[New Commercial Real Estate Map] Seongsu, Euljiro, Yongridan-gil... Gangbuk Commercial Districts Rising Following MZ Generation

Yongridan-gil, Seongsu, Euljiro, Seochon
Unique Gangbuk Commercial Districts on the Rise
MZ Generation Values Store Uniqueness Over Famous Districts

Around 8 p.m. on the 6th, an alley in Euljiro was visited. Despite it being a weekday, many young people were seen waiting in line for restaurants.
Photo by Hwang Seoyul

[Asia Economy Reporter Hwang Seoyul] Around 8 p.m. on the 6th, in front of an alley in Euljiro, Jung-gu, Seoul. Young people were waiting in line to enter a bar that evoked a Hong Kong atmosphere. From the signboard and interior to the plating, the store's ambiance reminded visitors of Hong Kong, and many were seen taking photos. Another bar operated on two floors. An employee explained, "The downstairs has a 'warm' atmosphere, while the upstairs is 'dreamlike'." This place quickly filled up with young people enjoying the unique atmosphere.

A wave of change is sweeping through the commercial ecosystem. Previously, foot traffic was concentrated around large commercial areas such as Hongdae and Myeongdong, but now unique northern Seoul commercial districts like Yongridan-gil, Seochon, Seongsu, and Euljiro are emerging. This phenomenon is also reflected in the numbers. According to statistics from the Korea Real Estate Board, the vacancy rate for small-scale stores in Myeongdong is 42.1%, and in Hongdae and Hapjeong, it is 16.7%, whereas Euljiro (5.6%) and Donggyo-Yeonnam (0%) show much lower rates.

The reason new northern Seoul commercial districts are forming is analyzed to be because the main demand group, the youth?specifically the MZ generation?now desires different types of commercial areas than before. Previously, a famous commercial district had to be located in a place with convenient transportation and densely packed stores, but now the uniqueness of individual stores has become more important. The emerging northern Seoul commercial districts mostly consist of small-scale stores run by individuals rather than large franchise outlets. Yeo Soyeon (24), who frequently visits the Seongsu cafe street in Seongdong-gu, said, "I like Seongsu's calm atmosphere, and there are many cafes with beautiful interiors, so I often visit Seongsu." Seongsu cafe street has recently become a playground for the MZ generation.

Since the opening of the Blue House, the Samcheong-dong street near the Blue House has been bustling with visitors, bringing vitality to the surrounding commercial area. Photo by Hyunmin Kim kimhyun81@

The development of navigation systems has also contributed to the revival of alley commercial districts in northern Seoul. Even stores not located on main roads can now attract visitors. A representative area is Euljiro. Euljiro has many alleys, and many stores are set up by remodeling spaces previously used as offices, making them difficult to find at once. Nevertheless, the MZ generation enjoys exploring every corner of the alleys through map apps if there is unique content and stories, finding excitement in discovering new places. Nicknamed 'Hipjiro,' Euljiro's popularity has led to rising rental prices in the commercial district. Compared to the fourth quarter of last year (100%), Euljiro's rental price index rose by 0.16 points to 100.16 in the first quarter of this year.

There are also places where commercial districts are reorganized as the area's symbolism is highlighted, such as Seochon-Samcheongdong and Yongridan-gil. The Seochon-Samcheongdong area in Jongno-gu has recently seen a significant increase in tourists and hikers consuming in the area following the opening of the Blue House and Bukaksan hiking trails. Yongridan-gil in Yongsan-gu is attracting more attention to its commercial district due to the nearby AmorePacific business district and the relocation of government offices. Jeon Mo (27) said, "The relocation of the Yongsan government office has increased interest," adding, "Previously, there were many long-established stores near Samgakji Station, but now many popular restaurants centered on young people have appeared."