Rep. Kwon Hyang-yeop of the Democratic Party of Korea [provided by the lawmaker's office]
Rep. Kwon Hyang-yeop of the Democratic Party of Korea [provided by the lawmaker's office]

Rep. Kwon Hyang-yeop of the Democratic Party of Korea, a member of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee representing the Suncheon-Gwangyang-Gokseong-Gurye B district, announced Tuesday that she had introduced a bill to amend the Act on Promotion of Mutually Beneficial Cooperation Between Large Enterprises and Small and Medium Enterprises. The legislation would establish a Large and Small Enterprise Dispute Mediation Center to consolidate the country's currently fragmented dispute resolution systems under a single, integrated framework.

According to Kwon, the Ministry of SMEs and Startups currently operates three separate dispute mediation bodies to support small and medium-sized enterprises, which are relatively vulnerable in disputes with large companies over transactions and technology infringement. The Subcontracting Dispute Mediation Council and the SME Business Adjustment Deliberation Committee operate under the mutually beneficial cooperation act, while the Technology Dispute Mediation and Arbitration Committee operates under the SME Technology Protection Act.

Because each body has its own legal basis and operating structure, small and medium-sized enterprises have long faced difficulties at every stage of the process — from filing a complaint and receiving counseling to reaching a settlement and obtaining damage relief. Calls for a more integrated and systematic support framework have persisted as a result. Trade and technology disputes directly affect sales and business performance, advocates say, making it urgent to establish a system that can support the financial stability of affected companies regardless of whether mediation succeeds.

The bill would allow a Large and Small Enterprise Dispute Mediation Center to be established within the Large and Small Enterprise and Agriculture and Fisheries Cooperation Foundation. The center would be dedicated to supporting the operation of the existing three mediation bodies, facilitating voluntary settlements, preventing disputes, providing counseling and assisting companies seeking damage relief.

"Establishing an integrated, dedicated support system for SME dispute mediation and damage relief is one of the Lee Jae Myung administration's national policy priorities," Kwon said. "We will strengthen policy synergy through demand-driven, specialized responses and reinforce the practical damage relief framework for small and medium-sized enterprises."


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