Korean American businesses face challenges and new opportunities

Hello, I’m Thomas Park. Today, I’d like to look at the Korean American economy as a whole, with a particular focus on small businesses largely run by first-generation immigrants.

As noted during a 2012 White House briefing on national affairs for Korean American leaders, the Korean American community’s economy is comparable in size to that of the world’s 65th-largest country. This remarkable achievement reflects Korean immigrants’ hard work, dedication, and entrepreneurial spirit.

In recent years, however, the COVID-19 pandemic and rapid digitalization have posed major challenges for traditional small businesses. Laundry services, restaurants, beauty supply stores, and nail salons—businesses largely run by first-generation Korean Americans—have been especially affected.

Laundry businesses are struggling with lower demand as more people work from home and with the rise of online laundry services. Restaurants, too, need new strategies as delivery apps become commonplace and competition from large chains intensifies.

Beauty supply stores and nail salons are facing pressure to adapt as online shopping grows and more consumers embrace at-home care. These businesses will need to explore new opportunities by offering distinctive services and adopting digital marketing strategies.

Yet even amid these challenges, opportunities remain. The Korean American community’s strong ties and adaptability are valuable assets in navigating change. More second-generation and 1.5-generation Korean Americans are also bringing fresh ideas and technology to traditional business models.

In upcoming articles, I’ll take a closer look at conditions and prospects in each industry, along with examples of success. I hope to share insights for a new era of growth as we explore the strength and potential of the Korean American economy.

I believe the Korean American economy faces challenges, but also has tremendous potential to create new opportunities. I look forward to sharing a deeper discussion in my next column.