‘KBIZ Committed to Creating Environment in which SMEs Can Concentrate on Management’

Chairman Kim Ki-moon of Korea Federation of SMEs (KBIZ). (Photos: KBIZ)

SMEs account for 99 percent of the nation’s total businesses and 83 percent of the nation’s total employees.

Chairman Kim Ki-moon of Korea Federation of SMEs (KBIZ) said, “KBIZ, which has shared lives and hope of SMEs, has been contributed to creating an environment in which SMEs can concentrate on management and raising their standing.”

The following are excerpts of an written interview with Chairman Kim Ki-moon of Korea Federation of SMEs (KBIZ), in which he spoke of policies related to SMEs.

Question: Would you introduce KBIZ?

Answer: KBIZ was established in 1962 in accordance with policies of nurturing SMEs to represent the rights of 6.66 million SMEs, improve their economic standing and promote balanced economic development.

SMEs account for 99 percent of the nation’s total businesses and 83 percent of the nation’s total employees.

KBIZ, which has shared lives and hope of SMEs, has been contributed to creating an environment in which SMEs can concentrate on management and raising their standing.

KBIZ has established itself as a policy partner of the ruling party, the government and Cheong Wa Dae which rush to seek SMEs’ views whenever any pending issue occur.

Q: Almost three years have passed after you was elected as KBIZ chairman in February 2019. Do you pick representative achievements of diverse efforts you’ve made since you took office?

A: Two years ago, I made a campaign pledge of making KBIZ a body speaking what it ought to say and doing what it ought to do. I’ve made good on them one by one.

First, I’ve made strenuous efforts to fix an issue of SMEs’ failure in receiving due rewards from large-sized companies and even the government and public entities.

In this context, the ruling party, the government and Cheong Wa Dae designated KBIZ as an entity of having the right to negotiate contract unit costs.

The National Assembly laid legal foundation on the matter, so KBIZ has been allowed to exercise the right to negotiate contract unit costs from April.

In 2006, a private collective contract system was revoked. The cap of a private contract, recommended by a cooperative, pegged at 50 million won has been institutionalized to 100 million won. The step is expected to help each cooperative expand markets.

KBIZ has focused on supporting cooperatives’ collaboration and self-sufficiency.

A revision of the Basic Act on SMEs recognizes the status of cooperatives, same as that of SMEs, allowing the former to benefit support such as financing, marketing, manpower and R&D like SMEs.

Sixteen metropolitan local governments have now finished legislation of ordinances on cooperatives, and city and county autonomous bodies have rushed to legislate similar ordinances.

KBIZ has implemented a variety of projects to cope with an unprecedented crisis, caused by the COVID-19 pandemic.

The organization inaugurated an SMEs’ COVID-19 pandemic countermeasures headquarters, conducted a campaign to reduce rents, held rounds of meetings across the nation and offered goods to prevent the spread of the pandemic.

KBIZ has lent an ear to the voices of the field and deliver them to Cheong Wa Dae, the government and the National Assembly to create policies and improve them.

A view of Korea Federation of SMEs headquarters in Yeouido, Seoul.