[Report] Yongsan Commercial District 'Uproar' Over Cheongwadae Relocation

"Expectations of 'More Customers'" vs "Concerns of 'Rising Rent'" Intersect
"Neighborhood Deteriorates" vs "Commercial Area Revives" Divided Opinions

The commercial area near the Yongsan Ministry of National Defense building, where the Blue House will be relocated.

[Asia Economy Reporter Jeon Jinyoung] "I voted for number 2, but I'm worried sick that the rent will go up."

Mr. Jang, in his 60s, who runs a cafe near Samgak Station on Seoul Subway Line 4, expressed frustration about President-elect Yoon Seok-yeol's pledge to relocate the Blue House to Yongsan, saying, "I voted with the hope of a regime change, but now I'm rather worried."

On the 20th, when the decision was made to move the Blue House office to Yongsan, the commercial district near the Ministry of National Defense building in Yongsan, where the Blue House will be located, was abuzz. Among merchants, expectations that the local economy, which had been depressed due to COVID-19, would revive were mixed with concerns about negative effects such as rising rents.

Within a 10 to 15-minute walk from the relocation site is 'Yongridan-gil.' Although the street was quiet due to the weekend, couples out on dates were seen in small groups. Yongridan-gil is a place popular among people in their 20s and 30s, where old establishments and new restaurants in Yongsan coexist. Most merchants here were generally negative about the Blue House relocation. Mr. Kang, in his 50s, who runs a restaurant, said, "Honestly, I hope they don't come. Do you even know why they are coming?" Kang raised his voice, saying, "The area will become crowded, roads will be controlled, and if protests break out, the environment will worsen."

What merchants especially worry about is rent. There is concern that as people flock due to the Blue House relocation, landlords will raise rents accordingly. Mr. Kim Young-gyu, External Cooperation Director of the National Hof Association, who runs an izakaya, said, "Everyone has been unable to run their businesses for years due to COVID-19. With more people coming, the commercial district will revive," but added, "However, there is a strong concern that rents will be raised immediately as the number of people increases."

New cafes and restaurants entering Yongridan-gil come in aiming for relatively low key money compared to nearby famous commercial districts like Itaewon. For them, rent increases are inevitably a burden. A real estate agent explained, "Although not as high as Itaewon, the key money is not cheap. Especially restaurants ask for a lot of key money. Some places ask for as much as 100 million won."

Still, there is hope that the commercial district will regain vitality as people gather. Mr. Lee, in his 40s, who runs a cafe in Yongridan-gil, said, "Yongridan-gil is a place that mainly does business on weekdays because there are many companies nearby. If more people come, the commercial district will revive accordingly."

Opinions among merchants in the commercial district right in front of the Ministry of National Defense were split. Mr. Lee, in his 20s, who runs a chicken restaurant near Exit 1 of Samgak Station, said, "Since the Blue House hasn't moved in yet, I can't feel any direct impact," but expressed concern, "If protests break out, police buses will be deployed in front, and I'm worried the atmosphere will become hostile." On the other hand, Mr. Yoo, who has been running a Korean restaurant for five years, predicted, "With 500 people leaving the Ministry of National Defense and 500 people coming in from the Blue House, the commercial district will remain unchanged. I think the commercial district won't be much affected. It's just that people who own real estate here are restless."