The South Korean government is addressing the decline of regional business districts by launching the ‘Everyone’s Local Business District Strategy.’ This initiative, announced by the Ministry of SMEs and Startups at the National Startup Era Strategy Meeting on March 25, 2026, aims to create vibrant and self-sustaining local economies. The policy responds to the concentration of economic activity in the Seoul metropolitan area, where 79 of the top 123 business districts are located, and local monthly sales lag behind by a factor of four. By leveraging tourism, culture, and local specialties, the government seeks to stimulate new growth and restore regional vitality.
The strategy targets local entrepreneurs, small businesses, and regional communities. Each year, 10,000 local startup founders and 1,000 companies will be nurtured, with over 90% selected from non-metropolitan areas. Support includes mentorship from 100 experienced entrepreneurs and 300 professional mentors, expansion of local startup towns to 17 by 2030, and AI-driven business assistance. Special programs for rural areas, such as the deployment of 100 youth social startup supporters and a KRW 1 trillion special guarantee for local specialty purchases, are also included.
Implementation is structured around three pillars: startup (point), growth and clustering (line), and expansion (surface). The LIPS program offers up to KRW 500 million in loans and KRW 200 million in commercialization funds for local businesses, with a total investment goal of KRW 2 trillion by 2030. Additional support includes a new credit evaluation system for small businesses, manufacturing vouchers, export assistance, and the creation of 50 local anchor business clusters in 2026, expanding to 1,000 by 2030. The government will also establish 17 glocal tourism districts, 50 local theme business areas, and support 12 traditional ‘century markets.’
Frequently asked questions include: What is the main goal of the strategy? The policy aims to balance economic growth across regions by fostering local entrepreneurship and business clusters. How will businesses benefit? Eligible startups and companies receive mentorship, funding, AI-based support, and opportunities for export and branding. What institutional changes are planned? The government will mandate transparency in commercial property management fees, promote landlord-tenant cooperation, and pursue legislative reforms such as the ‘Special Act on Alley Business Districts.’
Metaqsol opinion: South Korea’s new regional business revitalization strategy is a robust approach to addressing economic disparities between metropolitan and local areas. The combination of annual support for startups, targeted investment, and AI-driven assistance provides practical benefits for entrepreneurs and small businesses. The integration of tourism and cultural assets, along with institutional reforms, is expected to enhance sustainability and competitiveness in regional economies. The government’s clear timeline and legislative initiatives demonstrate a strong commitment to balanced national growth.