Text Fwd: Small merchants unite against large distributors

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'Kim Kyung-bae, the chairperson of the Association of Supermarket Managers, delivers the opening speech for the founding ceremony of the National Association of Small Businesses held at the office of Korea Federation of Small and Medium Businesses located in Seoul’s Yeouido, Aug 6.'

Hankyoreh
Small merchants unite against large distributors:
The new federation of small merchant organizations organize within the retail services market while lawmakers pledge parliamentary support
Posted on : Aug.7,2009 12:28 KST

Small merchants in South Korea are uniting to fight against large distributors who are attempting to take control of local markets, including the trade that takes place on alley streets.

Small merchant organizations, including the Korea Supermarket Cooperative Association, participated in the inaugural meeting of the National Federation of Association of Small Merchant Organizations at the Hall for Small and Medium Enterprises in Yeouido, Seoul. They resolved to cooperate against big business. The new federation is comprised of 32 organizations, including the Korean Optometric Association, the Korea Bakers Association, the Korea Oil Station Association, and the Korea Federation of Bookstore Association.

The federation’s prospectus says, “5.2 million small merchants working at 2.7 million retail shops across the country play a role in grounding the national economy, but we have witnessed a succession of closures or suspensions of businesses. It also says,“A crisis in management is escalating due to inroads big business companies are making in the retail services market.”

The Federation has resolved to work together against the push into local retail markets by big business companies, and for reducing credit card fees. The Federation appointed 500 voluntary monitors to inspect the inroads large distributors have been making into local retail markets. Grand National Party Lawmaker Won Hee-Ryong and independent Lawmaker Chung Dong-Young attended the inaugural meeting and promised parliamentary support.

The number of small business that are filing business mediation requests to stop the inroads of large companies to the Korea Federation of Small and Medium Businesses is rapidly increasing. To date, the Korea Federation of Small and Medium Businesses has received 34 requests, including a request from the Korea Oil Station Association and the Association of Tool Sellers, the Korea Supermarket Cooperative Association, and the Korea Federation of Bookstore Association. the Korea Oil Station Association is asking for mediation support in order to stop large companies from entering some place of Suwon City (Gyeonggi Province) and Gunsan City (North Jeolla Province).

On August 5, the Korea Supermarket Cooperative Association in Cheongju city located in North Chungcheong Province filed a request to be informed of the fact when large companies, such as Home Plus, attempt to move into their market. This is the first request by an association of small merchants since the government created a system to inform small businesses of the actions of large companies.

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