Minister Choi Ki-young of the Ministry of Science and ICT is holding a meeting with representatives of home shopping companies on the afternoon of the 3rd using a video conferencing system.
[Asia Economy Reporter Joselgina] Home shopping companies are lowering sales commissions to help small and medium-sized enterprises (SMEs) struggling due to the novel coronavirus disease (COVID-19).
On the 3rd, Choi Ki-young, Minister of Science and ICT, held a meeting with representatives from 12 home shopping companies including GS Home Shopping and Hyundai Home Shopping to discuss such support measures. During the video conference meeting, home shopping companies empathized with the difficulties faced by many SMEs due to COVID-19 and agreed to actively seek various measures such as lowering sales commission rates, product sales and promotion, financial support, and advance payment of funds to support the affected SMEs.
Accordingly, CJ ENM, Hyundai Home Shopping, NS Home Shopping, Gongyoung Home Shopping, and SK Stoa will broadcast products from affected SMEs free of charge. In addition, each company plans to reduce sales commissions by about 5 to 27 percentage points compared to last year's rates to minimize the burden on SMEs. GS Home Shopping, Hyundai Home Shopping, and Lotte Home Shopping also plan to further reduce sales commission rates by refunding part of the sales commissions to affected SMEs. Home shopping companies will prepare special exhibitions for affected SMEs and promote and sell their products.
Along with this, GS Home Shopping, CJ ENM, Hyundai Home Shopping, and Lotte Home Shopping will prioritize support for affected SMEs when operating existing financial support programs such as interest-free loans and win-win funds for SMEs. When home shopping suppliers apply for financial support from banks, banks will review and provide low-interest financial support. The scale ranges from approximately 50 billion to 210.5 billion KRW per company.
Additionally, support for video production and consulting costs and emergency operating funds (Hyundai Home Shopping), equipment funding (GS Home Shopping), and partner company quarantine activity support (Lotte Home Shopping) will also be promoted.
Home&Shopping, K Shopping, TRN, and W Shopping will also directly purchase products from affected SMEs. Direct purchase means that the home shopping company buys products directly from suppliers and sells them under its responsibility, bearing inventory risk if sales are sluggish. NS Shopping, TRN, and Shinsegae TV Shopping plan to make advance payments.
Minister Choi Ki-young of the Ministry of Science and ICT said, “If home shopping companies fully utilize their accumulated experience in supporting SMEs, it will be a great help to SMEs struggling due to COVID-19.” He added, “I hope measures such as lowering sales commission rates and advance payments for SME products will be established as sound win-win practices so that home shopping can become a true partner of SMEs.”
He also urged special attention to COVID-19 prevention, including strengthening studio quarantine and checking manuals, to prevent broadcast interruptions.
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