Ordinance Amended to Allow Designation Without Landowners' Consent
Gangnam-gu Eases Requirements for Alley-type Shopping Districts to Support Small Businesses
Gangnam-gu, Seoul (District Mayor Jo Seong-myeong) has taken steps to address the blind spots in support for self-employed businesses by amending the ordinance to relax the designation requirements for alley-type shopping districts.
An alley-type shopping district is designated when more than 30 small business stores are concentrated within an area of 2,000㎡ or less, and a merchants' organization is formed. Once designated as an alley-type shopping district, businesses can receive support benefits equivalent to traditional markets, such as registration as Onnuri gift certificate affiliated stores (excluding restricted businesses under the Traditional Market Act), marketing support including street festivals and events, and facility and environment improvements.
Previously, the consent of the majority of land and building owners within the area was a mandatory requirement, resulting in many cases where the designation criteria were not met despite having enough stores. In response, Gangnam-gu amended the “Ordinance for the Promotion of Traditional Markets and Shopping Districts in Gangnam-gu” to remove this consent requirement. As a result, shopping districts led by actual business owners can more easily meet the designation criteria and receive support within the system.
There are approximately 55,000 lifestyle-oriented stores such as restaurants, service businesses, and retail shops in Gangnam-gu, of which about 6,800 stores located in alley commercial areas account for 12.4% of the total. Through this amendment, it is expected that areas densely populated with restaurants and other businesses that have been institutionally neglected can be actively discovered as alley-type shopping districts.
The district completed the ordinance amendment on the 21st of last month and has been accepting applications for alley-type shopping district designation on an ongoing basis since the 28th. To apply for designation, applicants must form a merchants' association, submit consent forms from more than half of the merchants, maps of the relevant area, and related documents of the merchants' association. After review by the district committee, the area can be designated as an alley-type shopping district. Detailed information on application methods and required documents can be found in the announcement on the district office website.
Mayor Jo Seong-myeong, who has participated in relay meetings directly engaging with small business owners and entrepreneurs since March, stated, “The more I listen to voices from the field, the more I realize how a single regulation can become a huge barrier to the livelihood economy.” He added, “This ordinance amendment is not just a simple deregulation but a measure designed to provide practical help to self-employed business owners who work hard in the alleys.” Mayor Jo also said, “We will continue to boldly reform outdated systems and provide more aggressive support so that local commercial districts can breathe.”
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