2023 Seongdong-gu's First 'Buchon' Emerges... Highest Growth Rate Compared to Previous Year!

70.6% of Wealthy Individuals with Financial Assets Over 1 Billion KRW Concentrated in the Seoul Metropolitan Area in 2023; Seongdong-gu Becomes a Wealthy District for the First Time... Seongdong-gu Ranks 1st Among Seoul Districts in Per Capita GRDP Growth Rate, Completing an Inclusive City with Policies Embracing the Vulnerable

Seongsu-dong area along the Han River

Seongdong-gu, Seoul (Mayor Jung Won-oh) has emerged as a new affluent area. Following the traditionally recognized "Gangnam 3 districts," Seongdong-gu has made its first appearance on the list.

According to the "2023 Korea Wealth Report" published by KB Financial Group Management Research Institute on the 17th of this month, as of the end of last year, the number of wealthy individuals with financial assets exceeding 1 billion KRW was 456,000. Among them, 70.6% are concentrated in the Seoul metropolitan area, including Seoul, Gyeonggi, and Incheon.

Notably, Seongdong-gu's progress within Seoul stands out. For the first time, Seongdong-gu surpassed a wealth concentration index of 1.0, marking it as an affluent area. The wealth concentration index is calculated by dividing the proportion of financial assets held by wealthy individuals in a district by the proportion of wealthy individuals in that district; a value above 1.0 indicates a high concentration of wealth and many high-net-worth individuals in the area.

Looking at the wealth concentration by region, Seoul and Sejong City had indices exceeding 1.0 nationwide, ranking the highest. In Seoul, Seongdong-gu, including Seongsu-dong, appeared on the list for the first time in 2023, alongside high indices in Gangnam, Seocho, Jongno, and Yongsan districts.

Seongdong-gu was not always a focus of attention or development. In the past, it was considered a neglected area, but it has now established itself as a central hub for metropolitan transportation and has seen the construction of large-scale apartment complexes. Particularly, Seongsu-dong, once filled with old factories, has transformed into a genuine hot spot in Seoul, with unique shops, luxury residential complexes, and an abundance of cultural and artistic spaces.

According to the "Seoul Metropolitan GRDP Report" released by Seoul City on the 21st, the per capita Gross Regional Domestic Product (GRDP) of Seoul citizens in 2021 was 49.68 million KRW, an increase of 3.46 million KRW from the previous year. This marked the first time it exceeded 40,000 USD. GRDP (Gross Regional Domestic Product) refers to the market value of all goods and services produced within a specific region, representing the economic power of that area.

Compared to the previous year, Seongdong-gu showed the highest growth rate among Seoul's autonomous districts at 10.9%, indicating active economic activities within the district. Wholesale and retail trade (29.0%) and transportation and warehousing (27.1%) sectors showed high growth rates in Seongdong-gu. Following Seongdong-gu, Yeongdeungpo-gu (7.2%) and Gangseo-gu (6.4%) had high growth rates.

Jung Won-oh, Mayor of Seongdong-gu, touring the semi-basement public utilization space

Over the past decade, Seongdong-gu has implemented one-stop administrative services to create a business-friendly city, including tax reductions on acquisition and property taxes and shortening building use approval procedures. It also provided floor area ratio incentives through urban planning and supported social venture companies.

Seongdong-gu's vision is a "Smart Inclusive City." Inclusion policies embrace the vulnerable and promote the overall health of society, ensuring no one is left behind for the city to be sustainable. Policies to prevent gentrification, represented by Seongsu-dong, support for essential workers and women with career breaks, startup support for youth, the "Hyo Sarang Health Doctor Project" for seniors, and "Smart Shelter" bus stops for transportation-vulnerable groups all fall under inclusion policies.

Additionally, Seongdong-gu is advancing a housing environment improvement project for risky residences following a full survey of semi-basement homes. It has opened a specialized library supporting the independence of people with developmental disabilities and a day care center. Recently, Seongdong-gu became the first in the nation to enact an ordinance supporting the installation of ramps to ensure safe mobility for people with disabilities and the elderly.

Jung Won-oh, Mayor of Seongdong-gu, stated, "Ultimately, a city is about 'economy,' and the core of the economy is 'business.' Local governments must create cities that are good for businesses." He added, "Based on robust economic activities, wealth can accumulate for society and individuals." He continued, "In such growth, it is also the role of local government heads to care for the vulnerable neighbors who might be left behind, and furthermore, to realize community-integrated care, completing a seamless inclusive city where workplaces, living spaces, and rest areas develop evenly."