The amendment to the Small and Medium Enterprise Cooperatives Act failed to clear the National Assembly's subcommittee on bill review. The chances of Korea Federation of Small and Medium Enterprises Chairman Kim Ki-moon serving another term also diminished. The cooperative sector and the labor union at the Korea Federation of Small and Medium Enterprises are sharply divided over the bill.
According to the Trade. Industry Energy. SMEs. and Startups Committee on the 12th, the Small and Medium Venture Business Subcommittee that met the previous day tabled an amendment to the Small and Medium Enterprise Cooperatives Act, led by Democratic Party of Korea lawmaker Jeong Jin-uk, but postponed it without reaching a conclusion.
The amendment removes the limit on the number of consecutive terms by changing the rule that the Korea Federation of Small and Medium Enterprises chair "may serve one consecutive term only" to "may serve consecutive terms." For the term of a cooperative chair, it changes the clause "may serve only two consecutive terms" to "matters related to consecutive terms shall be stipulated in the articles of association." If the bill passes, KBIZ Chairman Kim Ki-moon could seek an additional consecutive term.
It is known that the government and lawmakers were at odds during the bill review, failing to reach a conclusion. Some ruling party lawmakers also reportedly raised issues with the purpose of the amendment. The subcommittee decided to continue reviewing the amendment going forward.
There are differing views within the small and medium-sized enterprise community over the amendment. The "Committee to Promote the Amendment to the Small and Medium Enterprise Cooperatives Act," composed of the national federation of cooperatives, national cooperatives, regional cooperatives, and business cooperatives under the Korea Federation of Small and Medium Enterprises, says the problem lies in the current law uniformly limiting consecutive terms for the Korea Federation of Small and Medium Enterprises chair and cooperative chairs.
The KBIZ union is staging protests, saying the cap on consecutive terms was introduced to prevent concentration of power and the privatization of the organization due to long incumbencies and therefore should not be scrapped without caution.
The Ministry of SMEs and Startups, which has no affiliated ministries, effectively expressed opposition by saying a careful review is necessary. It cited as grounds the fact that the Ministry of Personnel Management uniquely designates and announces the Korea Federation of Small and Medium Enterprises as a public institution-related organization, unlike other business groups such as the Korea Chamber of Commerce and Industry.
Source: https://biz.chosun.com/en/en-industry/2026/03/12/CLPDRWEOOBDPBOIHKEKMZIK5OA/