME cooperative organizations for quickly resolving on-site difficulties such as COVID-19 through its role as a bridge between the government and companies. At this meeting, the Ombudsman was highly evaluated for promoting improvements through active and continuous proposals and consultations on major regulations.

Additionally, it was also recognized for enhancing corporate vitality by collectively revising key regulations by theme, such as excessive burden regulations, regulations hindering the social economy, and on-site regulations of public institutions, and preparing countermeasures.

Park Ju-bong, Deputy Minister-level Small and Medium Business Ombudsman, said, "This year, the burden on companies due to COVID-19 is expected to continue," adding, "We will promote regulatory innovation that can be felt on the ground with a wholehearted and dedicated spirit (專心致志) so that companies can overcome difficulties and respond to changes in the industrial environment."