Up to 2 Billion KRW and Additional Support Through Related Government Projects
The Ministry of SMEs and Startups announced on June 17, 2025, that it has selected two consortiums, each consisting of a local government and a lead agency, as the final recipients of the 2025 Regional Commercial District Revitalization Support Project.
The Regional Commercial District Revitalization Support Project is a follow-up initiative to the "Customized Support Package for Areas with Declining Populations," which was announced last year. This project supports privately planned commercial district development strategies in areas with declining or at-risk populations, with both central government ministries and local governments providing support to revitalize local commercial districts.
Since the application process began in April 2025, a total of nine local governments applied, resulting in a competition rate of 4.5 to 1. The Ministry of SMEs and Startups, together with private experts and relevant ministries, conducted a review process that included document screening, on-site evaluations, and presentations. After a final review, Busan Geumjeong-gu and Gangwon Yeongwol-gun were announced as the selected locations. Each of the two selected consortiums will receive up to 2 billion KRW and additional support through related government projects to boost the vitality of their commercial districts.
Looking at the projects selected this time, the target area in Busan Geumjeong-gu is located near Pusan National University. This area was once known as a "youth street," but due to changes in consumption patterns and the outflow of customers to other commercial districts, the current foot traffic is declining and vacancy rates are increasing.
Through this project, Busan Geumjeong-gu plans to focus on nurturing promising local youth as local creators. Test stores will be established in the commercial district so that young entrepreneurs can try out their business ideas, and programs will be provided to attract external investment for those who show strong results. In addition, trendy pop-up stores featuring content that appeals to younger generations will be created to transform the area into a vibrant commercial district. Ongoing efforts will be made to revitalize the area around Pusan National University through linkage with other commercial district revitalization projects.
The target area in Gangwon Yeongwol-gun was once a community-based commercial hub responsible for local consumption, but due to population aging and outmigration, the vitality of the commercial district has declined and external inflow has decreased.
Gangwon Yeongwol-gun plans to create a tourism-oriented commercial district utilizing local natural and cultural resources, such as the Donggang River. The strategy includes not only developing water leisure activities, but also repurposing vacant buildings into village hotels and cultural spaces to increase tourists' length of stay and spending. In addition, by linking with the Ministry of Land, Infrastructure and Transport's youth housing project, the county will provide entrepreneurship education and operate shared manufacturing facilities so that young entrepreneurs can settle and start small businesses in the area.
Lee Daegun, Director of Small Business Policy, said, "The business plans for the two selected consortiums are each targeting young people and tourists, and are well connected to the unique characteristics of each commercial district, as well as local history, tourism, cultural resources, and content. We expect positive results," adding, "We will actively support the Regional Commercial District Revitalization Support Project together with relevant ministries and local governments so that it becomes a good example of private sector-led commercial district revitalization."
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