Minster Lee Young of the Ministry of SMEs and Startups (MSS) said her ministry would give top priority to regulatory reform.
Minister Lee said her ministry would listen to grievances and complaints startups experience by conducting.
She said a survey would be conducted with all startups and regulatory barriers considered unnecessary would be torn down. Minister Lee said her ministry would reduce the post-management period for inheriting SMEs for smooth inheritance.
In a meeting with reporters at the Korea Federation of SMEs, MSS Minister Lee said if regulations are eased in Korea, a “republic of regulations,” businesses could run at full throttle.
MSS will conduct a survey on regulations among 4,000 beneficiaries of the ministry’s support projects, and a database will be produced from the results to inform proactive regulatory reform.
Minister Lee said her ministry will concentrate its capabilities to explore hidden regulations through proactive administration.
MSS plans to look for regulations that stand in the way of creating value for SMEs in the second half of the year.
The ministry plans to overhaul the regulatory system through consultations among ministries. Unnecessary regulations and ones brining about high costs will be explored and reviewed from the scratch.
MSS plans to ramp up communication with the private sector to pursue regulatory reform. Despite the current government’s stand to cut down on advisory committees, MSS had recently formed a consultative committee of 50 experts.
The ministry would be on the same wavelength with the private sector by having the direction of the ministry’s policies reviewed by the experts, Minister Lee said.
Minister Lee hinted at the easing of stringent regulations that could hinder family business succession.
She gave a briefing on the new government’s policies related to MSS to President Yoon on July 12 and received directives from the president.
Under law, a family member who inherit an SME is required to under a 7-year post management period during which he or she is banned from disposing of 20 percent or more of its assets or stopping operation and closing or changing its mainstay business.
MSS is seeking to cut down on the post-management period on family business succession from seven years to five years through consultation with the Ministry of Economy and Finance (MOEF).
The ministry is considering conditions to maintain family business succession. MSS is also considering raising the scope of family business succession from less than 40 million won in sales to less than 1 trillion won.
MSS would closely consult with MOEF to ease excessive regulations to hinder family business recession and listen to voices of the field, Minister Lee said.
MSS plans to work out a standard supply contract among large- and small-sized companies in August and introduce a delivery unit price indexing system in a pilot project. Minister Lee disclosed her strong willingness to legislate a delivery unit price indexing system.
The ministry plans to expand the scope of offering legal support to SMEs which have their technology stolen or snatched. It plans to offer prior consulting services to prevent SMEs’ having technology stolen.
MSS plans to raise a fund to help startups invest in new industries so that they can grow into unicorn companies. The ministry plans to offer financial support to small businesses and merchants whose policy loans are to terminate on Sept. 30.
MSS plans to offer emergency loans worth more than 13 trillion won to small businesses in cooperation with the Financial Services Commission.
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