Kbiz Chairman urges regulatory reforms to boost economy

Kbiz Chairman Kim Ki-moon, right, announces at the 2023 Kbiz forum press conference held in Jeju Island, on Sep. 13. [Courtesy of Kbiz]

The chairman of the Korea Federation of Small and Medium Enterprises (Kbiz) is calling for regulatory reforms from lawmakers and the government to boost business activities.

“Regulatory reform is the most efficient way for the government to boost the economy and enhance corporate competitiveness,” Chairman Kim Ki-moon said on Wednesday during a press conference that took place on the sidelines of the 2023 Kbiz forum in Jeju Island.

Kbiz also the results of a survey on the legislative agenda for the 21st National Assembly, with 300 small and medium-sized enterprises (SMEs) as respondents, at the forum. SMEs listed flexible working hours as the most important legislative agenda item to be passed this year, with 58.3 percent of the respondents prioritizing it. Other urgent agenda items included improvements in the law stating punishment for major accidents at business sites at 54.3 percent, facilitation of corporate succession at 45.7 percent, and enhancements to the foreign labor employment system at 43.7 percent. The survey allowed for multiple responses.

The majority of the respondents expressed satisfaction with the legislative activities of the 21st National Assembly, with 58 percent responding accordingly. Dissatisfied respondents amounted to 42 percent, with reasons for the response including frequent political disputes and conflicts (35.7 percent) and negligence of legislation related to people’s livelihoods (26.2 percent). According to Kbiz, the percentage of legislative suggestions from SMEs that are reflected in actual legislation decreased from 41.8 percent in the first year of the 21st National Assembly in 2020 to 32.8 percent in 2021, 26.2 percent in 2022, and 8.1 percent as of August 2023.

Kim also called for the abolition of foreign labor quotas, as “under the current quotas, companies hiring domestic workers can have allocations of foreign workers, but in reality, the employment of domestic workers is not even viable, although SMEs are willing to hire them.” He also expected the government to address the issue moving forward, as the labor ministry has already acknowledged the matter.

He also urged an extension of the grace period of more than two years for the application of the Major Accident Punishment Act to businesses with fewer than 50 employees, which will come into effect on January 27, 2024. Other requests to lawmakers and policymakers included an increase in the annual chemical substance registration criteria for new chemical substances to 1 ton from 0.1 ton.