[Essential Intellectual Property] The Second Generation of 'Nakwon Tteokjip' and the Decision to Part Ways

①KIPO's 'Small Business IP Capability Enhancement' Project
Next Year's Budget 3.4 Billion KRW...Targeting Over 3,700 IP Applications
Strengthening Brand Identity and Preventing Design Imitation
Consultation and Application Available at Regional Intellectual Property Centers

Sailor and archival photo

Kim Duyong, CEO (38), operates a second-generation rice cake shop at Yonghyeon Market in Incheon. The store is named 'Nakwon Tteokjip.' Having maintained its place for over 30 years, it is well-known among local residents. In 2020, it was designated as a Century-Old Store by the Ministry of SMEs and Startups. Kim has won various competitions and even earned the title of 'Tteok Master Family.' However, he is now planning to practically give up the long-standing name Nakwon Tteokjip to take his business a step further. Kim said, "There were many times when people misunderstood the store as a rice cake shop located in Nakwon-dong, Jongno, because of the store name." In fact, when searching for 'Nakwon Tteokjip' or 'Nakwon Tteok Mill' on portal sites, dozens of stores appeared nationwide.

Kim plans to keep the store sign as it is but will make a fresh start under the name 'Subyeonggwa (秀餠菓)' targeting online and overseas markets. To clarify brand identity and differentiate from other companies, he filed a trademark. He proudly stated, "We make walnut jeonggwa using traditional production methods recorded in ancient books," adding, "It is a product developed to suit modern tastes while inheriting tradition." Subyeonggwa is scheduled to be launched this mid-month at Incheon Airport duty-free shops and departure halls alongside other excellent Century-Old Stores.

It was not easy for Kim to decide to part ways with Nakwon Tteokjip. Above all, he lacked knowledge about intellectual property (IP), such as trademark registration. Therefore, he utilized the 'Small Business IP Capacity Building' program operated by the Korean Intellectual Property Office. With the help of IP experts, he received a package support worth 15 million KRW covering trademark registration, logo creation, and packaging design.

The Small Business IP Capacity Building program was launched for the first time this year, triggered by the so-called 'Deopjuk Incident.' It supports securing rights such as trademarks, designs, and recipes owned by small businesses and provides education, counseling, and consulting on intellectual property. If a trademark is registered, up to 600,000 KRW can be supported, and if participating in a comprehensive IP creation package program like Kim, benefits can reach up to 15 million KRW. Any small business owner can participate, with about 10% of the total support amount being self-funded. This year's budget for the program was 2.632 billion KRW, which will increase by about 30% to 3.442 billion KRW next year. It is expected that around 3,400 IP cases will be filed through this program this year, with a target of 3,900 cases next year.

Packaging design of Bareuljeonggwa products.

'Bareul Jeonggwa,' which makes balloon flower jeonggwa using domestic ingredients, also participated in the Small Business IP Capacity Building program to secure trademark and design rights. Balloon flower jeonggwa is usually given as a holiday gift or a return gift. Bareul Jeonggwa added a luxurious touch by attaching a wooden pick and a norigae (traditional Korean ornament) that can be engraved with phrases during the wrapping process with bojagi (traditional wrapping cloth). CEO Jo Jikyung of Bareul Jeonggwa said, "We were the first to apply the idea of engraving customers' desired phrases on wooden picks," adding, "A regular customer informed us that other companies were copying us exactly, which led us to file for IP protection." He expressed concern that without securing intellectual property rights, other competitors would imitate them rapidly. If the procedures go smoothly, Bareul Jeonggwa's trademark and design rights will be protected for more than 10 years.

Kang Jaegu, a regional intellectual property specialist at the Korea Invention Promotion Association who operates the Small Business IP Capacity Building program, said, "We hope that raising awareness and securing rights related to intellectual property will provide a foundation for small businesses to grow sustainably." For the first time, a Small Business IP Exhibition Hall was operated at the '2022 Korea Intellectual Property Fair' held from the 16th to the 19th of last month. Eleven companies participating in the program took part in the exhibition hall. The Small Business IP Capacity Building program offers consultation and application through regional intellectual property centers where the businesses are located. The program is funded equally by the government and local governments. This year, it was operated in 14 out of 25 regional centers, excluding those without local government budgets, and next year it is expected to expand nationwide to 18 centers.