[Gwangju, From Jeonbang to The Hyundai] Experimenting with Coexistence in the Era of Complex Shopping Malls (Part 2)

Signs of Rising Rents Ahead of 'The Hyundai Gwangju' Groundbreaking
Differences Remain as Calls for Coexistence Agreement Met with "It's Still Too Early"
Urban Transformation Without Solutions for Coexistence Continues to Fuel Anxiety

The former Jeonnam Textile and Ilsin Textile site where The Hyundai Gwangju complex shopping mall will be built. Photo by Song Bohyun

"If it's something that can't be undone, we have to find a way to coexist with the local community, no matter what."

A self-employed business owner in Imdong, Bukgu, Gwangju commented on the news of the groundbreaking for 'The Hyundai Gwangju.' While debates over the project continued for years, now that the permits have been finalized, the time has come to consider how to coexist.

Hyundai Department Store Group is preparing to begin construction of the complex shopping mall, aiming to open by the end of 2027 or early 2028. The facility will have a total floor area of 273,895 square meters and will include shopping, cultural, and lodging functions.

Some commercial properties and residences in Bukgu are already showing signs of rising rents. A real estate agent said, "Since the second half of last year, there have been more inquiries, and in some cases, store prices have risen by 1.5 times." However, he added, "The profits are concentrated along the main roads, while investors are actually leaving the alleyway business districts."

Property listing notice posted at a real estate agency in Imdong, Bukgu, Gwangju. Photo by Song Bohyun

As these changes become more visible, local small business associations are urging the signing of a coexistence agreement, proposing joint marketing, the creation of a coexistence fund, local youth employment, and expanded entry of small business products. However, Hyundai Department Store has stated that "it is too early for detailed discussions."

It is also worth looking at the cases of existing large complex shopping malls. According to a 2017 survey by the Korea Federation of SMEs titled "Survey on the Impact of Complex Shopping Mall Entry on Surrounding Business Districts," business districts near complex shopping malls in Suwon saw their average monthly sales drop by 29.1% three years after the malls opened, and daily customer numbers fell by 38.2%. In the clothing, fashion, and cosmetics sectors, sales fell by 36.6% and customer numbers by 48.6%, indicating that the damage was greater in urban areas.

Some have proposed forming a permanent consultative body with participation from Gwangju City, Bukgu District Office, Hyundai Department Store, and small business associations. This is due to concerns that, without institutionalized oversight mechanisms and with only slogans in place, the resulting harm could be borne entirely by the local community.

An elderly person is walking on the sidewalk near the former Jeonnambangjik site in Imdong, Bukgu, Gwangju. Photo by Song Bohyun

This project is not simply about opening a new distribution facility. It is a pivotal part of urban transformation, linked to changes in consumption patterns, urban structure reorganization, and population outflow. A local policy expert said, "The question remains: who is urban space being used for?" and added, "Ultimately, the decision should be based on the quality of life of citizens."

A self-employed restaurant owner said, "At first, I thought that more foot traffic would mean better business," but added, "These days, I'm more worried about rent increases, and I'm anxious that my regular customers might go elsewhere." He questioned, "If we're talking about coexistence, shouldn't there first be a clear path for small businesses like ours to have a place inside the large mall?"

Some see this as an opportunity, while others see it as a cliff. The lives hidden behind the numbers continue to run in parallel.