"Event Agency Industry Faces Chain Bankruptcy Crisis Due to COVID-19"

Eom Sang-yong, Chairman of Korea Event Industry Cooperative

Eom Sang-yong, Chairman of the Korea Event Industry Cooperative. Photo by Asia Economy DB

[Asia Economy Reporter Moon Hyewon] "Even though events are being canceled one after another due to the novel coronavirus disease (COVID-19) crisis, event-related companies still have to bear expensive stage equipment lease fees and office rental costs, making it increasingly difficult for them to sustain their livelihoods. They say it feels like death row inmates just waiting for their execution day."

Um Sang-yong, Chairman of the Korea Event Industry Cooperative (pictured), said in an interview with this paper on the 23rd, "During the first half of this year amid the COVID-19 crisis, about 10,000 events were canceled nationwide, which amounts to over 1.3 trillion won in monetary terms. We missed the spring flower festivals in April and May, and corporate events scheduled for September and October this year are also being canceled one after another." He added, "Companies that managed to hold on until May and June will likely have to switch to unpaid leave systems afterward, and from then on, companies with about 30 to 50 employees face the risk of bankruptcy."

Earlier this month, Chairman Um organized an emergency response committee consisting of about 50 representatives from six related organizations across industries, sectors, and regions, and took the role of the inaugural chairman. He said, "We requested the Ministry of Employment and Labor to designate the event agency industry as an employment crisis industry, but about two weeks ago, we received a response saying, 'We understand the unfortunate situation, but it is unlikely to be designated given that the entire industry is in crisis.'" He lamented, "Since event agencies mostly handle festivals, they are perceived as part of the leisure industry and thus fall into a blind spot in employment protection."

Currently, four industries?travel, tourism accommodation, tourism transportation, and performance?are designated as special employment support industries, but event agency businesses are excluded. He said, "Local festivals contribute to revitalizing local commercial districts, and corporate events serve as marketing tools that help increase product sales and enhance company image. Even international events like the PyeongChang Olympic opening and closing ceremonies contribute to raising national prestige, but the necessity and recognition of events themselves are still lacking." The cooperative estimates that about 50,000 people are directly or indirectly employed in the event agency industry. Among them, 20,000 are direct workers such as event coordinators, and 30,000 are indirect workers including announcers, temporary part-timers, broadcast facility and equipment managers, and security personnel.

Chairman Um insists that it is urgent to establish laws that fundamentally resolve the difficulties faced by the event industry and provide a legal basis for employment stability and protection for workers. He also emphasized the need for various statistical surveys, including comprehensive investigations. He expressed hope that proportional representatives who have been involved with organizations such as the Korea Federation of SMEs and the Korea Federation of Micro Enterprise Associations will enter the National Assembly and work on related legislation.

The emergency committee plans to address urgent issues in the short term, such as selecting preferred negotiators for the Public Procurement Service and event demand sources, and resolving problems like non-contracting or non-payment of advance payments after contract fulfillment. In the medium to long term, they aim to designate a government department in charge of the event industry and promote the enactment of the Event Industry Development Act.

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