Chungju, Jeongeup, and 3 Other Locations Selected as '2023 Commercial District Revitalization Project' Sites

[Asia Economy Reporter Donghyun Choi] The Ministry of SMEs and Startups announced on the 24th that it has selected five sites for the ‘2023 Commercial District Revitalization Project’ (formerly known as the Commercial District Renaissance Project).

The Commercial District Revitalization Project aims to breathe new life into deteriorated commercial districts in old downtown areas. In collaboration with local governments, the project provides comprehensive support for environmental improvements and commercial district revitalization over five years, with a budget ranging from 6 billion to 12 billion KRW, targeting entire commercial districts beyond individual traditional markets or shopping streets.

Hamyang, Gyeongnam, plans to utilize local tourist resources such as Jirisan Mountain and Sangnim Park, connecting the existing rice specialty street and the longevity specialty street to offer a variety of attractions.

In Dalseo, Daegu, a specialized street linked to Duryu Park and a multi-generational cultural complex space will be created, and cultural and art tourism festivals and events will be held to promote the revitalization of the ‘Duryu Jeolmko (Youth Core) Commercial District.’

Jeongeup, Jeonbuk, will promote a commercial district themed around sharing affection and enjoying culture, implementing experiential programs such as rice cake making and traditional liquor, as well as projects in cooperation with local businesses.

Boeun, Chungbuk, will maximize synergy between the Boeun brand and specialized resources by developing and distributing local specialty foods such as jujube sundae hot pot and jujube desserts, and creating a food street. Additionally, it plans to attract visitors from tourists to Songnisan Mountain and sports events such as baseball and fencing to the Boeun commercial district.

Chungju, Chungbuk, will attract tourists by linking local cultural resources such as Gwana-gol and the Joseon Industrial Bank with the project. In Chungju’s case, young merchants and existing merchants will coexist to create a commercial district that blends youthfulness and experience.

The Ministry of SMEs and Startups restructured the Commercial District Revitalization Project in line with the enforcement of the ‘Act on Mutual Growth and Revitalization of Local Commercial Districts’ (Local Commercial District Act), establishing a new category for urban small-scale commercial districts and selecting Hamyang as the first target site. For urban small-scale commercial districts, the project will be conducted in small commercial districts with more than 100 stores rather than the existing districts with over 400 stores, and a voluntary commercial district association composed of merchants, landlords, and landowners will serve as the project’s operating entity.

Meanwhile, starting from the 2023 project, both general commercial districts and urban small-scale commercial districts will operate with an initial three-year period, which can be extended by two years based on performance.

The Ministry plans to support the selected new commercial districts in enhancing their project plans through expert diagnosis and consultation in each field, enabling them to carry out substantial projects over five years by leveraging their unique content strengths.

Minister Lee Young of the Ministry of SMEs and Startups stated, “We hope that through the Commercial District Revitalization Project, commercial districts that have been stagnant due to COVID-19 will recover, take off again, and revitalize the local economy.”