Government-affiliated ministries will join forces to revive the centers of provincial cities that are losing vitality due to population outflows and shrinking commercial districts.
The Ministry of Land, Infrastructure and Transport said on the 8th that, together with the Ministry of Culture, Sports and Tourism and the Ministry of SMEs and Startups, it will formally launch a pilot project called the "Old Downtown RE:CORE Project" to draw young people, artists and new entrepreneurs to hollowed-out old downtowns in the provinces and restore the area's core functions.
The project goes beyond refurbishing empty spaces in old downtowns hollowed out by population decline and a slump in commercial activity. It is a cross-ministry regeneration program that supports both space (HW) and content (SW) to reawaken (Re) the core functions (Core) of old downtowns. Recently, in non-capital regions, population decline overlapped with an exodus of younger people, steadily raising the vacancy rate of small shops and pushing the deterioration of core urban functions to a serious level.
In response, the government plans to secure neglected shopping areas and idle properties and convert them into revitalization hubs, then help bring in young founders and cultural artists to transform them into lively spaces that draw people.
First, it will purchase decayed commercial properties outright or sign long-term leases to refit them as pop-up stores, shared offices and art studios, and will subsidize rent for tenants for a set period. To avoid one-off support, it will also require management plans that ensure stable operations for at least 10 years.
It will also repurpose anchor idle facilities such as large lodging facilities or unused public buildings into startup incubators and regional brand exhibition spaces, and simultaneously improve road environments and nighttime scenery to knit the entire old downtown into a single, organic cultural and commercial space.
At the same time, it will identify cultural projects that leverage local assets and support each stage from creation to distribution, while linking specialized pop-up stores and citizen-participation programs that residents and visitors can enjoy. Separate grants will be provided to creators and young entrepreneurs so they can continue their activities.
Excluding the capital area, one or two locations in each major region will be selected first and fully launched starting in 2027, with up to 36.5 billion won per zone in combined central and local government funding. In addition, the program will connect with the Ministry of SMEs and Startups' neighborhood commercial district and traditional market development initiatives to offer various preferential benefits, such as extra points.
Kim Yun-duk, Minister of the Ministry of Land, Infrastructure and Transport (MOLIT), said, "Old downtowns are central spaces where a region's economy, daily life and culture have accumulated over many years and where people have gathered. The decline of old downtowns can go beyond a mere increase in vacancies to weaken the vitality of the entire region," adding, "Through the 'Old Downtown RE:CORE Project,' we will connect the asset and potential of old downtowns with new demand so they can once again serve as a foundation for regional growth and change."
Detailed guidelines related to this pilot project will be provided on the urban regeneration information system website. On the 17th, a preliminary briefing session for local governments will also be held at the headquarters of Korea Railroad Corporation (KORAIL) in Daejeon.