This research deals with the causes of providing local content and the competitive culture city development. Local content is based on localness (or regionalness), regionalism, community value, identity, and localization strategy. The concept of a culture city, originated from Europe, is connected to revitalization, the old town project, and the creative city. In terms of types, there are the type of culture and art, type of city management, type of content creation, and type of community. In Korea, the culture city project has been active since 1995. Gwangju`s Asian Culture City Project and Busan`s International Visual Content City Project, started in 2008, and the recent focus, Gangreung`s Culture Olympic Project, are big cases for this paper. All of these national projects have been poorly evaluated due to communication loss and an over dependency on external cultural resources. Regarding these problems, this paper analyzed two causes, the distorted mixed economy and the failure of operations. With this perspective, this research proposes a new innovative model of mixed economy emphasizing the value of localness and the identity of a certain region. The sharing and collaboration of business out of such brand new mixed economy could be a good solution for the sake of a successful culture city in Korea.