Appropriate Business Review Committee Holds First Meeting on 14th... Designation Decision in March
[Asia Economy Reporter Kim Heeyoon] As discussions continue about the entry of completed car manufacturers into the used car market, the decision on designation is expected to be postponed until after the 20th presidential election.
On the 14th, the Ministry of SMEs and Startups held a review committee meeting on the livelihood-type suitable business category for used car sales and announced that, after supplementing the fact-finding survey results and compiling opinions from stakeholders related to used cars, the decision on designation will be made in March.
The review committee received reports on the results of the livelihood-type suitable business fact-finding survey for small business owners related to used car sales and the recommendation opinions from the Fair Trade Commission. Then, the Ministry of SMEs and Startups reported on the progress and key issues pursued so far for the win-win agreement, and discussions were held.
Considering that a long time has passed since the application for the agenda, the review committee judged that the fact-finding survey data at the time of the Fair Trade Commission’s recommendation is insufficient to assess the currently changed market, and requested the Ministry of SMEs and Startups to supplement it with the latest data and submit it at the next meeting.
Additionally, an analysis of the impact of the existing large corporations and completed car manufacturers’ used car purchasing methods on small business owners, as well as an analysis of consumer welfare, was also requested.
Civil society groups, including the used car industry, voiced strong criticism regarding the review committee’s decision.
Lim Gisang, representative of the Automobile Citizens’ Coalition, stated, "Since the expiration of the livelihood-type suitable business designation in 2019, the Ministry of SMEs and Startups has continuously delayed decisions on the market, and consumer damages have been increasing," adding, "(This review committee decision) is a political decision that prioritizes political logic over consumer protection, and we plan to request a national audit after the new government takes office following the presidential election."
Earlier, the Automobile Citizens’ Coalition judged that the Ministry of SMEs and Startups bears significant responsibility for the delay in the livelihood-type suitable business designation for used car sales, which has increased consumer damages, and recruited 300 consumer petitioners last month for a national audit.
The used car sales business lost its designation as a small and medium enterprise suitable business category in February 2019, allowing entry by large corporations such as completed car manufacturers. While used car organizations (the National Automobile Sales Business Association Federation, Korea Automobile Sales Business Association Federation) reapplied for the livelihood-type suitable business designation and the completed car industry and used car sales industry discussed win-win plans until last month, no conclusion was reached. As a result of this review committee decision, the final discussion will ultimately be decided after the presidential election.
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