Shin Jeong-hoon: "CJ and GS Home Shopping, Is Win-Win Cooperation Between Large and Small-Medium Enterprises Just for Show?"

Free Broadcasts for SME Products Emphasizing Mutual Growth, Low-Sales Early Morning Broadcasts Concentrated

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] The agreement on ‘Free Broadcasting Support for SME Products,’ conducted by four TV home shopping companies and the Small and Medium Business Distribution Center to promote coexistence between large corporations and SMEs and boost sales of SME products, is being criticized as a mere show of goodwill due to the passive attitude of large corporations toward coexistence.

According to data received by Shin Jeong-hoon, a member of the National Assembly’s Industry, Trade and Energy Committee from the Democratic Party of Korea (Jeonnam Naju Hwasun), from the Small and Medium Business Distribution Center on the 9th, the four TV home shopping companies signed an MOU with the Small and Medium Business Distribution Center and agreed to broadcast 40 SME products free of charge annually (10 products per broadcasting company). However, the number of free broadcasts was only 29 in 2017, 22 in 2018, 33 in 2019, and 7 in 2020, totaling 96. Not a single channel broadcast the agreed 10 products annually.

There were also issues with the broadcast time slots for the free broadcasts. Although the four home shopping companies aired 96 free broadcasts over the past three years, it was revealed that these were conducted during weekday mornings (1 a.m. to 11 a.m.), the time slot with the lowest average sales per program. Despite the significant impact of broadcast time on TV home shopping sales, there were no weekend broadcasts, and most broadcasts aired on weekdays.

Moreover, CJ Home Shopping and GS Home Shopping aired all 22 and 29 SME products they supported with free broadcasts over the past three years during early morning hours. Except for two products (CJ in 2017), it was revealed that broadcasts were fixed at 5:30 a.m. on weekdays, making it difficult to avoid criticism that ‘free broadcast support is just a show of goodwill by large corporations.’

Assemblyman Shin Jeong-hoon stated, “Large home shopping companies that promised coexistence with SMEs show no intention of coexistence as they cluster broadcast times that significantly affect sales performance in the early morning hours,” and added, “Effective support must follow to prevent the agreement from becoming meaningless.”

He further emphasized, “I hope the Ministry of SMEs and Startups and the Small and Medium Business Distribution Center will draw active cooperation from large corporations in line with the original purpose of the agreement.”