[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups is urgently scheduling sales broadcasts for 1 million masks and 140,000 hand sanitizers through its public institution, Gongyoung Home Shopping. This supply measure was prepared in response to the shortage and price surge of masks caused by the spread of the novel coronavirus infection (Wuhan pneumonia).
Choi Changhee, CEO of Gongyoung Home Shopping, stated at a briefing on the novel coronavirus held at the Government Seoul Office on the 10th, "Considering the shortage and price surge of masks and hand sanitizers, we have prepared sales broadcasts for public interest rather than profit," adding, "Due to the limited prepared quantity, purchases will be restricted to one set per customer to allow as many customers as possible to buy."
The quantities of masks and other items for this sales broadcast were secured through joint cooperation between the Ministry of SMEs and Startups and the Ministry of Food and Drug Safety by recruiting and negotiating with more than 40 manufacturers nationwide. The first sales of hand sanitizers will begin on the 17th of this month, followed by mask sales starting on the 19th. Masks and hand sanitizers will be sold at prices that include only basic expenses such as shipping fees.
CEO Choi said, "We will prepare additional broadcasts to allow purchases at prices cheaper than the market as soon as additional quantities are secured."
The Ministry of SMEs and Startups is actively responding to reduce the damage caused by the novel coronavirus. It has received 300,000 masks from the Korea Occupational Safety and Health Agency and is distributing them to traditional market merchant associations and shopping districts nationwide. As of the 9th, 149,235 masks have been distributed to 829 markets and shopping districts. During the same period, 19,120 hand sanitizers were distributed to 478 markets.
Additionally, 10,000 masks were provided as relief supplies to Korean SMEs operating in China. In cooperation with the Korea Federation of SMEs, approximately 1,600 masks each were distributed to five export business incubators (BI) located in Beijing, Shanghai, Xi’an, Chongqing, and Guangzhou, as well as the Qingdao SME Support Center.
Furthermore, in collaboration with export-related institutions such as the Korea Export-Import Bank and KOTRA, the Ministry is identifying the status of Korean SMEs operating in China and conducting detailed investigations and close management to confirm local difficulties and damage occurrences.
Due to the spread of the novel coronavirus, concerns are rising not only about the damage to Korean SMEs located in China but also about the domestic repercussions. The Ministry of SMEs and Startups has formed a response team for SMEs and small business owners related to the novel coronavirus and is operating damage reception centers at regional SME venture business offices, the Small and Medium Business Corporation, and the Small Enterprise and Market Service.
Through on-site visits to SMEs and traditional markets, the Ministry is listening to the difficulties and suggestions of business owners and small merchants and preparing various countermeasures. It plans to supply 250 billion KRW in emergency funds, including special guarantees, to SMEs facing difficulties with raw materials and product imports and exports, as well as small business owners suffering from reduced consumption.
Park Youngsun, Minister of SMEs and Startups, said, "We will prepare additional support measures for Korean SMEs in China through cooperation with private logistics companies and the Ministry of Foreign Affairs, and continue policy efforts such as securing contingency funds to expand support for domestic small business owners."
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