● When population decline exceeds a critical threshold, it becomes more than a demographic issue and begins to undermine local market functions.

● An analysis by the Ministry of Agriculture, Food and Rural Affairs, drawing on data from the Korea Rural Economic Institute, found that the average number of retail businesses per township in depopulating rural areas decreased from 3.67 in 2010 to 3.08 in 2020, a decline of 16.1%. Over the same period, the average number of health and medical service providers per township declined by 30.8% (from 0.52 to 0.36), and that of leisure service providers by 31.9% (from 0.69 to 0.47).

● The Korea Rural Economic Institute points out that population loss and reduced purchasing power create a vicious cycle: demand for everyday services shrinks, leading to a deterioration in service provision that, in turn, fuels further outmigration.

● The absence of basic services in rural townships due to population decline and market failure should be viewed not simply as a matter of individual business closures, but as a sign that the township economy’s ability to sustain a minimum viable market is under threat

● To address market failure in rural townships, policymakers should position young people as “entrepreneurs who tackle local challenges,” rather than solely as recipients of policy support.

● The OECD notes that rural areas have relatively fewer young entrepreneurs than urban areas, despite the key role these entrepreneurs play in spreading innovation. It also argues that social entrepreneurship and innovative approaches can help fill gaps in public and everyday services in rural communities.

● This report proposes a “Young Entrepreneurs Wanted” project, structured in stages: 1) assess gaps in the local supply of goods and services in rural townships; 2) identify residents’ needs; 3) match prospective young business owners with community needs; 4) develop business models through collaboration among young entrepreneurs, residents, and city and county governments; 5) create spaces tailored to each business model; 6) run commercial operations and provide public services; and 7) achieve financial self-sufficiency.

● The proposed model centers on a “Neighborhood Multifunctional Convenience Store + α” that meets basic daily needs while addressing service gaps specific to each village. Each store will sell daily necessities, food, and local products and handle orders and parcels. Depending on local needs, additional offerings could include a café, bookstore, hair salon, household repairs, woodworking services, cultural and sports activities, delivery services, tourism experiences, or sales of locally made products.

● The model will follow a tailored approach, using market gap maps and assessments of residents’ everyday difficulties to fill only the gaps in local provision that cause inconvenience to residents, rather than adding new publicly supported stores to established commercial areas.

● Candidate villages in cities and counties designated as depopulation areas will be assessed based on market and service gaps, access to everyday services, demographic pressures, local demand and business viability, the availability of idle assets and project readiness, resident demand and willingness to cooperate, and field survey findings. The three highest-scoring villages will be selected for the 2027 pilot program, after which the program will expand to a total of ten villages.

● Jeonbuk will lead the program and coordinate digital operations, logistics, branding, training for young entrepreneurs, and performance management through systems shared by all ten planned stores. City and county governments will select participating townships, secure idle assets, issue permits and approvals, undertake basic renovations, supply initial equipment, help young entrepreneurs settle locally, organize resident groups, and arrange public service contracts.

● The young entrepreneurs will be independent business owners, not civil servants or subsidy-funded employees. They will cover their own labor costs and generate income by selling goods, food, and local products and providing services, deliveries, experiences, and venue rentals.

● As part of the proposed rollout, ten hubs will be established by 2029, followed by a performance review in 2030–2031. Expansion to more rural townships and areas at risk of population decline, including Iksan, will proceed from 2032 onward, provided the program meets the required performance thresholds, including a three-year business survival rate of at least 80%, a local settlement rate of at least 80%, a resident satisfaction score of at least 85, a reduction of at least 30% in travel time to everyday services, and an operating self-sufficiency ratio of at least 100%.

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