The tofu manufacturing industry has been reassigned as a 'livelihood suitable industry.' Large companies are prohibited from producing and selling large tofu products exceeding 1 kg for five years.
The Ministry of SMEs and Startups noted on the 27th that it held a committee composed of private commissioners on the 26th and decided to designate tofu manufacturing as a livelihood suitable industry.
The livelihood suitable industry system aims to ensure the survival rights of micro-small enterprises based on the 'Special Act on the Designation of Livelihood Suitable Industries for Small Businesses' enacted in 2018. Large companies and others cannot take over, start, or expand their businesses related to livelihood suitable industries for five years.
Tofu manufacturing has a high proportion of micro-small enterprises and is experiencing deepening marginalization, having been designated as a livelihood suitable industry since 2020. The designation period expired at the end of last year. The new designation period will last for five years from next month until February 2030.
While the domestic tofu industry has continued to grow, micro-small enterprises have reportedly been facing difficulties as the number of enterprises, employment, and market share have all decreased.
The recent committee decided to improve regulatory details to secure the effectiveness of small business protection while restricting the expansion of large companies based on market changes and opinions from various sectors.
The regulations are limited to large volume products exceeding 1 kg, which are mainly operated by micro-small enterprises. Tofu made from domestic soybeans is excluded from regulation regardless of volume. The allowable shipment volume for regulated products from large companies will only be up to 105% of the maximum annual shipment volume in the past five years. However, the quantity of orders received from small businesses through original equipment manufacturer (OEM) contracts will be allowed without limit.
Kim Woo-soon, Commissioner for Cooperative Policy at the Ministry of SMEs and Startups, said, "Given the significant difficulties faced by small businesses mainly supplying to restaurants due to the recent economic downturn, we respect the committee's decision," and added, "Moreover, since the tofu industry is growing unlike other suitable industries, we plan to also consider support policies to ensure the competitiveness of small businesses apart from large company regulations."