Gyeongju Launches Bold Digital Expansion Plan to Revitalize Struggling Local Economy

Gyeongju City will invest 400 million won to help 85 small businesses and SMEs establish digital sales channels. This initiative seeks to revitalize the local grassroots economy by shifting traditional business models toward mobile and online platforms, according to city officials.

The program targets 85 local companies to facilitate their entry into the e-commerce market. City representatives stated the funding is a direct response to a stagnant local economy, aiming to modernize the operational structure of small-scale vendors in North Gyeongsang Province.

How will the 400 million won investment be used?

Gyeongju City is allocating the 400 million won budget to provide a comprehensive support system for digital expansion. The city is employing a direct method to transition these 85 businesses from physical-only operations to mobile-centric commerce.

The support focuses on changing the fundamental business constitution of the participants. This includes the development of online storefronts and the integration of mobile sales tools to reach a broader consumer base beyond local foot traffic.

Why is Gyeongju City shifting to digital sales?

The shift is designed to combat the decline in the bottom-level livelihood economy. City officials identified that traditional brick-and-mortar models are insufficient for current market demands, necessitating a move toward online accessibility.

Because Gyeongju serves as a primary cultural and tourism hub, the digitalization of local SMEs allows vendors to maintain revenue streams independently of seasonal tourism fluctuations. By establishing a digital presence, these businesses can engage customers before they arrive in the city and continue sales after they depart.

What are the expected outcomes for local businesses?

The city expects the 85 participating companies to see an increase in market reach through the adoption of online platforms. This transition is intended to stabilize income for small business owners who have struggled with the current economic downturn.

The initiative contrasts with previous general subsidies by focusing specifically on the technical transition to mobile commerce. This targeted approach aims to ensure that the local economy remains competitive as consumer behavior shifts toward digital-first shopping.

City officials indicated that the program is a strategic effort to ensure that the “bottom-level” economy is not left behind during the broader digital transformation of the Korean retail sector.