"Regions where young people have disappeared because of population decline and slumping commercial districts have no future. Because local governments do not have dining or marketing experts, corporations that know the field ultimately have to work together."
Paik Jong-won, head of The Born Korea, said this on the 26th at the "The Born Korea ESG win-win project Yesan regional development media briefing" held at Yesan Market in South Chungcheong Province, presenting a "field-expert-centered, sustainable regional development model" as a solution to the risk of regional extinction.
The Born Korea that day unveiled a plan to expand its regional development project into a long-term business model in which the region and corporations grow together, rather than a simple ESG activity. The idea is to spread the success story achieved at Yesan Market nationwide to revive both regional tourism and commercial districts.
Paik noted that the reason youth mall projects pushed by the central and local governments have repeatedly failed is also a lack of on-the-ground experience. He said, "They gave unprepared young people only funding and did not provide follow-up management," adding, "They brought menus trending in Seoul's Gangnam or Hongdae straight to the regions and sold them at high prices, which did not fit local living standards, making failure inevitable."
He continued, "Revitalizing a region is not about creating a few photo spots but about creating reasons for people to come on purpose, spend a day, and want to return," stressing, "Residents, local governments, and private corporations must move like one team for a region's unique competitiveness to emerge."
Citing Yesan Market as an example, he also explained the need for "priming water investment," in which private corporations take on risk first. Paik said, "If a listed company purchases stores directly, keeping rents low later can raise breach-of-trust issues, so we used a private school foundation's funds to purchase stores first," adding, "We also built restrooms to the latest standards and made a contributed acceptance to show sincerity not just in words but through concrete action."
In fact, Yesan Market used to draw about 10 visitors a day, but as of May this year, cumulative visitors surpassed 10 million, The Born Korea said. Yesan County Chief Choi Jae-gu also attended the briefing and said, "A market that only 10 to 20 people visited a day four years ago has become one of the most famous traditional markets in the country," adding, "It is a success story created by corporations, the local government, and merchants together."
Choi expressed regret that the project had been dampened recently by various controversies. He said, "Yesan Market was not Paik's personal business but a project to revive the region," adding, "Despite ups and downs, merchants have protected hygiene and price competitiveness on their own, built self-sustainability, and are recovering."
Paik also referred to the period when visitors plunged after various controversies last year, explaining, "When YouTube promotion stopped, customers dropped off completely, but because we had strictly managed hygiene and prices from the beginning, merchants held out on their own," and, "In May this year, visitors recovered to about 1.4 million, showing self-sustainability."
During the ensuing Q&A, questions were raised about recent controversies, the profitability of the regional development project, and plans for future expansion.
In response to criticism that they monopolize local festivals, Paik said, "Existing festivals had a structure in which some agencies and brokers charged high rents and parceled out stalls," adding, "We did not charge rent; instead, we required the use of menus featuring local specialties and provided recipes for free."
He added, "We were eliminated in some bids due to pushback from existing stakeholders, but consumers and local governments had experienced low prices and quality, so they are coming back."
On the question of the profitability of the regional development project, he emphasized that it is a long-term business. Paik explained, "Shareholders worry that the regional development project has generated a cumulative deficit of about 5 billion won, but the invisible data and IP (intellectual property) are far greater assets," adding, "The biggest competitiveness is that we can first verify menus using local specialties at festivals and markets and then link them to HMR (home meal replacement) and distribution businesses."
He also said, "Even with just the local government-commissioned training project of the Restaurant Industry Development Institute, which is currently operating in five locations nationwide, we can run it on our own," adding, "If it is further connected to ESG investment, the regional development project will be able to secure sufficient sustainability."
In the afternoon visit that day, at Yesan Market, tourists were dining at about 10 of roughly 100 tables. Market merchants said many tourists come on weekends, but visitor numbers fell after the controversy involving Paik.
A merchant selling dumplings at Yesan Market said, "Before Paik developed the market, no one came. After Paik arrived, the market brightened, but it became difficult as controversies about Paik spread starting a year ago," adding, "Some of it was slanderous rumor, and because of it, not only Paik but also many people making a living in the market suffered damage. Visitor numbers have partially recovered now."
The Born Korea is pursuing various regional development projects, including creating a complex cultural district in the idle space of Chungnam Spinning, a gopchang-specialty street in Sapgyo Market, and a traditional liquor experience complex. It plans to expand the Yesan Market model to other regions.