One week after the announcement of the integration plan for public institutions under the Ministry of SMEs and Startups, key implementation details such as the surviving corporation and equity settlement remain unresolved. There are significant differences in the responses from each institution, indicating that confusion is likely to continue in the field for the time being.
According to the Ministry of SMEs and Startups on September 9, the government is pushing forward with the reform of public institution functions as outlined in the 'Public Institution Function Reform Promotion Plan' announced on September 3.
Eight public institutions under the Ministry are subject to reduction and adjustment. The Korea Small and Medium Enterprises Distribution Agency (Han Yu-won) and the Public Home Shopping Network will be merged to establish a new entity tentatively named the 'Small and Medium Enterprises Marketing Promotion Corporation.' Additionally, the Korea Startup Incubation Association will be integrated into the Startup Promotion Agency. The Small and Medium Business Research Institute will be transferred to the Economic and Social Research Council under the Office for Government Policy Coordination, while the Comprehensive Support Center for Disabled Enterprises will move to the Korea Employment Agency for the Disabled under the Ministry of Employment and Labor. Three facility management subsidiaries, including GiboMate, Jungjin Partners, and Han Yu-won Partners, will be consolidated into a new entity tentatively named the 'Small and Medium Venture Management Corporation.'
The most significant change involves the merger of Han Yu-won and the Public Home Shopping Network, which together have a total of 674 employees (295 from Han Yu-won and 379 from the Public Home Shopping Network). However, industry experts point out that a restructuring of the governance is necessary before the actual integration can take place. While the Public Home Shopping Network is 50% owned by Han Yu-won, the National Agricultural Cooperative Federation holds 45%, and the National Federation of Fisheries Cooperatives owns 5%. The specifics regarding which entity will remain as the surviving corporation, whether the shares held by the agricultural cooperatives will be converted into shares of the new entity, or if they will be settled in cash, have yet to be determined.
Disparities in compensation and job levels are also on the agenda for adjustment. According to the public institution management information disclosure system 'Alio,' the average salary per person based on this year's budget is 78.88 million won for the Public Home Shopping Network and 70.12 million won for Han Yu-won, a difference of 8.76 million won.
A representative from Han Yu-won stated, "There are expectations that integrating with the sales channel of the Public Home Shopping Network will enhance support for promising small and medium enterprises. However, no specific details have been finalized yet."
The term of the head of the integrated institution is also seen as a challenge. It is reported that the process for appointing a representative at Han Yu-won is proceeding independently of the integration announcement. In contrast, the future of Lee Il-yong, the representative of the Public Home Shopping Network who took office in March, has become uncertain due to the inclusion of the network in the integration plan.
Additionally, the Small and Medium Business Research Institute, which is being transferred, is expected to continue its policy research tasks for the Ministry while establishing a collaborative framework with research institutions under the Economic and Social Research Council to analyze and study small and medium enterprise policies from a more comprehensive perspective.
The Comprehensive Support Center for Disabled Enterprises, which has been responsible for policies related to disabled enterprises, is experiencing a somber atmosphere following its transfer to the Korea Employment Agency for the Disabled. Furthermore, the long-awaited elevation of the center to the 'Disabled Enterprise Promotion Agency' has also been stalled. Park Ma-ru, the chairman, is nearing the end of his term, leading to increased anxiety within the organization. A representative from the organization explained, "The chairman's term is until October, but if a successor is not appointed, it will automatically be extended."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.