Korea's President Urges Fair Competition, Strengthens SMEs, Fosters Labor Dialogue
President Lee Jae-myung convened a roundtable with small and medium-sized business leaders at Cheong Wa Dae’s Yeongbin Hall, under the banner “Dialogue with SMEs – For the Leap of Korea’s 99%.” The event focused on how Korea can strengthen the backbone of its economy by supporting smaller firms that drive innovation and employment.
Lee argued that Korea has a unique “exploitative structure” in which technology theft and “gapjil” by larger buyers can erode SME incentives to innovate. He warned that when suppliers face downward pricing or revenue capture by principal customers, SME leaders may devote more energy to lobbying and negotiating terms than to developing new technologies or expanding markets, which could undermine national competitiveness.
He urged the Fair Trade Commission to keep advancing a social culture in which unfair competition and undue gains are not possible, and he invited practical recommendations from the attending businesspeople. The aim, in his view, is to reduce distortions that hinder fair competition and innovation.
On labor relations, Lee said that labor is a key concern for SME managers and noted his own background as someone who started in labor. He argued that workers should assert their rights while managers present their perspectives, and that rational, mutually understood compromises would benefit all stakeholders. He stressed that dialogue should occur on roughly equal footing to foster constructive cooperation.
He also reflected on past attitudes toward unions, recalling times when labor was seen as politically suspect or overly controversial, and he asserted that such views did not help Korea’s competitiveness. He said productivity rises when workers feel connected to the company’s success and that employees should see growth as benefiting them as well.
The president urged the ministers of Trade, Industry and Energy; SMEs and Startups; and Employment and Labor to maintain ongoing dialogue, even if positions differ. He acknowledged that disagreements can arise, but encouraged vigorous discussion to ensure that workplace relations itself remains productive rather than adversarial.
Lee also shared a personal recollection from a meeting last year with former U.S. President Donald Trump. He said he told Trump that Korea’s economy faced difficulties, including negative growth, and that Trump replied there must be many good companies in Korea. He used the anecdote to emphasize a broader point: while Korea’s largest conglomerates remain important, they are not everything. Many unseen SMEs employ most Koreans and sustain the economy, a dynamic with clear implications for international supply chains and trade partners, including the United States.
Context for U.S. readers: Korea’s economy depends heavily on both large chaebol groups and a vast network of SMEs that supply and innovate across industries such as technology, manufacturing, and components. Policy emphasis on fair competition, labor relations, and SME support can influence Korea’s capacity to attract investment, secure reliable supply chains, and collaborate with U.S. firms in advanced technologies. The discussion reflects ongoing policy debates in Korea about balance between corporate power, labor interests, and a healthy environment for innovation that could affect U.S.-Korea economic and security ties.