The Ministry of SMEs and Startups announced the "regional commerce for everyone strategy" with relevant ministries on the 25th and rolled out a comprehensive plan to revitalize local economies. The focus is on expanding local startups and, based on that, building self-sustaining local commercial districts.
Korea's commercial districts are locked into a structure concentrated in the greater Seoul area. Of the 123 core districts in the top 10% nationwide, 79 are in the capital region. Sales volumes are about four times higher than in the provinces. At the same time, some older downtowns in provincial areas built on tourism, culture and specialty products are showing signs of recovery as young entrepreneurship grows.
The Ministry of SMEs and Startups (MSS) plans to discover 10,000 local entrepreneurs each year and nurture 1,000 corporations. In particular, more than 90% will be selected outside the capital area to strengthen a region-centered startup ecosystem. To support startups, it will run a mentoring group involving veteran founders, investment firms, and universities and research institutes, and increase place-based local startup towns to 17 by 2030.
Support based on digital tools will also be strengthened. Along with an artificial intelligence (AI) service that provides commercial district analysis and program information via natural-language search, customized consulting through analysis of store operation data and industry-specific training programs will be introduced.
Support for rural and depopulating areas was also included. The plan will foster startups that utilize rural resources and operate 100 youth supporters in depopulating areas. At the same time, it will establish a 100 billion won special guarantee for purchasing specialty products with participation from the financial sector to expand region-based businesses. It will support product development and piloting that leverage tourism and cultural assets, and parallel support for local corporations that address social issues such as care and health care.
The Ministry of SMEs and Startups (MSS) will also support stage-by-stage financing for local corporations and strengthen the foundation for overseas expansion. For corporations that attract private investment, it will provide up to 500 million won in matching loan and up to 200 million won in commercialization funds, and pursue investment expansion of up to 200 billion won by 2030 through regional growth funds. For early corporations without production facilities, it will provide manufacturing vouchers, and through a glocal corporation development program for overseas expansion, it will expand marketing and sales channels by up to 100 million won.
It also put emphasis on revitalizing local commercial districts. This year, it will support 50 clusters of local corporations and aims to create a cumulative 1,000 by 2030. For glocal tourism commercial districts to attract foreign tourists, it plans to create 17 by 2030, and 50 local theme commercial districts based on region-specific content.
An official at the Ministry of SMEs and Startups (MSS) said, "We will back content development and space creation that leverage local gastronomy, culture and attractions, like Jeonju Hanok Village," adding, "We will also support 12 'hundred-year markets' where people can experience tradition and culture."