On the 13th in front of the Sungsimdang main store on Eunhaeng-dong, Jung-gu, Daejeon. Autumn was at the doorstep, but the heat on the street hardly cooled. From the alley behind the main store, customers waiting to enter moved busily under staff guidance. Customers went into the store in turn, and those who picked out bread came out holding bags that read "Sungsimdang."
People who visit Sungsimdang do not leave Daejeon right after buying bread. They go into nearby cafes, look around Jungang Market and Daeheung-dong, and head off to find other things to enjoy in Daejeon. A visit to Sungsimdang is leading to Daejeon tourism and spending. This is the scene of "Sungsimdang-nomics," where a local brand spreads to surrounding commercial districts, tourism, lodging, and jobs.
Marking its 70th anniversary this year, Sungsimdang has stayed local instead of expanding stores nationwide beyond Daejeon. Its main store, Daejeon Station branch, and Lotte Department Store Daejeon branch are all operated within Daejeon. Even so, it has grown into a "destination brand" that draws customers from across the country.
The "Strawberry Siru" cake was the driving force that lifted Sungsimdang from a Daejeon bakery to a national brand. Launched at the end of Jan. 2023, the Strawberry Siru cake gained attention on social media (SNS). It became a hot topic for its abundant strawberries and reasonable price. Going beyond simply placing strawberries on top of a cake, its layered strawberries spread through photos and videos and imprinted "Sungsimdang" nationwide.
Park Sam-hwa, executive director of Sungsimdang's Management Innovation Division, said, "After Strawberry Siru appeared, even we were surprised to see customers lining up," and noted, "We believe evaluations of cost-effectiveness and quality spread quickly through SNS."
On weekends, the ripple effect becomes pronounced. From Friday to Sunday, lodging facilities across Jung-gu, where Sungsimdang's main store is located, are said to be so full that it is hard to find a room. A person surnamed Kim who runs a nearby lodging business said, "Since they came to Sungsimdang, many people now stay a day or two and visit other tourist spots," adding, "The number of tourists and their length of stay have increased."
As more people come to Sungsimdang, jobs have increased. Including contract workers, the current staff numbers about 1,900. Considering that it was around 1,200 before Strawberry Siru became a hot topic, the workforce has grown by about 700 in roughly three years. At the Lotte Department Store Daejeon branch alone, Sungsimdang employs 200 people. A considerable number of employees are from other regions. Young people, including vocational high school interns, got jobs at Sungsimdang and settled as Daejeon residents.
Sungsimdang's economic impact is spreading beyond downtown commercial districts to production areas in other regions. Nearby cafes steer traffic to local businesses by providing tableware to customers who bring Sungsimdang receipts so they can eat bread there. The win-win approach extends to the materials and supplies supply chain. Sungsimdang sources tangerines, figs, and other items used in cakes and bread from organizations such as Jeju NongHyup and a cooperative in Muan, South Jeolla.
Park explained, "The most important marketing in Sungsimdang's view is to source ingredients from local corporations and domestic production areas and deliver fresh products."
Sungsimdang recently introduced an artificial intelligence (AI) robot arm to the production line for its signature "fried soboro" at its branch in Lotte Department Store. The goal is to improve the working environment for staff who handle high-temperature oil and to boost productivity. By adopting new technology, it is also laying the foundation for the sustainable growth of a regional brand.
Park noted, "We don't yet know which task it will be assigned to, but work is underway to introduce a new robot arm," and added, "We will continue to strive, with gratitude, to provide high-quality products and services."