SMEs Ombudsman Holds 'Growth Ladder Forum' with Trade, Industry, Energy and SMEs Committee Chair Kim Sungwon

Discussion of Issues Requiring Improvement with SME and Microbusiness Associations
Proposals Include Attorney-Client Privilege for Patent Attorney Consultations
and Payment Settlement Deadlines for Online Platforms

The Korea SMEs Ombudsman announced on September 30 that it held the "Growth Ladder Forum," inviting Kim Sungwon, Chairman of the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee. The event brought together representatives from eight organizations and associations related to small businesses, startups, and micro-enterprises.

The Growth Ladder Forum is a gathering where the Ombudsman and representatives of the SME community invite government or National Assembly officials to hear on-site opinions and discuss ways to improve regulations and resolve difficulties. At the forum, the representatives proposed passing the revision of the Patent Attorney Act, which would grant attorney-client privilege to patent attorneys for the protection of SME technologies, shortening the payment deadline for delivery payments from 60 days to 30 days, and introducing a maximum payment settlement period of 20 days for large online platforms.

Jung Kwangcheon, President of the INNOBIZ Association, said, "With the K-Discovery system for evidence collection scheduled to take effect in 2028, domestic SMEs will have to disclose all technical documents, including those discussed with patent attorneys, if requested by the court during patent technology disputes. Therefore, for the protection of SME technologies, it is urgent to pass the revision of the Patent Attorney Act that includes attorney-client privilege between patent attorneys and their clients."

Kiwoong Oh, Executive Vice President of the Korea Federation of SMEs, added, "Since the payment deadline for deliveries was set at 60 days in 1975, it has not changed to this day, resulting in many SMEs having to finance their operations privately until they receive payment. Considering that electronic payments are now standard, it would be ideal to shorten the delivery payment period to 30 days. We ask for your support in passing the revision of the Distribution Industry Development Act, which would require large online platforms to settle payments with supplier companies within 20 days."

In response, Choi Seungjae, Ombudsman, said, "When Korean companies are involved in technology disputes with overseas firms, foreign companies can benefit from confidentiality protection, whereas domestic companies are often not protected, putting them at a disadvantage. Therefore, attorney-client privilege for patent attorneys is necessary. However, sufficient preventive measures must be put in place to avoid situations where clients might abuse the privilege to conceal crucial evidence at the core of a dispute."

Regarding the delivery payment deadline, Choi continued, "Research on shortening the payment period for subcontract transactions is being conducted by bodies such as the Korea Small Business Institute. Based on the existing research, we will continue to consult with relevant ministries on shortening payment periods and setting payment deadlines for online transactions."

Representatives also suggested incentives to promote investment in venture funds and risk capital for growing the venture ecosystem, and the introduction of a fast-track system for licensing approval specialized in femtech. In response to requests from the SME and microbusiness industries, Chairman Kim Sungwon stated that "the National Assembly will actively review ways to provide support." Ombudsman Choi Seungjae added, "We will continue to host meetings with figures from the executive and legislative branches and help bridge the gap between regulators and industry."

This content was produced with the assistance of AI translation services.