"Dedicated T-Commerce Needed for SMEs to Expand Sales Channels"

Policy Forum on Measures to Expand Market Access for Small and Medium-Sized Businesses

There has been a call for a dedicated T-commerce channel exclusively for small and medium-sized enterprises (SMEs) and small business owners to expand their sales channels. T-commerce is an interactive service that allows viewers to check product information and make purchases using a dedicated remote control without using the phone while watching TV. Among home shopping channels, Home&Shopping and Gongyoung Home Shopping, which mainly handle SME products, do not have T-commerce business rights.

The Korea Federation of SMEs announced on the 16th that it held a policy forum titled "Expanding Sales Channels for Small Business Owners Using T-commerce" at the National Assembly Members' Office Building in Yeouido. The forum was attended by major SME and small business organizations including the Korea Federation of Small and Medium Business, Korea Women Entrepreneurs Association, Venture Business Association, Korea Federation of SMEs Convergence, Korea Women Venture Association, Innobiz Association, and Korea Management Innovation SME Association. This indicates a high level of interest in a dedicated T-commerce channel for SMEs. Kim Ki-moon, Chairman of the Korea Federation of SMEs, said, "T-commerce is gaining attention as a new sales platform for small business owners, but 9 out of 10 T-commerce operators belong to large corporations or telecom companies, and the proportion of SME products is continuously decreasing. Therefore, a T-commerce channel optimized for SMEs, such as those producing small quantities of various products, must be newly established."

On the 16th, at the National Assembly Members' Office Building in Yeouido, participants including Kim Ki-moon, President of the Korea Federation of SMEs (sixth from the left), and Joo Ho-young, Floor Leader of the People Power Party, are taking a commemorative photo at the policy discussion forum on expanding sales channels for small and medium-sized enterprises using T-commerce.

Experts also expressed the opinion that T-commerce could be an alternative to SME-exclusive home shopping. Professor Lim Chae-woon of Sogang University said, "T-commerce, which uses data broadcasting, can resolve the simplicity and rigidity of TV home shopping broadcast services while overcoming the limitations of online internet, which has lower customer accessibility than TV, making it a viable alternative to home shopping." He explained, "It has high potential to be used for expanding sales channels and strengthening marketing capabilities for SMEs and small business owners." Professor Lee Jung-hee of Chung-Ang University also predicted, "T-commerce has a significant effect on sales channels for small business owners, and as sales opportunities through these channels increase, small business owners will be able to develop competitive products and grow together."

Although T-commerce is expected to show results as a new competitive sales channel for SMEs, venture companies, and small business owners, concerns about difficulties in new market entry were raised during the forum. Professor Lim Young-gyun of Kwangwoon University said, "Regulations should be limited to necessary cases, but the entry regulations for T-commerce lack logic and justification, and rather hinder fair competition and consumer welfare, causing inefficiencies in transactions." Kim Ga-hyung, CEO of Homegawon, also stated, "Although T-commerce is a good platform to use as a test bed for SME products, it is incomprehensible that SME-exclusive home shopping channels do not have T-commerce channels and that there is no SME-exclusive T-commerce channel. If a public T-commerce channel is established, it will greatly help SMEs and small business owners secure sales channels."

There are also practical obstacles. The Korea Federation of SMEs estimates that the initial investment cost for launching T-commerce as a sole operator would be 86 billion KRW. If a large-scale capital investment is made, considering the payback period, it will inevitably limit the reduction of commissions for participating SMEs and small business owners, thereby diminishing the support effect. Choo Moon-gap, Head of the Economic Policy Division at the Korea Federation of SMEs, said, "If SMEs, women, venture, and innovative companies participate and open the channel, the support effect for small business owners will appear immediately."