Democratic Party and Korea Federation of SMEs Hold Policy Meeting on September 4
Ruling Party Pledges to Improve Business Environment
SMEs Request Swift Response to Tariff Impacts
Jeong Cheongrae, leader of the Democratic Party of Korea, stated, "We will work to improve unfair practices in the relationships between large corporations and small and medium-sized enterprises, including abuses of power, subcontracting issues, technology theft, and unfairness in the consignment and management process, in order to promote the development of SMEs."
On this day, at a policy meeting between the Democratic Party and the Korea Federation of SMEs held in Yeouido, Seoul, Jeong listened to the challenges faced by businesses and discussed support measures, including relevant legislation. This was the second consecutive day of Jeong's on-site economic and livelihood activities, following his visit to the Korea Federation of Micro Enterprises on September 4.
The visit was intended to offer comfort and support in light of the difficulties experienced by citizens and businesspeople during periods of social turmoil, such as the 12·3 Martial Law, which made daily life more challenging. Jeong emphasized, "It is necessary for the government and the ruling party to encourage SMEs in order to create an environment where they can work with greater confidence." He believes that revitalizing SMEs is essential to jump-starting the recovery of the national economy.
Jeong also remarked, "Currently, SMEs are struggling to overcome difficulties caused by the effects of tariffs," further highlighting the current challenges. The visit was attended by Han Jeongae, Chair of the Policy Committee; Kwon Chilsung, Chair of the Special Committee on SMEs; Kim Woni, the ruling party secretary of the National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee; as well as lawmakers Kim Donga and Kwon Hyangyeop. From the Korea Federation of SMEs, Chairman Kim Kimon, along with chairpersons and vice chairpersons of the SME Associations Council and SME representatives, were present.
Jeong explained, "To create a better environment for SMEs, next year's budget for the Ministry of SMEs and Startups has been set at a record 16.8 trillion won." He urged renewed efforts, emphasizing that the government and the ruling party are paying close attention to the budget allocation for SMEs.
Additionally, Jeong called for attention to the issue of industrial accidents, a key national agenda item for the Lee Jaemyung administration. He said, "President Lee Jaemyung has repeatedly stressed the importance of workplaces free from industrial accidents," and added, "He often emphasizes the need for preventive measures and safety devices, stressing that no one should lose their life at work simply because of cost-saving measures." Jeong appealed, "This is a matter of people’s livelihoods, and no one should die at their workplace. I hope you will pay special attention to this issue."
Representatives of the Korea Federation of SMEs shared the difficulties faced by businesses and also expressed concerns regarding the Yellow Envelope Act (Articles 2 and 3 of the Trade Union Act). Chairman Kim called for a swift response from the government and the ruling party regarding the direct impact of 50% tariffs on steel and aluminum. He said, "This is a common issue among manufacturing countries such as Japan and Germany, and the Korea Federation of SMEs earnestly hopes that Korea will be the first to solve this problem."
Regarding the Yellow Envelope Act, which was passed by the Cabinet, Chairman Kim stated, "Nearly 50% of SMEs and manufacturers operate based on a primary contractor-subcontractor structure, so there are many concerns." He added, "While protecting workers is important, please establish institutional measures to prevent SMEs from being swept up by excessive union demands."
During the closed-door session, the Korea Federation of SMEs reported on trade-related issues to the Democratic Party and requested legislative support needed for SMEs. In particular, ahead of the implementation of the Yellow Envelope Act, the Federation is expected to emphasize the need for supplementary legislation to clarify the definition of employers, guarantee the right to defense, and address the risks to SME management rights posed by amendments to the Commercial Act.
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