Finding 'Small Business and SME Representatives' for the General Election is Difficult... Industry 'Perplexed'

Difference from the 21st National Assembly with 5 proportional representatives
Choi Seung-jae MP "Need to Strengthen Representation of Small Business Owners and SMEs"

With less than two weeks remaining until the 22nd National Assembly election, there are opinions that no candidates clearly represent the voices of small business owners and the small and medium-sized enterprise (SME) sector. It is difficult to find candidates from the small business and SME sectors among both proportional representation and constituency candidates across all parties. The industry anticipates that communication with the National Assembly on current issues will not be easy.

Son Kyung-sik, Chairman of the Korea Employers Federation, Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, and representatives of small and medium enterprises held a rally on January 31 in front of the National Assembly to condemn the failure to postpone the Serious Accident Punishment Act for workplaces with fewer than 50 employees. From left: Chairman Son Kyung-sik, Chairman Kim Ki-moon, and Choi Seung-jae, member of the People Power Party.
[Photo by Yonhap News]

According to the political circles on the 29th, Lee Seung-hyun, chairman of the Korea Video Production Cooperative at the Korea Federation of SMEs, and Lee Deok-jae, former youth committee chairman of the National Federation of Merchants, were listed as number 26 and 34 respectively on the proportional representation candidate recommendation list announced by the People Power Party’s satellite party, People’s Future. They did not make it within the top 20, which is generally considered the electable range. In the Democratic Party’s satellite party, the Democratic Union, former Small Business Federation chairman Oh Se-hee received number 7, which is regarded as the only electable position.

This is a significant difference compared to the 21st National Assembly election, where five small business and SME representatives were elected through proportional representation from both ruling and opposition parties. In 2020, in the Future Korea Party, the satellite party of the United Future Party (predecessor of the People Power Party), Han Moo-kyung (former chairwoman of the Korea Women Entrepreneurs Association) was number 3, Lee Young (former chairwoman of the Korea Women Venture Association and former Minister of SMEs and Startups) was number 13, and Choi Seung-jae (former chairman of the Small Business Federation) was number 14, all entering the National Assembly. In the Democratic Party’s satellite party, the Democratic Citizens Party, Kim Kyung-man (former head of economic policy at the Korea Federation of SMEs) was number 2, and Lee Dong-joo (former vice chairman of the Korea Federation of Small Merchants and Self-Employed) was number 4, both elected.

It is also difficult to find small business and SME figures among constituency candidates. Among the five small business and SME proportional representatives, only Han Moo-kyung survived and received a single nomination from the People Power Party for Gyeonggi Pyeongtaek-gap. Kim Hak-do, former vice minister of the Ministry of SMEs and Startups and former director of the Korea SMEs and Startups Agency, registered as a preliminary candidate for People Power Party in Cheongju Heungdeok, Chungbuk, but was cut off in the first primary. In the Democratic Party, only Lee Jae-han, former vice chairman of the Korea Federation of SMEs, running for Chungbuk Boeun, Okcheon, Yeongdong, and Goesan, appears to be a candidate.

The industry is concerned about how to address current issues such as the postponement of the application of the Serious Accident Punishment Act to small workplaces with fewer than 50 employees. A small business sector official said, “When discussing current issues, if the person is from the industry, they tend to listen more and actively support, but I think that will be less so in the future,” adding, “Policy communication is also necessary, but when speaking to lawmakers who are not familiar with this sector, interest is low, so opportunities are limited and explanations are much more difficult.” Another SME sector official expressed concern, saying, “There are many candidates from large corporations, but it is doubtful whether they will empathize with the issues of small businesses and SMEs.”

Regarding this, Representative Choi Seung-jae said in a phone interview with Asia Economy, “To properly design livelihood policies, more representatives who truly understand the field and can properly represent small business and SME sectors in the National Assembly need to advance, but looking at the current situation, livelihood issues seem to be missing,” adding, “To properly reflect the voices of those who work hard, the representation of small business and SME sectors must be strengthened.”