President Yoon Seok-yeol and businessmen attending the 2022 Korean Small and Medium Business Convention held on the lawn in front of the presidential office in Yongsan on the 25th listen to the opening remarks of the Korea Federation of Small and Medium Enterprises Chairman Kim Ki-moon. [이승환 기자]What has emerged as the biggest challenge in the small and medium-sized business this year is none other than the ‘unit price indexation system’. In a situation where all kinds of adverse factors such as the unprecedented raw material crisis overlapped, reflecting the increase in cost in the unit price of delivery is not simply a profit creation, but has become the last bastion for survival. However, from the standpoint of small and medium-sized enterprises (SMEs), whose dependence on large companies’ sales exceeds 80%, the unit price indexation system was a more difficult task than picking a star in the sky. The harsh reality faced by small and medium-sized businesses is that they should be concerned that their dealings with large companies will be cut off if they talk regarding it prematurely.
In the midst of this, on the 25th, the heads of five major companies, including Samsung, SK, Hyundai, LG, and Lotte, gathered together with the small and medium-sized enterprises (SMEs) at the office of President Yoon Seok-yeol in Yongsan and announced that they would engage in win-win cooperation between large and small businesses. At the event held for the first time since the inauguration of the Yun Seok-yeol government, large and small businesses pledged to achieve mutual growth through fairness and coexistence. The business community has responded positively to the Yoon Seok-yeol administration’s new shared growth policy, and it is noteworthy whether a central point will be established to resolve the polarization between large companies and SMEs, such as the unit price indexation system in the future.
The Korea Federation of SMEs and Startups and the Ministry of SMEs and Startups announced that they held the ‘2022 Korean Small and Medium Business Contest’ at the grass plaza in front of the Yongsan President’s office on the same day and held a hand-printing event in which the heads of five major companies and the heads of major small and medium enterprises pledged to coexist. This is the first time that the owners of five major companies have participated in the 33rd Small and Medium Business Contest this year. In a situation where polarization, coexistence, and communication have emerged as the hot topics of the times, it seems that the heads of large corporations have decided to attend as this is the first event held by an economic group in the new office since President Yoon took office.
On this day, the head of the five major groups, Ki-moon Kim, Chairman of the Mid-Term Central Committee, Jeong-han Lee, Chairman of the Women Entrepreneurs Association, Sam-kwon Kang, Chairman of the Venture Business Association, and Se-hee Oh, Chairman of the Federation of Small Businesses, participated in a hand-printing event promising mutual growth together. When Chairman Kim suggested such an event, “Let’s achieve an economic leap forward through ‘new shared growth’ through fairness and coexistence,” it is said that the heads of the five major groups readily accepted it. An official from the Korea Federation of SMEs said, “It is significant in that the representatives of large corporations, SMEs, small businesses, venture companies, and startups voluntarily declared their will for win-win at the private level without the government’s involvement.”
In his opening remarks on the same day, Chairman Kim said, “In order for the Korean economy, which is experiencing stagnant growth, to take another leap forward, companies must grow through innovation and create an economic structure that can share the cost fairly.” We hope that the promise of shared growth through fairness and coexistence will be fulfilled, and will serve as a cornerstone for large enterprises and SMEs to grow together.”
Minister of SMEs and Startups Lee Young said, “We are in a desperate crisis situation where we have to go to a world-class country within the next five years.” The Venture Department will play a strong supporting role.”
As President Yoon personally organized the largest annual event for small and medium-sized enterprises this time, discussions regarding the establishment of a win-win committee under the direct control of the president and an indexation of delivery unit price suggested by small and medium-sized enterprises (SMEs) are expected to gain momentum. President Yoon visited the Mid-Term National Assembly in February, when he was a presidential candidate, and promised to establish a win-win committee directly under the president. Accordingly, the SMEs also submitted a policy proposal containing the plan to establish a win-win committee to the Presidential Takeover Committee. Small and medium-sized enterprises (SMEs) are arguing that the need for an indexation system for supply unit prices has emerged due to the recent surge in raw material prices. This raises the possibility that Chairman Kim suggested the establishment of a win-win committee directly under the president at the event. It is known that the Mid-term Central Committee also considered including relevant information in the draft greeting. In response, an official from the presidential office said, “The strengthening of the competitiveness of SMEs and the establishment of a win-win cooperation committee are issues that are included in the national agenda, so we agree on the necessity of the establishment.” We plan to make a decision following gathering and reviewing.”
[양연호 기자 / 김대기 기자]
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