AI Street in Gwangju: Will This 600 Billion Won Project Solve the City’s Vacancy Crisis?

Translation result

[Herald Economy (Gwangju)=Seo In-ju] Kang Ki-jung, the Democratic Party’s preliminary candidate for the special, integrated mayoralty of Jeonnam and Gwangju, said he will push to create an “AI Street” running from Daein-dong to the area around Gwangju Station to address the chronic hollowing out of the old downtown.

Rather than relying on one-off cash subsidies or cosmetic repairs, Kang plans to leverage the 600 billion KRW AX Demonstration Valley project (450 million USD) as a validation hub. His aim is to convert the area into a vibrant urban center that attracts firms and skilled workers.

In a press release on March 29, Kang argued, “Simply replacing sidewalk tiles or tidying storefront signs is meaningless. The fundamental solution to vacant properties in the old downtown is to bring in attractive businesses that revive commerce, draw people back, and create an ecosystem supported by public institutions.”

He proposes designating the Daein-dong–Gwangju Station corridor as the city’s first “AI Street,” opening it as a testing ground for corporate technology pilots and then scaling the model across Gwangju.

He also proposes a tailored, decentralized second wave of public-agency relocations, repurposing existing vacant buildings in line with President Lee Jae-myung’s broader policy on moving public institutions. By prioritizing placement of relocated agencies into underused downtown spaces, Kang says the plan will reduce vacancy rates and maximize synergies between administration and industry.

Kang plans to expand AI Startup Camp No. 1 and No. 2 branches currently operating on Geumnam-ro, creating hubs for young entrepreneurs and injecting energy into the city center.

To improve the proposal’s feasibility, Kang is building a public-private partnership framework. He said he has reached a preliminary consensus with major landlords and local residents in Daein-dong on establishing an AI Street and introducing half-price rents for participating tenants.

The model calls for the municipal government to concentrate AI infrastructure and demonstration incentives in the area to make it more attractive to companies; landlords would reciprocate with lower rents, creating a virtuous cycle of business attraction.

“Creating an AI Street in the old downtown will transform the city’s character,” Kang said. “Starting with Daein-dong and the Gwangju Station area, we will expand AI Streets across Gwangju and complete a prosperous Gwangju Special City where people can find jobs and a future without having to go to Seoul.”