Lee calls for efforts to create fair biz environment for SMEs

▲ President Lee Jae Myung speaks during a meeting with officials of small and medium-sized enterprises at Cheong Wa Dae in Seoul on March 20, 2026. (Yonhap)

Lee-SMEs

Lee calls for efforts to create fair biz environment for SMEs

By Kim Eun-jung

SEOUL, March 20 (Yonhap) -- President Lee Jae Myung said Friday that unfair business practices toward small and medium-sized enterprises (SMEs) are hampering innovation and overall industrial competitiveness, pledging efforts to create a fairer business environment.

Lee pointed to what he described as an "exploitative structure," in which large companies use their superior bargaining power to pressure SMEs, including by lowering supply prices or misappropriating their technologies, discouraging smaller firms from pursuing innovation.

"If SMEs believe that (large companies) will cut supply prices or take away the gains, they are more likely to focus on lobbying executives at client firms rather than investing in technological innovation or market expansion," Lee said at a meeting with SME representatives. "This is a factor that undermines the overall competitiveness of society."

Lee also said the Fair Trade Commission has been working to curb unfair business practices and called for feedback from companies on the ground.

He also addressed what he described as longstanding prejudices against labor unions, saying such views do not help enhance corporate competitiveness and calling for dialogue and compromise between labor and management.

"Productivity does not improve if employees do not feel a sense of attachment," he said. "Companies grow when workers believe the firm's success also benefits them."

(END)

(C) Yonhap News Agency. All Rights Reserved