Park Seong-hyo, Director of Sojin-gong, "Expecting Improved Work Efficiency with Office Relocation... Preparing for a New Decade"

Press Conference on Office Relocation
"Poor Working Conditions... 31.6% Turnover Rate Among New Employees"
"Reduced Travel Time to Ministry of SMEs and Startups"
"Soshin Gong, Marking 10 Years, Preparing for the Next Decade"

Park Seong-hyo, Chairman of the Small Enterprise and Market Service (SEMAS), stated regarding the office relocation that it was an "unavoidable choice for improving employee treatment and other reasons."

On the 24th, Chairman Park held a press conference about the office relocation at the 5th-floor auditorium of the Daejeon SEMAS headquarters and explained this. After SEMAS announced the office relocation plan, local business circles expressed concerns that if about 500 employees left simultaneously, the old downtown economy would be hit. This press conference was arranged for Chairman Park to personally explain the background of the office relocation.

On the 24th, Park Seong-hyo, the President of the Small Enterprise and Market Service, held a press conference on the relocation of the headquarters. (Photo by Small Enterprise and Market Service)

Chairman Park explained, "Since its launch in 2014, SEMAS has been leasing and using the current office building. Compared to the expanding organization responding to COVID-19 and other public livelihood issues, the office and convenience spaces are insufficient, and working conditions for employees are poor, resulting in a new employee turnover rate approaching 31.6% over the past five years."

He continued, "While reviewing various options for building a new office and improving working conditions, in March of this year, KB Kookmin Bank proposed relocating the headquarters to a call center building it owns and operates (located in Jijok-dong, Yuseong-gu, Daejeon). SEMAS decided to relocate after a comprehensive evaluation of each factor, including ▲safety assurance ▲improvement of work efficiency ▲cost reduction ▲welfare enhancement ▲and future expansion potential of the organization."

In particular, Chairman Park expected that the office relocation would significantly increase work efficiency. When moving to the new office, the workspace per person will increase from 18.5㎡ to 20.5㎡. Additionally, accessibility to the Ministry of SMEs and Startups, the supervising ministry, will improve (from 33 km to 14 km), reducing business trip time (round trip from 120 minutes to 40 minutes), thereby enhancing work efficiency.

Chairman Park emphasized, "The new office relocation will reduce the budget by about 1 billion KRW compared to the current office due to lower deposit and rent and expanded free parking spaces. The saved costs will be invested in improving welfare for employees."

Regarding concerns that the old downtown economy would be damaged by the office relocation, Chairman Park rebutted, "The shift of Daejeon's urban center axis from Jung-gu to Seo-gu and Yuseong-gu, combined with Korea's low birthrate, aging population, and concentration in the metropolitan area, are complex factors, and SEMAS's location is only a secondary reason. This is an issue that requires policy efforts from the public, private, local governments, and local business sectors."

In this regard, the SEMAS labor union also expressed a welcoming stance on the office relocation. Yoon Ji-hoon, the union chairman, said, "Although the Ministry of SMEs and Startups and its affiliated organizations have moved to Sejong, SEMAS has maintained its position in Jung-gu, Daejeon for 10 years. It is self-contradictory to claim that SEMAS should stay while a certain affiliated organization of Daejeon City, which advocates for revitalizing the old downtown, has moved out. The revitalization of the old downtown is a policy issue that Daejeon City and Jung-gu Office should solve."

Chairman Park stated, "SEMAS is celebrating its 10th anniversary this year. As a public institution for 7.3 million small business owners nationwide and about 1,800 traditional markets and shopping districts, it is a time to strengthen the driving force for policy implementation and establish a long-term foundation looking toward the next 10 to 20 years."