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Busan Metropolitan City Announces the “2030 Busan Glocal Commercial District Innovation Strategy” to Build a Robust Ecosystem for Commercial District Recovery and Growth

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it held the 53rd Emergency Economic Countermeasures Meeting today (2nd) at 10:30 a.m. on the 6th floor of Busan LICON Town at Jagalchi Modernized Market in Jung-gu, where experts from various sectors, small business owners, commercial district planners, and representatives of related organizations gathered to discuss the “2030 Busan Glocal Commercial District Innovation Strategy.”

Amid a structural economic shift in which self-employed businesses are decreasing and polarization among commercial districts is intensifying regional imbalances, the city has sought to help small businesses land as stably as possible by aggressively expanding support policies. These include providing a record-high 2 trillion 330 billion won in policy funds—nearly double the amount provided in 2020—and increasing the comprehensive support budget for small businesses to 104.9 billion won, three times higher than in 2020.

Nevertheless, with continued difficulties such as rising vacancy rates and widening disparities among commercial districts, the city convened this meeting to discuss strategies for fostering “sustainable commercial districts and competitive small businesses” that can adapt to rapidly changing market environments.

Through today’s meeting, the city collected opinions from experts, small business owners, and commercial district planners to establish the “2030 Busan Glocal Commercial District Innovation Strategy,” which will invest and support a total of 12 trillion 145.9 billion won across four areas, 11 strategies, and 36 detailed projects by 2030.

The strategy envisions Busan as a “glocal commercial district hub city visited by people from around the world” and focuses on fostering 140 innovative small businesses, creating 30 glocal commercial districts, revitalizing local consumption, and supporting the recovery of 22,000 crisis-hit small businesses annually.
To achieve this, the city plans to create a 5 billion won LICON Fund exclusively for small businesses, support advanced development of entrepreneur-type small businesses in the food and beverage (F&B) sector, promote glocal commercial district revitalization projects, and expand financial support by an additional 100 billion won.

[Strengthening Small Business Competitiveness]
First, the city will foster 140 innovative small businesses as Busan’s representative brands and establish a foundation for sustainable growth by strengthening digital capabilities and expanding financial support.

– Representative Brand Development: A staged growth support program linking “discovery–development–investment” will be provided to foster promising small businesses into representative Busan brands.
– Digital Capacity Building: In line with shifting consumer patterns, digital competitiveness will be strengthened for 1,000 small businesses annually to help boost sales.
– Financial Support: The record-high 2 trillion 330 billion won in small business and SME policy funds provided this year will be expanded further to 2 trillion 133 billion won next year, an increase of 100 billion won. The city will also ease the financial burden on SMEs and small businesses by raising the interest subsidy rate (from the current 1.0–1.5% to 1.5–2.0%).

[Developing Glocal Commercial Districts]
The city will develop glocal commercial districts that attract global visitors by strengthening the self-sufficiency of unique neighborhood commercial districts, promoting revitalization projects, and addressing vacancy issues.

– Neighborhood Commercial Districts: Neighborhood districts composed mainly of micro-scale shops will be organized to integrate them into formal systems and reinforce self-sustaining capabilities.
– Commercial District Revitalization: To reinvigorate stagnating commercial areas, the city will designate 30 glocal commercial district revitalization zones reflecting local characteristics and provide up to 10 billion won per zone over five years.
– Vacancy Solutions: To address long-standing vacancy issues, the city will introduce a pilot management trust system to systematically manage and operate vacant properties, run a vacancy information center, and provide consultation services.

[Stimulating Domestic Demand and Consumption]
To boost local consumption, the city will upgrade the functions of local currency and implement various consumption-promotion programs to drive an economic virtuous cycle.

– Advancing Local Currency: The city will enhance the functions of its local currency system by issuing Dongbaekjeon corporate vouchers for private companies and offering additional Dongbaekjeon cashback in pilot glocal commercial district revitalization zones.
– Consumption Promotion: To increase sales for small businesses, Busan will continue the “Busan Sale Festa” and Onnuri Voucher refund support programs, while strengthening promotional programs tailored to the characteristics of each market.

[Building a Recovery and Safety Net for Small Businesses]
The city will strengthen support for business recovery among small businesses facing financial crises and expand social and institutional safety nets for small businesses—which tend to have weaker protections than wage earners—to ensure stable operations.

– Recovery Support: A comprehensive package will be provided to small businesses experiencing operational difficulties to prevent crises from worsening, and a new “Restart Support Package” will be introduced for those undergoing debt adjustment, offering customized support options.
– Building Social Safety Nets: The city will launch its first-ever “Mutual Growth Safety Insurance” program to help small businesses prepare for various risks, fully covering 2 billion won annually in life and general insurance premiums for three years.

Mayor Park Heong-joon stated, “With foreign tourist arrivals surpassing 3 million for the first time in Busan’s history, and with rapid growth in tourism demand across maritime, cultural, and culinary sectors, new opportunities for small business growth are emerging.”
He added, “Busan Metropolitan City will work closely with relevant institutions to implement this innovation strategy substantively and strengthen communication so that business owners can genuinely feel the changes and policy effects.”
He further emphasized, “As Busan advances toward becoming a global hub city, we will ensure the revitalization of commercial districts across the city and create commercial areas that visitors want to return to—infused with Busan’s unique appeal and a global sensibility.”