Busan city officials and Busan Bank representatives gather at Busan City Hall on Wednesday for a sponsorship handover ceremony for the vacant storefront rent support project. [Provided by Busan Economic Promotion Agency]
Busan city officials and Busan Bank representatives gather at Busan City Hall on Wednesday for a sponsorship handover ceremony for the vacant storefront rent support project. [Provided by Busan Economic Promotion Agency]

Busan city held a sponsorship handover ceremony Wednesday morning at the city hall's international protocol room, joined by Busan Bank and the Busan Economic Promotion Agency, to launch a vacant storefront rent support project. Mayor Jeon Jae-soo, Busan Bank President Kim Seong-ju, Chief Management Planning Officer Kim Yong-gyu and Busan Economic Promotion Agency Vice President Oh Ji-hwan attended, reaffirming their commitment to reviving local commercial districts and supporting small business owners.

Busan Bank will contribute a total of 500 million won ($353,000) in sponsorship for the project. The funds are allocated across three areas — 200 million won for interior renovation, 200 million won for rent subsidies and 100 million won for other costs — to support the occupancy of 50 vacant storefronts. The public-private initiative aims to transform long-neglected empty shops into spaces of new opportunity and lay the groundwork for small businesses to grow on stable footing.

Vacancy rates in Busan's commercial districts have been climbing as prolonged high oil prices, inflation and an economic slowdown continue to squeeze small business owners and dampen consumer spending. According to Korea Real Estate Board data, the vacancy rate for small retail spaces in Busan rose from 5.0 percent in 2020 to 7.8 percent in 2026, while the rate for mid- to large-sized commercial properties climbed from 13.5 percent to 15.3 percent over the same period, surpassing the national average of 14.1 percent.

Rising vacancy rates are a key indicator of weakening commercial activity and declining consumer spending, with prolonged empty storefronts creating a vicious cycle that deepens commercial district stagnation. In response, a city official said the city is pushing ahead with the "10,000-won rent vacant storefront refill project" to repurpose long-idle shops as spaces for new startups and second-chance entrepreneurs.

With a total project budget of 3.3 billion won, the city plans to target vacant storefronts in shopping streets, traditional markets and other commercial areas in need of revitalization. Small business owners and young merchants looking to start, restart or expand will receive essential support including rent subsidies, interior renovation costs and consulting services, with the goal of injecting new energy into local commercial districts and bolstering the everyday economy.

At the ceremony, Mayor Jeon said the initiative "will serve as a meaningful catalyst to breathe new life into stagnant commercial districts and cheer on the challenges of small business owners," pledging to "continue pursuing practical support policies that strengthen the competitiveness of everyday commercial districts and deliver real, tangible benefits to small business owners."


kaf2002@heraldcorp.com