"Please Reconsider Expanding the Labor Standards Act"... Small Business Association Appeals to Democratic Party

Small Business Association and Jung Chungrae Hold Policy Meeting
Ten Key Policy Demands Delivered for Small Business Owners

The small business sector met with the Democratic Party of Korea and delivered a list of ten key policy demands to help overcome the crisis facing small business owners, including a call to prohibit the expansion of the Labor Standards Act to workplaces with fewer than five employees.

Song Chiyoung, President of the Small Business Association.

On September 3, the Small Business Association announced that it held a meeting at its conference room in Yeongdeungpo-gu, Seoul, with major Democratic Party officials, including Party Leader Jung Chungrae.

Attendees at the meeting included Democratic Party Leader Jung Chungrae, Senior Vice Chair of the Policy Committee Choi Kisang, Secretary of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee Kim Wonyi, National Small Business Committee Chair Oh Sehee, Spokesperson Kwon Hyangyeop, Chief of Staff Han Minsu, and Head of Civil Complaints and Policy Office Im Ohkyung. Song Chiyoung, President of the Small Business Association, and the association’s leadership were also present.

President Song specifically requested a reconsideration of the plan to expand the Labor Standards Act to workplaces with fewer than five employees. Citing a survey by the Korea Employers Federation, he stated, “If the 52-hour workweek and annual leave allowance are applied to workplaces with fewer than five employees, it will result in an additional 42 million won in annual wages. In a situation where business is slow and only labor costs are rising, this is an unbearable burden for small business owners.”

He added, “It is time for the public and private sectors to come together, not just for temporary support, but to restore the growth ladder and help small businesses overcome the crisis.” He also proposed the establishment of a dedicated vice ministerial position for small business policy to ensure ongoing support measures.

The Small Business Association then presented ten key policy demands to help small businesses overcome the current crisis. The ten demands are: ▲ Establishment of a social safety net for small business owners ▲ Amendment of the law to require public disclosure of commercial building management fees ▲ Expansion of income tax deductions and limits for small business expenses ▲ Support for digital and AI transformation of small businesses ▲ Expanded support for small business owners who close their businesses ▲ Development of customized credit evaluation models ▲ Improvement of unfair trading practices on platforms ▲ Opposition to expanding the Labor Standards Act to workplaces with fewer than five employees ▲ Streamlining the small business policy delivery system ▲ Establishment of a policy research institute within the Small Business Association.