Event Agency Industry "Average Revenue Decreased by Over 76%"... Appeals for Financial Support

Representatives from the Korea Event Industry Cooperative and the Korea Event Convention Society, along with other event agency industry stakeholders, are appealing for special support to overcome the damages caused by COVID-19 in front of the National Assembly on the 26th.

[Asia Economy Reporter Kim Daeseop] The Korea Event Industry Cooperative announced on the 26th that it issued an appeal in front of the National Assembly requesting special support for the event agency industry.

About 20 people, including officials from the Event Industry Cooperative, attended the appeal announcement site that day. The attendees emphasized the necessity of financial support and tax benefits to overcome the damage caused by the spread of the novel coronavirus infection (COVID-19).

Um Sang-yong, chairman of the Event Industry Cooperative, stated, "The event agency industry is an industry without related laws or a governing ministry, leaving it in a blind spot," adding, "Companies in the event agency sector have assets that are 'expert services,' so they lack tangible assets, making it difficult to obtain operating funds loans from financial institutions or public organizations." Chairman Um also said, "Most require guarantees and collateral, so in reality, there is almost no substantial financial support."

The Event Industry Cooperative, along with the Korea Event Convention Society and the Korea Event Association, demanded the enactment of the Event Industry Act and the classification of the event agency industry as an independent industrial category.

Chairman Um claimed, "In the national disaster crisis, there is a movement among local governments to divert budgets planned for events or tourism attraction to budgets for overcoming the crisis." He continued, "If event budgets disappear or are diverted and the budget is not reflected for this year as well as next year, there is concern that most event agencies will eventually go bankrupt or even disappear from the industry."

According to the Event Industry Cooperative, the event agency industry is mostly composed of small and medium-sized enterprises and small business owners, and more than 90% of scheduled events have been postponed or canceled since last month. The holding of events in May and June this year, including spring festivals, is also uncertain.

With the postponement or cancellation of public events hosted or organized by the government and local governments, even private events hosted or organized by companies have been indefinitely postponed or canceled. Since the outbreak of COVID-19, it is estimated that 3,000 to 4,000 events nationwide have been canceled, and average sales in the first half of this year have decreased by more than 76%, according to the cooperative.

Chairman Um said, "In terms of sales, the scale exceeds nearly 400 billion won." He also expressed concern, saying, "Especially since the event agency industry is an industry with a large ripple effect, including event companies, partner companies such as system, production, rental, staff, MCs, security, helpers, and various performance groups, it greatly affects job creation, but it is facing a crisis where many will become unemployed one after another, making the seriousness even greater."

Chairman Um said, "Although it may seem selfish when the whole Republic of Korea is struggling, the event industry, which contributes to youth unemployment, is in a blind spot and urgently needs national support. Please understand our unavoidable appeal as the livelihoods of about 20,000 workers and their families are at immediate risk."

This content was produced with the assistance of AI translation services.