"An Alternative for SMEs Without Successors"... Korea Small Business Institute Discusses Business Succession Through Employee Buyouts

Seminar on Corporate Sustainability through Business Succession and Employee Buyouts

The Korea Small Business Institute will discuss succession strategies for small and medium-sized enterprises (SMEs) through employee buyouts. This approach is being evaluated as a potential new solution for SMEs struggling due to an aging population and a lack of successors.

On January 21, the institute announced that it would hold a seminar titled "Corporate Sustainability through Business Succession and Employee Buyouts" at 2:00 p.m. on January 29 in Meeting Room 4 of the National Assembly Members’ Office Building in Yeongdeungpo-gu, Seoul.

This seminar is co-hosted by the Korea Small Business Institute, the Korean Society for Cooperative Studies, and National Assembly members Kim Hankyu and Heo Young. It will focus on the role and potential of employee buyout systems in facilitating smooth business succession and employment stability for domestic SMEs.

In particular, as the number of SMEs facing difficulties due to population aging and the absence of successors increases, employee buyouts are being recognized as an alternative succession method that can achieve both business continuity and the maintenance or expansion of jobs. The seminar will feature in-depth discussions on policy directions and challenges for SME sustainability, drawing on both domestic and international policies and case studies.

The event will begin with opening remarks by Cho Joohyun, President of the Korea Small Business Institute, and a welcome address by Jang Jongik, President of the Korean Society for Cooperative Studies. This will be followed by a presentation from Choi Sujeong, Head of the Research Division at the Korea Small Business Institute, on the need to diversify SME succession strategies and international policy examples. Park Nogun, Professor at Hankuk University of Foreign Studies’ Department of Business Administration, will present on policy measures and expected outcomes of employee buyouts.

The comprehensive discussion session will be chaired by Hong Gibin, Director of the Global Political Economy Institute, and will include Kim Youngsu, CEO of Korea Engineering & Construction Holdings, Kim Jaesu, CEO of Woojin Transportation, and Ye Wooyoung, Head of the External Environment Response Division at the Ministry of SMEs and Startups. Participating companies will share real-world cases of employee buyouts, offering in-depth perspectives from the field on practical issues and necessary policy improvements in the operation of such systems.

President Cho Joohyun stated, "This seminar will serve as an opportunity to reframe employee buyouts not simply as a method of business acquisition, but as a means for sustainable growth and the creation of quality jobs at SMEs," adding, "We expect it will provide practical insights for future institutional improvements and policy design."