[Report] "Even Offering 3 Million Won a Month, No One Comes"... Chinese Koreans Leaving Daerim-dong for Bucheon and Siheung

Number of Registered Foreigners in Daerim 2-dong Down 40% Compared to Pre-COVID
Moving to Nearby Bucheon and Siheung with Lower Rent than Daerim
Labor Force Declines, Leaving Only Elderly; Job Agencies Facing Difficulties

"I'll give you some taxi fare. This is something women do too, it's not hard at all."

On the afternoon of the 6th, at 2 PM, a counseling staff member working at a job placement agency in front of Exit 8 of Daerim Station on Seoul Subway Line 2 persuaded two Pakistani men sitting across from her. The office, about 10 pyeong in size, was packed with 7 to 8 counseling tables, but these two were the only visitors to the agency. About 20 minutes later, another Chinese man who appeared to be in his 50s entered the office, glanced briefly at the job postings on the ceiling, and then left.

A job advertisement is posted in front of an employment agency near Daerim Station.
[Photo by Lee Seohee]

The job placement agency staff said, "The main customers of job placement agencies in this area used to be Chinese-Korean (Joseonjok) men, but since COVID-19, the workforce has been steadily leaving, and now mostly only elderly people over 50 remain, so there is no one to introduce jobs to," adding, "Even if we offer more than 3 million won a month, there is no one to interview for motel or sauna management positions."

Inside view of the job placement office near Daerim Station
Photo by Seohee Lee

The Chinese-Korean commercial district around Daerim-dong, which has been established for over 30 years since the 1990s, is undergoing changes. During the COVID-19 pandemic, many left like a receding tide due to the inability to bear high rents, and recently, with the added economic downturn, more people are moving to areas like Bucheon and Siheung in Gyeonggi Province, which are easily accessible by subway from Daerim-dong and relatively cheaper.

Sharp Decline of Foreigners in Daerim-dong... Vacancy Rates Increasing

According to Seoul City, the number of registered foreigners in Daerim 2-dong, where the largest Chinese-Korean commercial district known as 'Chinatown' is formed, decreased by nearly 40% over five years, from 9,240 in 2018 before the COVID-19 outbreak to 5,726 last year. During the same period, the number of Korean-Chinese (Joseonjok) residents in Seoul dropped by 62%, from 183,000 to 69,000.

The vacancy rate in Yeongdeungpo District, which includes Daerim-dong, has also been increasing annually. The vacancy rate in Yeongdeungpo-gu was only 7.50% in 2018 but nearly doubled to 13.20% last year. Kim (46), a real estate agent operating near Exit 11 of Daerim Station, said, "Inquiries from tenants have decreased regardless of one-room apartments, commercial spaces, offices, or business facilities. In the past, there were only one or two vacancies per alley because many people were looking for rooms, but now, even in the prime area near Daerim Station, there are many buildings that have remained vacant for three months without finding tenants."

Walking about 500 meters along the Chinatown starting from the entrance of Daerim-dong Central Market, it was easy to spot buildings with 'For Rent' signs everywhere. Some buildings were clearly newly constructed, but rental inquiry notices seeking tenants for entire floors from the 2nd to the 4th floor were posted.

Conversely, the number of registered foreigners in Bucheon and Siheung, emerging as new commercial areas for Chinese-Koreans, is increasing annually. According to Bucheon City's 'Status of Registered Foreigners and Domestic Residence Reporters,' the number of Chinese registered foreigners in Bucheon increased by 1,000 from 18,500 in 2021 to 19,500 last year. As of November last year, the number of registered foreigners in Siheung was 36,000, a 13% increase over three years.

Rent Surge and Economic Downturn Combine... "No Job Seekers Either"

The background to this is that many Joseonjok who could not bear the high rents in Daerim-dong recently moved their residences to new areas. Since 2010, Daerim-dong experienced a boom as Chinese-Koreans and Chinese tourists (Youke) invested for rental income, causing rents to soar. However, recently, the combination of high rents and economic downturn has made it difficult to endure, leading to a clear trend of moving to nearby cheaper areas.

As many Chinese-Koreans left, nearby job placement agencies have been hit with red lights. Usually, from November to February, when construction sites and agriculture/fishery industries reduce hiring, is considered an 'off-season' even among job placement agencies, but even considering this, there are no job seekers, forcing wages to be raised immediately.

A "For Rent" sign is posted on a four-story building in the alley of Daerim-dong Central Market.
[Photo by Lee Seohee]

At three job placement agencies near Daerim Station visited that day, job postings waiting for job seekers were densely posted, but it was difficult to find anyone actually visiting the offices. A representative of one job placement agency said, "Usually, people leave Korea around November to visit their families in China and return around March, but even considering this trend, there are very few people now," adding, "Several job placement agencies in this alley have closed in recent years. We often receive only one or two calls a day."

Kim Seong-hak, chairman of the Chinese-Korean Federation who has operated a wedding hall in Daerim-dong for over 20 years, also cited high rents and the economic downturn as reasons why Chinese-Koreans are leaving Daerim-dong.

Chairman Kim said, "Two years ago, a two-room house had a deposit of 10 million won and monthly rent of about 450,000 won, but now the rent has risen to 600,000 won," adding, "After paying rent, phone bills, and food expenses, there is no money left." He continued, "Bucheon is not far from Daerim Station by subway, where Chinese-Koreans have a cultural foundation, and is about 5 million won cheaper per pyeong than Daerim, so it has recently become a preferred residential area."