This study analyzes the influence of co-op shopkeepers` leadership on shopkeepers` self-leadership and innovative behaviors in the Korean traditional markets. Extensive literature review and survey questionnaires are used to conduct the research. Data have been collected from the ``S`` company head-office in Daejeon and 500 shopkeepers in over 40 regional markets across the country including seven major cities in Korea. The collected data have been analyzed using AMOS 4.0. Unlike the previous research, this study using samples from the traditional markets finds that transactional leadership has more positive effect on self-leadership and innovative behaviors. Besides, the self-leadership doesn`t function as a medium between transformational leadership and innovation. However, it can work as a medium between transactional leadership and innovation. In conclusion, some limits and directions of research in this area have been suggested for future research. Despite the fact that transactional leadership is found to have a positive effect on self-leadership in this study, a follow-up research should be conducted to confirm the effectiveness of transactional leadership and more research, whether conceptual or empirical, must be needed to find out other types of effective leadership for the revival of the Korean traditional markets.