[Smart Startup Era] "Running a Hot Bar in a 1-Pyeong Market... First Time Experiencing This in 15 Years"

Selling Hot Bars at Mansu Market... Direct Hit from COVID-19
Partnering with Kakao, MKYU, and the Ministry of SMEs
Participating in 'Our Neighborhood Regular Market' to Revitalize Traditional Markets

Editor's NoteThe number of small business owners in Korea is 7.2 million. One out of every ten people runs a business under their own name or signboard. Most small shop owners find life tough. Last year, nearly 4 out of 10 small business owners (36.2%) operated at a loss. Additionally, 6 out of 10 (63%) saw their debts increase (data from the Korea Federation of Small and Medium Business). However, there are also those who create incredible success stories, such as a neighborhood butcher shop owner with annual sales of 10 billion KRW, or a fisherman in Wando, Jeonnam, selling 2 billion KRW worth of abalone annually. These are people who embraced the changes of the times and adapted to non-face-to-face and digital environments. Utilizing online platforms has become a prerequisite for startup success. Now, small business owners must go beyond an adversarial relationship with online platforms and actively leverage the platforms' capital, recognition, and technology to meet customers through 'smart startups.' We have heard the secrets to success from those who have succeeded in smart startups on the ground.

Kim Sun-ja, 57 years old this year, has been selling hot bars in Incheon for 15 years. She has been running her business under the signboard 'Seohwa Sanghoe' at Mansu Market in Namdong-gu, Incheon, for 10 years this year. Before that, she sold hot bars at Sinpo International Market, about 10 km away. Kim handed the reporter a perilla leaf hot bar and proudly said, "I bring in the ingredients the day before to sell fresh and chewy hot bars," showing no hesitation in her pride.

Kim takes a day off only on the second Saturday of each month, just one day a month. Except for that day, she works standing in a space just over one pyeong (approximately 3.3 square meters) from 10 a.m. to 8 p.m., a full 10 hours, but she has enjoyed her work every day with a bright and positive mindset.

Ham Ju-ho, president of the Mansu Market Merchants Association (left), participating in the 'Our Neighborhood Regular Market' project, and Seung-gi Jeong, who runs a butcher shop. Photo by Yongjun Cho jun21@

However, the situation changed rapidly with the COVID-19 pandemic. Traditional markets, which relied solely on offline face-to-face transactions, were hit hard. When people’s financial situations worsen, they cut back on snack consumption first. Naturally, Seohwa Sanghoe’s sales also declined. Kim said, "With the number of young customers in their teens to thirties visiting the market drastically decreasing, I thought, 'I can't hold on like this,'" adding, "I decided to try using KakaoTalk, which is used by people of all ages and regions across the country." She applied for a project called 'Our Neighborhood Regular Market,' run by Kakao, Kakao Impact, the online knowledge education platform MKYU (CEO Kim Mi-kyung), the Ministry of SMEs and Startups, and the Small Enterprise and Market Service. She opened a KakaoTalk channel to connect with market customers and share market news. Through the Talk Channel, customers can view the menu, business hours, discount events, and even chat one-on-one with the owner. Kakao’s mutual growth fund supports message sending costs up to 300,000 KRW per store.

The response exceeded expectations. Currently, Mansu Market’s channel friends have surpassed 1,000, and Seohwa Sanghoe’s channel friends are approaching 600. When they held an event giving away shopping bags and fans featuring KakaoTalk characters to channel friends, the prizes ran out in a single day. Kim said, "I am truly feeling the amazing power of online platforms these days." "On a rainy day, I sent a message through the Talk Channel saying, 'For just three days, we are having a 5+1 hot bar sale.' Despite the rain, customers flocked in, and we sold out all the ingredients that day." This broke the 15-year-old hot bar business rule that "rainy days are bad for business." That’s not all. Orders for hot bars to be delivered by courier have also started. So far, there have been more than 30 courier delivery orders. This was unimaginable before.

The urgently needed ice packs were provided by Jeong Seung-gi, who runs a butcher shop (Yukyung Butcher Department Store) within Mansu Market. Jeong, boasting 30 years of experience in butchery, also operates a KakaoTalk channel through the Our Neighborhood Traditional Market project. He shares information that market customers previously did not know in advance, such as product photos, prices, livestock grading certificates, and tips on choosing delicious pork, all via KakaoTalk. This has solved the information imbalance between market merchants and customers. Jeong said, "By transparently disclosing prices and providing top-quality products, we are increasing customer satisfaction." Ahead of Chuseok, he is also taking pre-orders for Korean beef gift sets via KakaoTalk. Jeong has placed a Kakao business card with a QR code in front of his store so customers can easily register as channel friends.

A merchant at Incheon Mansu Market is receiving training on how to use online platforms, including opening a KakaoTalk channel, from digital tutors dispatched by MKYU. Photo by Yongjun Cho jun21@

With the warm sunlight of digitalization shining on Mansu Market, the market is becoming lively. This change came after market merchants, who had relied solely on face-to-face transactions, learned how to communicate with customers through KakaoTalk. Merchants participating in the digital support project greet customers wearing aprons featuring the Ryan character. Kim said, "What makes me happier than increased sales is that the market is becoming lively." She also said, "What was especially good was that digital tutors dispatched from MKYU visited each store to provide one-on-one education." She explained, "Most merchants are elderly and busy serving customers, so it is difficult to gather in one place for group education." This year, about 80 digital tutors were dispatched to 20 markets, visiting each store over six weeks to provide education. They carefully explained everything from how to use smartphones, take product photos, use Talk Channel functions, to sending messages. A total of 900 merchants benefited. Kakao plans to provide digital education and Talk Channel subsidies to a total of 100 markets by the end of this year.

Ham Ju-ho, chairman of the Mansu Market Merchants Association, said, "This project made us realize the importance of online communication with customers," adding, "Traditional markets can no longer just wait passively for offline visitors to come." He said, "If we consistently manage our channels so that customers can access various information about our stores online and increase regular customers, traditional markets have a future and hope."