Conflict Resolution Between Manufacturing and Distribution, a 'New Practical Approach' to Win-Win Growth
On the 11th, the food alley of Gwangjang Market in Jongno-gu, Seoul, is bustling with citizens. Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Kim Heeyoon] The Win-Win Cooperation Forum, the Korean Society for Small and Medium Venture Business Policy, and the Korean Distribution Society jointly held a forum on the theme of ‘Win-Win Cooperation and Mutual Growth between Manufacturing and Distribution in a Period of Transformation,’ the 15th announced.
In the opening remarks, Chairman Kwak Sugun diagnosed, “With the surge in online transactions due to the COVID-19 pandemic, a great transformation is occurring in the distribution industry,” and said, “We expect this to be an opportunity to present various opinions on resolving conflicts between online and offline and on win-win cooperation between manufacturing suppliers and distribution platforms.”
Through his welcoming speech, President Song Changseok emphasized, “Although the distribution industry grew by 5%, the offline market has been experiencing negative growth since 2019, increasing difficulties. However, the distribution industry is where the most innovation occurs and where social consensus based on rationality is most needed.”
In the following three thematic presentations, Professor Lim Chaewoon of Sogang University, who spoke first, explained, “The distribution industry is very complex and has subtle ecosystem characteristics, so the interactions and competitive dynamics between business types and companies change in a complex way,” and added, “For win-win cooperation between manufacturing and distribution, cooperation and support throughout the overall process from product development to customer service are necessary.”
Additionally, Professor Jeong Yeonseung of Dankook University suggested, “As the untact lifestyle progresses and the Ontact era approaches, launching a ‘digital distribution education platform’ for small and medium manufacturers and small business owners collaborating with online platforms is necessary.”
In the final presentation, Professor Jeong Hyungrok of Kyung Hee University stated, “As of last year, the export amount of our small and medium enterprises accounted for only 19.7% of the total amount,” and noted, “In the case of Korea Amway, discovering 19 small and medium enterprises and achieving export results of 70.2 billion KRW over the past six years is a good example of cooperation between manufacturing and distribution.”
In the subsequent comprehensive discussion, Professor Lee Jeonghee of Chung-Ang University served as the chair, and Professor Lim Younggyun of Kwangwoon University, Kim Younghwan, Director of Operations at the Win-Win Growth Committee, Chu Mungap, Head of the Korea Federation of SMEs, and Jeong Sujeong, Research Fellow at the Small and Medium Business Research Institute, participated as panelists.
Chairman Kwon Kihong of the Win-Win Growth Committee said, “The distribution industry requires soft law with a strong recommendation character, such as autonomous win-win agreements and the establishment of dispute mediation councils, rather than unilateral regulations on new industries,” and added, “The committee will strive to fulfill its role as a mediator through communication and consensus, not only through laws and regulations, for the development of the manufacturing-distribution sector.”
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