Employment and labor policies that take account of conditions at individual workplaces are needed to raise productivity at small and medium-sized enterprises, business leaders said.
The Korea Chamber of Commerce and Industry said on Sept. 29 that it held the 101st meeting of its Small and Medium Enterprise Committee at the chamber's headquarters in Seoul's Jung District, with Vice Labor Minister Kwon Chang-jun as an invited speaker.
The meeting was arranged to help SMEs navigate an uncertain business environment and to convey views from the field to government policymakers. About 20 chief executives attended, including committee chairman Yoon Suk-keun, Introman CEO Ko Eun-hee, Hansung FI Chairman Kim Young-chul and Nuriplan Chairman Lee Sang-woo.
Kwon, who delivered a lecture titled "Real Growth Together With Small and Medium Enterprises," said that for SMEs to grow amid labor shortages and industrial and technological change, they must be able to find the workers they need when they need them and build the competitiveness to respond to change. "The government will support the growth of SMEs by helping them ease labor shortages and improve productivity, while also strengthening workers' rights and safety," the vice minister said.
Kwon outlined shifts in the labor market, including low birth rates and population aging, the artificial intelligence transition, and the diversification of working arrangements. He identified the government's main policy directions as securing talent among young adults, middle-aged and older workers and foreign workers; easing burdens on SMEs and workers through support for balancing work and child care; strengthening AI capabilities and supporting reductions in actual working hours; building an inclusive social safety net and narrowing labor market gaps; and creating workplaces that are safe and where basic standards are upheld.
Participants said policy support should reflect the circumstances SMEs face. "For SMEs to manage their workforces stably in line with their own industries and business conditions, we need tailored employment and labor policies that reflect conditions on the ground," Yoon said. "We hope effective support measures will be put in place that companies can actually feel, so that they can secure labor flexibility suited to the characteristics of their sectors."
"What SMEs want is not grand benefits but an environment where they can work with peace of mind," Yoon said. "We ask the government to move aggressively on overhauling employment regulations."
Committee members also proposed policies aimed at improving business efficiency, including changes to the special extended working hours system under the 52-hour workweek, eased rules on hiring foreign workers, an information-sharing system among government bodies and public and financial institutions, changes to how legally mandated training is completed, and a one-stop portal for handling the four major social insurance programs.
One member called for revisions to the special extended working hours system. "Situations in which unexpected overtime becomes necessary at the workplace, such as equipment breakdowns or urgent bulk orders, are steadily increasing," said Oh Sang-ho, CEO of Maeil Food. "We need to make the current special extended working hours system workable in practice, by allowing advance registration for recurring overtime situations and by setting up a simplified reporting system that lets companies begin work first and complete the paperwork afterward when unforeseen situations arise."
Another member urged policies to help foreign workers settle in. "Regional and small and medium-sized companies find it relatively difficult to secure domestic workers, so their reliance on foreign labor is growing," said Lee Hyo-sung, CEO of KS Autosys. "Policy support is urgently needed to give companies more flexibility in the allocation of foreign workers so they can secure the right number of workers when they need them, and to help skilled foreign workers settle stably at SMEs."
"Our SMEs face a compound crisis at home and abroad, including deepening global trade barriers, a delayed recovery in domestic demand and structural labor shortages as the country enters super-aged status," said Kim Jung-il, executive vice chairman of the Korea Chamber of Commerce and Industry. "The chamber will work closely with the government to ensure that views from the field are reflected in policy, lead to substantive regulatory reform and help build a support system tailored to SMEs."
