Study on the Direction of Improvement of Local Commercial District Support Policy
Year2024
Author Shin Ki-dong
Original
Abstract
The purpose of this study is to diagnose various problems in the local commercial district support policy derived from the legal commercial district system introduced based on the Traditional Market Act and to seek a plan to reorganize the local commercial district-related laws as a prescription for resolving the problems. The significant results derived through the research and analysis regarding the major issues related to the local commercial district legislation presented in the introduction can be summarized as follows.
First, the need for special support for traditional markets under the pretext of protecting domestic industries due to the opening of the distribution market is judged to have virtually disappeared.
Second, the industrial status of legal commercial districts such as traditional markets, which have been the core areas of local commercial district support policies for the past 20 years, has been relatively and absolutely diminished, which is lowering the policy importance of legal commercial districts and weakening the validity of special support according to special laws.
Third, consumers have a higher positive perception of the necessity of protecting traditional markets and the validity of policy support, so it is recognized that the current traditional market support policy needs to continue.
Fourth, the basic direction of the regional commercial district support policy needs to be expanded and reset in the direction of pursuing ‘universal balanced support for small business-dense commercial districts’ rather than ‘special intensive support for traditional markets’.
Fifth, the attractiveness and satisfaction of traditional markets are higher in metropolitan areas, and the gap between regions is widening in the performance of traditional market support policies compared to the investment, so it is necessary to apply a differentiated traditional market support model that takes regional conditions into account.
Sixth, the Korean government has recently shown a tendency to expand the use of private capabilities in commercial district revitalization support projects, but it is judged that the effectiveness of utilizing private capabilities can be maximized when public capabilities are strengthened through strengthening the policy planning capabilities of local governments and institutionalizing comprehensive plans for regional commercial district revitalization.
Finally, in order to improve the effectiveness and sustainability of local commercial district support policies, strengthening the self-reliance of merchant organizations is a prerequisite. Japan, which lacks a local commercial district system like Korea, selects support targets based on whether merchant organizations are incorporated and their business capabilities, which is worth referencing for rationalizing Korea’s commercial district-related laws.
First, the need for special support for traditional markets under the pretext of protecting domestic industries due to the opening of the distribution market is judged to have virtually disappeared.
Second, the industrial status of legal commercial districts such as traditional markets, which have been the core areas of local commercial district support policies for the past 20 years, has been relatively and absolutely diminished, which is lowering the policy importance of legal commercial districts and weakening the validity of special support according to special laws.
Third, consumers have a higher positive perception of the necessity of protecting traditional markets and the validity of policy support, so it is recognized that the current traditional market support policy needs to continue.
Fourth, the basic direction of the regional commercial district support policy needs to be expanded and reset in the direction of pursuing ‘universal balanced support for small business-dense commercial districts’ rather than ‘special intensive support for traditional markets’.
Fifth, the attractiveness and satisfaction of traditional markets are higher in metropolitan areas, and the gap between regions is widening in the performance of traditional market support policies compared to the investment, so it is necessary to apply a differentiated traditional market support model that takes regional conditions into account.
Sixth, the Korean government has recently shown a tendency to expand the use of private capabilities in commercial district revitalization support projects, but it is judged that the effectiveness of utilizing private capabilities can be maximized when public capabilities are strengthened through strengthening the policy planning capabilities of local governments and institutionalizing comprehensive plans for regional commercial district revitalization.
Finally, in order to improve the effectiveness and sustainability of local commercial district support policies, strengthening the self-reliance of merchant organizations is a prerequisite. Japan, which lacks a local commercial district system like Korea, selects support targets based on whether merchant organizations are incorporated and their business capabilities, which is worth referencing for rationalizing Korea’s commercial district-related laws.
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