This study focuses on the economic effect on regional development and spatial distribution of community festivals and events as a regional development strategy in South Korea. Community festivals are totally estimated to 893 cases in 2009, and most of festivals were newly established since 1995. Spatial Distribution of festivals show regional differences. Many of festivals was hold in Jeju, Gyeongnam, Ulsan, and Chungnam provinces, however, Gyeongbuk, Jeonnam, Gwangju, and Gyeonggi provinces were distributed less. The total number of cultural tourism festivals selected as best festival by central government were increased from 10 in 1997 to 57 in 2009, and the everage local economic effects of one cultural tourism festival were also increased from14.2 billion won in 1997 to 33.3 billion won in 2008. In order to estimate the relationship between community frstivals and local economic effect, Geumsan Insam Festival, Muju Firefly Festival, and Hampyeong Butterfly Festival are selected as case study. These three festivals were successful in the tourist attraction, and it were also affected positively to local economic effect.