Lunch Meeting with Entrepreneurs
Requests for Improvement of Related Laws and Systems
Proposals to Expand Investment and Export Support
President Yoon Suk-yeol is speaking during a lunch meeting with small and medium-sized enterprises at the Korea Federation of SMEs in Yeouido, Seoul, on the 14th. [Image source=Yonhap News]
On the 14th, President Yoon Seok-yeol visited the Korea Federation of Small and Medium Business in Yeouido, Seoul, where he held a luncheon meeting to encourage small and medium-sized business owners. President Yoon emphasized that "businesses and the government are one team" and pledged to work hard on regulatory improvements.
He stated, "We will actively resolve the difficulties faced by industries," adding, "This is an opportunity to create another great history by having businesses lead from the front and the government support from behind."
On this day, Kim Ki-moon, president of the Korea Federation of Small and Medium Business, along with small and medium business owners from various sectors, conveyed their on-site voices without reservation.
The following are the main remarks.
◆Kim Ki-moon, President of the Korea Federation of Small and Medium Business = We thought things would improve after the end of COVID-19, but due to the current triple high (high inflation, high interest rates, high exchange rates) phenomenon, small and medium-sized enterprises and small business owners are going through very difficult times. To create a world where all small and medium enterprises prosper together, we are planning a campaign called 'Raising the Livelihood Vitality by 5 Degrees.'
*The 'Raising the Livelihood Vitality by 5 Degrees' campaign is a traditional market donation movement through the purchase of Onnuri gift certificates by small and medium enterprises. In May, companies with sales of 10 billion KRW will purchase 1 million KRW worth, those with 50 billion KRW sales will purchase 5 million KRW worth, and companies with over 100 billion KRW sales will purchase 10 million KRW worth of Onnuri gift certificates to invigorate traditional markets.
Additionally, to revitalize domestic consumption, small and medium enterprise groups will hold shopping events at traditional markets to support the common people's economy, and the purchased goods will be donated to welfare foundations to spread warmth. Going forward, small and medium enterprises will do their best to increase exports, invest, and create employment.
◆Lee Hyo-jin, CEO of Eight Percent = In March, startup investment amounts dropped sharply to 170 billion KRW, which is one-tenth compared to the same month last year. This raises concerns that the future growth engine of our economy may falter. Government-level 'priming water' to revive investment sentiment is more important than ever to keep South Korea's future growth engine running.
The direction of financial regulatory system improvements aligns with public-private opinions. However, there is disappointment regarding the speed. From a business perspective, time is money, so it is frustrating. We hope the pace of regulatory improvements will accelerate so that fintech companies can grow and the public can enjoy the benefits of technological advancements.
◆Hwang Kyung-min, CEO of V-Pix Medical = We are developing the country's first ultra-small digital microscope for cancer surgery. However, problems arose because we use a contrast agent, which is a pharmaceutical product, for tissue staining. Under current laws, pharmaceuticals are regulated by the Pharmaceutical Affairs Act, medical devices by the Medical Device Act, and diagnostic products like ours by the In Vitro Diagnostic Medical Device Act, making the legal framework complicated.
The manufacturer of the contrast agent only registered it as a pharmaceutical and did not obtain medical device manufacturing approval or register it as a medical device. As a result, even though we use the contrast agent safely, all procedures for medical device approval have been halted.
We ask for attention so that we do not have to give up our business due to rigid regulations, even though the product's safety for patients has been verified and it is used safely.
◆Sung Sang-yeop, Chairman of the Korea Venture Business Association = Policies to revitalize the venture investment industry, which faces difficult domestic and international environments, are necessary. While expanding the government's mother fund budget, incentives and tax benefits should be provided to attract private capital and increase investments.
It is also regrettable that IB (Investment Banking) investment is not active in South Korea. Companies should be able to receive direct investments from financial institutions so that banks can move away from interest-based profits and earn investment returns.
◆Yoon Mi-ok, President of the Korea Women Venture Association = We will actively work to increase exports in the small and medium enterprise sector. However, there are many difficulties due to a lack of local infrastructure and personnel for overseas expansion and exports, making active government support essential.
The Ministry of SMEs and Startups provides local office space and product localization consulting through the Global Business Center (GBC). However, it currently operates only in some countries (12), including China and the United States, and even then, only one employee from the Small and Medium Business Corporation is dispatched, which is insufficient to meet local expansion demands.
We request efforts to expand overseas expansion bases for small and medium enterprises centered on major countries, the Middle East, and ASEAN emerging markets, as well as to strengthen their functions.
◆Jung Ji-ye, CEO of Mam Pyeonhan Sesang = There is a need for childcare support policies that allow employees working in small and medium enterprises to raise children while working.
For large companies with more than 500 employees, installing workplace daycare centers is mandatory, but for small and medium enterprises, it is difficult to invest in facilities and personnel to establish workplace daycare centers alone due to the small number of demands. Although joint installation support is available, small and medium enterprises must form employer groups and apply on their own, which is practically impossible.
We ask for attention so that support measures can be designed to be felt by dual-income parents in small and medium enterprises.
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