Gangneung City to Inject 51.9 Billion KRW for "Livelihood Economy Revitalization"... 60% to Be Spent Early in First Half

Gangneung City Announces 2026 Livelihood Stabilization Measures
Full-Scale Effort to Establish a Virtuous Cycle in the Local Economy
From Youth Rent and Long-Service Bonuses to Business Development
All-Out Support for Livelihood Stability and Economic Revitalization

Gangneung City in Gangwon Province will inject a total budget of 51.9 billion KRW early this year to actively implement a variety of policies aimed at revitalizing the local economy and improving livelihoods.

A view of Gangneung City Hall. Provided by Gangneung City

The budget will be allocated across three main areas: 11.4 billion KRW for supporting the working-class economy, 11.6 billion KRW for small business support, and 28.9 billion KRW for small and medium-sized enterprise (SME) support, totaling 51.9 billion KRW. The city plans to execute more than 60% of this budget within the first half of the year to promote a virtuous cycle in the regional economy.

First, to secure a mutually beneficial employment safety net, the city will provide a 1 million KRW long-service bonus to employees who have worked at local companies for three years. Additionally, a total of 2.1 billion KRW will be invested in direct job creation programs for vulnerable job seekers, expanding the number of participants to 355-an increase of 33 from last year-so more people can benefit from these opportunities.

To boost local economic vitality, the city will continue to expand the "Good Consumption Promotion Relay Campaign" as a city-wide movement in collaboration with the Gangneung City Economic Revitalization Council, which comprises 37 organizations. The city also plans to continuously identify "Good Price Stores" that contribute to price stability by maintaining reasonable prices.

Moreover, the monthly rent support program for young people, which provides 200,000 KRW per month to around 700 youths without homes, will be converted to a continuous support system to further ease the housing burden for young residents. The city will also invest a total of 847 million KRW to establish a tailored support system for youth employment and entrepreneurship, continuing to implement policies that young people can tangibly feel.

Gangneung will also work to restore local commercial districts by expanding key support projects for small business owners and revitalizing traditional markets and alleyway shopping districts. The city will continue to operate the public-private delivery app "Ddanggyeyo," aiming to reach 2,000 affiliated stores and 60,000 users by the end of this year, with enhanced promotional efforts and user engagement.

Key support for stabilizing small business management will also continue. To alleviate the burden on small business owners amid high inflation and sluggish domestic demand, the city will expand customized support such as interest subsidies on business policy funds, improvements to business environments, and support for card and tax agency fees. Notably, the interest subsidy program for business policy funds will be expanded to a total of 40 billion KRW, providing practical help for resolving funding shortages and stabilizing business operations.

The city will also focus on revitalizing daily commercial areas centered on traditional markets. Comprehensive support-including facility modernization, parking lot improvements, enhanced safety management, and customer rest area renovations-will be provided to improve the environment of traditional markets. In addition, the city will promote the simultaneous revitalization of traditional markets and nearby commercial areas through the Jumunjin General Market cultural tourism development project and the operation of the Wolhwa Street night market.

Meanwhile, various support projects to assist SMEs facing challenging economic conditions will be pursued with urgency. Since January 2, the city has been accepting applications for the "Gangwon Special Self-Governing Province SME Development Fund," which provides 2-3% interest subsidies to companies in need of funding for business stabilization and facility improvements.

To strengthen the competitiveness and expand sales channels for local SMEs, additional support projects will be implemented. Fifteen companies wishing to participate in domestic and international exhibitions will be selected through an open call, with up to 2 million KRW provided for domestic exhibitions and up to 3 million KRW for overseas exhibitions. The "Excellent Product Design Development Support Project," which aids manufacturers in developing product designs, will select eight companies through an open call, providing 6 million KRW per company. Applications for these projects are being accepted from January 12 to February 2.

The "Intellectual Property First Step Support Project," which assists local companies with patent applications and product design development, will begin in March. This year, a new domestic dispute support initiative will be added to provide litigation cost assistance in the event of disputes.

A total of 7.6 billion KRW will be invested to expand the Jumunjin Agro-Industrial Complex, which has been in existence for over 30 years, by 22,174 square meters, adding 11 industrial lots. Construction will begin in January and be completed by December, with contracts for company occupancy finalized within the year. This is expected to improve the local employment environment and further revitalize the regional economy.

In addition, Gangneung will steadily pursue projects that will serve as future growth engines for the city. The city aims to strategically foster future industries centered on natural product-based green bio-industries, building a full-cycle support system from research and development (R&D) to infrastructure construction, technology demonstration, and commercialization to strengthen the competitiveness of local industries. Through these efforts, Gangneung plans to promote corporate growth and establish a virtuous cycle in which these achievements further invigorate the local economy.

A Gangneung City official stated, "In 2026, we will steadfastly implement policies to revitalize the regional economy and serve as a reliable support for businesses and small business owners. By prioritizing policies for economic recovery and regional economic growth in the first half of the year, we aim to create a virtuous cycle in the local economy that delivers tangible benefits to our citizens."