SMEs call for disaster punishment act to be postponed

[Photo by Yonhap]

In a gathering at the Kim Dae-jung Convention Center in Gwangju on Tuesday, leaders of small and medium-sized enterprises (SMEs) advocated for the deferment of the Serious Disaster Punishment Act for businesses with fewer than 50 employees. The SME leaders convened ahead of the National Assembly’s plenary session slated for February 29th, 2024, where lawmakers will decide on legislation to postpone the law’s enforcement.

The convention, the third of its kind following gatherings in Seoul on January 31st and Suwon on February 14th, saw over 5,000 individuals, including representatives from around 30 SME associations in the Honam region, attend.

Participants argued that implementing the Serious Disaster Punishment Act without sufficient preparation is causing confusion on the ground and unfairly branding small business owners as potential lawbreakers.

Kang Chang-sun, the head of the Korea Information & Communication Contractors Association, expressed his sentiments, saying, “Ideally, we would like to request the removal of the Serious Disaster Punishment Act. However, since the law has already been enacted, we are urging for at least time before implementation to allow for compliance.”

Addressing the counterpoint that the enforcement of the act for businesses with fewer than 50 employees has already been postponed for three years, Kang defended the appeal for further delay, saying, “We ask that the government understand the reality faced by small and medium-sized enterprises.”

The Korea Federation of Small and Medium Business (KBA) pledged not to request any additional extensions from the National Assembly and the government beyond the initial two years, and critics are arguing that the Serious Disaster Punishment Act is creating a divide between business owners and employees.

“Korea already has numerous mandatory provisions and penalties under the Occupational Safety and Health Act, and there is no need to create the Serious Disaster Punishment Act for even more punishment,” KBA Chairman Kim Ki-moon said. “We urge the National Assembly to listen to the SMEs’ voices and pass the bill to postpone the enforcement of the act in the upcoming plenary session.”