SME, labor ministries join forces to ease labor dispute burden on small businesses

Govt unveils support measures as small businesses cite burden of weekly holiday pay, severance

AI labor law consultation service to be linked to small business platform; case guides, briefings planned

Legal counsel, representative support available when disputes arise

South Korea's Ministry of SMEs and Startups and Ministry of Employment and Labor are stepping up support to help small business owners — including those running convenience stores, restaurants and cafes — prevent labor disputes and resolve workplace difficulties. The initiative focuses on industries with a high share of short-term workers, aiming to reduce the burden of labor management and expand access to professional consultation when disputes occur.

The Ministry of SMEs and Startups held a "small business labor difficulties forum" Monday at the Korea Certified Public Labor Attorney Association in Yeongdeungpo-gu, Seoul, announcing a package of government support measures to ease the labor management burden on small business owners.

The forum brought together officials from the Ministry of SMEs and Startups, the Ministry of Employment and Labor and the Korea Certified Public Labor Attorney Association, along with industry representatives from the Korea Convenience Store Franchise Association, the Korea Food Service Industry Association and the National Cafe Owners Cooperative.

Participants shared the difficulties they face with complex wage and allowance systems — including weekly holiday pay and severance — and exchanged views on regulatory reform and expanded support measures.

The Ministry of SMEs and Startups plans to work with the Korea Certified Public Labor Attorney Association to produce a Q&A-format case guide covering labor issues that small business owners commonly encounter. Drawing on the guide, the ministry will hold regional briefing sessions and produce and distribute short-form online videos.

When disputes arise, the ministry will provide consultation through Korea Federation of Small and Medium Business counseling centers. For complex cases requiring specialized expertise, it will also connect owners with dedicated labor attorneys and support the appointment of legal representatives.

The Ministry of Employment and Labor introduced its around-the-clock AI labor law consultation service and said it plans to integrate the service with "Soho24," the unified support platform for small businesses, to improve accessibility.

Forum participants also raised the need for expanded consulting support covering labor management broadly — including weekly holiday pay, severance and the drafting of employment contracts.

"Small business owners are so focused on making ends meet day to day that keeping up with complex labor laws and regulations is genuinely difficult," Minister of SMEs and Startups Han Seong-suk said. "We will do our utmost to create an environment where small business owners can run their businesses with peace of mind, by helping them more easily understand and prevent the labor difficulties that arise most often in the field."

hong@heraldcorp.com