The Aftermath of Martial Law and South Korea's Image
On the night of the 3rd, just six hours after President Yoon Suk-yeol abruptly declared martial law, it was lifted, plunging the domestic political scene into turmoil. While the public, recalling the nightmares of past martial law, experienced fear and tension, daily life continued without major incidents. However, for foreigners, this martial law carried a different significance. South Korea is known as a country boasting high public order and safety, but the sudden declaration of martial law heightened anxiety among foreigners.
Major countries such as the United States, the United Kingdom, and France advised their citizens to exercise caution regarding political protests or gatherings in South Korea. New Zealand raised its travel advisory level for South Korea, taking the situation seriously.
In Thailand, the aftermath of martial law led to some currency exchange offices refusing South Korean won. A Korean tourist shared their surprise upon seeing a notice at a local Thai exchange office stating, "Won is not accepted due to political issues in South Korea." Martial law also impacted the domestic economy. The won-dollar exchange rate surged, reaching the 1,440 won per dollar range, causing the won's value to decline. This placed a significant burden on citizens planning overseas travel.
Related industries such as duty-free shops are also losing appeal due to the rising exchange rate. In particular, parents of overseas students faced increased burdens in remitting foreign currency, and in some countries, the trust in the South Korean won temporarily declined. The economic repercussions continue even after the lifting of martial law.
Startup Trends and the Reality of Self-Employment
Despite external instability, the domestic self-employment market remains active. At the end of the year, entrepreneurship emerges as an alternative among retirees and those leaving their jobs. Recent startup trends are shifting toward unmanned stores, cost-effective restaurants, and single-person eateries. Unmanned stores, in particular, are gaining popularity due to labor cost savings and simple operations.
Traditional startup items such as chicken and coffee remain popular. Chicken franchises operate about 600 brands with 30,000 franchise stores, and major brands like BBQ, Kyochon, and BHC each have between 1,000 and 2,000 stores. As of 2022, there are 100,000 coffee shops in operation, and convenience stores number 54,000, maintaining a level similar to Japan's 58,000 stores despite Japan having twice the population.
For chicken or coffee franchises, initial investment costs excluding rent require around 100 million won in the mid-range. Depending on whether the store size is under 10 pyeong or between 20 to 30 pyeong, additional costs of several hundred million won may be incurred. Fixed costs such as labor and delivery platform fees are also substantial. Recently, new challenges such as delivery fees, malicious complaints, no-shows, and rating attacks have increased. Conflicts with franchise headquarters and failures due to lack of information analysis are also on the rise.
Baek Jong-won, CEO of The Born Korea and a representative success case in startups, recommends analyzing failed stores rather than just successful ones for successful entrepreneurship. Through failure cases, one can thoroughly analyze location, service, menu, and customer preferences, enabling more meticulous startup preparation.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
