Will Designation of Designated Industry for SMEs Be Decided on the 24th for Daeri Driving Entering Kakao and Tmap...

[Asia Economy Reporter Kim Bo-kyung] Attention is focused on whether the designated small and medium-sized enterprise (SME) suitable industry status will be granted to the designated driver industry, where platform giants such as Kakao and T Map have entered. If designated as a suitable industry, it is expected to curb the business expansion of large corporations.

The Win-Win Growth Committee plans to hold its 70th meeting on the morning of the 24th to deliberate and decide on whether to designate the designated driver industry as an SME suitable industry.

The issue of including designated driving in the SME suitable industry category has been ongoing for the past year. The industry is closely watching the situation, expecting a decision possibly this month.

The Win-Win Growth Committee must decide on the designation within one year from the application date, and in the case of designated driving, the deadline is the 25th.

If the Win-Win Growth Committee, a private consultative body, fails to make a decision within the deadline, the Ministry of SMEs and Startups will step in to mediate the business adjustment.

Earlier, when Kakao Mobility and T Map Mobility entered the designated driver phone call market, the Korea Designated Driver Federation requested in May last year that the designated driver industry be designated as an SME suitable industry to block large corporations from entering.

Under the chairmanship of the Win-Win Growth Committee, the federation, Kakao Mobility, and T Map Mobility formed a consultative body and attempted to reach an agreement about seven times since November last year but failed to narrow their differences.

The federation requested Kakao Mobility and T Map Mobility to refrain from aggressive cash promotions and indiscriminate expansion of the call market for three years, but it is known that the two companies have different positions on this matter.

The SME suitable industry system was introduced in 2011 to protect SMEs and small business owners from large corporations.

If designated as a suitable industry, large corporations are recommended to refrain from business expansion and entry into related industries and items for three years. The designation period can be extended once within the three-year scope, allowing protection for up to six years.