Jeonju, South Korea – Jeonbuk Province has announced a comprehensive economic revitalization plan, earmarking KRW 78.7 billion (approximately USD 57.7 million) to bolster local commerce, support small businesses and startups, and invigorate traditional markets. The province unveiled its strategy on Tuesday, emphasizing its commitment to injecting vitality into the regional economy.
A key component of this initiative is the expansion of the "Jeonbuk Love Gift Certificate" (지역사랑상품권) program, a regional currency designed to encourage local spending. The issuance volume will increase to KRW 1.33 trillion (approximately USD 977 million), a KRW 25 billion increase compared to the previous year. Provincial authorities anticipate that this direct, community-focused support will significantly contribute to the revenue recovery of neighborhood businesses and micro-enterprises, which form the backbone of Jeonbuk's local economy. These gift certificates are typically sold at a discount, providing consumers with an incentive to spend at participating local stores, restaurants, and service providers, thereby fostering a virtuous cycle of economic activity within the province.
Further bolstering support for small business owners (소상공인), Jeonbuk Province will double its subsidy for the "Yellow Umbrella Mutual Aid" (노란우산공제). This scheme provides business owners with unemployment benefits and vocational training expenses upon closure. The monthly support will rise from KRW 10,000 to KRW 20,000, offering a greater safety net and encouraging participation in this crucial program. The Yellow Umbrella Mutual Aid is a unique Korean social safety net designed specifically for small business owners who are often excluded from traditional employment insurance schemes.
Recognizing the cultural and economic significance of traditional markets (전통시장), the province has allocated KRW 240 million to support their revitalization. This funding will be distributed among nine traditional markets within Jeonbuk, enabling them to host their own unique festivals and reinforce fire and disaster prevention facilities. Traditional markets in South Korea are facing increasing competition from large retailers and online shopping platforms, making these targeted investments crucial for preserving their vibrancy and heritage. These markets are not only centers of commerce but also vital community hubs, offering a wide array of local produce, goods, and a unique cultural experience.
In a bid to attract investment and foster industrial growth, Jeonbuk Province is moving forward with the establishment of a Small and Medium-sized Enterprise (SME) Growth Center in the Saemangeum Industrial Complex. With a planned investment of KRW 32 billion by 2027, the center aims to attract technologically advanced SMEs and cultivate a robust value chain among related industries within the Saemangeum area. Saemangeum is a large reclaimed land area on the west coast of South Korea that the government is actively developing into a hub for business, industry, and tourism. The SME Growth Center is envisioned as a key element in attracting innovative companies and creating a dynamic industrial ecosystem within this emerging economic zone.
Furthermore, Jeonbuk Province is committed to nurturing its startup ecosystem through increased venture capital investment. An additional KRW 4.1 billion will be injected into the "Jeonbuk-type Venture Fund," bringing the province closer to its goal of raising KRW 1 trillion in venture funds within the current gubernatorial term. This strategic focus on venture capital aims to fuel the growth of promising startups, create high-quality jobs, and drive innovation across various sectors within the regional economy. By fostering a supportive environment for entrepreneurs, Jeonbuk Province seeks to position itself as a dynamic center for innovation and technological advancement.
Kim In-tae, Head of Jeonbuk Province's Investment Attraction Division, stated, "We aim to create a turning point for economic recovery by injecting vitality into the entire regional economy, from local commercial districts to corporate growth and the startup ecosystem." This multifaceted approach underscores Jeonbuk Province's dedication to building a resilient and prosperous future for its residents and businesses. The initiatives announced today represent a significant investment in the province's economic well-being and signal a proactive stance towards addressing the challenges facing local economies in the current climate.
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