Rapid Decline of Sinchon Commercial District Since the 2010s
"For Rent" Signs Now Plastered Across Buildings in Sinchon Area
As the commercial district of Sinchon in Seoul, once the preferred location for the first stores of international franchises entering Korea, has collapsed, the 'Saemaeul Sikdang Sinchon Branch,' which had been operating in the area for 17 years, has ultimately closed due to management difficulties. On October 29, a post titled "Current Status of Saemaeul Sikdang Sinchon Branch, Operating for 17 Years" was uploaded to an online community. The post included a photo of the closure notice at the branch. The notice read, "Due to business difficulties, we hoped to win the lottery, but since we did not, we are closing the business. Thank you for visiting Saemaeul Sikdang Sinchon Branch over the years. 2008 to 2025."
In the 2000s, the Sinchon area was considered one of the top three commercial districts in Seoul, along with Myeong-dong and Apgujeong, as it was surrounded by Yonsei University, Ewha Womans University, and Sogang University. With a relatively young population, including many university students, it was a place to experience the latest trends. For this reason, many well-known international franchises held pop-up stores in Sinchon when launching in Korea, and some chose Sinchon as the location for their first branch. Starbucks, Twosome Place, and Krispy Kreme all opened their first Korean stores in Sinchon.
Vicious Cycle Continues Due to High Rents Even After the Collapse of the Commercial District
Leaving behind memories and past glory, the Sinchon commercial district began to rapidly decline in the 2010s. As the nearby Hongdae area rose in popularity, the common meeting point of "in front of Exit 3 of Sinchon Station" shifted to "in front of Exit 9 of Hongdae Station." As the population that used to gather in Sinchon moved to Hongdae, many stores began to suffer losses. Eventually, several franchises started to close, and even those with the symbolic status of being the first branch, except for the Starbucks first store (Ewha branch), disappeared.
Leaving behind memories and glory of the past, the Sinchon commercial district began to rapidly decline in the 2010s. The photo shows a representative landmark street of Sinchon. Photo by Dongju Yoon
As a result, the Sinchon area is now filled with "For Rent" signs on buildings. There are various reasons for the collapse of the Sinchon commercial district, but the biggest issue is the rent. Even before the decline, rents in the Sinchon area were high, making it difficult for businesses to enter. After the collapse, the persistently high rents have led to a repeated vicious cycle.
A rental banner is displayed on the first-floor shops in the famous shopping district of Sinchon. Photo by Dongju Yoon
In addition, the declining birth rate has led to a decrease in the number of university students, which is also a problem. To make matters worse, Yonsei University freshmen, who are the main customer base, are now required to attend classes at the Incheon Songdo Campus, further reducing foot traffic. Meanwhile, the adjacent Hongdae and Yeonnam-dong areas have rapidly grown, and students now mainly gather near Hongdae Station rather than in Sinchon. Since land prices in Sinchon remain extremely high, building owners find it difficult to lower rents, and this situation is expected to continue in the future.
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