One More Youth Advisor for Lifestyle Startups Hired
Planning to Launch the 'Youth Merchant Club'
The Ministry of SMEs and Startups is stepping up support for young merchants to revitalize traditional markets. In particular, it plans to nurture so-called ‘Raikon’ companies within traditional markets.
Lee Young, Minister of SMEs and Startups (center front row), is taking a commemorative photo with participants after the "Traditional Market Young Merchants Meeting" held on the 13th at the Gyeongdong Market Youth Mall in Dongdaemun-gu, Seoul. [Photo by Ministry of SMEs and Startups]
Full-scale Nurturing of Raikon Companies
On the 13th, Minister Lee Young of the Ministry of SMEs and Startups attended the ‘Traditional Market Young Merchants Meeting’ held at the Youth Mall in Gyeongdong Market, Dongdaemun-gu, Seoul, and stated, “There are startups that begin businesses as part of daily life in neighborhoods, and if we nurture such people, they can become Raikons. From this year, we will start full-scale projects.” Raikon refers to ‘unicorn’ companies that innovate local and lifestyle sectors.
Minister Lee added, “Young merchants in traditional markets were missing in the process of promoting Raikon,” and explained, “When visiting traditional markets, many senior chairpersons often say, ‘At this rate, we will all perish. Traditional markets will disappear.’ I decided that the solution must be found through you (young merchants).”
He further emphasized, “The economic system is changing. Although the past three years of COVID-19 were very difficult, the number of highly educated small business owners in their 20s and 30s has increased. In Europe, many global companies started as daily life startups.”
To foster Raikon companies, the Ministry of SMEs and Startups will hire one more youth assistant. The existing youth assistant will focus on technology startups, while the new youth assistant will concentrate on lifestyle startups.
There are also plans to launch a ‘Young Merchants Club.’ It is analyzed that growth can accelerate as young merchants, who are scattered, interact with each other. The club is expected to serve as a youth policy advisory group.
On the 13th, a 'Traditional Market Young Merchants Meeting' is being held at the Kyungdong Market Youth Mall in Dongdaemun-gu, Seoul.
Listening to the Voices of Young Merchants
At the meeting, about 20 young merchants from traditional markets across the country gathered, including second-generation successors of family businesses, young merchants with excellent sales, and those who expanded their stores after succeeding in traditional markets.
Some young merchants shared their success stories. Jiyujeong, CEO of Daejeon Station Meat, who was a florist, took over the family business after learning the trade in earnest following her father’s suggestion, who appreciated her delicate hand skills while helping at his butcher shop. She revitalized the store by selling premium ribs and is striving to expand sales channels online to become a nationwide brand.
The Ministry of SMEs and Startups supports young merchants in family business succession by assisting with promotion and marketing, prototype production, and other efforts to ensure successful generational transition and continuity of stores. If certain conditions are met, inheritance tax deductions, gift tax special cases, and installment payment exceptions are applied.
Ji-eun Lee, CEO of Yukgeori Somunnan Dumplings, who was working as a banker, decided to start a business after hearing about the planned closure of a long-established dumpling shop run by the third generation nearby. She visited a famous dumpling shop in the Cheongju area and expanded sales channels online and offline by supplementing the techniques learned from the former owner. She is developing vegan dumplings and zero-sugar dumplings to broaden her business field.
They also made suggestions to the government, including expanding traditional market managers, developing the 2nd and 3rd floors of buildings within traditional markets, and mandating youth projects in business plans. The Ministry of SMEs and Startups plans to listen to these opinions from young merchants and reflect them in traditional market support policies.
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