Meeting with Deputy Prime Minister Chu of the SME Industry: "Cargo Solidarity Strike Must Be Strictly Enforced by Law"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho [Photo by Yonhap News]

[Asia Economy Reporter Donghyun Choi] The small and medium-sized enterprises (SME) sector met with Deputy Prime Minister for Economy Choo Kyung-ho to urge measures addressing industry issues, including damages caused by the Cargo Solidarity Union strike.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, stated at the SME meeting with Deputy Prime Minister Choo held on the 1st at the Korea Federation of SMEs in Yeouido, Seoul, "The unilateral refusal of transportation by the Cargo Solidarity Union has blocked export routes for SMEs, causing overseas clients to stop placing orders," adding, "The government must thoroughly crack down on illegal acts such as transportation obstruction by the Cargo Solidarity Union and strictly enforce the law to prevent further damages to SMEs."

Chairman Kim identified the issue of receiving fair prices in public procurement as an urgent task for SMEs following the Cargo Solidarity Union strike. He explained, "Although the delivery price linkage system, a 14-year-long wish of SMEs, is about to pass the National Assembly, the system in the public procurement market is not keeping up with reality," and "Recently, with raw material prices and labor costs rising sharply, SMEs supplying to public institutions are also facing losses."

He continued, "We requested the Presidential Commission on Coexistence to raise the minimum bid rate in the public procurement market, but the Ministry of Economy and Finance has practically opposed it, so there has been no progress," adding, "We ask the government to lead by example in coexistence by raising the minimum bid rate."

The meeting was organized to listen to on-site difficulties faced by SMEs in overcoming the complex economic crisis of high inflation, high interest rates, and high exchange rates. From the Ministry of Economy and Finance, Deputy Prime Minister Choo, Deputy Minister Lee Hyung-il, and Policy Coordination Director Kim Beom-seok attended. Also present were Byun Tae-seop, Director of SME Policy at the Ministry of SMEs and Startups; Lee Jeong-han, President of the Women Entrepreneurs Association; and Choi Bong-gyu, Chairman of the Korea Federation of SMEs Convergence, among other representatives from various SME sectors.

At the meeting, eight on-site proposals were made, including ▲strict law enforcement against illegal acts such as transportation obstruction by the Cargo Solidarity Union ▲restraint on excessive loan interest rate hikes beyond benchmark rate fluctuations ▲temporary expansion of new and Kibo guarantees due to credit crunch ▲expansion of the delivery price linkage system in the public procurement market, along with ten written proposals such as ▲relaxation of penalties under the Serious Accidents Punishment Act ▲introduction of monthly extended working hours.

Im Byung-hoon, Chairman of the Innobiz Association, appealed, "Cooperation is needed for stable fund management of SMEs," and called for "flexible operation by financial institutions regarding facility funds, borrowings, and installment repayments, along with government recommendations." Seok Yong-chan, Chairman of the Mainbiz Association, said, "Expansion of interest subsidy through SME development funds and restraint on excessive loan interest rate hikes beyond benchmark rate fluctuations are necessary," adding, "The government’s 50 trillion won liquidity supply plan for SMEs must also be executed promptly."

Deputy Prime Minister Choo said, "The government recently issued a work commencement order to cement transport workers," and added, "We will strictly respond to illegal acts according to law and principles, implement measures to address corporate difficulties arising during the transport refusal period, and minimize damages." He further stated, "We will do our best to seek understanding and persuasion from the National Assembly for the swift passage of the tax reform bill, which includes easing regulations on business succession," and "We will also strengthen various policy efforts such as addressing export difficulties, regulatory issues felt on the SME frontlines, and financial support."