'Baeknyeon Sosang Gongin' Further Promoted... Legal Basis for Support Established

‘Small Business Act’ Approved at Cabinet Meeting on the 9th
2,383 Companies Operated from 2018 to Present

A legal basis will be established to further foster ‘Baeknyeon Sosangongin’?small business owners who have contributed significantly to their local communities through long-term business operations.

A bakery located in Jangchung-dong, Jung-gu, Seoul, selected as a "Baeknyeon Gage" (Century-old Store)
[Photo by Yonhap News]

The Ministry of SMEs and Startups announced that the partial amendment to the ‘Act on the Protection and Support of Small Businesses,’ which includes this provision, was approved at the Cabinet meeting on the 9th.

This amendment defines small business owners who have operated their businesses for a long time, contributed to society, and are expected to achieve sustainable growth as ‘Baeknyeon Sosangongin.’ It also newly establishes provisions for business succession. The amendment provides the basis for the requirements, designation, and cancellation of designation of Baeknyeon Sosangongin, as well as for fostering successors, preserving and transmitting traditional techniques, commercialization and promotion, business consignment, and awards. Additionally, it includes provisions on the use of the Small Business Promotion Fund and the prohibition of using similar names.

Baeknyeon Sosangongin refers to small business owners who have operated their businesses for a long time, contributed greatly to their local communities, and are expected to achieve continuous growth based on accumulated experience. Baeknyeon Gage refers to excellent small business owners with over 30 years of business experience, while Baeknyeon Sogongin refers to skilled small manufacturers with fewer than 10 employees and over 15 years of business experience. Currently, 1,424 Baeknyeon Gage and 959 Baeknyeon Sogongin have been designated, operating a total of 2,383 businesses.

The Baeknyeon Gage and Baeknyeon Sogongin systems have been in place since 2018, but due to insufficient legal grounds, securing budgets and promoting projects have been challenging. The Ministry of SMEs and Startups expects that this legislation will activate the system by enabling active support for Baeknyeon Sosangongin.

Going forward, the Ministry plans to select and provide focused support to a group of excellent leading companies to enhance the brand value of the Baeknyeon Sosangongin system. In particular, to foster entrepreneurial Baeknyeon Sosangongin, the Ministry will strengthen links with existing support projects such as funding and market access. The Ministry has so far supported the provision of designation certificates and plaques, increased external recognition through online and offline promotions and events, and facility improvement costs.

The amended Small Business Act approved this time will be promulgated on the 16th and is scheduled to take effect six months after the date of promulgation.

Jo Kyung-won, Director of Small Business Policy at the Ministry of SMEs and Startups, said, “The legalization of the Baeknyeon Sosangongin system has laid the foundation for outstanding small business owners with regional characteristics to grow into entrepreneurial small giants and become glocal companies.” He added, “Based on this, we will develop Baeknyeon Sosangongin into attractive regional representative companies that offer foreign visitors the excellence of Korean culture and unique experiential opportunities.”

This content was produced with the assistance of AI translation services.