[Seongsu-dong, Hip+] The Rise and Fall of 'OO-gil'... Accelerating Changes in Commercial Districts

Commercial District Changes Accelerate... Rising and Falling 'Hot Places'
Declining '○ridan-gil'... Euljiro Becomes MZ Playground
From Space-Centered to Place-Centered Commercial Areas

Citizens are viewing artworks in front of a gallery on Gyeongridan-gil, Itaewon, Seoul. Photo by Asia Economy DB

[Asia Economy Reporter Song Seung-yoon] In recent years, South Korea has experienced a so-called ‘○ridan-gil’ craze. Starting with Seoul’s Itaewon Gyeongridan-gil, similar commercial districts with names like Mangridan-gil (Mangwon-dong + Gyeongridan-gil), Yeonnidan-gil (Yeonnam-dong + Gyeongridan-gil), and Haeridan-gil (Haeundae + Gyeongridan-gil) have sprung up all over the country. This phenomenon is similar to when Apgujeong’s 'Garosugil' became a ‘hot place’ and various ‘○rosugil’ named after it appeared across the nation.

However, this craze did not last long. Starting with the original Itaewon Gyeongridan-gil, numerous copycat commercial districts nationwide have declined. This was the result of ‘gentrification,’ where tenants were driven out due to rising rents, combined with the failure to consider accessibility or local characteristics, merely imitating existing commercial districts.

The speed at which commercial districts rise or decline is accelerating. This trend was especially accelerated by COVID-19. Due to unpredictable external factors, some ‘hot’ commercial districts completely died out. For example, in 2020, a club-related COVID-19 cluster infection occurred in Seoul’s Itaewon, causing many businesses in the area to close. At that time, the vacancy rate of Itaewon commercial properties soared above 30%. After the endemic phase, as people, especially the MZ generation (Millennials + Generation Z), gathered again, the situation seemed to improve, but following the recent Itaewon tragedy, the surrounding commercial districts are once again experiencing stagnation.

Euljiro Nogari Alley in Jung-gu, Seoul is bustling with citizens. Photo by Moon Honam munonam@

Paradoxically, such changes also lead to the revival of other commercial districts. Social networking services (SNS) play a significant role. When a place gains popularity through word of mouth on SNS and is designated as trendy, a new commercial district forms around it. In the past, traditional commercial districts like Myeongdong, Apgujeong Rodeo, and Hongdae combined good locations with large spaces that concentrated shopping, dining, and entertainment. Nowadays, the concept of a commercial district is becoming more blurred. When a single store becomes popular, a commercial district forms around that area.

Recently, Euljiro, nicknamed ‘Hipjiro’ and mainly visited by the MZ generation, is seeing a string of unique stores opening around places like Eulji OB Bear and Manseon Hof in the Nogari Alley. Euljiro, which mainly houses print shops and workshops, looks completely different on weekday afternoons compared to weekend evenings. Until now, except for some long-established eateries, it was relatively overlooked due to a lack of entertainment or attractions. However, recently, the new retro trend centered on the food and beverage and fashion industries has made this atmosphere considered hip, attracting young people and reshaping the commercial district.

Professor Lim Jae-man of the Department of Real Estate at Sejong University said, "The acceleration of commercial district changes is greatly influenced by the speed of information distribution. When an area gains popularity mainly through SNS word of mouth, various supporting facilities enter the distinctive space, and increasingly, capital influences lead to gentrification, which erases the initial characteristics."