[2020 National Audit] Despite 45.4 Billion Won Support... 41% of 'Youth Stores' Have Closed Their Doors

Survival Rate Drops to 55-41% Within 2 Years of Opening
Support Only for Opening Without Sufficient Training...Urgent Need for Management Education

41% of youth stores in traditional markets supported by the government were found to be closed or out of business. Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] It has been confirmed that 41% of the youth store projects supported by the government within traditional markets are currently closed or out of business. There are criticisms that startup education was neglected after indiscriminate budget support.

On the 19th, Lee Juhwan, a member of the National Assembly's Industry, Trade, Resources, and Small and Medium Enterprises Committee from the People Power Party, received data on the "business status of young merchants over the past three years" from the Small Enterprise and Market Service. According to the data, the government supported 45.46 billion KRW for the creation of youth malls and the entry of young merchants within traditional markets, but out of the total 594 supported stores, 245 stores, accounting for 41%, are currently closed.

In particular, it was revealed that the survival rate of stores that have been open for more than two years dropped significantly from 55% to as low as 41%.

Among the closed or out-of-business stores, restaurants were the most common type (65%, 160 stores). By region, in Seoul, 13 stores including workshops in the startup shopping district in front of Ewha Womans University, and in Busan, 14 stores including restaurants in Gukje Market were confirmed to have closed, showing a surge in closures.

Assemblyman Lee said, "About half of the young merchants close their stores within less than two years after opening, and this situation is repeated, so urgent measures are needed," adding, "The government should not only focus on quantitative expansion of young merchants but also increase support for sustainable growth through substantial management education."