[Report] Heukridan-gil, Gongridan-gil, Mallijae-gil... Why MZ Generation Visits Even Without Fame

Young Generation's 'Hidden Alley Exploration' Trend
Unique Store Interiors and Content Appeal
41% of Dining Industry Sales from 2030 Generation
Manrijae-gil in Jung-gu and Golidan-gil in Nowon-gu
Unfamiliar Alley Markets Gaining Word of Mouth Gradually

Around 6 p.m. on the 1st, Heukridan-gil in Dongjak-gu, Seoul. The alley, which was quiet during the daytime, began to fill with people one by one as evening approached.
Photo by Hwang Seoyul

[Asia Economy Reporter Hwang Seoyul] On the afternoon of the 1st at 6 PM, I visited ‘Heukridan-gil’ in front of Heukseok Station, Dongjak-gu, Seoul. Unlike the quiet daytime, as evening approached, groups of people gathered inside the stores in the area. Not only the long-established shops but also the so-called ‘hip’ bars were filled with young people. In another alley, a man who seemed to have come in by chance said to his companions, "This place is a hidden gem too. Let’s come here to eat later." The beer house operating with open windows in the early summer weather was already bustling.

Heukridan-gil is not as famous a commercial district as Garosugil or Hongdae, but it is attracting young people and generating decent profits. According to Seoul City’s Our Neighborhood Store Commercial District Analysis Service, the average monthly sales per store in Heukridan-gil in the fourth quarter of last year was 11.7 million KRW, an increase of 3.61 million KRW compared to the same quarter the previous year and 1.28 million KRW compared to the previous quarter, showing improved sales despite the COVID-19 situation. When asked about vacant rental stores in Heukridan-gil at a nearby real estate office, the answer was "none at all." The head of A Real Estate Agency explained, "Even if social distancing had not been eased, sales have been steady, so merchants do not leave easily."

Heukridan-gil was originally a small commercial district in Heukseok-dong centered around Chung-Ang University and Chung-Ang University Hospital. However, recently, word of mouth has spread, and more people from outside have been visiting. Especially, the consumption preferences of the MZ generation (Millennials + Generation Z) seem to be influencing the commercial district. Preference consumption refers to a consumption style that expresses one’s tastes or individuality. The top age group for dining sales in Heukridan-gil is people in their 20s (22.9%), and when including those in their 30s, it reaches 41.6%. Kim, a self-employed restaurant owner, said, "Even though it’s a neighborhood commercial district, many customers find the store through the internet," adding, "After visiting, people are surprised that such a street exists in Heukseok-dong."

Premium fees are also forming in the commercial district. Premium fees refer to the money paid by a new tenant to the existing tenant as compensation for the location’s reputation, loyal customers, or other locational benefits of the real estate. Kim said, "Compared to five years ago, as the commercial district has developed, premium fees have also formed." The head of B Real Estate Agency in the area also said, "There are no vacancies, but if you pay the premium fee, there are places you can move into."

Manrijae-gil, Jung-gu, Seoul. The number of citizens visiting this place has increased significantly due to its quiet atmosphere and unique stores.
Photo by Kwak Minjae

Heukridan-gil is not the only place where preference consumption affects commercial district sales. The somewhat lesser-known alley commercial districts such as ‘Mallijae-gil’ behind Seoul Station in Jung-gu and ‘Gongridan-gil’ in Nowon-gu are also attracting the MZ generation. A common feature is that many stores are not franchises. Therefore, they are full of individuality in interior design and plating, and are often small-scale or operated by reservation only, adding to their rarity value. Lee Do-eun (25), who recently visited Gongridan-gil, said, "I didn’t even know Gongridan-gil existed," adding, "I searched for cafes I wanted to go to first, not paying attention to the commercial district."

The development of navigation apps is also one of the factors increasing sales in alley commercial districts. With map applications like Naver Map and KakaoMap, even if stores are not located on main roads, they can be easily found, making ‘hidden alley discovery’ a trend. Choi Ji-hye, a research fellow at Seoul National University Consumer Trend Analysis Center, said, "The MZ generation prefers hidden places rather than large commercial districts that everyone can visit," adding, "Unique content or stories of the stores have become important factors for self-employed business owners to attract customers."