South Korea's 5.6 million self-employed individuals are facing a direct hit from prolonged consumption contraction and a stagnant domestic economy caused by high inflation. The number of business closures has surpassed 1 million for the first time in history, and the number of new startups is steadily declining. However, some young entrepreneurs have managed to find opportunities by tapping into the niches of this recession.
Lee Sung-hee, in his early 30s, found success in his second venture by focusing on the used laptop market after a bitter experience with his first startup. His business, which involves purchasing used laptops, upgrading their performance, and reselling them, is on track to reach 10 billion won in annual revenue this year.
Another young entrepreneur discovered a business opportunity in so-called ugly produce—fruits and vegetables that are perfectly fine to eat but are discarded due to their irregular shapes. By launching a subscription service that delivers various types of ugly produce at affordable prices, the business is seeing steady growth. As more consumers prioritize cost-effectiveness and practicality, new niche markets tailored to changing demands are opening up. Winds of change are blowing in other areas of daily life as well. In the furniture market, already crowded with numerous competitors, 32-year-old Park Dae-hee entered the niche market of paper furniture, focusing on the inconvenience of traditional furniture that is difficult to move and dispose of. From beds and sofas to bookshelves, these paper-made pieces are easy to assemble and move, and are recyclable after use, attracting interest from single-person households who move frequently and eco-conscious consumers.
Other young entrepreneurs came up with a business idea after watching local bakery owners stay late due to leftover inventory. They launched a platform that connects consumers with food nearing its closing time at discounted prices. This service, started by college seniors and juniors in their 20s, has now grown to include over 1,000 stores. Young entrepreneurs are discovering new opportunities within the daily inconveniences that others often overlook. The path to entrepreneurship is not always smooth. Startups entering their third year often face the so-called death valley, a crossroads between survival and failure. In fact, it is more difficult for young entrepreneurs to survive three to five years after starting a business compared to other age groups. For young founders lacking capital and experience, entrepreneurship is becoming an increasingly challenging endeavor to sustain.
Experts say the era when one could succeed with just an idea is over. What matters is a thorough verification of sustainability. Ultimately, for youth entrepreneurship to be more than just a one-off challenge, institutional foundations must be in place to support not only the initial startup phase but also the growth process.

This week, SBS News Story meets with young entrepreneurs who are discovering new possibilities and pioneering niche markets amid the recession to hear their secrets to success.