The small business sector has requested a delay in the enforcement of stricter market capitalization criteria for KOSDAQ delisting and called for separate bidding for construction materials from the Korea Land and Housing Corporation (LH).
The Korea Federation of Small and Medium Businesses announced that on August 12, over 130 participants, including Prime Minister Han Seung-soo, officials from relevant ministries, and representatives from the small business community, attended a regulatory innovation forum for small and venture businesses held at KBIZ Hall in Yeouido. This forum was organized following a luncheon meeting on July 19 between Prime Minister Han and leaders of small business associations, where Kim Ki-moon, the federation's chairman, made the proposal.
Kim Ki-moon suggested to the Prime Minister that improving KOSDAQ delisting criteria and implementing separate bidding for public construction materials should be prioritized. He stated, "Since the criteria for KOSDAQ delisting were tightened on July 1, small businesses are at risk of delisting due to market capitalization declines unrelated to their performance or financial status, especially amid recent market volatility. We need to identify the necessary support measures for small businesses struggling due to these market fluctuations."
Regarding the separate bidding for construction materials, he noted, "In the case of LH's private participation projects, small business products can be directly purchased under the Market Support Act, but differing opinions among ministries have prevented separate bidding. Given the challenging economic conditions for small construction businesses, the survival of over 360 small manufacturers producing construction materials is at stake, and we hope for a swift revision of the relevant guidelines."
The forum included three sessions focusing on: regulatory issues arising from the emergence of new industries, regulatory improvements for small business growth, and sector-specific proposals.
In discussing the growth of new industries, participants addressed the lack of relevant systems or unclear regulations affecting new industries and traditional industries. Suggestions included improving regulatory sandboxes, establishing laws and systems for the digital asset industry, revising data regulations for AI development, and creating coordination bodies for harmonizing new and traditional industries.
For regulatory improvements related to small businesses, topics included capital market activation, fostering local small businesses, and creating a fair competitive environment. Proposals included easing entry and exit regulations for the KOSDAQ market, improving practices for protecting newly listed companies, relaxing regulations for industries in local industrial complexes, expanding small business participation in mega-projects, introducing a payment linkage system for government procurement projects, and updating industrial safety and health management costs.
Sector-specific issues addressed included regulatory challenges faced by manufacturing companies, women-owned businesses, and small merchants. Suggestions included revitalizing small manufacturing of construction materials, excluding the startup support period (seven years) for female CEOs during pregnancy and maternity leave, expanding vehicle types for small business rental needs, applying tariff quotas for edible soybeans, and improving the aT monopoly quantity management system. Twenty-five regulatory issues that could not be addressed during the forum were submitted to the government in writing.
Kim Ki-moon remarked, "While our economy continues to thrive, particularly in the semiconductor sector, with record exports in the first half of the year and large corporations achieving unprecedented profits, small businesses are facing the highest loan delinquency rates since 2015, and those supplying to larger companies are not sharing in the successes."
He added, "Regulatory innovation is the best way for the government to support small businesses without spending a dime, so proactive regulatory innovation is essential."
* This article has been translated by AI.
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