SMEs and Small Business Owners Urge President Lee Jae Myung to Reignite Korea's Fading Growth Engine

Korea Federation of SMEs and Korea Federation of Micro Enterprises Issue Statements

The small and medium-sized enterprise (SME) sector and small business owners have called on President-elect Lee Jae Myung, the 21st president, to mobilize all-out efforts to revitalize the South Korean economy, which is facing a complex crisis.

Lee Jae Myung, the Democratic Party presidential candidate who is confirmed to be the 21st president-elect, is receiving a congratulatory bouquet from Park Chandae, the chief election committee chairman, at the national vote counting broadcast event held in front of the National Assembly in Yeouido, Seoul on June 4, 2025. Photo by Kim Hyunmin

On June 4, the Korea Federation of SMEs issued a statement saying, "We sincerely congratulate Lee Jae Myung on being elected as the 21st president, and we have high expectations for the Lee administration to create a 'Cheer up SMEs, a Korea running once again!'" The statement continued, "The Korean economy is facing a complex crisis, including low growth in the 0% range, low birth rates and an aging population, and trade wars."

The federation emphasized, "Growth should not be limited to large corporations or specific regions, but should enable SMEs, venture businesses, small business owners, non-metropolitan areas, and workers to grow together." It added, "In particular, support for SMEs should be strengthened to foster future-leading strategic industries, and traditional manufacturing SMEs should be able to secure industrial competitiveness through innovation and structural improvement based on artificial intelligence (AI) and carbon neutrality."

Small business owners also expressed both their expectations and requests for the new administration. The Korea Federation of Micro Enterprises issued a statement saying, "We congratulate President Lee Jae Myung on his election and hope that the launch of the new government will mark a major turning point for national unity and the recovery of people's livelihoods in Korea." The statement further noted, "Small business owners are suffering more from sluggish domestic demand and economic downturn than during the IMF crisis or the COVID-19 pandemic. Therefore, we hope that the new administration will focus above all on reviving the small business sector and the people's economy."

The federation went on to say, "We have submitted the '21st Presidential Election Small Business Policy Agenda,' which consists of 110 policy tasks including 25 core issues, to the political community and have proposed that small business policies be promoted as a major national agenda for the next administration." It added, "We hope these proposals will be actively reflected in the new administration's policy agenda, and in particular, we urge that the emergency management stabilization fund for small businesses, measures to boost the economy, and other crisis response measures proposed by the federation?especially those mentioned by President Lee Jae Myung during his candidacy regarding supplementary budgets for people's livelihoods?will be implemented as soon as possible."

The federation also stated, "We expect that President Lee Jae Myung's pledges regarding special measures such as debt adjustment and cancellation for COVID-19 loans, reduction of interest burdens, expansion of the New Start Fund, and the expansion of bad banks, all aimed at easing the debt and financial burdens of small business owners, will be included in the supplementary budget and provide hope and courage to small business owners suffering from the longest-ever economic downturn and record-high debt."

The need for a dedicated organization for small business owners was also highlighted. The federation said, "We believe that President Lee Jae Myung's pledges for small business owners, such as debt adjustment, refinancing loans, easing financial burdens, and expanding local currency, as well as broad institutional improvements to restore fairness in the platform economy, are realistic measures to support people's livelihoods." It continued, "We further hope that the new administration will prioritize small business policies by expanding dedicated organizations, such as enacting a welfare law for small business owners, strengthening the social safety net, enhancing private sector capabilities, introducing a vice minister for small business within the Ministry of SMEs and Startups, appointing a secretary for small business in the presidential office, and establishing a presidential commission on small business."