“Sovacuum unilaterally closes stores in Vietnam, causing damage to 43 small businesses”
Quick Look
- Choi Soo-jin of the People Power Party pointed out that the Small Business Market Promotion Corporation unilaterally closed 'Exciting', a permanent offline beauty store operated by small businesses in Vincom Mega Mall Royal City in Hanoi, Vietnam, causing damage to 43 small businesses that were waiting to open a store.
- The Corporation was criticized for not properly notifying the closure of stores and for passing the burden on to small businesses by setting an unreasonably high import registration reporting fee.
AI-generated summary
Why It Matters
In August 2024, the Small Business Market Promotion Corporation opened 'Excited', a permanent offline beauty store for small businesses at Vincom Mega Mall Royal City in Hanoi, Vietnam, to support the overseas expansion of small domestic cosmetics manufacturers. Over the next two years, a total of 237 small business products were selected, and 194 products were entered into stores.
Choi Soo-jin “They didn’t even properly notify us of the store closing…irresponsible administration.”
(Seoul = Yonhap News) Reporter Cho Daun = It was pointed out on the 14th that as the Small Business Market Promotion Corporation unilaterally closed the doors of permanent cosmetics stores operated in Vietnam, small business owners who were waiting to open stores are bearing the brunt of the damage.
According to data received from the corporation by People Power Party lawmaker Choi Soo-jin, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Venture Business Committee, the corporation unilaterally closed the permanent offline beauty store 'Excited', which was operated in Royal City, Vincom Mega Mall, Hanoi, Vietnam, in August due to the termination of the lease contract.
The store was opened in August 2024 to support the overseas expansion of small domestic cosmetics manufacturers. Over the next two years, a total of 237 small business products were selected, and 194 products were entered into stores.
However, Rep. Choi pointed out that the Corporation did not notify the store when it closed, so the 43 businesses that were waiting to open were unable to take proper measures against the damage.
In addition, the corporation set an import registration reporting fee of about 1.3 million won for selected products and had small business owners pay 260,000 won, which is 20% of the fee. However, Rep. Choi explained that the actual fee is about 500,000 won when using a domestic agency and about 100,000 to 300,000 won when using a local company.
Rep. Choi said, "The ridiculously high fees are a problem, but the corporation's behavior of not even properly notifying the fact that the store was closed is the height of irresponsible administration," and added, "For the sake of small business owners who have given up on overseas expansion, they must be held accountable and measures to prevent recurrence must be established."
What to Watch
AI outlook — possibilities, not facts
The National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee will conduct an official investigation into the Small Business Market Promotion Corporation's store closure and fee policy.
Likely · Within weeks
Open Questions
- What is the specific reason why the Corporation unilaterally closed the store?
- Were any compensations or alternatives offered to stores during the store closing process?
- What is the Corporation’s position on the difference between the fee setting standards and actual costs?
