Govt. to revive hollowed-out provincial downtowns with spaces, content

The government is moving to revitalize provincial old town centers hollowed out by population decline and commercial stagnation, offering support for both physical space renewal and local content development.

The Ministry of Culture, Sports and Tourism, the Ministry of Land, Infrastructure and Transport, and the Ministry of SMEs and Startups announced Tuesday they will jointly pursue a pilot program called the "RE:CORE Project" — a hub-focused initiative to transform provincial old town centers into vibrant spaces by nurturing young people, entrepreneurs, artists and locally rooted content.

The project goes beyond simply clearing out vacant spaces. It is a cross-ministry collaboration designed to restore the core functions of old town centers by addressing both physical infrastructure and content in tandem.

Provincial cities have been hit hard by the concentration of population and industry in the Greater Seoul area, the outflow of young residents and the collapse of local commercial districts. The vacancy rate for small commercial properties has worsened sharply, climbing from 6.7 percent in the first half of 2022 to 8.5 percent in the first half of this year.

In response, the relevant ministries plan to intensively renovate vacant storefronts and idle buildings scattered across provincial old town centers, repurposing them as activity spaces for young people, artists and entrepreneurs to draw people back.

The Ministry of Land, Infrastructure and Transport will acquire or take long-term leases on vacant commercial properties — or enter into cooperative agreements — to create what the project calls "old town revitalization stores." The spaces will be renovated for use as artists' studios, startup offices, co-working spaces and pop-up stores, with rent subsidies provided to help young residents, artists and entrepreneurs operate stably. To ensure lasting impact after the project ends, local governments will be required to include a minimum 10-year operational plan when drawing up their project proposals.

Larger idle facilities within old town centers — including unused public buildings, vacant motels and clusters of empty storefronts — will be converted into "specialized hubs." Depending on local characteristics, these may take the form of cultural and arts centers, startup support facilities, childcare centers, commercial district support facilities, or spaces for exhibiting and selling local brands.

The project will also expand supporting infrastructure such as parking, and improve the streetscape through signage and facade upgrades.

The Ministry of Culture, Sports and Tourism will run a separate initiative to develop and disseminate signature content that raises the cultural appeal of old town centers and generates sustained visitor demand. The ministry plans to identify content that showcases each area's distinct character by drawing on local cultural resources, then support it through successive stages — from creation and production to testing, refinement and distribution — until it grows into a representative local content brand.

That content will be promoted through local festivals, cultural facilities, commercial districts and online platforms, and will also be featured in exhibitions and performances at the specialized hubs and revitalization stores created under the land ministry's component of the project.

Cities already designated as "cultural cities" whose national funding has expired will receive bonus points in the selection evaluation if they apply to participate in this project.

In the early stages of the project, pop-up stores featuring popular content will be operated to give local residents broader access to cultural experiences while offering local content companies a pathway to commercialization.

Young content creators and startup founders who move into the revitalization stores will also receive a modest activity stipend.

The government will first select one to two pilot sites per region across the seven major zones outside Greater Seoul and launch the pilot program next year. Eligible sites must be designated as urban decline areas under the Special Act on the Promotion and Support of Urban Regeneration, fall within areas classified as urban or sub-urban centers in current city and county master plans, and be old town centers with a high concentration of vacant commercial properties in urgent need of regeneration.

Selected sites will receive up to 36.5 billion won ($26.9 million) in total project funding, of which up to 24.24 billion won will come from the national government. The Ministry of Culture, Sports and Tourism will provide up to 2.4 billion won in national funds per selected site over four years for signature content development and distribution — with local governments required to match 50 percent — and up to 840 million won in national funds for old town revitalization through cultural content, also with a 50 percent local match. The Ministry of Land, Infrastructure and Transport will contribute up to 21 billion won in national funds per site over four years, with a 30 percent local match required.

Sites that also participate in the Ministry of SMEs and Startups' local commercial district development program, traditional market development program, or small business lifestyle and culture innovation support program will receive preferential treatment in the selection process. Through these linkages, the project aims to identify and cultivate local entrepreneurs who can inject energy into regional commercial districts and help their businesses grow into anchor stores that build thriving local economies.

Companies supported under the "startup city" designation will be able to access spaces within old town mixed-use regeneration project areas, while businesses that relocate into the revitalization stores will be eligible for rent subsidies.

The government will hold an information session for local governments on Sept. 17 to explain the project, and will proceed with the site selection process once the budget is finalized.

Culture Minister Choi Hwi-young said the ministry would "actively support efforts to breathe life into every corner of old town centers through content that carries each region's own story, so that these places become a source of pride for residents and a cultural destination where visitors want to linger."

Land Minister Kim Yun-deok said the project would "connect the assets and potential that old town centers already hold to new sources of demand, and rebuild the foundation for regional growth and transformation."

Noh Yong-seok, first vice minister of the Ministry of SMEs and Startups serving as acting minister, said the project would "create a new model for provincial commercial district growth that combines the unique resources of old town centers with local entrepreneurship."