SMEs can't weather supply chain crises alone — cooperatives are the answer, federation says

The Korea Federation of Small and Medium Business said Wednesday it held the first meeting of its 2026 Cooperative Revitalization Committee at the Korea Plastics Hall in Jung-gu, Seoul, to discuss ways to strengthen small and medium-sized enterprise cooperatives.

The committee has operated since 2015 to identify policy reforms needed for SME cooperative development and to explore ways to expand joint business activities. Chae Jeong-muk, chairman of the Korea Federation of Plastics Industry Cooperatives, chairs the committee.

At Wednesday's meeting, members received reports on the progress of amendments to the SME Cooperative Act — promulgated in May — and on the implementation status of key tasks under the Fourth Three-Year Plan for Cooperative Revitalization. Members also discussed future directions and how to apply the measures on the ground.

The Korea Federation of Plastics Industry Cooperatives also shared its operational experience. Kim Young-wook, the federation's executive managing director, outlined its joint business activities and achievements, and described how it had taken a leading role on industry policy issues while responding to naphtha supply disruptions caused by the recent situation in the Middle East.

The federation operates the Korea Plastics Testing Institute, the first cooperative body to receive accreditation as a KOLAS-certified testing institution. Beyond pursuing joint initiatives such as group standards and collective purchasing, it has signed a mutual cooperation agreement to address naphtha supply challenges stemming from the Middle East situation, serving as a channel for industry voices on the ground.

After hearing about the federation's business activities and the difficulties encountered in pursuing joint projects, committee members agreed that regulatory reforms and new support programs are needed to revitalize cooperatives.

"As complex and sweeping changes in the business environment intensify, individual SMEs alone are finding it increasingly difficult to overcome crises," committee chair Chae said. "The importance of cooperatives in driving industry growth and protecting the rights of businesses is only growing."