Kakao Launches 'Sosin Sangin Project'... Supporting Digital Transformation of 'Sinyeong Market'

[Asia Economy Reporter Seungjin Lee] Kakao announced on the 22nd that it has selected Sinyeong Market in Yangcheon-gu, Seoul, as the first pilot site for its traditional market digital transformation support program.

As part of the ‘Sosin Sangin Project’ to assist small business owners in digital communication, Kakao signed a four-party agreement with Kakao Impact, the online knowledge education platform MKYU, and the Sinyeong Market Merchants Association. Sinyeong Market in Yangcheon-gu was chosen as the pilot site, and the program is scheduled to commence in mid-July.

In April, Kakao announced a win-win plan for the Kakao community to contribute to social sustainability, pledging to allocate a total of 100 billion KRW over five years to support small business owners and local partners. The Sosin Sangin Project is part of this win-win plan, supporting merchants nationwide who run their businesses with conviction to secure loyal customers through KakaoTalk channels and conduct various mobile marketing activities. The project’s first step is to select traditional markets struggling with digital transformation.

Through this agreement, Kakao and Kakao Impact will provide resources necessary for digital transformation, including education, marketing, and promotion. By activating mobile communication based on KakaoTalk channels, individual stores within the market will secure loyal customers and encourage offline visits. Kakao will support Sinyeong Market merchants who newly open KakaoTalk channels by providing ▲ KakaoTalk Channel Welcome Kits ▲ coupon costs for loyal customers who add the channel ▲ free cash for sending channel messages.

To assist merchants unfamiliar with digital communication, a customized education environment will be created where training can be conducted at stores at preferred times. Easy-to-understand game-style educational content will be offered, and a dedicated education space called the ‘Talk Channel Lounge’ will be established within the traditional market, where a ‘Digital Tutor’ will be dispatched. The Digital Tutor will reside for about two months, providing education on opening and utilizing KakaoTalk channels and offering ongoing one-on-one consulting. After the residency period, a KakaoTalk open chat room will be created where the Digital Tutor and traditional market merchants can connect to continue support in a mobile space.

Starting with support for Sinyeong Market’s digital transformation, Kakao plans to hold a nationwide call for traditional markets in September, select a total of 10 sites, and officially operate the first season of the Sosin Sangin Project from November.

Meanwhile, the social contribution platform ‘Kakao Together’ will also run a special campaign for coexistence with small business owners. The newly launched action participation project ‘Everyone’s Action’ will hold a campaign throughout July where users can participate in and certify support for local small business owners.

Additionally, Kakao recently established the ‘Small Business Win-Win TF’ within its ESG (Environmental, Social, and Governance) general organization. Various support programs are being prepared not only for traditional markets but also for self-employed and small business owners nationwide to easily secure loyal customers, promote and market, and manage customers for revisit and repurchase. Applications will be accepted through the ‘Kakao Business’ website starting in August.

Hong Euntaek, Head of Kakao ESG, said, “Strengthening the digital capabilities of traditional markets will create a virtuous cycle effect that leads to new sales channels, increased self-sustainability and competitiveness of small business owners, and improved sales. Based on Kakao’s platforms, services, assets, and know-how, we will generously support digital transformation to build a sustainably growing traditional market ecosystem and continue win-win cooperation.”