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 Project," which aims to revitalize local old downtown areas by transforming vacant commercial properties and idle buildings into cultural and startup spaces. For each selected region, up to approximately 36.5 billion won will be invested in space refurbishment and content development.

The Ministry of Culture, Sports and Tourism announced on September 8 that, together with the Ministry of Land, Infrastructure and Transport and the Ministry of SMEs and Startups, it will implement a pilot phase of the Urban Core RE:CORE Project starting in 2027 to restore the core functions of local downtowns. This project, prompted by declining downtowns due to factors such as population and industrial concentration in the greater Seoul metropolitan area, youth outmigration, and business district stagnation, will repurpose vacant stores and idle buildings in old city centers as workspaces for artists, startup hubs, shared offices, and pop-up stores. According to the government, the vacancy rate for small commercial properties in non-metropolitan areas rose from 6.7% in the first half of 2022 to 8.5% in the first half of this year.

Yonhap News Agency

Youth, artists, and entrepreneurs moving into these spaces will receive rent support during the project period. To prevent existing tenants from being displaced by rent increases after the project ends, local governments will be required to establish an operation plan of at least 10 years.

Along with the physical revitalization, the Ministry of Culture, Sports and Tourism plans to launch the "Urban Core Signature Contents Production and Dissemination Project" to enhance the cultural appeal of local areas. This includes discovering and supporting regional content—from creation and production to demonstration, advancement, and distribution—integrating with local festivals, cultural facilities, business districts, and online platforms. The specialized hubs and revitalized commercial areas established through the Ministry of Land, Infrastructure and Transport's program will also feature exhibitions, performances, and other diverse cultural forms.

The government plans to select one to two pilot sites in each of the "four major and three special" regional clusters outside the Seoul metropolitan area, starting the project in 2027. Eligible sites are those among the urban decline districts designated under the Urban Regeneration Act that correspond to city or sub-city centers in urban or county master plans, where clusters of vacant stores make regeneration urgent. The program is set to gradually expand to two or three sites per cluster by 2029.

A maximum of approximately 36.5 billion won will be invested into each selected site. The Ministry of Culture, Sports and Tourism will provide up to 2.4 billion won in national funding over four years for the Urban Core Signature Contents Production and Dissemination Project and up to 840 million won for the project to revitalize old downtowns through cultural content. The Ministry of Land, Infrastructure and Transport will invest up to 21 billion won over four years. The total maximum central government funding will be 24.24 billion won, and including local government funds, the total project budget will reach up to 36.5 billion won. The Ministry of SMEs and Startups will link the project with regional business district development such as local theme-based business zones and promising alleyway districts, as well as traditional market development, such as "Century Markets" and cultural tourism-type markets.

The government will hold a project briefing session for local governments on September 17, and as soon as the budget is finalized, it will begin the process of selecting pilot sites.

Choi Hwi-young, Minister of Culture, Sports and Tourism, stated, "The relevant ministries have come together to connect the space, content, and people of old downtown areas through culture, aiming to turn these areas into desirable places to live. By filling every corner of the urban core with content rooted in local stories, we will help make these neighborhoods a proud home for residents and a cultural destination where visitors want to stay longer."

Kim Yoon-deok, Minister of Land, Infrastructure and Transport, commented, "Decline of city centers is not only about increasing vacancies, but also about the weakening of vitality in the entire region. We will connect the assets and potential of urban cores with new demand to create a new foundation for regional growth and transformation."

No Yong-seok, Acting Minister of SMEs and Startups, added, "We will strive to create a new regional business district growth model combining the unique resources of old downtowns with local entrepreneurship."

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