Ministry of SMEs and Startups Issues Correction Order to 'Chumpan' Small Performance... Union Demands "Chairman Baedonguk Resign Immediately"

Bae Dong-wook, President of the Korea Federation of Micro Enterprise, is leaving the press room after holding a press conference to clarify the so-called 'Dance Workshop' on the morning of July 14 at the Korea Federation of Small and Medium Business in Yeouido, Seoul. Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] The Ministry of SMEs and Startups has issued a "stern warning" and an order to recover subsidies to Bae Dong-wook, the president of the Korea Federation of Micro Enterprise (hereafter KFM), who sparked controversy over the so-called "dance party workshop." The KFM secretariat labor union has called for President Bae's resignation.

According to the Ministry of SMEs and Startups and KFM on the 8th, the ministry recently issued such a corrective order to KFM and instructed them to submit improvement measures. This is the result of a special on-site inspection of KFM conducted from July 21 to 23. A ministry official said, "Last week, the responsible department notified KFM of the corrective order."

The ministry concluded through the special inspection that the performance event held during the problematic workshop did not align with the purpose of a "policy workshop."

President Bae was sternly warned for violating the code of conduct for executives and employees by having the company purchase wreaths from a wreath business operated by his family.

Additionally, it was deemed inappropriate to sell books purchased with government subsidies at the workshop site and record the proceeds as income, leading to the recovery of the amount.

Accordingly, KFM must comply with the ministry's corrective order by early November.

The KFM labor union issued a statement that day saying, "We believe the Ministry of SMEs and Startups' recent action is the maximum measure that can currently be taken by a government agency," and "President Bae must take responsibility for receiving the unprecedented 'stern warning' and resign immediately."

They added, "The recent on-site investigation by the ministry clearly confirmed these suspicions as the supervisory authority," and "We expect that these confirmed facts will lead to appropriate legal actions through thorough investigations by law enforcement agencies as reported." The union filed a complaint with the Seoul Central District Prosecutors' Office on July 21 against President Bae on charges including embezzlement, breach of trust, and violation of the Subsidy Management Act.

Earlier, KFM sparked controversy by inviting a girl group to the "National Regional Organizations and Industry Groups Education and Policy Workshop" held in Pyeongchang, Gangwon Province, on June 25, where alcohol was consumed and provocative dances were performed. This was criticized as inappropriate conduct amid the deepening hardships of small business owners due to the COVID-19 pandemic.

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