Local culture is a cultural heritage that has come down from generation to generation in the natural environment of a region. It includes history, tradition, natural features, art, and historic relics. The Academy of Korean Studies has complied “The Encyclopedia of Korean Local Culture” using those local culture contents. Local culture content shave the features of documentary, such as authenticating the source, and managing hierarchy structure. Thus, to deal with local culture contents, a “circular knowledge information management system” is sought for that helps basic, fragmentary, and high-level information to circulate to create new knowledge information within the system. A user of this circular knowledge information management system is able not only to collect data directly in it, but also to fetch data from other database. Besides, processing the collected data helps to create new knowledge information. But, it’s very difficult to sustain the features of the original hierarchy bearing meaning contained in the various kinds of local culture contents when building a new database. Moreover, this kind of work needs many times of correction over a long period of time. Therefore, a system in which compilation, correction, and service can be done simultaneously is needed. Therefore, in this study, focusing on the case of “The Encyclopedia of Korean Local Culture”, I propose a XML-based digital compilation management system that can express hierarchy information and sustain the semantic features of the local culture contents containing lots of ancient documents, and introduce the expanded functions developed to manage contents in the system.