KBIZ Calls for Parliamentary Passage of Family Succession and Other Pending SME Bills

Representatives of the Korea Federation of SMEs (KBIZ and 14 ruling party lawmakers), including KBIZ Chairman Kim Ki-moon and Yoon Jae-ok, the PPP floor leader, gesture at a meeting at KBIZ headquarters in Yeouido, Seoul, on Aug. 23. (Photo: KBIZ)

The Korea Federation of SMEs (KBIZ) demanded ruling party pass measures related to family succession and other pending SMEs-related bills.

KBIZ also asked for the prolonging of a grace period for the enforcement of the act on the punishment of serious disasters, scheduled to go into effect next Jan. 1, for worksites with fewer than 50 employees.

KBIZ had a meeting with 14 ruling party lawmakers, including Yoon Jae-ok, the floor leader of the People Power Party (PPP) and Kim Sung-won, a senior member of the National Assembly Trade, Industry, Energy, SMEs and Startups Committee, at KBIZ headquarters in Yeouido, Seoul, on Aug. 23.

In his speech at the meeting, KBIZ Chairman Kim Ki-moon asked for the parliamentary passage of the measures at the 21st parliament, including ones related to invigorating of family succession, overhauling the act on the punishment of serious disasters, and excluding of cooperatives’ B2B deals from collusion.

As for family succession, Chairman Kim said, “Even if SME businessmen want family succession, institutional insufficiency will lead to selling them at giveaway prices.”

He called for the current parliament to enact related measures, as presidential candidates promised to do so during their campaigns.

In July, Korea’s parliament came up with tax revision bills, including the one on supporting family succession.

The government plans call for revising upward the 10 percent gift tax category for family succession stocks, from the current 6 billion won to 30 billion won, and extending the installment period for more than 20 million won in inheritance and gift tax amounts from current five years to 20 years.

KBIZ asked for the early parliamentary passage of the government’s tax revision plans, required to be approved by the National Assembly.

In accordance with the act on the punishment of serious disasters, business owners and managers found to fail to take preventive steps against serious disasters involving deaths shall be sentenced to less than one year imprisonment or less than 1 billion won in fines.

The grace period for worksites with fewer than 50 employees is to end next Jan. 27.

As for the overhauling of the act on the punishment of serious disasters, KBIZ Chairman Kim said sentencing CEOs for more than one year is a poison clause: imprisoning CEOs that could lead to closures. Kim called for prolonging the grace period two years more.

Chairman Kwak In-hak of the Korea Metal Panel Industry Cooperative said during the two-year grace period for the act, businesses could not fully prepare themselves since they had to brace for survival due to a crisis, caused by the COVID-19 pandemic.

A survey of 500 companies, each employing between five and 300 employees, conducted by KBIZ, showed that 40.8 percent of the respondents replied that it was impossible to comply with obligations of the act and 60 percent of the total called for prolonging its enforcement at least two more years.