Deputy Prime Minister Choi Sang-mok: "The postponement of the Serious Crime Punishment Act for entities with fewer than 50 employees must be swiftly addressed by the National Assembly"

Meeting with Small and Medium Business Owners on the 11th
SME Sector Criticizes Excessive Punishment for Collusion

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, said on the 11th, “Regarding the application of the Serious Accident Punishment Act to companies with fewer than 50 employees, I earnestly request the National Assembly to swiftly pass the legislation by the 27th, before the law is fully enforced, taking into account the urgent appeals from the field.”

Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance (left), is having a conversation with Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, at the 'Small Business Owners Meeting' held at the Korea Federation of Small and Medium Business in Yeongdeungpo, Seoul on the 11th.
[Photo by Korea Federation of Small and Medium Business]

On the same day, Deputy Prime Minister Choi stated at the ‘Small and Medium Enterprise (SME) Entrepreneurs Meeting’ held at the Korea Federation of SMEs in Yeongdeungpo, Seoul, “The government will not only expedite the implementation of key projects within the recently announced ‘Support Measures for Companies Vulnerable to Serious Accidents’ but will also continue to explore additional support measures such as expanding financial support for safety equipment and facilities.”

Deputy Prime Minister Choi chose the Korea Federation of SMEs for his first meeting with an economic organization since taking office. He explained, “SMEs are the engine that revitalizes our economy and, furthermore, are the core of national governance.”

He continued, “If we simply define the economy, it is about improving the lives of the people, and this depends on the 7.7 million SMEs, which are the foundation of our economy and the source of job creation. We have set the core strategy for our economic leap forward as a dynamic economy, focusing on three key tasks: an innovation ecosystem, fair opportunities, and social mobility. The starting point for creating a virtuous cycle among these tasks is also SMEs,” he added.

He also emphasized the government’s role in improving SME management. Deputy Prime Minister Choi said, “To resolve the manpower shortage in SMEs, this year we will significantly expand the inflow of foreign workers to about 260,000 plus alpha (α), which is approximately 100,000 more than last year. Regarding the E-9 quota for non-professional workers, if there is a shortage of quotas, we will consider additional expansion through discussions at the Foreign Workforce Policy Committee.”

The meeting was attended by about 30 representatives from SME organizations and industry sectors, including Kim Ki-moon, Chairman of the Korea Federation of SMEs, Lee Jeong-han, President of the Women Entrepreneurs Association, and Yoon Mi-ok, President of the Korea Women Venture Association. Ten SME-related issues were discussed on-site, including the establishment of the Ministry of Strategy and Finance-SME Regulatory Policy Council, improvement of the scope of non-business assets for tax support in business succession, and the introduction of a public procurement-linked payment system. Fifteen issues were submitted in writing.

In particular, Kim Ki-moon, Chairman of the Korea Federation of SMEs, pointed out the excessive penalties related to collusion and requested improvements. Chairman Kim said, “When companies are caught by the Fair Trade Commission for joint actions, first, the Fair Trade Commission imposes fines; second, they are prosecuted by the prosecution and fined; third, the Public Procurement Service is notified and claims damages; and finally, they are designated as dishonest contractors and face bidding restrictions for 6 months to 2 years. After that, they suffer 4 to 5 layers of penalties due to demerit points, which prevent them from supplying.”

He added, “In Europe, if a fine is paid, no separate criminal punishment is imposed. We also request that related laws, such as the National Contract Act, be improved so that sanctions can be concluded once the Fair Trade Commission’s fines are paid.”