Academic Conference of the Korean Society for Small and Medium Venture Business Policy
Need to Encourage Self-Sustainability and Contribution to Local Economy
"Change in Private-Led Growth Strategy Required"
President-elect Yoon Suk-yeol is delivering a greeting at the 1st plenary meeting of the National Unity Committee held in the main conference room of the Presidential Transition Committee set up at the Korea Institute of Finance in Jongno-gu, Seoul, on the morning of the 1st. Photo by Transition Committee Press Corps
[Asia Economy Reporter Kim Bo-kyung] Opinions have emerged that the Yoon Seok-yeol administration must break away from policies focused solely on support and protection to restore the growth ladder that allows small and venture companies to grow into mid-sized and large enterprises.
There is also a claim that a new governance system for small business policies must be established to integrate scattered policies across ministries and complete a support system tailored to each growth stage.
The Korea Small and Venture Business Policy Association (President Kim Yong-jin) held its spring academic conference on the 1st at the Korea Federation of SMEs in Yeouido, Seoul, under the theme "Directions and Tasks of New Government's Small and Venture Business Policies."
This academic conference reflected the need to discuss the direction and implementation of the new government's small and venture business policies amid changes in the business environment caused by COVID-19, digital transformation, carbon neutrality, and aging.
At the event, Kim Se-jong, Director of the Innobiz Policy Research Institute, emphasized the need for a "control tower for small business support policies" to carry out the five agendas the new government aims to pursue. The five agendas are △Innovation growth foundation △Growth ladder △Digital transformation △Regulatory innovation △Support for small business owners.
He suggested, "To integrate policies scattered across ministries, deliver them to policy consumers, and complete a support system by growth stage, it is necessary to newly establish governance for small business policies."
He added, "The function of overall small business policy management should be strengthened, and support organizations should be reorganized and integrated, such as transferring mid-sized business affairs and the Production Technology Research Institute to the Ministry of SMEs and Startups, along with strengthening digital support organizations."
Professor Lim Chae-woon of Sogang University pointed out in his keynote presentation, "Most of Yoon's small business pledges focus on strengthening and expanding support, which is not significantly different from traditional small business support policies."
He said, "Although the pledge to restore the growth ladder for small businesses is distinctive, the details are all about support," adding, "Efforts to institutionally and structurally resolve the chronic problems faced by small businesses and small business owners are urgently needed."
Professor Lim advised that to promote innovative growth of companies, policies that establish a fair trade foundation and a win-win cooperation system to complement conflicts and confrontations between innovative and traditional companies should be implemented simultaneously.
He also added, "Policies are needed that approach small businesses and small business owners as main actors of growth, incentivizing them to have self-sustainability and contribute to the local economy."
President Kim Yong-jin of the association cited problems such as △lack of startups through cooperation with national research institutes or universities △small scale of venture companies due to issues in the operation of the Korea Fund of Funds △lack of investment in basic research △lack of global capabilities of startup personnel.
He stated, "The next government needs to maintain the existing policy direction and revise and supplement these problems to present more flexible and sustainable startup and venture nurturing policies."
After the keynote presentations, a discussion was held chaired by Professor Han Jeong-hwa, Professor Emeritus at Hanyang University, with participants including Byun Tae-seop, Director of Small Business Policy at the Ministry of SMEs and Startups; Cho Bong-hyun, Vice President (Director of Economic Research Institute) at IBK Industrial Bank of Korea; Chu Moon-gap, Head of Economic Policy Headquarters at the Korea Federation of SMEs; Baek Hoon, Research Fellow at the Korea Institute of Startup & Entrepreneurship Development; and Song Gong-seok, CEO of Watos Korea.
Cho Bong-hyun, Director of IBK Economic Research Institute, said, "The new government's small and venture business policies should focus on promoting industrial and small business innovation through regulatory improvements, leading a shift to growth strategies driven by the private sector, and providing full support to small business owners."
Head Chu proposed △establishing a presidential-level win-win committee and appointing a small business representative as chairman △introducing a delivery price linkage system △improving the practice of lowest-price bidding inducement △enacting online platform laws △flexibilizing working hours △easing the Serious Accident Punishment Act.
CEO Song said, "The next government should start by finding and implementing improvements in small areas that do not require immediate budgets and gradually expand the scope to succeed," adding, "Starting with easy measures that have great effects but cause no harm to anyone will gain public sympathy."
Meanwhile, the Korea Small and Venture Business Policy Association was officially launched in October 2019 by developing the existing forum-style meetings to present growth models for small and venture businesses. It holds forums and conferences monthly in areas such as win-win cooperation, small business owners, entrepreneurship, and small business finance, as well as spring and fall academic conferences annually.
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