Seoul City to Provide Up to 3 Billion KRW Over 3 Years to 5 'Living Commercial Districts' to Revitalize Local Economy

Resident-Led Consumption Activation in Sinjeong 6, Nangok, Changsin, Bangbae 2, Garakbon-dong, etc.
20 Additional Candidate Areas in the Second Half ... 60 Areas to Be Established by 2022

[Asia Economy Reporter Jo In-kyung] A project to revive alleyway commercial districts within a 10-minute walking distance from daily life hubs such as Seoul subway stations, schools, and community centers by the residents themselves is set to begin.

Seoul City announced on the 27th that it has finally selected five areas as targets for the "Living Commercial District Development Project," which transforms deteriorated neighborhood stores into "Living Shops" frequently used by local residents to revitalize the alley economy. The selected areas are Sinjeong 6-dong in Yangcheon-gu, Nangok-dong in Gwanak-gu, Changsin-dong in Jongno-gu, Bangbae 2-dong in Seocho-gu, and Garakbon-dong in Songpa-gu.

Earlier, in November last year, the city preliminarily selected eight candidate areas in the first round and assigned three tasks to these areas: forming promotion committees, operating community stores, and discovering and supporting "Sonsu Stores."

As a result, the Bangbae 2-dong area in Seocho-gu actively fostered local "Sonsu Stores" by forming a promotion committee centered around the resident autonomy committee chairperson, including merchants, residents, and members of professional organizations. Sonsu Stores gained a reputation among residents as trustworthy restaurants, achieving increased sales even amid the COVID-19 pandemic.

The Garakbon-dong area in Songpa-gu focused on community stores. Reflecting residents' opinions, they launched an SNS platform, produced a village newspaper, and installed a "Treasure Box" where unused idle items such as children's books, tools, and toys could be exchanged through resident surveys.

For these five areas selected as Living Commercial Districts, the city’s advisory committee will first analyze and consult on local characteristics, floating population, and consumption patterns such as purchasing tendencies. Based on this, the local promotion committees will be responsible for implementing actions such as new product development and installation of resident convenience facilities.

To foster living commercial districts, the city plans to initially support about 300 million KRW per area this year and provide up to 3 billion KRW over three years. Additionally, in the second half of this year, 20 candidate living commercial districts will be selected, with a final 10 more selected early next year, aiming to implement the project in a total of 60 areas by 2022.

Seo Seong-man, Seoul City’s Labor and Livelihood Policy Officer, explained, "Currently, about 70% of self-employed businesses in Seoul are distributed within living commercial districts. The creation of living commercial districts is a sustainable model that revitalizes local commercial districts through consumption by local residents, executed not by government-led initiatives but by residents and merchants themselves."

This content was produced with the assistance of AI translation services.