[Start人] Even 'Ants' Invest in 'Mini Storage Attics'... Monthly Profit Dividends

Interview with Hong Woo-tae, CEO of Second Syndrome
Shared Warehouses in Urban Areas... Personal Item Storage
Global Market Expected to Grow to 90 Trillion Won
Demand Increasing Due to Single-Person Households and Urbanization

"If you want to achieve long-term stable investment returns, how about 'Darak Crowd'?"

Second Syndrome, which operates 'Mini Storage Darak' (hereafter Darak), has been running the Darak Crowd service since May. It distributes a portion of Darak's operating profits to general investors in the form of monthly dividends. Darak is an urban shared storage service where individuals can store their belongings for as long as they want, with 55 branches nationwide.

Hong Woo-tae, CEO of Second Syndrome (pictured), said, "According to customer surveys, about 25% of respondents wished for more branches," adding, "Since it is a community-based service, there is a demand for 'I hope one opens near my home'." He explained, "Because it is infrastructure that requires capital raising, we cannot expand indefinitely," and added, "We decided that by granting ownership to individuals and receiving investment funds to return operating profits, we can increase the number of branches."

The Darak Crowd product has been introduced at a total of 11 branches from numbers 1 to 6. The 7th product, consisting of branches such as Euljiro in Jung-gu, Seoul, Mokdong 2nd branch, and Bundang Seohyeon branch, is scheduled to close on the 9th of next month.

CEO Hong said, "The storage service has low business volatility and is operating stably," and added, "Even in the current unstable investment market, I believe it can generate a steady rate of return over a long period." The minimum individual investment amount is currently 10 million KRW, but there are plans to lower it to units of 1 million KRW to allow more people to invest.

CEO Hong has a background of over 10 years in the financial sector as an analyst and more. "Since then, I have wanted to try various things," he said, deciding to start a business at the age of 30. He believed that three criteria must be met to reduce risk and operate the business as safely as possible. The first is that cash generation should be easy, the second is that it requires less manpower, and the third is that it should be a new industry not yet present in Korea.

"I founded Second Syndrome at 35 because I thought creating a new industry that did not exist before and could change users' lives would be rewarding and more valuable."

Shared storage, known as self storage, was first introduced in advanced countries such as the United States, Japan, and the United Kingdom. According to global research firm Statista, the global self storage market is expected to grow to $64 billion (approximately 90 trillion KRW) by 2026. The self storage industry grows as populations concentrate in cities, incomes rise, and single-person households increase.

CEO Hong explained, "The desire to live comfortably in personal space is growing, but housing options are limited, so people outsource space to store their belongings."

Especially after the COVID-19 pandemic, as hobbies like golf and camping diversified, more people sought places to store their items. The number of Darak usage contracts increased 2.4 times from about 8,400 in 2019 to 20,000 in 2020. "Users range from small business owners making handmade soap to collectors gathering items, utilizing Darak for various purposes."

Darak operates not only a contactless pickup service but also a storage moving service that packs, ships, and stores belongings. If users want to dispose of items, Darak handles the disposal on their behalf. Through an unmanned operation control system jointly developed with KT, situations occurring within branches are monitored in real-time and responded to quickly.

However, CEO Hong said Darak is not just a simple space business. "While it involves using space, we aim to become a 'hyper space' company that transcends space by integrating data, logistics, and various other fields," he said. They are discussing ways to use Darak for quick commerce services that enable checking, transferring, and disposing of stored items with just a smartphone, as well as fast delivery.

He said, "In the future, I want to introduce unmanned control solutions that can manage electronic devices within branches to overseas markets," adding, "It will be a great way to reduce costs such as labor while increasing user satisfaction."