Government Launches Local Urban Core Revitalization Project with Up to 36.5 Billion Won in Support

Vacant Stores and Buildings to Be Transformed into Cultural and Startup Spaces
Pilot Launch of the "Urban Core Re:Core Project"

The government is launching a new initiative called the “Urban Core Re:Core (RE:CORE) Project,” which aims to revitalize local old city centers by transforming vacant stores and underutilized buildings into cultural and entrepreneurial spaces. For each selected region, up to approximately 36.5 billion won will be invested in space refurbishment and content development.

On September 8, the Ministry of Culture, Sports and Tourism together with the Ministry of Land, Infrastructure and Transport and the Ministry of SMEs and Startups announced that they would launch a pilot Urban Core Re:Core Project in 2027 to restore the key functions of regional city centers. This project will refurbish vacant shops and idle buildings—which have become dilapidated due to factors such as population and industry concentration in the Seoul metropolitan area, the outflow of young people, and decline of commercial districts—and repurpose them as workspaces for cultural artists, startup spaces, co-working offices, and pop-up stores. According to the government, the vacancy rate for small commercial buildings in the regions rose from 6.7% in the first half of 2022 to 8.5% in the first half of this year.

Yonhap News Agency

During the project period, young people, cultural artists, and entrepreneurs who move into these spaces will receive support for their rent. To prevent displacement of existing tenants due to rising rents after the project ends, local governments will be required to establish an operational plan for at least ten years.

In addition to space regeneration, the Ministry of Culture, Sports and Tourism will launch the “Urban Core Signature Content Development & Dissemination Project” to enhance the cultural appeal of each region. The ministry will discover and support content created from regional cultural resources, offering step-by-step assistance from content creation and testing, to advancement and distribution, in connection with local festivals, cultural facilities, commercial districts, and online platforms. Various forms of exhibitions and performances will also be showcased at specialized hubs and revitalized commercial districts created through the Ministry of Land’s initiatives.

Excluding the Seoul metropolitan area, the government plans to select one or two pilot project sites in each of the “Four Growth Poles and Three Special Zones,” launching the project in 2027. Target areas will be old city centers or sub-centers classified as deteriorated city zones under the Urban Regeneration Act, particularly where there is a high concentration of vacant shops and urgent need for revitalization. By 2029, the project will gradually expand to cover two to three locations in each area.

For each selected region, the project budget will be up to approximately 36.5 billion won. Of this, the Ministry of Culture, Sports and Tourism will provide up to 2.4 billion won over four years for the development and dissemination of signature content, and up to 840 million won over four years for revitalizing the city center using cultural content. The Ministry of Land will invest up to 21 billion won of national funds over four years. The national budget will total up to 24.24 billion won, and with local government contributions incorporated, the total project budget will reach up to 36.5 billion won. The Ministry of SMEs and Startups will tie in local-themed commercial district and promising alleyway nurturing programs, as well as traditional market initiatives such as Centenary Markets and Culture & Tourism Markets.

The government plans to hold a briefing session for local governments on September 17, and will begin the site selection process as soon as the budget is finalized.

Minister Choi Hwi-young of the Ministry of Culture, Sports and Tourism stated, “Relevant ministries have come together to connect the spaces, content, and people in urban cores through culture, so that these areas become places where people want to live. We will support the revitalization of city centers through content that tells local stories, turning them into proud hometowns for residents and attractive, culturally rich spaces where visitors want to linger.”

Minister Kim Yoon-deok of the Ministry of Land, Infrastructure and Transport said, “The decline of city centers is not merely about increasing vacancies, but rather a weakening of the region’s vitality as a whole. We will connect the assets and potential of city centers with new demand to establish a renewed foundation for regional growth and transformation.”

No Yong-seok, Acting Minister of SMEs and Startups, said, “We will create new models for regional commercial area growth by linking the unique resources of city centers with local entrepreneurship.”

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