Noodle and Naengmyeon Manufacturing Re-Designated as Livelihood-Friendly Industries... Large Corporation Expansion Restricted for Five Years

Until May 26, 2031

The Ministry of SMEs and Startups has once again designated the noodle and naengmyeon (cold noodle) manufacturing industries as "livelihood-friendly industries." This designation aims to limit business expansion by large corporations for the next five years, taking into account the fact that these sectors are mostly comprised of small-scale business owners.

On May 20, the ministry announced that it had convened the Livelihood-friendly Industry Review Committee and resolved to re-designate noodle and naengmyeon manufacturing as livelihood-friendly industries. The designation period is set from May 27, 2026, to May 26, 2031.

The livelihood-friendly industry designation system operates under the "Special Act on the Designation of Livelihood-friendly Industries for Small Business Owners" enacted in 2018. Under this system, for five years, large corporations are prohibited from acquiring, launching, or expanding operations in the designated industries.

Noodle and naengmyeon manufacturing are considered industries with low entry barriers and a high proportion of small business operators. For this reason, they were first designated as livelihood-friendly industries in 2021 and have now been re-designated. The committee decided that a re-designation was necessary after a comprehensive review of factors including the vulnerability and protection needs of small business owners, industry competitiveness, and consumer impact.

The scope of application is limited to dried and fresh noodles for noodles produced and sold domestically, and to dried, fresh, and cooked noodles for naengmyeon. However, exceptions are made for large corporations manufacturing and selling products for export or for home meal replacement (HMR) products; in such cases, business expansion is permitted.

In addition, the criteria for allowing large corporations to increase production remain unchanged. Based on the highest annual shipment volume in the past five years, direct production by large corporations is permitted up to 110%, and OEM (original equipment manufacturer) production by SMEs is allowed up to 130%. However, to further promote coexistence with small business owners, OEM production and sales from suppliers that are small business owners will be permitted without restriction.

Lee Eun-cheong, Director of Win-Win Cooperation Policy at the Ministry of SMEs and Startups, stated, "We respect the committee's decision, which discussed not only the business stability of small business owners but also ways for large corporations and small businesses to grow together," adding, "We will ensure that the resolutions are implemented without any setbacks."

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