Sogongyeon: "Small Business Owners Subordinated to 'Big Tech'... Dedicated Platform Needed"

On the 6th, as the COVID-19 situation continues, the streets of Myeongdong in Seoul are quiet. Photo by Moon Honam munonam@

[Asia Economy Reporter Junhyung Lee] "Small business owners are falling behind in the changing economic environment caused by the COVID-19 pandemic and are becoming dependent on giant platforms."

Kwon Soonjong, Vice President of the Korea Federation of Small and Medium Business, stated this at the forum "Small Business Transformation 4.0: Digital Market Transition and Challenges for Small Business Owners," hosted by the Korea Small and Medium Business Association on the 20th at the Korea Federation of Small and Medium Business in Yeouido, Seoul. Vice President Kwon said, "Although the domestic live commerce market is rapidly growing every year, small business owners are losing out in price competition and marketing, making individual responses impossible," adding, "To strengthen the self-sustainability of small business owners, it is necessary to establish a dedicated platform for small business owners." He emphasized the need for systematic support from the government and local governments in building this dedicated platform.

Professor Jung Kangok of Hannam University emphasized the necessity of digital transformation for small business owners in his presentation titled "Digital Market Transition and Challenges for Small Business Owners." Professor Jung explained, "The domestic online shopping transaction volume increased from 3.3 trillion won in 2001 to 159 trillion won in 2020, a 4,830.3% increase over 19 years," adding, "As the online market continues to grow and the offline distribution market declines, small and medium distributors must respond not with mere digitization using IT devices but with digital transformation that actively embraces customer demands."

Oh Sehee, President of the Korea Federation of Small and Medium Business, said on the day, "Small business owners are facing survival crises due to prolonged business restrictions, but the online distribution market is rapidly growing, exacerbating polarization issues," adding, "With online expansion becoming essential for small business owners, policies and response strategies to support this must be established."