SMEs, Land, Culture ministries launch 'Downtown RE:CORE Project'
Vacant shops, idle buildings to be renovated and linked to arts, startup content
1-2 sites per zone outside Greater Seoul to be selected; project to begin in 2027
The government is launching a regeneration initiative to renovate vacant storefronts and idle buildings in regional downtowns and turn them into activity spaces for young people, entrepreneurs and artists, combining physical renovation with startup and cultural content support under a single project.
The Ministry of SMEs and Startups, the Ministry of Land, Infrastructure and Transport and the Ministry of Culture, Sports and Tourism announced Tuesday they will pursue a pilot program called the "Downtown RE:CORE Project." The initiative comes as vacancy rates in regional commercial districts have worsened — the vacancy rate for small storefronts rose from 6.7 percent in 2022 to 8.5 percent this year, based on first-half figures.
Under the project, vacant shops will be purchased or leased long-term and converted into "downtown revitalization commercial spaces." The renovated spaces will house artists' studios, startup offices, co-working spaces and pop-up stores. Young residents, artists and entrepreneurs who move in will also receive rent support during the project period.
To ensure the spaces remain in use after the project ends, local governments will be required to draw up at least a 10-year operating plan for the revitalization commercial spaces, covering lease terms, rent levels and caps on rent increases.
Larger idle facilities in downtown areas — including abandoned public buildings, unused motels and clusters of vacant shops — will be developed into specialized hubs. Depending on local conditions, these may serve as cultural and arts centers, startup and local business incubators, commercial support facilities, or exhibition and retail spaces for local brands. Parking expansion, signage and facade improvements, and nighttime lighting will also be carried out.
The Ministry of Culture, Sports and Tourism will support the discovery of cultural content that can represent each region, in tandem with the physical regeneration work. Support will cover the full pipeline from content production through testing, refinement and distribution, with links to local festivals, cultural facilities and commercial districts. Cities that previously received government designation as "cultural cities" but have since exhausted their national funding will receive bonus points in the selection evaluation if they join the project.
In the early stages, pop-up stores using popular and locally rooted content will also be operated. Young content creators and startup founders who move into the downtown revitalization commercial spaces will receive activity grants.
The government will select one to two sites in each of the four major and three special regional zones outside Greater Seoul, with the pilot program set to begin in 2027. The plan calls for expansion to two to three sites per zone by 2029.
Selected areas will receive up to 21 billion won ($15.5 million) in national funding from the Ministry of Land, Infrastructure and Transport over four years. The Ministry of Culture, Sports and Tourism will provide up to 2.4 billion won for the production and dissemination of signature cultural content, and up to 840 million won for downtown revitalization using cultural content. Total national funding per selected area will reach a maximum of 24.24 billion won.
The Ministry of SMEs and Startups will link the project to existing programs, including local theme commercial districts, promising alley commercial zones, century-old markets and culture-tourism markets. Areas selected for the Downtown RE:CORE Project that participate in those related programs will receive preferential treatment in the selection process starting in 2028.
hong@heraldcorp.com
