Official Position Stated at Press Conference... About Two and a Half Weeks After Controversial Report

Bae Dong-wook, President of the Korea Federation of Small and Medium Business. Photo by Asia Economy DB

Bae Dong-wook, President of the Korea Federation of Small and Medium Business. Photo by Asia Economy DB

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[Asia Economy Reporter Moon Hyewon] Regarding the controversy over the 'dance party workshop,' Bae Dong-wook, president of the Federation of Small and Medium Business Owners (hereinafter Sogongyeon), stated on the 14th, "No matter how just and pure the intention was, I believe it greatly conflicted with the public sentiment at this time, and I reflect on that. I offer my sincere apologies."


President Bae held a press conference at the Korea Federation of SMEs in Yeouido, Seoul, saying, "We should have been more cautious when organizing the workshop program."


He explained, "The event in Pyeongchang that caused the issue this time was a workshop organized by the newly launched executive team, carefully planning various programs for the board meeting, general assembly, and the future development of the federation. The problematic content reported was a performance by an invited girl group during the dinner time on the second day after the schedule ended. The entertainers, who rely on performances as their main source of income, are also struggling financially due to COVID-19. We heard about their difficulties and held a 15-minute invited performance to offer some support, albeit minimal, and to comfort the heads of organizations who are working hard to lead their groups despite the tough situation."


Sogongyeon invited a girl group to the 'National Regional Organizations and Industry Groups Education and Policy Workshop' held in Pyeongchang, Gangwon Province, on the 25th and 26th of last month, where they drank alcohol and performed provocative dances, causing controversy. Some criticized it as inappropriate given the ongoing COVID-19 crisis and the wave of closures among small business owners. Furthermore, criticism intensified after it was revealed that Sogongyeon is a statutory economic organization receiving tens of billions of won in annual budget support from the Ministry of SMEs and Startups.


Shortly after the controversy, President Bae sent an apology letter to Sogongyeon members but refrained from making an official statement for over two weeks.


It remains uncertain whether President Bae's statement today can quell the internal and external calls for his resignation. Sixteen heads of organizations affiliated with Sogongyeon formed an emergency committee the day before and held a press conference, stating, "The Sogongyeon members participating in the Minimum Wage Commission have experienced severe humiliation due to ridicule from the labor side and calls for resignation over the workshop controversy. The sense of loss and disappointment among small business owners has already spread like wildfire into anger, and the hard-earned status of Sogongyeon is plummeting into an abyss from which recovery seems impossible. Only President Bae's resignation can resolve the current dire situation."



The Sogongyeon secretariat labor union raised allegations against President Bae on the 10th, including suspicions of nepotism in addition to the workshop controversy. Regional and metropolitan heads affiliated with Sogongyeon are scheduled to hold a press conference in front of the Ministry of SMEs and Startups building in Daejeon this afternoon, announcing a rally demanding President Bae's resignation.


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

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