Small Business Association Facing Internal Strife... Why the Acting President Wiped Away Tears

Sogongyeon Holds Press Conference on 15th to Refute 'Embezzlement Allegations'
Internal Conflict Intensifies Over Impeachment Motion Against Former Chairman Bae Dong-wook
Both Sides Ready for Litigation... Signs of a 'Mud-slinging Fight' Emerging

Kim Im-yong, Acting President of the Korea Federation of Micro Enterprise, refuted allegations of budget embezzlement and pointed out suspicions of document forgery by former President Bae Dong-wook at a press conference held on the 15th.
[Photo by Korea Federation of Micro Enterprise]

[Asia Economy Reporter Lee Junhyung] "I was moved to tears while reading the press conference statement."

Kim Imyong, Acting President of the Korea Federation of Micro Enterprise Associations (Korea Federation of Micro Enterprises, SoGongYeon), wiped away tears during a press briefing held on the 15th. The president's position at SoGongYeon has been vacant for a year, and Kim is leading the organization through an emergency response committee. The internal conflict stems from the impeachment of former president Bae Dongwook, which was passed amid controversies such as last year's 'girl group dance workshop.' Both the emergency committee and former president Bae have expressed intentions to take the dispute to court, signaling that the conflict may escalate into legal battles.

At the press briefing held at SoGongYeon's conference room in Sindebang-dong, Seoul, Kim firmly stated that former president Bae Dongwook has been dismissed. Although the court partially accepted Bae's injunction request to suspend the impeachment last month, according to the organization's bylaws, he cannot retain his position as president. Kim said, "Currently, Bae is neither president nor a member, but just an ordinary person," adding, "After consulting with the relevant government ministry and major law firms, it has been concluded that Bae's term has ended."

Regarding Bae's allegations of embezzlement against SoGongYeon, Kim dismissed them as "absurd." Bae held a separate press conference the day before, claiming that some SoGongYeon employees misappropriated and embezzled part of the budget amounting to 16.9 billion KRW through so-called 'price inflation.' SoGongYeon promptly issued a direct rebuttal just one day after the allegations surfaced.

Kim explained, "SoGongYeon is a legally recognized economic organization receiving government support," and "Unlike incorporated associations, it undergoes two to three layers of accounting audits from the Ministry of SMEs and Startups and other bodies." He added, "Not a single won of the budget can be spent carelessly, and the accounting is managed transparently at the level of national institutions," expressing, "It is shameful and distressing that someone like Bae, who slanders the organization he was part of as corrupt in an instant, was once the president of SoGongYeon."

(Seoul=Yonhap News) Reporter Kim Do-hoon = Bae Dong-wook, president of the Korea Federation of Small and Medium Business, is leaving the press room after holding a press conference to clarify the so-called 'Dance Workshop' held last month at the Korea Federation of SMEs in Yeouido, Seoul, on the morning of the 14th.
President Bae apologized for the controversy but stated that he will not resign. 2020.7.14
superdoo82@yna.co.kr
(End)

SoGongYeon also mentioned allegations of document forgery against former president Bae. It is suspected that Bae forged and altered the business registration certificate and corporate establishment permit submitted when joining SoGongYeon. The SoGongYeon Secretariat labor union filed a complaint against Bae last year regarding this matter. A SoGongYeon official said, "The Dongjak Police Station conducted the first investigation, but at Bae's request, the case was transferred to the Suwon Southern Police Station," adding, "Although the investigation was slow, it is now concluding and will be sent to the prosecution next week."

Both parties are considering legal actions. Bae is already under police investigation for eight charges, including embezzlement and breach of trust, obstruction of business, and violation of the Subsidy Management Act. Additionally, Bae announced at the press conference the day before that he had filed complaints against some SoGongYeon Secretariat employees for embezzlement. SoGongYeon plans to hold an election on the 20th of next month to decide the next president. Bae has also indicated further legal responses regarding the emergency committee's election process.

Given the situation, there are concerns that the internal conflict could devolve into a mudslinging fight. Since SoGongYeon represents 7 million small business owners during the prolonged COVID-19 pandemic, being embroiled in a power struggle could cause confusion in support projects and other activities. Kim said, "Honestly, for the sake of the organization, I do not want to go as far as legal battles," but added, "If Bae continues like this, I believe we must do everything possible."

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