Major Korean tech giants Naver and Kakao—collectively known as "NaKao"—are expanding regional coexistence initiatives in the Jeonnam and Gwangju regions, injecting vibrant energy into local economies.

Industry analysts evaluate that these platform giants are successfully connecting the region’s rich historical and cultural resources, as well as southern culinary traditions, with their proprietary digital platforms and technologies, thereby unlocking new growth potential for stagnant alleyway businesses.

According to Gwangju’s Dong-gu District, Naver and the district recently co-hosted the "Local Growth Gwangju Meetup" at the Asia Culture Center. The event was designed to enhance the digital capabilities of local small business owners and creators while sharing success stories of regional coexistence and local brand growth.

The meetup was held in conjunction with the 6th Dongmyeong Coffee Walk. As part of the initiative, 49 local establishments—including cafes, restaurants, independent bookstores, and workshops—were featured in a curated "Local Growth Gwangju Saved List" on Naver Maps. Tourists who saved the list and verified their visits during the festival received commemorative souvenirs.

Earlier in October, Naver also hosted the "Local Growth Mokpo Meetup" to boost engagement around the Mokpo Port Festival. Naver introduced 50 local eateries, cafes, and snack shops via Naver Maps and provided 2,000-won discount coupons for participating stores. Promotional booths were operated at Samhakdo and Peace Square, encouraging visitors to explore local alleyways through souvenir incentives for verified visits.

Kakao has similarly driven digital transformation in local commerce, partnering with Mokpo City to help certain merchants achieve sales increases of over 30%. Through its "Visiting Regional Commercial Area Revitalization" program, Kakao operated tailored online and offline support programs—such as live-commerce training for merchants and the cultivation of local youth tutors known as "Digital Supporters"—targeting three traditional markets, including Mokpo Dongbu Market, and downtown commercial districts.

The participating commercial areas each secured nearly 2,000 KakaoTalk channel friends, enabling merchants to effectively deliver vital information, such as Onnuri gift certificate refund events, directly to consumers. According to Mokpo City, this digital outreach contributed to sales spikes of over 30% for participating stores.

This collaboration paved the way for Mokpo to be selected as the first pilot region for Kakao’s regional coexistence project, "Gok-Gok." Operating in tandem with Kakao’s small-business support initiative "Project Dangol," "Gok-Gok" highlights local shops, people, and alley stories as travel content.

Between July and August, Kakao provided one-on-one digital education and marketing support across four Mokpo commercial districts, including Dongbu, Cheongho, and Jayu markets. Kakao also provided channel message dispatch subsidies worth 300,000 KRW per store and 3 million KRW per commercial district.

To bridge regional festivals and alleyway commerce, Kakao introduced "Dangol Bus," a free shuttle service running from Mokpo Station through the four commercial districts and extending to festival venues during events. Tourists collected digital verification cards by scanning QR codes at downtown shops, receiving bags, keyrings, and other souvenirs upon completion.

The choice of Jeonnam-Gwangju as a primary stage for these initiatives stems from the region’s unique cultural and tourism assets. Dongmyeong-dong in Gwangju and downtown Mokpo feature distinct cafes, restaurants, and cultural spaces centered around historic, atmospheric alleyways. Traditional markets, regional festivals, and abundant culinary offerings further serve as competitive magnets for travelers.

Notably, these projects were executed without the injection of local government budgets. Breaking away from the traditional model where municipalities spend budgets to attract corporations, the companies proactively approached local governments to propose collaboration.

Beyond "NaKao," a wave of other major corporations is stepping up to support local small businesses in expanding their sales channels. On the 20th, eight major companies—including Woowa Brothers (Baemin), Korea Electric Power Corporation (KEPCO), and Kia—signed a coexistence agreement with Jeonnam-Gwangju to support local merchants. Baemin joined the Jeonnam-Gwangju local food channel expansion project to broaden distribution pathways for regional food enterprises.

Coupang has also launched its Honam Digital Jump-Up Academy this year, selecting 50 local small businesses to provide specialized training in online sales strategies and digital marketing.

[Copyright (c) Global Economic Times. All Rights Reserved.]