A Local Economic Development Strategy: Evidence from Traditional Market DistrictsTraditional Market Districts

This research focuses on the Korean government’s strategy for nurturing specialized markets to revitalize the traditional business district. After a Special Act for Nurturing Traditional Business District of parliament was enacted in 2004, the Korean government is pushing ahead with a project for nurturing public markets to support various types of markets by selecting them according to a focus strategy. The public markets project, for which the government provides financial support and management consultants, aims to convert the local traditional business districts into modern-style supermarkets with up-to-date facilities, as traditional business districts are now less popular than their competitors, which include large discount stores. The research was conducted to analyze strategies for revitalizing traditional business districts looking particularly at problems with support, and the effects of government support. We carried out empirical analysis to verify how government-sponsored policy effects targeted local consumers. Empirical analysis indicates that of the nine selection variables used with regard to retail stores, five variables influence customer satisfaction significantly. In terms of so-called hardware, the presence of convenient transportation, parking facilities, modernized market facilities, and buildings have a positive influence on customer satisfaction. In terms of so-called software, the quality and price levels of products and the kindness of merchants influence customer satisfaction. We suggest that government-led sustainable traditional market support policies, which are aimed at the revitalization of local economies are very useful.