[Column] The Era of Great Transformation, SMEs on the Brink

Crushed by Internal and External Crises
A Time When Rebuilding for Survival Is Essential
The Political Sphere Must Listen to Their Voices

"I am deeply concerned that not many people in the political sphere understand how precarious the situation surrounding small and medium-sized venture enterprises is. In the past, it was always said to be difficult, but now it is on a completely different level."

A policy expert specializing in small and medium venture businesses recently expressed this to a reporter while diagnosing the current economic and political situation. He added that there is great concern due to the weak awareness among related politicians about the regulatory barriers constraining business activities and the resulting tangible damages.

As the June 3 presidential election approaches, reform issues that had previously gone unnoticed are suddenly coming under the spotlight. The small and medium venture industry, which had been anxious due to political uncertainties, is now finally raising its voice, and a desperate sense of crisis beyond mere anxiety can be sensed in their statements.

This atmosphere can be easily understood by looking at the policy proposal recently published by the Korea Federation of SMEs to be delivered to presidential candidates.

Three years ago, during the presidential election, the discourse was mainly about concrete 'growth narratives' such as digital innovation based on the will to 'grow despite difficulties.' This time, however, the proposal is filled with a heartfelt 'rebuilding narrative' emphasizing the need to restore the collapsed operational foundation and fundamentally change the business structure.

A survey result showing that only 19% of small businesses are strategically preparing for digital transformation starkly reveals how deteriorated the situation is, making such topics almost a luxury for them.

The reckless 'tariff brinkmanship' by the U.S. Trump administration and the resulting expansion of uncertainty, the rapid transition to a low-growth era, high exchange rates, and increasingly higher procurement barriers are all weighing down even more harshly on the already vulnerable small and medium venture industry.

Systems like the 52-hour workweek and minimum wage policies crush even the will to find breakthroughs despite the bleak situation. One small business owner lamented, "The more difficult the macroeconomic conditions, the more room there should be internally within companies to seek alternatives, but because of the working hours and minimum wage issues, there is simply no answer."

Small and medium venture enterprises are the foundation of our economy and the central axis of employment. However, if structural burdens continue to accumulate and institutional support remains insufficient as it is now, the weight they must bear will inevitably grow infinitely. When discussing the future of the industry, should the very small and medium venture enterprises at the center be pushed into a narrower space?

In particular, systems such as the 52-hour workweek and minimum wage are especially painful for small and medium venture enterprises that are still small in scale. Alternatives like differentiated application by industry clearly exist, but the current atmosphere where no one dares to speak out must be boldly addressed by the political sphere, including major presidential candidates.