Ombudsman Choi Seungjae: "Expanding Regulatory Proposal Channels Through Local Government Collaboration"

SME Ombudsman New Year's Press Conference Held on the 20th
Only 2% of SMEs Seek Ombudsman for Regulatory Issues
"Multi-Faceted Efforts to Enhance Awareness and Accessibility"

The Small and Medium Business Ombudsman will establish a regulatory coordination system with local governments this year to improve accessibility for businesses seeking solutions to regulatory issues. Since small and medium enterprises (SMEs) most often turn to local governments first when facing regulatory difficulties, the Ombudsman plans to strengthen connections with each local government so that regulatory proposals unresolved at the local level are effectively referred to the Ombudsman.

At a New Year's press conference held in Jongno-gu, Seoul on the 20th, Ombudsman Choi Seungjae stated, "Forty percent of SMEs experiencing regulatory difficulties seek assistance from local governments, while only 2% turn to the Ombudsman. The Ombudsman must enhance the accessibility and convenience of submitting regulatory improvement proposals, while also pursuing stronger connections with local governments."

Choi Seungjae, Small and Medium Business Ombudsman, is explaining the current status of regulations on small and medium enterprises and this year's work plan at a press conference held on the 20th in Jongno-gu, Seoul. Photo by Yonhap News

According to the "SME Ombudsman Regulatory Difficulties Survey" conducted in December last year with 500 SME employees and 500 members of the general public nationwide, 45% of SMEs reported having experienced regulatory difficulties while operating their businesses. However, only 37% of these companies made efforts to resolve such issues. Additionally, 69% of respondents said they were unaware of the SME Ombudsman system. As a result, this year’s focus will be on raising awareness and improving the channels for submitting and proposing issues.

Ombudsman Choi added, "This year, we plan to strengthen regional meetings. In particular, starting in the second half of the year, we will establish new regulatory centers within each local government so that unresolved regulatory issues at the local level can be referred to the Ombudsman for resolution." He continued, "The current Ombudsman website mainly uses a real-name bulletin board, but we also plan to introduce an anonymous bulletin board."

He noted, "Recently, industries have been changing rapidly, but regulations and administrative processes inevitably move more conservatively. While large corporations have the resources to respond, many SMEs end up having to shift or abandon their businesses." He emphasized, "Large corporations may appear more influential due to their scale and impact, but it is SMEs that create innovative models. The process of resolving the regulatory challenges faced by SMEs is extremely important and fundamental to the ecosystem of the Korean economy."

Ombudsman Choi also mentioned the need for regulatory improvements not only at the local government level but also at the level of central ministries. He said, "In emerging industries such as autonomous driving and biotechnology, regulations are often converged and multiple ministries are involved. Through the Ombudsman, we will facilitate communication and create more cases of inter-ministerial cooperation."

Meanwhile, on January 15, the SME Ombudsman, together with the Office for Government Policy Coordination, developed the "Plan for Rationalizing On-Site Regulatory Difficulties for SMEs." The plan aims to improve a total of 79 regulations, including resolving 21 startup and new industry regulatory inconveniences, rationalizing 28 chronic regulations affecting SMEs and small business owners, and revising 30 hidden business regulations in administrative rules.