SMEs push NCCP to name industries favoring them

Seven organizations representing SMEs urged the National Commission for Corporate Partnership (NCCP) yesterday to decide quickly which part of the service sector will be classified as “SME industries.” The classification confers certain benefits for smaller companies.

The decision is already one month overdue.

The Korea Federation of Small and Medium Business (Kbiz) said the seven groups held a rally yesterday with the Korea Federation of Retailer Organization (KFRO) in Yeouido, western Seoul, demanding the matter be resolved quickly.

The seven groups are: Korea Bakery Association, Korea Florist’s Transworld Delivery Association, the Korean Bicycle Sales Cooperative, Korea Federation of Bookstore Association, Korea LPG Gas Sales Association, Korea Vending Machine Operation Association, and Korea Used Car Dealers’ Association.

The NCCP has put off its decision as it awaits suggestions and feedback from SMEs, and voluntary agreement between them and large businesses, it said.

If it designates, for example, bakeries as an “SME industry,” large companies and chains would have to refrain from encroaching on this business sector in line with certain rules governing their expansion within a certain radius of pre-existing outlets.

At yesterday’s rally, the groups released a joint statement urging the NCCP to speed things up.

“Due to the delay, many small business owners have already gone out of business,” said Kim Kyung-bae, chairman of KFRO. “To safeguard the livelihoods of small business owners, we insist that a decision be made promptly.”

Kim said the NCCP has already had one year to review the situation and that should have given it ample time to make a fair assessment, especially as it only required seven months to conduct a similar review earlier on the manufacturing sector.

“Complaints from small business owners are multiplying as the NCCP has not kept the promise it made last year to restrict large companies from dominating certain markets,” said Lee Woon-hyung, a general manager at Kbiz.

“An immediate resolution is needed to prevent the middle class from taking a major hit as well as to ease growing economic polarization,”

By Kim Jung-yoon [kjy@joongang.co.kr]