When meeting with small business owners in the industrial sector, I often feel a deep frustration. Despite the harsh economic climate marked by high interest rates and sluggish domestic demand, our entrepreneurs are tirelessly working day and night to overcome these challenges. However, the most painful issue they face is not the macroeconomic crisis or unavoidable external factors, but rather the 'unreasonable regulatory barriers' that are logically incomprehensible and insurmountable.
One small company has spent years developing world-class innovative technology and has even received national certification. Yet, it has been unable to enter the procurement market due to the public institutions' conventional requirement for 'similar delivery performance.' Demanding past delivery records from a startup that has just begun its journey effectively blocks its market entry, creating an invisible glass ceiling. Even when the same product is involved, the differing inspection standards and formats required by various public institutions have led to repeated rejections of unnecessary administrative paperwork, putting some companies on the brink of bankruptcy due to financial difficulties. This urgent and vivid outcry from the field has prompted the Ombudsman to reflect deeply.
In South Korea, small and venture businesses, which make up 99% of the economy, face public institutions as their first and largest customer on the path to growth. While public institutions play a crucial role in providing services to the public that cannot be left solely to market forces, they often assume a dominant 'supplier' position in the procurement and contracting market, imposing strict guidelines and conditions that only those companies that navigate these bureaucratic hurdles can qualify for transactions.
To an outsider, these 'shadow regulations' that lack legal basis may not be visible, but for small businesses fighting for survival, they represent a suffocating cliff. The reason small business owners express that 'the internal guidelines and contract conditions of public institutions are far more daunting and restrictive than the laws of the National Assembly or government enforcement decrees' lies here. No matter how much the central government advocates for regulatory reform, if practical guidelines at the frontline continue to constrain businesses, the warmth of policy evaporates into thin air.
Fortunately, a hopeful change is underway. To ensure that unreasonable and unfair regulations do not stifle the innovative spirit and creativity of our businesses, national efforts are being concentrated on revitalizing small businesses, the roots of the real economy. In this regard, the Small Business Ombudsman has targeted the hidden shadow regulations of public institutions, which have long been seen as a blind spot in regulatory reform.
After months of persistent and intense discussions with the Ministry of Economy and Finance and relevant public institutions, we achieved a significant outcome by systematically overhauling 251 regulations across four key areas: entry regulations, technology development, procurement and bidding, and operational procedures. This is not merely a matter of revising a few administrative documents. It represents a substantial dismantling of barriers related to excessive entry restrictions, reductions in fees for small business technology development, and alleviation of burdensome deposit requirements—effectively breaking down the 'money and time' barriers that have caused the most pain for businesses.
In particular, I would like to express my deep gratitude to the public institution employees who courageously set aside long-standing administrative privileges and conveniences to lead the revision of regulations during this regulatory reform process. Their commitment to dismantling the solid walls of bureaucracy and thoroughly changing the system from the perspective of businesses serves as an excellent example of how public-private cooperation can transform the field.
Now, we must firmly establish 'one government, one voice.' The central ministries that formulate policies and the public institutions that implement them must work together like interlocking gears toward the singular common goal of 'dynamic growth for small businesses.' The Ombudsman will continue to focus all efforts on leveling the uneven paths in the field, ensuring that our small businesses can leap freely in a fair playing field without unreasonable shackles.
* This article has been translated by AI.
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