Discovering 10,000 Local Entrepreneurs and Nurturing 1,000 Local Companies Annually

Announcement of the "Regional Commercial Districts for All Promotion Strategy"

The government has announced plans to boost the local economy by fostering self-sustaining regional commercial districts, discovering 10,000 local entrepreneurs annually, and nurturing 1,000 local companies each year.

On March 25, the Ministry of SMEs and Startups, together with related ministries, presented the "Regional Commercial Districts for All Promotion Strategy" at the National Startup Era Strategy Meeting. Although commercial districts nationwide have become concentrated around the Seoul metropolitan area, the emergence of vibrant districts in declining city centers—driven by the clustering of young local startups—and the influence of the Korean Wave opening up new opportunities, serve as the backdrop for this new strategy.

To invigorate local startups, the government will use a public evaluation system to foster 10,000 local entrepreneurs and 1,000 local companies every year. Over 90% of these will be discovered in non-metropolitan regions to revitalize local commercial districts. A mentoring team consisting of 100 experienced entrepreneurs, 300 professional mentors from investment firms, universities, and research institutions will support local entrepreneurs, while the number of local startup towns—spaces for hands-on nurturing in the regions—will be expanded to 17 nationwide by 2030.

To further support local startups, the government will introduce three new AI-powered services: an AI assistant that uses natural language search to resolve commercial district analysis, information on support programs, and labor and tax issues; an AI navigation service that analyzes commercial district data to provide specialized consulting on store operating hours, menu selections, and more; and industry-specific AI training programs. In addition, support will be offered for local startups utilizing rural resources, and in regions suffering from population decline, a group of 100 "Rural Social Startup Youth Supporters" will be organized. A special guarantee program for purchasing regional specialty products, funded by financial institutions, will be established at a scale of 100 billion won to promote co-prosperity with local residents.

To accelerate the growth of local companies, the government will offer matching loans and commercialization funds through the LIPS (Local Investment Promotion Scheme) program to those attracting private investment. Using regional growth funds and other financial tools, investment in local companies will be expanded to a maximum of 200 billion won by 2030. Support for loans to high-growth local companies will be strengthened through the introduction of a credit evaluation system specialized for small business owners. A new "glocal company development program"—offering marketing and distribution support as a package—will help local companies transition into exporters, with support of up to 100 million won. Policies will also be implemented to encourage local anchor companies, already established in the region, to foster and attract promising startups for mutual growth. This year, 50 such clusters of local companies will receive support to help them develop into thriving commercial districts.

To encourage foreign tourists to travel nationwide, 17 "glocal tourism commercial districts" will be created by 2030. Additionally, 50 "local theme commercial districts"—featuring unique experiences and cuisine only found in specific regions—will be established during the same period. The plan is to support content development and space creation leveraging local culture, as seen in popular spots like the Coffee Street at Anmok Beach in Gangneung or the Hanok Village in Jeonju. Twelve "Centennial Markets," traditional markets with long histories, will also receive support.

To ensure the sustainable growth of commercial districts, related systems will be improved, such as mandating the provision of management fee statements. The spread of win-win agreements between landlords and tenants will be promoted. The government will also expedite the enactment of the "Special Act on Alley Commercial Districts" to establish a systematic foundation for supporting commercial districts, foster specialized commercial district planning companies for regionally distinctive projects, and create a Commercial District Innovation Fund.

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