Research Article: 2025 Vol: 31 Issue: 2
Hyeong-Gyu Choi, Nebraska Wesleyan University
Citation Information: Choi, H. G. (2025). Shall thy golden egg-laying goose perish or be kept alive?. Journal of the International Academy for Case Studies, 31(2), 1-5.
This case examines the lease negotiation between the landlord, KoRailRetail Ltd., and the tenant, Sungsimdang Bakery, a cultural landmark brand in Daejeon, South Korea. Established in 1956, Sungsimdang faces a significant rent increase from âÂ?©100 million Korean Won (KRW) to âÂ?©441 million per month under KoRailRetail’s minimum 17% permonthly-sale lease. This case explores the impact of this rent hike on the bakery’s operations, the local economy, and the preservation of its cultural heritage branding. Through narratives from key stakeholders—including the bakery’s management, local government officials, and the community—the case highlights broader issues of surrounding commercial real estate practices and their effects on small businesses. It raises critical questions about whether lease agreements that rely on transactions, like percentage leases, are sustainable for culturally significant businesses that contribute to employment, economic synergy, and substantial customer foot traffic.
Keyword
Marketing, Branding, Pricing, Place, Location, Synergy.
INTRODUCTION
“This over-an-hour-long wait better be worth it,” sighed Sung-Min Kim. He had traveled to Daejeon, South Korea’s fifth-largest metropolis, for a professional conference. Here, a colleague suggested that he must visit the Sungsimdang bakery—humorously described as the “holy grail” of Korean bakeries. After taking a high-speed train, he spotted the Sungsimdang Bakery at the train station, packed with customers and featuring an extensive line. On his way to the conference center, he chatted with his cab driver. “Is it normal to see so many people lined up at the Sungsimdang Bakery at the train station?” he asked. The cab driver chuckled. “That is as common as Daejeon’s blue sky. Welcome to the motherland of Korea’s best bakery! If you visit the main bakery, you must be lucky enough to buy their breads with no more than an hour’s wait (Figure 1).”
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Received: 1-Jun-2025, Manuscript No. jiacs-25-15815; Editor assigned: 01-Apr-2025, PreQC No. jiacs-25-15815(PQ); Reviewed: 14-Apr-2025, QC No. jiacs-25-15815; Revised: 19-Apr-2025, Manuscript No. jiacs-25-15815(R); Published: 26-Jun-2025