On the 12th, the SME Ombudsman held a 'Busan S.O.S. Talk Discussion' with the Busan Regional Headquarters of the Small and Medium Business Administration and listened to the difficulties faced by SMEs in the field.
Ahead of the discussion, the Ombudsman discussed 12 tasks suggested by SMEs in the Busan area with 8 ministries including the Ministry of Food and Drug Safety, the Ministry of Environment, and the Ministry of Trade, Industry and Energy.
The discussion started with the agenda item 'Request for improvement of the system related to the sale of cosmetics in small portions (refills) considering the environment' suggested by Sangtae Cosmetics.
According to the current law, dispensing (refilling) cosmetics is in principle considered 'manufacturing', and stores that sell cosmetics in small portions must also have a dispensing manager present.
In response, Sangtae Cosmetics CEO Jeon Hye-jeong argued, “It is an excessive system to define even the act of selling manufactured and distributed cosmetics in small portions as ‘cosmetic manufacturing,’” and “If this system is abolished, cosmetics in small portions can be put into reusable containers at a reasonable price.”
The industry is complaining that while advanced countries such as Europe recommend refill sales to reduce the production and use of packaging materials such as plastics, in Korea, even simple small portion sales are defined as manufacturing, making it difficult to operate stores.
The Ombudsman discussed the suggestions with the Ministry of Food and Drug Safety, the relevant ministry.
The Ministry of Food and Drug Safety recently responded that it plans to review the results and promote improvement of related regulations as the regulatory sandbox (special case for demonstration) that allows employees who have completed appropriate training at customized cosmetics stores specializing in refills to divide four types of cosmetics, including shampoo, conditioner, body cleanser, and liquid soap, has been finalized.
In addition, Company A, which is engaged in surface treatment of shipbuilding materials and automobile parts in Sasang-gu, Busan, plans to request that environmental liability insurance premiums for low-risk industries and accident-free workplaces be lowered.
Currently, the government is imposing an obligation on workplaces that install and operate facilities with a high risk of causing environmental pollution damage to subscribe to environmental liability insurance.
The Ministry of Environment has responded positively that it is promoting improvement of environmental liability insurance discount rates, including expansion of discount points according to accident-free periods, gradual discounts according to accident-free periods, and increase in maximum discount rates.
In addition, the participants will suggest various on-site regulations and difficulties, such as ▲easing of food safety management certification (HACCP) validity inspection standards ▲extension of measures to resolve difficulties in introducing foreign workers in the shipbuilding industry ▲easing of requirements for designation of hydrogen specialized companies ▲revision of KS certification examination standards for industrial and residential circuit breakers.
Cho Seung-min, Busan Regional Headquarters Director of the Korea Small and Medium Business Administration, said, “KOSBA will also do its best to actively reflect on-site difficulties in policies by cooperating more closely with the Ombudsman in the future.” Kim Hee-soon, head of the Small and Medium Business Ombudsman Support Team, said, “It was a very meaningful time to be able to directly hear about the difficulties faced by businesspeople in the green smart city of Busan and discuss their concerns together,” adding, “We will continue to consult with administrative agencies so that the results of the meeting can lead to actual regulatory improvements.”
