Gwanak-gu Rolls Up Sleeves to Revitalize Local Businesses

Creation of 10 Major Local Shopping Districts by Region, Establishment of Self-Sustaining Foundations Including Our Neighborhood Store Artterior Project... Early Issuance of Gwanak Love Gift Certificates to Overcome COVID-19... Large-Scale Issuance of 18 Billion KRW with 10% Special Discount

Local Business Promotion Campaign

[Asia Economy Reporter Jongil Park] Gwanak-gu (Mayor Park Junhee) is making every effort to revitalize the local alleyway commercial districts that have been depressed due to COVID-19.

Last year, the district prepared a mid- to long-term plan for revitalizing alleyway commercial districts by zone to enable these districts to grow independently. By June 2022, a budget of 3.6 billion KRW was invested to develop alleyway commercial streets linked with surrounding local resources, creating themed alleyways connected to traditional markets to generate synergy effects.

In five zones, a total of 10 major alleyway commercial districts (two in each zone) are provided with common support such as merchant organization and consulting, infrastructure development including road and sculpture installation, and brand development and marketing projects to improve the business environment and establish a self-sustaining commercial base.

Merchant organizations are formed for each alleyway commercial district, with local residents at the center to build cooperation and communication systems. Brands are developed to highlight the characteristics of each alley, and support is provided to register as alley-type shopping districts under the relaxed standards of the revised Enforcement Decree of the Special Act on the Promotion of Traditional Markets and Shopping Districts.

Currently, a professional contractor has been selected and the project has officially started for two alleyway commercial districts, Sillim-ro 11-gil and Haengun-gil, with the remaining eight districts scheduled for implementation this year.

Additionally, infrastructure development such as road paving, store sign improvements, and installation of guide signs for each alleyway commercial district is actively underway. Road paving work is currently in progress in three alleyway commercial districts, and infrastructure development for the remaining districts is scheduled to begin in early March.

The ‘Our Neighborhood Store Artterior Support Project,’ which improves interior and product design by utilizing the sensibility and talent of local artists for small business stores, is also receiving great response from small business owners.

Securing 150 million KRW through a Seoul city public contest project and adding 310 million KRW from the district budget, 40 local artists transformed 144 alleyway stores in the area. This effort not only revitalized the commercial districts but also created jobs for over 50 people, including local artists, earning praise for achieving two goals at once. This year, the district plans to actively attract external funding such as Seoul city public contest projects and continue the project steadily.

Last year, to increase sales for small business stores struggling due to COVID-19, 100 million KRW worth of ‘Gwanak Himkok Gift Certificates’ were issued, which can be used directly for delivery at restaurants and food ingredient markets affiliated with Zero Delivery Union. In particular, 23 billion KRW worth of Gwanak Sarang Gift Certificates based on Zero Pay, usable only in Gwanak-gu, were issued and sold out early amid strong resident support.

This year, Gwanak Sarang Gift Certificates will be issued early starting at 10 a.m. on the 5th. Of the 39 billion KRW planned for issuance this year, the first issuance will be a large amount of 18 billion KRW. Especially, a 10% special discount will be added to actively promote local consumption, expected to bring great vitality to the local commercial districts ahead of the holiday season.

The district is also actively participating in the prepayment campaign to support small business owners facing management difficulties due to COVID-19. The district independently purchased prepayment Seoul Sarang Gift Certificates and strongly encouraged their use at small business establishments, achieving a payment goal of 100 million KRW through events such as giving hygiene kits upon submission of purchase receipts.

Moreover, Gwanak-gu was selected for the Seoul city ‘Living Commercial District Revitalization Project’ contest and secured a total budget of 3 billion KRW through 2023. The plan is to transform the deteriorated neighborhood stores around Nangok-dong into living stores frequently used by local residents to revive the alleyway economy.

Furthermore, the district will actively support strengthening the self-sustainability of commercial districts by developing various educational contents for local merchants, supporting facility improvements for each store, and organizing and operating commercial district management organizations so that they can grow independently.

Mayor Park Junhee stated, “Since taking office, I have been focusing on revitalizing alleyway commercial districts with the mindset of doing whatever it takes to help small business owners, even if it is just one won. As the COVID-19 crisis has made the situation more difficult for small business owners and self-employed people who are the lifeblood of the local economy, we will do our utmost this year as well to save alleyway commercial districts and revitalize local commercial areas.”

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