Dongbanwi Discusses Designation of Substitute Driving as SME-Suitable Industry... Will Kakao and Tmap Businesses Be Hindered?

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Commission for Shared Growth will hold a plenary meeting on the 24th to discuss whether to designate the proxy driving industry as a suitable sector for small and medium-sized enterprises (SMEs).

If the Commission for Shared Growth designates proxy driving as an SME-suitable sector at this meeting, it will put a brake on the business expansion of Kakao Mobility and T Map Mobility.

According to industry sources, the Commission will hold its 70th meeting on the morning of the 24th at the JW Marriott Hotel in Seocho-gu, Seoul, with the designation of the proxy driving industry as an SME-suitable sector on the agenda.

The designation of the proxy driving industry as an SME-suitable sector is the first agenda item the Commission has discussed under the Yoon Seok-yeol administration.

As the deadline for designating proxy driving as an SME-suitable sector is approaching, the industry expects the Commission to designate proxy driving as an SME-suitable sector at this meeting.

The Commission must decide on the designation within one year from the application date, and in the case of proxy driving, the deadline is the next day, the 25th.

If the Commission fails to make a decision within the deadline, the Ministry of SMEs and Startups will step in to mediate the business adjustment.

While designating proxy driving as an SME-suitable sector, the Commission is known to restrict cash promotions and indiscriminate expansion of phone call markets by large corporate affiliates.

The Commission's decision is only a 'recommendation' and has no legal binding force. However, since it is a measure derived through agreements between companies, there are virtually no companies that do not comply.

Earlier, the Korea Proxy Driving Federation (hereafter Federation), which applied for the designation of proxy driving as an SME-suitable sector, is opposing the Commission, claiming it has lost fairness and is forcibly pushing for agreements between companies.

In a press release the day before, the Federation stated, "The Commission only dealt with the plan proposed by T Map during the final (working-level) review process," and argued, "The biased review plan favoring T Map should be withdrawn."

They added, "The Commission is trying to designate proxy driving as an SME-suitable sector through a 'rush review plan,'" and "We raise objections to this and request a reconsideration."