[The Homeland of K-pop Without a Home] Government Policy Fails to Keep Up with Growth

Seoul Arena Breaks Ground in Changdong, Completion Set for 2027
CJ LiveCity Project Canceled... 2 Trillion Won Plan Scrapped
New Site Acquisition Hindered by Traffic and Noise Complaints
Incheon, Goyang, Busan and Others Compete to Attract Region

The central and local governments have belatedly recognized the need to expand K-pop performance infrastructure and are now moving forward with the construction of large-scale arenas. The first project to break ground is the 'Seoul Arena' in Changdong, Dobong-gu, Seoul. This facility, which aims to be the nation's first concert hall dedicated exclusively to popular music, is being developed as a multi-purpose cultural complex featuring a six-story, circular performance venue with a capacity of approximately 28,000 people, as well as a movie theater and commercial facilities.

CJ LiveCity Bird's-eye View. Photo by CJ LiveCity

The Seoul Metropolitan Government is providing the land, while Seoul Arena, a special purpose company (SPC) led by Kakao, is in charge of construction through a Build-Transfer-Operate (BTO) private investment model. Construction began in July 2024, with completion targeted for March 2027. The current progress rate stands at about 40%. The Seoul Metropolitan Government expects Seoul Arena to become the starting point for a professional venue long awaited by the K-pop industry, projecting 2.7 million annual visitors. However, concerns remain that a single facility will not be able to meet the rapidly increasing demand. An official from a concert planning company commented, "The long gap until Seoul Arena is completed could lead to a decrease in domestic performances, and private planning companies may lose ground to overseas tours."

Transportation is also a major challenge. Song Jae-hyuk, a member of the Seoul Metropolitan Council’s Urban Planning and Balance Committee, warned, "The traffic system around Changdonggyo must be reorganized before Seoul Arena opens," adding, "The Dongbu Expressway, which runs through Nowon-gu and Dobong-gu, already suffers from severe bottlenecks, and traffic congestion could worsen significantly if large crowds gather for events." Furthermore, the GTX-C line, which was scheduled to begin construction in January 2024, has been delayed due to rising construction costs and financing issues, pushing its opening to 2028 at the earliest.

The Ministry of Culture, Sports and Tourism has proposed plans to expand regional K-culture performance venues, but progress has been slow due to fiscal burdens and uncertainties over business viability. Securing budgets for performance venues and attracting private investment remain significant challenges.

The 'Goyang K-Culture Valley' (formerly CJ LiveCity), a mega-project led by the private sector, is cited as a representative failure. CJ Group spent over a decade preparing this 2 trillion won complex, which was to include a K-pop arena with a capacity of about 60,000 people, a content theme park, a hotel, and a shopping mall. However, a series of setbacks-including permit delays, the discovery of waste, and a notice that power supply could not be provided-ultimately led to the project's cancellation in July 2023. Afterwards, Gyeonggi Province and CJ clashed over who was responsible for the termination of the agreement, with disputes centering on 'lack of business commitment' and 'administrative risks.'

There are also arguments that cultural infrastructure projects such as large-scale performance venues are difficult to pursue based solely on the will of local governments. National-level infrastructure support and the participation of public enterprises are needed, and resident complaints are a significant variable. Large venues often face opposition from residents due to traffic congestion and noise issues, and it is difficult to secure new sites in downtown Seoul. Existing sports facilities are frequently reluctant to rent out their spaces due to concerns about turf damage and facility wear. An official from a concert planning company with extensive experience hosting overseas performances emphasized, "A dedicated K-pop venue must consider transportation, public safety, and environmental planning from the site selection stage," adding, "It should be designed not just as a performance hall, but as a cultural hub that coexists with the local community."

Meanwhile, competition to attract performance venues is heating up in the outskirts of the Seoul metropolitan area. The 'Inspire Arena', part of a resort complex on Yeongjongdo, Incheon, opened a 15,000-seat indoor arena in December 2023 and is actively attracting K-pop concerts and award ceremonies. Incheon City expects to draw international tourists based on its proximity to the airport and its casino and hotel infrastructure, but industry insiders point out that "due to the resort's location, accessibility is limited and there are constraints in using it as a regular performance venue." An official from a major planning company noted, "While Inspire Arena boasts world-class acoustics and stage facilities, it differs from Seoul-type arenas in terms of urban accessibility and sustainable operation," adding, "Most major overseas venues are located in the heart of cities, with abundant foot traffic and transportation infrastructure."

Nevertheless, local governments in the outskirts of the Seoul metropolitan area, such as Incheon and Goyang, are accelerating their efforts to attract dedicated K-pop performance venues. Gyeonggi Province and Gyeonggi Housing and Urban Development Corporation (GH) have taken over the former CJ LiveCity site and are seeking to revive the 'K-Culture Valley' complex development project by inviting private sector bids. Metropolitan cities such as Busan and Daegu are also showing interest in building regional K-pop venues.