Endogenous development strategy is becoming more important in vitalizing declining rural areas. The key point of endogenous development strategy is to establish localized production systems in which goods and services are produced based on mobilization of local intrinsic resources. In the 2000s, a variety of policies to exploit local intrinsic resources and vitalize rural areas have been implemented based on endogenous development strategy. Still, most of such policies had limitations in planning and implementing related policy programs because of the lack of integrated perspective on industrial systems or industrial policies. Under such a situation, this study tries to conceptualize exploitation and industrialization of local intrinsic resources in rural areas as rural cultural industries. And this study includes analyses of the conditions and characteristics of rural cultural industries, and policy directions to promote the industries as well.
To conceptualize and categorize rural cultural industries, we reviewed a variety of previous studies on industrialization of local intrinsic resources in rural areas. We carried out a survey targeting 139 rural areas (Sis and Guns) to investigate the conditions and characteristics of the industries. We also investigated the systematic traits of the industries such as production systems through in-depth interviews with related public officials and business CEOs. In addition, we conducted an in-depth case study on a local area to analyze industrial structures, local conditions, industrial policy directions of rural cultural industries from a territorial perspective. Lastly, we reviewed critically the existing laws and policies related with supporting rural cultural industries to suggest policy recommendations.
In this study, we defined rural cultural industries as production systems in which cultural heritages in rural areas are commercialized for the pursuit of profits. We also suggested that rural cultural industries are composed of 5 sub-sectors: local and traditional food industry, traditional crafts industry, traditional art festival and performance, rural tourism based on cultural remains, and agri-tourism. Even though rural cultural industries have a relatively small national market size, they are of great importance to local economic growth of each rural area. In 2010, 12,503 firms were belonged to rural cultural industries hiring 117,672 people. Their total sales amount is presumed to be about 1,700 billion won in the same year.
Rural cultural industries have positive socioeconomic effects on rural areas. First, the industries offer niche markets for rural entrepreneurs. Second, the industries help to establish sustainable local economic systems. Third, the industries promote industrial development in rural areas by backward and forward linkages among sub-sectors. And lastly, the industries enhance the quality of lives of rural residents.
In this study, we suggested some policy directions to promote rural cultural industries. First, enactment of relevant laws is sought after and policy programs must be planned to promote the industries. Second, cooperative networks need to be established among main related authorities in local governments, as well as in the central government. Third, to increase productivity of the firms in the industries, central and local governments should help to modernize production facilities and cultivate talented persons. Fourth, the buying public must be expanded by promoting consumers" understanding of the value of rural cultural industries and their goods and services. Lastly, for the development of rural cultural industries, local governments and their residents must exploit their own cultural attractions and resources.