Transition committee to pick `control tower` for small biz

The presidential transition committee will reorganize support systems for small and mid-size companies dispersed among functions and industries. A control tower will oversee budget allocation for small businesses while redistributing support measures for them that are dispersed among ministries and public organizations.

A key committee member said Tuesday, "The government`s financial support for smaller companies exceeds 10 trillion won (99.4 billion U.S. dollars) annually, but no adequate supervisory system is in place. We will examine relevant support measures and raising budget efficiency with related government agencies in the briefing process."

The Small and Medium Business Administration is in charge of policy toward small businesses, but 10 other state-run agencies and public organizations also handle the matter based on industry and size, resulting in inefficiency due to overlapping operations.

Content support for smaller companies are handled by the Culture, Sports and Tourism Ministry and the Korea Communications Commission, human resources policy is the turf of the Employment and Labor Ministry, and food policy is handled by the Agriculture, Forestry, Fisheries and Food Ministry.

Until the launch of the new administration, the transition committee will decide which body is the control tower for helping small businesses and promote reorganization of similar and overlapping businesses. The outcome will be reflected in the 2014 budget plan.

The control tower role will go to either the Small and Medium Business Administration, the Knowledge Economy Ministry or the Strategy and Finance Ministry.

President-elect Park Geun-hye on Wednesday will also meet business representatives, including Sohn Kyung-sik, head of the Korean Chamber of Commerce and Industry, to encourage their activities and hear their difficulties in doing business.

january@donga.com