Kookmin University's Platform SME Research Center, along with the offices of Democratic Party lawmakers Kim Byung-joo, Lee Un-joo, and Lee Geon-tae, jointly hosted the "Online Platform and Digital Merchants: Cooperation and Growth Seminar."
"Hyper-personalized prepayment service improves the stability of digital merchant business operations."
– Discuss various policies, including the role of a platform for the growth of digital merchants.
The 'Online Platform·Digital Merchants, Cooperation and Growth Seminar' (hereinafter referred to as the Seminar) was held on Thursday, September 18th in the 2nd conference room of the National Assembly Members' Hall, co-hosted by Democratic Party of Korea members Kim Byung-joo, Lee Un-joo, and Lee Geon-tae, and Kookmin University's Platform SME Research Center (hereinafter referred to as the Research Center).
The seminar was attended by approximately 30 people, including Representative Kim Byeong-ju, Representative Lee Eun-ju, Representative Lee Geon-tae, Director Jeong Ji-su of the Ministry of SMEs and Startups, Chairman Min Sang-dae of the Digital Commerce Association, and affiliated businesspeople and experts from academia.
This seminar was designed to examine the impact of changes in online platform services on the growth of digital merchants and discuss the role of platforms and policy challenges for shared growth.
In his congratulatory remarks, Supreme Council Member Lee Un-ju (Chairman of the Future Economic Growth Strategy Committee and Head of the AX Division of the AI Powerhouse Committee) emphasized, “In the era of the AI transformation, building AI infrastructure and systems is crucial.” Supreme Council Member Lee stated, “The advancement of platform services driven by AI advancements provides new opportunities for digital merchants and opens up the possibility of more reasonable choices for consumers.” He added, “We will create a virtuous cycle of ‘profit sharing, capacity building, and market expansion’ so that the growth of the platform directly leads to the growth of merchants.” He added, “We will do our best to institutionalize government support and private sector cooperation to fulfill our responsibilities and ensure that the results are tangible and felt in the field.”
Professor Kim Tae-kyung of the Department of Big Data Applications at Kyung Hee University, who gave the keynote speech, said, “E-commerce platforms are having difficulty processing costs due to customer returns,” and added, “If AI can provide accurate product guidance like a ‘guide dog,’ such potential losses can be prevented.” Professor Kim continued, “AI’s ability to find hidden information and infer by linking it to customer tendencies and needs can reduce the possibility of unnecessary purchases and enable more rational consumption behavior.” According to the results of an analysis of data from 8,149 companies that have opened stores on Naver Plus Store, companies that have opened stores on Naver Plus Store and applied hyper-personalized services showed a significant decrease in cancellation and return rates, and an increase in sales per click.
Professor Kim emphasized, "AI is effectively supporting purchasing decisions by recommending personalized, accurate products to each individual," and "AI is playing a key role in reducing business risk and improving business performance on commerce platforms."
Professor Lee Geon-woong of Korea University's Graduate School of Business presented research findings on the effectiveness of prepayment services in improving cash flow for digital merchants. Prepayment services allow sellers to receive payment upfront, immediately after product shipment or delivery, before the purchase is confirmed. The goal is to secure cash flow and strengthen business stability.
A survey of 1,343 digital merchants found that 84.6% of those who used the pre-settlement service reported improved liquidity, and 77.5% reported a reduction in financial burden. Professor Lee explained, "Using the pre-settlement service has been shown to provide an average of approximately 22 additional days of cash reserves. This reduces reliance on short-term loans and enhances business stability." He also emphasized, "Pre-settlement service ultimately serves as a key financial solution that can lead to business expansion for merchants. It is necessary to develop policies that encourage and expand the use of pre-settlement services."
Seonmihan and Kim Seongrae, who gave presentations at the general discussion, said in their presentation, “Seonmihan, a traditional small business owner: A case study and implications of growth through digital transformation and government policies,” “If we collaborate with platforms, digital business owners will also be able to grow further.”
During the panel discussion, Ganayangmal Director Kim Young-ho stated, "The more platforms there are, the better for sellers. The more successful platforms there are, the more opportunities there are. However, it's dangerous to only sell well on one platform." He emphasized, "Platforms need to have a wide range of products, and those products are provided by sellers. That's how many customers come in. A platform needs a diverse mix of sellers and customers."
Min Sang-dae, chairman of the Korea Digital Merchants Association, said, "The pre-settlement service is very helpful," and added, "It is important to establish a relationship with the platform, such as protection, growth, and support, depending on the seller's size and growth stage."
"We are working to support online sales channels, and I believe we need support programs tailored to AI," said Jeong Ji-su, an official at the Ministry of SMEs and Startups. "It's difficult if you don't enter the online market, and it becomes even more difficult if you don't utilize AI," Jeong emphasized, adding, "Support in this area is necessary." He added, "The Ministry of SMEs and Startups is considering ways for platforms and small businesses to grow together," adding, "We are actively listening to the opinions of both small businesses and platforms."
Center Director Kim Do-hyun stated, "Online platforms have become a crucial tool for the survival of small business owners. The government, National Assembly, industry, and academia must take an interest and work together to ensure that platform changes lead to new opportunities for digital merchants." He added, "The research center will continue to conduct research and propose policies that reflect the voices of those in the field."
Meanwhile, Kookmin University's Platform SME Research Center is a specialized research institute established to support the growth of digital merchants and foster a healthy platform ecosystem. It conducts data analysis, policy recommendations, research, and educational programs targeting digital merchants.
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