Press

"Catching Two Rabbits: A Startup Ecosystem for Environment and Local Communities" GS Retail is achieving results in the 'eco-friendly manufacturing' sector, which was previously a blind spot in the startup ecosystem. Through the 'Eco Social Impact Project' operating since 2017, the company discovers prospective entrepreneurs seeking to solve environmental and local issues through manufacturing businesses, and provides comprehensive support from business planning to distribution collaboration. To date, it has nurtured 66 startup teams. The program is evolving beyond simple CSR activities into an 'impact ecosystem' model that actively opens the company's distribution infrastructure to help entrepreneurs achieve substantial growth. In collaboration with 'Underdogs,' a practical startup education specialist institution, it strengthens practical capabilities, and GS Retail employees participate as mentors, providing multifaceted feedback on product planning, branding, and distribution strategies. GS Retail's 'Eco Social Impact Project' is a social contribution program that provides close support throughout all stages, from practical startup education to market channel support and distribution collaboration, targeting social ventures based on eco-friendly manufacturing. Operating through its 7th generation, the program has produced a total of 66 startups over the past seven years, achieving meaningful results. Participating teams receive business launch grants of up to 40 million won and an additional 3 million won for prototype development. Additionally, a systematic curriculum includes expert lectures on eco-friendly manufacturing, practical management workshops, and KPI-based performance measurement. Notably, GS Retail's own merchandisers and current employees directly participate as mentors, providing substantive feedback from product planning to branding and distribution strategies for startup teams, adding deeper meaning to the initiative. Beyond social contribution, the Eco Social Impact Project is evaluated as an 'impact platform-type' social contribution model that supports startups' successful market entry based on GS Retail's distribution infrastructure and organizational capabilities. Startup teams develop products with both growth potential and social significance, while GS Retail serves as a partner to ensure their successful market establishment. Through this, they are opening new possibilities for an ESG practice model where large corporations and startups collaborate. Companies produced through this program are achieving remarkable results. '다정한 마켓' (Dajunghan Market), a 2nd generation participant, successfully entered overseas markets including Hong Kong and Taiwan through 'Lorentz,' a pet snack made from imperfect agricultural products, earning recognition for opening new horizons in the eco-friendly pet food market. 4th generation participant 'Refilli' was selected as the Ministry of Agriculture, Food and Rural Affairs' 'A-Ventures of the Month' in November last year with paper-pack packaging products for rice, beans, and flour, and successfully attracted cumulative investment of 1.8 billion won as of early last year. 6th generation 'Soopui' secured new distribution channels after participating in the Eco Social Impact Project and actively utilized environmental performance indicators in marketing, achieving a 200% increase in sales. Beyond these, various teams including 'Upmost,' which presents fashion products made from upcycled plastic waste, and 'Toto Company,' which created jobs for women suffering from career interruption through organic sanitary pads, are implementing sustainability by solving environmental and social problems through business. 'Slunch Factory,' which participated in the 7th generation, shared, "Through the program, we gained insights into social value, sustainability, and customer touchpoints in the field. It was a great opportunity to confirm the possibilities of collaboration with a large platform like GS Retail and to receive feedback from experts with years of industry experience while considering points of contact with consumers." In this year's 8th generation project currently recruiting, the program has expanded its support scope to include the 'Local' sector beyond the existing 'Eco' sector. The 'Eco' sector, as defined by the program, refers to business solutions for solving environmental problems such as resource circulation, eco-friendly materials, and manufacturing process improvements, while the 'Local' sector refers to manufacturing startup models that promote win-win cooperation with local communities based on local resources and present sustainable solutions. This reflects GS Retail's commitment to solving more multifaceted social problems within a connected value network of environment and locality. It is a strategy to nurture startup models that can solve local sustainability issues including the crisis of regional decline and underutilization of local resources from a business perspective. A GS Retail official stated, "The Eco Social Impact Project was designed to provide various support measures for eco-manufacturing companies facing difficulties in expanding sales channels and securing customer bases for eco-products," adding "Going forward, we will fulfill corporate social responsibility and do our best to practice sustainable environmental management." Source: Consumer News (http://www.consumernews.co.kr)