[Commercial District Transformed by Yongwadae] Yongridan-gil Shops 'Zero Vacancy'... Key Money Asking Price Reaches 150 Million Won

Increase in Commercial Lease Inquiries After Cheongwadae Relocation
Inquiries Surge Despite Key Money of 100M to 150M KRW

'MZ Hot Place' Yongridan-gil Sees High Foot Traffic
Popularity Rises Amid Positive Outlook for Yongwadae's Main Commercial Area

"Concerns That It Won't Help Commercial Vitality in the Long Term"

A first-floor commercial space in Yongridan-gil undergoing internal remodeling for store opening.

[Asia Economy Reporter Jeon Jinyoung] "You can expect that the empty buildings on the first floor that are not currently operating will soon become restaurants."

With the dawn of the ‘Yongwa-dae (Yongsan + Cheongwadae)’ era, the nearby commercial district of Yongridan-gil has also experienced a real estate boom. Known as a ‘hot place’ for the MZ generation (Millennials + Generation Z), combined with the special effect of the Cheongwadae relocation, it has become almost impossible to find vacant commercial spaces.

A real estate agent specializing in Yongridan-gil told Asia Economy on the 23rd, "Since the Cheongwadae moved to Yongsan, inquiries about leasing vacant commercial spaces from Exit 13 of Samgakji Station on Seoul Subway Line 6, right in front of Cheongwadae, to Yongridan-gil have increased significantly."

He added, "Most of the vacant first-floor spaces in buildings on Yongridan-gil have already been contracted to become restaurants, cafes, or bars," and "Demolition is complete, and only construction is pending." While some places are asking for key money ranging from 100 million to as much as 150 million KRW, these listings disappear as soon as they come out.

A merchant in Yongridan-gil said, "As key money keeps rising, ‘preliminary work’ involving negotiations through real estate agents is necessary to secure a commercial lease."

Originally, the commercial district near Yongwadae was considered a ‘prime spot for business’ by self-employed people even before the Cheongwadae relocation. With many exotic restaurants such as Thai and Vietnamese, it continuously attracts the MZ generation, and the presence of long-established stores makes it a lively commercial area frequently visited by local residents and nearby office workers. The intersection of Seoul Subway Lines 4 and 6 also brings a large floating population.

According to the data platform Datas, the floating population in Hangangno-dong, Yongsan-gu, where Yongridan-gil is located, averages 353,930 on weekdays and 282,837 on weekends. With the opening of the Yongwadae era, it is expected to become a major commercial district used by Cheongwadae officials, which appears to have triggered the ‘zero vacancy’ phenomenon.

However, there are concerns that while the Cheongwadae relocation may temporarily bring a real estate boom, it may not help revitalize the commercial district in the long term. Kim, who runs a tavern in Yongridan-gil, said, "People trying to move in will try to capitalize on the Cheongwadae relocation special effect, but existing merchants in Yongridan-gil are rather negative about the move," adding, "The deployment of police forces and frequent protests might actually deter customers."