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MZ Generation as 'Big Players' in Distribution Market, Now Venturing into Startup Scene Contactless Expansion Due to COVID-19...Wave of Unmanned Automation Intensifies Small-Capital Startups Trending as Risk-Reduction Strategy; E-commerce Also Gaining Attention Meaning-Out Becomes Mainstream in Startup Items Amid ESG Management Wave Young People's Startup Legend 'Itaewon Class'. This 16-episode drama produced in 2020 achieved a peak viewership rating of 17%, resonating greatly with the MZ generation. 'Itaewon Class', which depicts a 'hip' rebellion of young people united by stubbornness and audacity in an unreasonable world, has gained such popularity that it was produced as a Japanese version. Analysts note that the 'Itaewon Class' phenomenon reflects the aspirations of the MZ generation, which has emerged as a major player in the current startup market. Indeed, the domestic startup market, which had felt a chill from the COVID-19 pandemic, recently shows signs of momentum with expectations of daily recovery and reopening of economic activities. According to Statistics Korea's age-specific startup company data, the number of entrepreneurs in their 20s and 30s has been steadily increasing since 2019 through last year. Entrepreneurs under 30 numbered 146,766 in 2019, increased to 1,747,280 in 2020, and further rose to 1,839,560 last year. Similarly, entrepreneurs aged 30-39 grew from 2,816,490 in 2019 to 3,157,840 in 2020, and to 3,274,310 last year. That is, entrepreneurs under 40 increased by a total of 829,720 compared to 2019. The proportion of those under 40 among all entrepreneurs increased from 33.3% in 2019 to 36.1%. Since the MZ generation includes those in their early 40s, the actual proportion of MZ generation entrepreneurs among all entrepreneurs last year is estimated to be around 40%. At the 'IFS Franchise Startup Expo' held at COEX in Samseong-dong, Seoul from March 24-26 this year, the participation of such MZ generation was notably prominent. Park Ho-jin, Secretary General of the Korea Franchise Industry Association, shared the atmosphere: "Although COVID-19 hasn't completely ended, more people than expected came and filled the expo. While participant statistics haven't been finalized yet, just from the scene, participants in their 30s and 40s were the most numerous." **High Labor Costs and Contactless Trend Sparking 'Unmanned' Boom** The startup keyword that stood out at this 'IFS Franchise Startup Expo' was undoubtedly 'unmanned automation'. While unmanned stores such as convenience stores, ice cream shops, and meal kit stores existed before due to labor cost savings, this recent trend is attributed to the combination of even higher labor costs and the 'contactless' trend following the COVID-19 pandemic. With technological advances, the expo was filled with completely unmanned stores and semi-unmanned stores where robots and people collaborate, ranging from cafes to chicken, pig's feet, and sushi restaurants. Experts, however, point out the need to carefully decide whether to apply unmanned automation depending on the startup item. Jang Jae-nam, Director of the Korea Franchise Industry Research Institute, explained: "For items where consumers want to gain service through experience, direct human service is necessary. For example, in the case of coffee shops, there would be various consumer needs such as how many espresso shots to add or additional syrup or ice, and it's questionable whether such varied needs can be satisfied with standardized menus from unmanned and automated systems." When preparing a franchise startup, one should also carefully check the headquarters' automation system capabilities. Director Jang emphasized: "Unmanned stores, if unable to respond immediately when problems occur, lead to consumer dissatisfaction and defection, so the backup capabilities of the franchise headquarters must be examined. Given that the contactless trend highlighted during COVID-19 could lead to consumers' desire to feel the atmosphere of offline stores post-COVID-19, it's not easy to predict whether the unmanned trend will continue." One must also consider the startup location, sales occurrence patterns by time slot, and major product categories. An E-mart24 official stated: "If there's a considerable influx of customers during late-night hours, it's more advantageous to operate with staff rather than unmanned. If there are some customers, unmanned might be worth considering. This is also connected to commercial area characteristics. Also, if products with legal restrictions like cigarettes or alcohol are mainly sold, it's safer to place staff rather than go unmanned." **Small-Capital Startups Already Mainstream...E-commerce as Keyword** The 'unmanned' keyword is actually based on the small-capital startup trend already considered mainstream in the startup market. Director Jang explained: "The small-capital startup trend has already been continuing recently, but post-COVID-19, the capital scale has further shrunk from typically under 100 million won to startups with initial capital under 50 million won, reaching as high as 74%." While this is an attempt to minimize risks during uncertain times, Kang Seung-hee, Director of Underdogs, added that this also reflects characteristics of the MZ generation. Underdogs, a leading startup education company that has produced over 10,000 startup trainees since its 2015 establishment, has 44% of its entire workforce filled with those who have startup experience, possessing diverse startup expertise. Director Kang explained: "In the past, startups required significant initial capital as they needed physical offices or stores, but with COVID-19 as a turning point, e-commerce like smart stores became active, lowering entry barriers. Particularly, many MZ generation members see startups not as major life-changing decisions but as career experiences worth trying once, so many challenge such e-commerce ventures. He advised that leveraging small capital for e-commerce startups requires expertise in utilizing various channels cheaply. Director Kang suggested: "First present the startup item online, and if the response is good, immediately..."