Ministry of SMEs and Startups renews protections for rice-cake makers

The Ministry of SMEs and Startups said Friday it had renewed the protected-industry status of tteokguk-tteok and tteokbokki-tteok makers for five years, citing low entry barriers, the sector's small-scale businesses and the need for stable protection.

The review committee reached its decision Thursday after considering a renewal application, replacing a designation first granted in 2021 that was due to expire in September. The renewed status will apply from Sept. 16, 2026, through Sept. 15, 2031.

It covers domestic production and sale of the two rice-cake products defined under the Food Code. Created under a 2018 law to protect small businesses' livelihoods and management stability, the framework generally limits large companies from acquiring, starting or expanding businesses in the designated sector.

The annual shipment allowance for large companies will rise to 120 percent of their highest annual volume over the past 10 years, from 110 percent of the peak across the preceding five years. The change maintains prior permitted shipment levels for companies that reduced output under the existing designation, the ministry said.

Large companies can still obtain unrestricted shipment approval for products made for export, under original equipment manufacturing arrangements with small and medium-sized enterprises, or from domestically produced rice or wheat. These exemptions are unchanged from the previous designation.

The committee also evaluated how the renewal could affect industry competitiveness and consumer welfare. "We respect the committee's decision, which gave balanced consideration to the protection afforded small businesses during the existing designation period and the market's growth trend," said Lee Eun-cheong, the ministry's director general for shared-growth cooperation policy.

The ministry said it will rigorously manage and inspect implementation of the new terms to ensure they take effect without disruption, aiming to put small-business protection and coexistence between large companies and smaller firms into practice over the coming term.