"Harder Than During Corona"... Seoul's Top Commercial District Also Takes a Direct Hit

'Even More Desolate Due to Economic Downturn'
Rising Vacancy Rates Leave Merchants Sighing

"We feel that it is even more difficult than during the COVID-19 pandemic."

On the 23rd, rental inquiry notices were posted around the 'Youth Street' area in Gwancheol-dong, Jongno-gu, Seoul. Photo by Byeon Seon-jin

As the recent economic downturn deepens, even the 'Youth Street' commercial district in Jongno-gu, Seoul, which once reigned as the top commercial area in Seoul, has been hit hard.

At noon on the 23rd, Mr. Jeong (45), who runs a beer pub in the Youth Street food alley, said, "Most of our sales come from the evening business, but after 10 p.m., the crowd almost disappears," adding, "Even after the COVID-19 pandemic has passed, it remains difficult." At a barbecue restaurant, there were only two groups of customers despite it being lunchtime, and a Chinese restaurant was almost empty.

The street from Exit 11 of Jonggak Station to Jongno 3-ga Station was even more desolate. Among the 10 stores on the first floor of commercial buildings in this area, 3 to 4 had 'For Lease Inquiry' notices posted. There were cases where four consecutive stores were vacant. Most of these were jewelry stores, opticians, and clothing stores. The spot where a sportswear store used to be has remained vacant for four years. Mr. A, who operates a jewelry store of about one pyeong (approximately 3.3 square meters), has been running his business with a small 'For Lease Inquiry' sign posted in front of the store for two years. He lamented, "Business is not doing well, perhaps because domestic demand recovery is slow."

Originally, the Jongno commercial district had many large corporations and was close to Cheonggyecheon Stream, attracting many office workers and university students. However, according to the Korea Real Estate Board, as of the third quarter of last year, the vacancy rate in the Jongno area was 11.59%, higher than the Seoul average vacancy rate of 10.08%. This figure has risen compared to the fourth quarter of 2022 (9.35%), when COVID-19 was at its peak.

Professor Lee Sang-young of Myongji University's Department of Real Estate said, "Even Jongno, which was once the top commercial district, has not escaped the effects of the economic downturn," and analyzed, "Since the commercial district is old, its recovery speed is expected to be slower than that of other more sophisticated commercial areas."