Ministry of SMEs and Startups Announces 'Subscription Economy Promotion Plan' to Support Small Business Owners

Support for 3,000 Small Business Owners in Agricultural Products, Traditional Markets, and Local Shopping Districts

[Asia Economy Reporter Kim Heeyoon] The government is set to support small business owners in adopting subscription payments and regular delivery services.

On the 5th, the Ministry of SMEs and Startups announced the "Small Business Subscription Economy Promotion Plan" at the 42nd Emergency Economic Central Countermeasures Headquarters meeting, aiming to help 3,000 small business owners enter the subscription economy by 2022.

The subscription economy, where customers pay a fixed amount to regularly use products or services, has shown market expansion potential. However, due to difficulties in establishing necessary infrastructure such as sales platforms, logistics, and product composition, small business owners have been slow to enter this field.

The Ministry of SMEs and Startups has focused on lowering entry barriers so that small business owners can easily participate in and directly operate subscription economy models, and has prepared support measures accordingly.

First, for small business owners who wish to participate in the subscription economy but do not know how, a model that allows easy operation of subscription services in collaboration with private companies has been developed. To provide intuitive guidance, four models are presented: ▲ meal kit subscription ▲ value consumption ▲ prepayment in local shopping districts ▲ direct operation. The ministry supports all processes from joining private malls to sales and delivery for participating small business owners.

Additionally, to support essential elements for providing subscription services such as sales platforms (own malls), logistics (fulfillment), and product composition, a voucher-based support project has been newly established to encourage active entry by small business owners. Other necessary support items during operation, such as dedicated personnel and delivery vehicles, will also be offered in a menu-style format to reduce initial cost burdens, playing a role as a catalyst for small business owners’ transition to the subscription economy.

Furthermore, projects to strengthen the competitiveness of subscription products themselves will be linked to ensure consumer choice. This includes efforts to build consumer trust through joint brand development, community advertising, and the introduction of customer satisfaction support centers. Existing online education will be revamped to establish subscription economy education for small business owners, supported as part of digital capability enhancement projects.

Minister Kwon Chilseung of the Ministry of SMEs and Startups stated, “This support measure aims to lower the barriers so that small business owners can easily enter the subscription economy. The subscription economy offers the advantage of securing regular sales channels, enabling stable business operations.” He added, “Through this support, I hope many small business owners will become resilient entrepreneurs who are not shaken by economic fluctuations.”