"Need for Support in Childbirth, Childcare, and Workforce for Small and Medium Enterprises"

Medium-sized Enterprise Ombudsman Hosts Growth Ladder Forum
Invited by the Low Birthrate and Aging Society Committee

To discuss childbirth and childcare issues faced by small and medium-sized enterprises (SMEs) struggling with management difficulties in the era of low birth rates, the SME Ombudsman and the Low Fertility and Aging Society Committee came together. On the 24th, Park Joobong, the SME Ombudsman (vice-ministerial level, hereinafter Ombudsman), announced that he held the 'Growth Ladder Forum' at the Government Seoul Office, inviting six heads of SME-related associations and Kim Youngmi, Vice Chairperson of the Low Fertility and Aging Society Committee.

The Growth Ladder Forum is a meeting where the Ombudsman and heads of SME associations invite high-ranking public officials to discuss ways to resolve regulations and difficulties. This forum was organized to convey the severity of labor shortages faced by SMEs amid the population crisis confronting South Korea, the limitations of low birth rate support measures, and to discuss solutions together. On this day, the heads of associations proposed ▲ expanding measures to secure substitute personnel during parental leave and maternity leave ▲ preparing support plans for workplace daycare centers reflecting the characteristics of SMEs ▲ resolving practical labor shortage difficulties through expanded use of foreign workers.

Jung Yunmo, Vice Chairman of the Korea Federation of SMEs, said, "To overcome the low birth rate problem, it is necessary to consider the difficulties faced by both workers and companies due to the combination of work and childcare." He proposed allowing SMEs that actively implement parental leave and reduced working hours during childcare periods to hire additional foreign workers, or providing separate subsidies if the workload of colleagues increases due to parental leave or reduced working hours during childcare. In fact, Gyeongsangbuk-do has been running a program since March this year that supports 300,000 KRW per month for six months to colleagues who take over duties when SMEs fail to hire substitute personnel.

Also, Seok Yongchan, President of the Korea Management Innovation SME Association, suggested, "To resolve the SME labor shortage in the short term, it is necessary to expand the residence status and employment activities of foreign nationals of Korean descent, and in the long term, establish an immigration office to actively prepare measures to overcome the population crisis." Lim Byunghoon, President of the SME Technology Innovation Association, said, "It is very difficult for SMEs to directly operate and manage workplace daycare centers, so SMEs are reluctant to install and operate daycare centers," appealing for support related to SME daycare centers. Currently, the installation of workplace daycare centers is mandatory only for workplaces with 500 or more employees. SME workers are pointed out by the SME community as being in a blind spot for government daycare support. President Lim said support such as expanding the treatment of operating expenses for SME daycare centers as donations is necessary.

Yoon Miok, President of the Korea Women Venture Association, said, "SMEs find it difficult to recruit substitute personnel due to parental leave, and even when substitute personnel are hired, it is often practically difficult for the employees on leave to return," adding, "The government could consider methods such as hiring substitute personnel and timely supporting SMEs in need of labor." Park Noseop, Executive Vice President of the Korea Women Entrepreneurs Association, said, "To help the already critical labor shortage in SMEs, expanding the introduction of foreign workers is essential, and specifically, drastic institutional improvements such as easing or abolishing the foreign worker quota system that directly affect the field are needed."

Hearing these proposals, Kim Youngmi, Vice Chairperson of the Low Fertility Committee, said, "I deeply empathize with the concerns and difficulties of SMEs regarding low birth rates, childcare, and labor issues, and will closely review the proposed tasks together with related ministries." Park Joobong, the Ombudsman, said, "The voices from the SME field must be actively reflected when preparing measures to overcome the population crisis," and added, "We hope that the participation and cooperation of the SME community will become more active to solve the problems of low birth rates and an aging society."