The Korea Federation of SMEs to Hold 'SMEs-Department Store Win-Win Best Practices Presentation' on the 20th
[Asia Economy Reporter Kim Bo-kyung] Kim Ki-moon, Chairman of the Korea Federation of SMEs, said on the 20th, "Department stores and tenant SMEs are not in a master-servant business relationship," and added, "Please ensure that not only entry but also exit from stores can proceed smoothly."
Chairman Kim made these remarks at the 'SME-Department Store Win-Win Best Practices Presentation' held at the Korea Federation of SMEs in Yeouido, Seoul, co-hosted with the Korea Department Store Association.
He emphasized, "With the rapid change in the distribution paradigm, department stores and tenant SMEs should no longer be in a master-servant relationship but become equal partners in mutual growth."
At the event, Chairman Kim made several proposals for the win-win development of SMEs and the department store industry.
He stated, "There was a time when SMEs lined up to enter department stores, but these days, exiting is said to be more difficult than entering," and urged, "Along with support for department store entry, please also facilitate smooth exits."
He further proposed ▲entry of excellent SME products into online malls, ▲legislative interest related to platform-tenant win-win cooperation, and ▲building win-win models through marketing support from large corporations.
The event was attended by ruling and opposition lawmakers including Lee Hak-young, Chairman of the National Assembly Industry, Trade, and SMEs Committee; Lee Cheol-gyu, People Power Party Secretary of the same committee; and Kim Kyung-man, Chairman of the Democratic Party's SME Special Committee.
Also present were Hwang Beom-seok, Chairman of the Korea Department Store Association (CEO of Lotte Department Store); Kim Eun-soo, CEO of Galleria Department Store; Cha Jung-ho, CEO of Shinsegae Department Store; Kim Hyung-jong, CEO of Hyundai Department Store; and Kim Jae-chun, CEO of AK Plaza.
This event introduced excellent win-win cases of the five major department stores that have supported SME sales channels despite the overall difficulties in the distribution industry caused by the COVID-19 pandemic. It was organized to foster a voluntary win-win culture between large distribution companies and SMEs.
The five major department stores, together with the Korea Federation of SMEs, showcased excellent win-win cases they discovered, as well as each department store's win-win project implementation system and social contribution activities through exhibition booths and case presentations.
Hwang Beom-seok, Chairman of the Department Store Association, stated, "Changes in the distribution market suitable for the new normal era must be created together by large corporations and SMEs," adding, "The department store industry will continue to work closely with SME partners."
Meanwhile, the Korea Federation of SMEs began cooperation with department stores starting with Lotte Department Store's SME-exclusive Dream Plaza in 2014. In 2017, it signed a business agreement with the Department Store Association to establish SME win-win halls in the five major department stores and formed a win-win communication council.
Last year, a special exhibition of SME products was held at five locations including Seoul and Busan in collaboration with Shinsegae Department Store. This year, special promotional events for SME products by region will be held together with Hyundai, Galleria, and AK Department Stores, and support for expanding sales platforms is also planned.
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