Press Conference for '2023 Leaders Forum' Held on the 13th
"Revision of the 52-Hour Workweek System and Postponement of the Serious Accident Punishment Act for Small Businesses"
Kim Ki-moon, Chairman of the Korea Federation of SMEs, is speaking at the '2023 Leaders Forum' press conference held on the 13th at Lotte Hotel Jeju.
"Among 100 killer regulations, 24 require legislative amendments, so they cannot be resolved without the support of the National Assembly."
Kim Gi-moon, Chairman of the Korea Federation of SMEs, stated this on the 13th at a press conference held during the ‘2023 Leaders Forum’ at Lotte Hotel Jeju. He urged both ruling and opposition parties to join forces in innovating killer regulations as the last regular session of the National Assembly has begun. Earlier, in August, the Federation selected the ‘Top 100 Killer Regulations chosen by SMEs’ and requested the 21st National Assembly to complete the legislation within the year.
According to the Federation’s survey, the rate at which SME sector proposals were reflected in legislation was 41.8% in 2020, the first year of the 21st National Assembly. However, this rate declined to 32.8% in 2021, 26.2% last year, and as of August this year, only 8.1%. This is why Chairman Kim called for active legislative efforts from both sides of the aisle.
Among legislative tasks that must be passed within the year (multiple responses allowed), flexible working hours (58.3%) was the most frequently cited. The current fixed 12-hour unit for managing extended working hours cannot cover the diverse working patterns across various industries. Chairman Kim suggested expanding the management unit for extended working hours within the weekly 52-hour limit. He emphasized, "Labor-related reforms are 99% legislative matters, and there are limits to amending enforcement ordinances alone. The government, businesses, and the National Assembly must work as a trinity on this." Following this were improvements to the Serious Accidents Punishment Act (54.3%), revitalization of business succession (45.7%), and improvements to the foreign worker system (43.7%).
Among the bills passed by the 21st National Assembly, the most successful SME legislations (multiple responses allowed) were the introduction of the delivery price linkage system (62.3%), expansion of inheritance and gift tax limits for business succession (56%), and corporate tax reduction (29%). Chairman Kim evaluated, "In the regulatory innovation meetings held under the new government, many long-standing requests from the SME sector were significantly reflected." The delivery price linkage system, a 14-year-long wish of the SME sector, is set to be implemented on October 4, and regulations related to business succession are gradually being eased.
Regarding the burden on companies due to high interest rates, Chairman Kim proposed expanding the policy fund interest subsidy program as an alternative. This program, run by the Small and Medium Business Corporation, selects eligible companies, after which loans are executed through private financial institutions, and the Corporation subsidizes up to 3% annual interest. Kim explained, "Companies are currently surviving by extending loan maturities, but when it’s time to recover funds, they could suddenly become insolvent. There is also a potential non-performing loan issue in the banking sector, so I hope the interest subsidy program will be expanded as an alternative."
Regarding the application of the Serious Accidents Punishment Act to workplaces with fewer than 50 employees starting January 27 next year, he maintained his previously stated position of a two-year extension of the grace period. Kim said, "Of course, even with a two-year extension, not everything will be smoothly observed. Since the government cannot provide consulting for all legal applications, large companies should also step up to help small-scale workplaces."
Chairman Kim concluded, "In these difficult global economic times, I hope the government and the National Assembly will accelerate regulatory reforms. Above all, I hope a situation comes soon where SMEs can continue to work if they want to."
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