'Junggi Ombudsman' Authority and Responsibility Strengthened... Improvement of Difficulties Related to Regulation

'Amendment to the Framework Act on Small and Medium Enterprises' Approved at the Cabinet Meeting
Expansion of the Scope for Recommendations on Exemption from Disciplinary Action for Proactive Administration

The Ministry of SMEs and Startups announced that the amendment to the "Framework Act on Small and Medium Enterprises," which strengthens the authority, role, and corresponding responsibilities of the Small and Medium Enterprise Ombudsman, was approved at the Cabinet meeting on the 10th. This amendment was prepared to improve difficulties related to regulations faced by small and medium enterprises and small business owners.

Lee Young, Minister of SMEs and Startups. Photo by Dongju Yoon doso7@

The amendment reflects the purpose of establishing the Small and Medium Enterprise Ombudsman by adding the enhancement of corporate vitality to the existing objectives of regulatory maintenance and resolution of difficulties. It clearly defines the goal of improving regulations and resolving difficulties.

The duties performed by the Small and Medium Enterprise Ombudsman now include the protection of those who submit opinions regarding regulations and difficulties faced by small and medium enterprises. The Ombudsman is authorized to inspect and investigate disadvantages or discrimination by administrative and public institutions, and if a complaint is filed claiming such disadvantages, the Ombudsman can directly verify the facts and present opinions on correction to the head of the relevant institution.

Regarding the handling of duties, a basis for expressing opinions to related agencies has been established, and these agencies are obligated to sincerely review and respond. Additionally, the head of the institution requested to follow the Ombudsman's improvement recommendations must comply unless there are special reasons.

The scope of the recommendation system for exemption from disciplinary action for proactive administration has been expanded to apply not only to public officials who improved regulations but also to executives and employees of public institutions who resolved difficulties faced by small and medium enterprises.

Furthermore, to align with the broad statutory roles and functions of the Small and Medium Enterprise Ombudsman, obligations regarding prohibition of disclosure of work-related secrets, fair performance of duties, and political neutrality have been clearly legislated, thereby strengthening the Ombudsman's accountability.

Minister Lee Young of the Ministry of SMEs and Startups stated, “The amendment related to the Small and Medium Enterprise Ombudsman, prepared through government legislation, reflects the government's firm will and efforts to achieve regulatory improvement results for small and medium enterprises and small business owners and to revitalize the business field. We hope it will pass smoothly through thorough deliberation by the National Assembly.” He added, “The Ministry of SMEs and Startups will do its best to ensure that this law becomes a much-needed relief for small and medium enterprises struggling with various regulations on the front lines.”