Not Meeting Scale and Income Smallness Criteria
Considering Negative Aspects of Consumer Welfare
"Support for Large Companies' Future Car Maintenance Capability Training"
[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups announced that it has decided not to designate the automobile specialized repair industry as a livelihood-type suitable industry.
On the 9th, the Ministry held the 'Livelihood-type Suitable Industry Deliberation Committee' to decide whether to designate the automobile specialized repair industry as a livelihood-type suitable industry. The committee consisted of 15 private members, including representatives from corporate advocacy groups and those recommended by the Win-Win Growth Committee.
After reviewing the results of the fact-finding survey and hearing opinions from the industry, the committee resolved not to designate the industry.
First, it was judged that the industry did not meet the criteria of small scale and low income among the designation requirements. This was because the proportion of small business owners in the automobile specialized repair industry was low, while the average sales, operating profit, and average wages of employees were at a high level.
Additionally, the committee viewed the practical benefits of designating the industry as low. Large corporations do not directly participate in the automobile specialized repair market but mainly engage through franchise, cooperation, or consignment methods with businesses operated by small business owners or SMEs. It was stated that restricting large corporations' participation could have negative effects on industrial competitiveness and consumer welfare in the future, such as in electric vehicle maintenance.
However, as an ancillary opinion, the committee requested that large corporations, including automobile manufacturers, support small business owners operating in the industry by providing training on maintenance capabilities for future-type vehicles such as electric cars.
Following this ancillary opinion, the Ministry of SMEs and Startups plans to promote business agreements to strengthen the maintenance capabilities for future-type vehicles like electric cars, aiming to enhance the competitiveness of small business owners and foster mutual growth.
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