Choi Seung-jae, South Korea's ombudsman for small and medium-sized enterprises, hosted this year's second Growth Ladder Forum.
The SME Ombudsman Support Group said Choi held the forum at 8 a.m. on the 30th in Yeouido, inviting Kim Sung-won, chairman of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee. Representatives of eight associations and organizations attended, including the Korea Federation of SMEs, the Innobiz Association, the Mainbiz Association, the Korea Women Entrepreneurs Association, the Korea Women's Venture Association, the Korea Venture Business Association, the Korea Federation of Micro Enterprise, and the Korea Federation of SME Convergence.
The Growth Ladder Forum brings together the ombudsman and heads of SME associations, who invite government or parliamentary officials to hear views from the field and discuss ways to ease regulations and other difficulties.
At the forum, the association heads called for passage of a bill revising the Patent Attorney Act to grant patent attorneys a right to confidentiality, a cut in the payment deadline for supplied goods to 30 days from 60 days, and the introduction of a 20-day limit for large online platforms to settle payments.
"Under the Korean-style discovery system taking effect in 2028, domestic SMEs will have to disclose all technical materials, including consultations with patent attorneys, if a court so requests in a patent technology dispute," said Jung Kwang-chun, chairman of the Innobiz Association. "To protect SMEs' technology, the National Assembly needs to swiftly pass the partial amendment to the Patent Attorney Act, which includes confidentiality between patent attorneys and their clients."
"The payment deadline for supplied goods has remained unchanged since it was set at 60 days in 1975, leaving many SMEs struggling to finance themselves until they get paid," said Oh Ki-woong, standing vice chairman of the Korea Federation of SMEs. "Given that electronic payment is now widespread, unlike in the past, shortening the payment deadline to 30 days is desirable, so please help pass the amendment to the Act on Fair Transactions in Large Retail Business, which requires large online platforms to settle payments with supplier companies within 20 days."
Responding to the industry's requests, Choi said, "I believe a confidentiality right for patent attorneys is necessary, because domestic companies can find themselves unprotected in technology disputes with foreign companies while the other side enjoys such protection." He added, "However, sufficient safeguards must be put in place against cases where clients abuse the confidentiality system to conceal materials central to a dispute."
On payment deadlines, Choi said, "I understand that research on shortening payment deadlines in subcontracting transactions is under way through the Korea SMEs and Startups Institute and other bodies." He said, "Based on existing research findings, we will consult with the relevant ministries on shortening payment deadlines for supplied goods and setting payment deadlines for online sales." Kim also said, "We plan to actively review ways to provide support at the parliamentary level."
