The Ministry of SMEs and Startups said on the 1st that it will fully push ahead with a project to foster local commercial districts.
The Ministry of SMEs and Startups (MSS) said that an analysis of 1,227 commercial districts nationwide showed that 528, or 43%, are in the greater Seoul area, with 176 concentrated in Seoul. In particular, among the top 10% core commercial districts, 64.2% are in the greater Seoul area and 35% are clustered in Seoul, underscoring the concentration in the capital region.
Sales disparities were also clear. The average monthly sales per store were 28.83 million won in non-capital regions and 58.71 million won in the greater Seoul area, a roughly twofold difference. Seoul posted 103.73 million won, more than three times higher than areas outside Seoul (31.3 million won). The gap widened further in core commercial districts, with Seoul (250.62 million won) about five times higher than areas outside Seoul (51.57 million won). While the number of stores and foot traffic were also highest in Seoul, consumption concentration appeared even more prominently in sales than in foot traffic.
To improve this structure, the Ministry of SMEs and Startups (MSS) will pursue commercial district development policies tailored to local characteristics. First, to disperse foreign tourist demand to non-capital regions, it will select six "glocal commercial districts" and provide 5 billion won per district over two years for K-content development and the creation of foreigner-friendly commercial areas.
To offer experiences and tastes unique to each region, it will also select 10 "local theme commercial districts" outside Seoul. It will invest 4 billion won per district over two years in specialized products reflecting local themes, storytelling for commercial districts, and programs linked to local tourism resources.
It will also select 50 "promising alley commercial districts," focusing on clusters of local startups and alley-type shopping streets, and provide support for one year totaling 500 million won per district for startup, marketing, and infrastructure. Beyond support for individual districts, it will strengthen linkage models between projects by connecting commercial district support with tourism and tour programs.
It will also build an inter-ministerial cooperation system. It plans to maximize revitalization effects by linking the Ministry of Culture, Sports and Tourism's "K-Tourism Market," the Ministry of Land, Infrastructure and Transport's "Urban Regeneration," and the Ministry of Agriculture, Food and Rural Affairs' "K-Gastronomy Belt."
Lee Byeong-gweon, the second vice minister of the Ministry of SMEs and Startups (MSS), said, "We will create vibrant local commercial districts that offer diverse sights, foods, and entertainment."