MSS Minister Kwon Chi-seung of the Ministry of SMEs and Startups (MSS) replies to a question from a member of National Assembly Trade, Industry, Energy, SMEs and Startups Committee, which conducted an audit on MSS and Korea Intellectual Property Office (KIPO) on Oct.21.

The National Assembly Trade, Industry, Energy, SMEs and Startups Committee conducted an audit on the Ministry of SMEs and Startups (MSS) and Korea Intellectual Property Office (KIPO) on Oct. 7.

Lawmakers sitting on the committee took issue with the large-sized platform companies’ excessive business expansion, which has threatened the survival of pop-and-mom shops, fears on vulnerable areas whose small businesses could fail to be compensated for damages caused by the COVID-19 pandemic, and the need for mobility and delivery platform companies to discuss ways of promoting shared growth with small businesses.

The lawmakers also demanded that MSS should come up with policies to help SMEs comply with the government’s policy of achieving carbon neutrality by 2050.

Rep. Lee So-young of the ruling Democratic Party of Korea cited a report by Standard Chartered, saying that global companies are rushing to declare carbon neutrality, and Apple is pressuring its iPhone parts makers to use renewable energies.

A survey of large-sized global companies showed that 78 percent of respondents replied that they would stop transactions with supplies found to have insufficient shift into carbon neutrality.

In particular, suppliers in emerging markets like Korea are lacking the knowledge and understanding of carbon neutrality, and losses Korean SMEs would suffer are estimated at about 160 trillion won as of 2030.

Rep. Lee said, “Carbon neutrality is not an environment issue, but it has something to do with the survival of Korean SMEs. He demanded the extension of Korean SMEs and Startups Agency’s “carbon neutrality management voucher project,” designed to offer consulting services on carbon emission reduction tailored to meet their conditions.

The lawmakers shared the view that automakers should strike a deal to promote shared growth on their entry into the used car transaction market.

MSS Minister Kwon Chi-seung meets with KBIZ Chairman Kim Ki-moon and SME businessmen in the Gyeonggi-do area at Dongkoo Bio & Pharma in Hwaseong City on Oct. 18. (Photos: MSS)

KBIZ Calls for Support SME Founders’ Prior Inheritance

Korea Federation of SMEs (KBIZ) demanded that the cap of the special taxation of gift tax for SME founders be raised to the cap of their inheritance tax exemption.

KBIZ asked for the cap to be raised on the special taxation of gift tax for SME founders to 50 billion won, the cap of their inheritance tax exemption.

SME succession is not a simple process of handing over ownership and management rights, but one of transferring comprehensive management capabilities, such as founders’ management tenets and knowhow.

Prior inheritances for planned corporate transfer should be given an incentive similar to the inheritance tax exemption.

KBIZ made the proposal when MSS Minister Kwon Chi-seung had a meeting with SME businessmen in the Gyeonggi-do area at Dongkoo Bio & Pharma in Hwaseong City on Oct. 18.