[The Editors' Verdict] Preparing for the Era of the Night-Time Economy

Nighttime Operations Expand at Beaches and Traditional Markets During Summer Vacation Season
China, UK, and Australia Foster Night-Time Economy as a New Growth Model
Night Stalls, Festivals, and Night Markets Are Not the Whole Night-Time Economy...
A Systematic Approach Is Needed

Kyungho Lee Issue & Trend Team Leader

As heatwaves caused by climate change have lengthened and citizens seek to enjoy the night sea, nighttime openings have established themselves as a new trend. Nighttime beach openings, which began in Gangwon Province, have spread to Manripo Beach in Taean, Chungnam, as well as Samyang, Woljeong, Hyeopjae, and Iho in Jeju Island. Since Sokcho Beach began opening at night in 2019, the number of annual visitors has increased by 40% from the previous average of 2 million. More than half of all visitors now come during nighttime hours.

The city of Daejeon, through the “0 o’clock Festival” which promotes the concept of “Chukcance” (festival + vacation), attracted nearly 2 million visitors last year?almost double the previous year. Of these visitors, 44% were from outside the city. The festival generated an economic impact of nearly 400 billion won. Other local governments are also preparing various festivals and events to boost traditional markets and local commercial districts, and are trying policies to revitalize the nighttime economy, such as improving night views and allowing nighttime street parking.

The “Night-time Economy” is gaining attention as an alternative for strengthening urban competitiveness and revitalizing local economies. While the daytime economy (from 9 a.m. to 6 p.m.) refers to typical work and production activities in public institutions, office jobs, and manufacturing, the nighttime economy (from 6 p.m. to 6 a.m. the next day) centers on leisure and consumption activities such as dining, shopping, culture, tourism, and entertainment.

China has adopted the nighttime economy as a national strategy, designating “nighttime consumption specialty streets” in each city and making major improvements to lighting, security, and transportation. In 2023, the size of China’s nighttime economy market reached 1.57 trillion yuan (about 300 trillion won). As the nighttime economy has developed, programs combining culture and travel for nighttime tours, late-night movies and performances, night schools for students and working adults, and 24-hour gyms and yoga studios have all gained attention.

The United Kingdom established the Night-Time Economy Charter, and London has introduced a nighttime task force. According to DWF Group, a London-based law firm, in 2023, one out of every nine people in the UK was employed in the nighttime economy, and in some regions, about 57% of employed people were involved in or related to the nighttime economy industries. As of 2022, the UK nighttime economy accounted for 4.1% of the country’s GDP, with a market size of 93.7 billion pounds (about 173 trillion won).

The spread of the nighttime economy is not without its downsides. In Busan, concerns over staffing, costs, and security have made authorities hesitant to open seven major beaches at night. In Bukchon, Jongno, Seoul, restrictions on nighttime passage have restored peace for residents by protecting their safety and privacy, but merchants are suffering from decreased sales. In contrast, the area near Jongno 3-ga Station has become a hotspot for outdoor night stalls (Yajang), but faces serious disorder due to unlicensed businesses, garbage, and risks of safety accidents.

Considering high prices, sluggish consumption, and labor cost burdens, there are many practical constraints to revitalizing the nighttime economy. Infrastructure improvements are needed in areas such as security, transportation, noise, and waste management, and an ecosystem must be created where residents, merchants, and visitors can all be satisfied. Korea has the optimal conditions to boost the nighttime economy, including vibrant nightscapes and urban scenery, safe and pleasant urban infrastructure, trends led by younger generations such as the MZ generation (Millennials + Generation Z), and an influx of foreign tourists driven by the spread of Hallyu. It is time to consider the nighttime economy not as a one-off event or a haphazard approach, but as a structural growth strategy through a more systematic approach. Kyungho Lee Issue & Trend Team Leader