BUSINESS

Seoul's Food Service Market: A Data-Driven Look at Survival Rates

Seoul, South KoreaFri Jul 11 2025

The Challenge

Seoul's food service market is facing a significant hurdle. Many small businesses close within just three years. This poses a substantial problem for South Korea's economy.

The Study

A recent study delved into this issue, analyzing a massive dataset from 2004 to 2018. The goal was to understand the patterns of business survival. The study employed deep learning, a type of artificial intelligence, to create a predictive model for areas likely to see more closures.

Key Findings

  • Central Business District (CBD): Predicted drop in survival rates.
  • Universities and Tech Hubs: Potential for business thriving.

The study categorized areas into eight groups, each with distinct survival rate patterns. This information could aid policymakers in supporting struggling businesses.

Limitations and Future Applications

While the study focused on Seoul, its methods could be applied to other cities. This could help tackle business closure problems elsewhere.

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questions

    If the CBD area's survival rate is decreasing, does that mean we should start a business there just to prove the model wrong?
    How do the predictions of the LSTM model account for sudden changes in consumer behavior or unexpected economic events?
    What are the potential biases in the data that could affect the accuracy of the survival rate predictions?

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