Frequent Dining at Long-Established Restaurants Due to Cheong Renovation
Key Money Soars to 150 Million Won but Commercial Spaces Get Snapped Up Immediately
Nearby Restaurants Also Begin Installing Private Rooms
[Asia Economy Reporter Jeon Jinyoung] With the dawn of the ‘Yongwae-dae (Yongsan + Cheongwadae)’ era, changes are occurring in the nearby commercial district landscape. Surrounding commercial properties are quickly being leased out, entering a ‘zero vacancy’ phase, and key money has surged to around 150 million KRW. Additionally, restaurants have started creating private rooms for group customers. The relocation of the presidential office has sparked a boom in the Yongsan commercial district.
◆ Traditional establishments and MZ generation ‘hot places’ become presidential office ‘hot spots’ = According to related commercial districts on the 25th, the traditional restaurants and MZ generation (Millennials + Gen Z) eateries in Yongridan-gil, where local elders and nearby office workers used to enjoy a glass of soju in the evening, have transformed into hot spots for reporters, secretaries, and other personnel accessing the presidential office. Merchants are also feeling the change. Kim, who runs a restaurant in Yongridan-gil, said, "Originally, it was a place for locals and nearby office workers, but now people in suits come in to dine and talk politics, so we assume they must be from the presidential office." Presidential office staff in their 40s and 50s visit famous traditional restaurants near Samgak Station, such as a 50-year-old beef offal restaurant Pyeong0jip and Bong0jip, known for chadolbagi (beef brisket). Younger staff and reporters often meet at burger and pizza places like Ba0 Burger and Ro00 Pizza, which are about a 10-15 minute walk from the presidential office. A political insider said, "Since the presidential office’s internal restaurant is currently under construction, they have no choice but to use the existing commercial district. Even traditional restaurants without private rooms have people sitting closely together to eat."
◆ Zero vacancy and key money soaring to 150 million KRW = Yongridan-gil, known as a ‘hot place’ for the MZ generation, has experienced a real estate boom fueled by the ‘Yongwae-dae special effect.’ Originally, this area was considered a ‘prime spot for business’ due to the high foot traffic from the intersection of Seoul Subway Lines 4 and 6. The expectation that it would become a major commercial district for presidential office staff has led to the ‘zero vacancy’ phenomenon. A real estate agent in Yongridan-gil said, "Since the presidential office moved to Yongsan, inquiries about leasing commercial vacancies have increased significantly."
Due to this popularity, key money has risen from 100 million KRW to as much as 150 million KRW, but properties are snapped up as soon as they come on the market. Another real estate agent said, "Most of the vacant first-floor buildings in Yongridan-gil have already been leased and are awaiting construction. Most will become restaurants, bars, or cafes." However, there are concerns that this popularity may not last long. While it could become a major commercial district for presidential office staff, police deployments and frequent protests might deter existing customers from visiting.
◆ Where the presidential office goes, good restaurants follow... Yongsan is changing = When the presidential office was located in Jongno-gu, the commercial district formed around Gyeongbokgung Station on Seoul Subway Line 3 and Samcheong-dong, with steady visits from staff. Gyeongbokgung Station, frequented mainly by high-ranking officials, became famous for its upscale Korean traditional restaurants, and wine bars began to appear near Samcheong-dong close to the Chunchoogwan where reporters are based. Since major government offices and commercial districts are closely linked, the Yongwae-dae commercial district is expected to undergo similar changes as the presidential office did in Jongno-gu. Currently, there are no upscale restaurants with private rooms near the presidential office. To hold quiet meetings, reservations must be made at the Amorepacific headquarters building’s restaurant.
In response, restaurants are considering installing private rooms during interior renovations to accommodate group customers. Kim, a self-employed person in their 30s opening a restaurant in Yongridan-gil in June, decided to convert the basement space entirely into a private room. He explained, "I heard about the Cheongwadae relocation during construction and decided to create a private room at the same time." Additionally, the need for valet parking spaces for vans and expansion of public parking lots has been raised. Currently, nearby parking lots are limited to the public parking lot behind Samgak Station and some private parking lots. However, there are no plans for expansion yet. A Yongsan District Office official said, "No reports or plans for constructing new parking lots have been submitted yet. We are monitoring the situation."
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