Amid fierce competition from overseas e-commerce platforms such as AliExpress, Temu, and Shein, and sluggish domestic consumption, the Small and Medium Business Central Council acknowledged the cooperative efforts of four companies—Hyundai Department Store, E-Mart, 11st, and Lotte On—and strongly presented that co-prosperity cooperation is key to overcoming the current crisis facing Korea's struggling distribution industry.
The Small and Medium Business Central Council held its 6th Distribution Co-Prosperity Conference at the headquarters in Yeouido, Seoul, on this day, and awarded companies that have contributed to the development of Korea's domestic distribution ecosystem through cooperative partnerships. Hyundai Department Store and E-Mart received commendations from the Fair Trade Commission Chair in recognition of their leading co-prosperity initiatives as major distribution enterprises. In particular, Hyundai Department Store was recognized for contributing a co-prosperity cooperation fund worth 322.7 billion won, while E-Mart was recognized for establishing a mutual growth fund of 124.6 billion won, demonstrating substantial efforts toward co-growth with partner companies. 11st received a commendation from the Chair of the National Assembly's Special Committee on Political Affairs, while Lotte On received a commendation from the Chair of the Mutual Growth Committee. Key figures including Yu Dong-soo, Chair of the National Assembly's Special Committee on Political Affairs, Lee Byung-gwon, Vice Minister of Small Venture Business Administration, and Nam Dong-il, Vice Chair of the Fair Trade Commission, attended the awards ceremony.
Kim Ki-moon, Chair of the Small and Medium Business Central Council, emphasized at the event that "Korea's domestic distribution industry faces an unprecedented crisis, and the solution to overcome it is co-prosperity cooperation between large and small-to-medium enterprises." Chairman Kim diagnosed that the domestic distribution industry is on the brink of collapse, as indiscriminate domestic market offensives by overseas e-commerce platforms such as AliExpress, Temu, and Shein are overlapping with population decline, contracting consumer sentiment, and prolonged domestic consumption downturn. He added that in this situation, proactive and bold co-prosperity investments by major enterprises would be a great source of strength for small distribution and manufacturing companies.
Through this conference, it was reconfirmed that co-prosperity cooperation must be a key driver for Korea's distribution industry to achieve sustainable growth amid the overall crisis. The Small and Medium Business Central Council hopes that this recognition will lead to the spread of a co-prosperity cooperation culture throughout the entire distribution ecosystem, and forecasts that mutual growth across the entire distribution ecosystem will only be possible with active legislative and policy support from the National Assembly and government, as Chairman Kim urged.