The six major commercial districts in Seoul, ‘Myeongdong, Hongdae, and Hannam’ have survived even amid the economic downturn.

서울의 상업 중심지들은 최근 경제 침체에도 불구하고 여전히 그 존재감을 유지하고 있습니다. 명동, 홍대, 한남·이태원은 어려운 시기에도 불구하고 꾸준히 사람들의 발길을 끌고 있으며, 이러한 현상의 배경에는 무엇이 있는지 궁금해지는 대목입니다. 특히, 명동은 낮은 공실률을 기록하며 여전히 많은 이들에게 사랑받고 있습니다. 그럼 본문에서 바로 이어서 살펴보죠.

The representative commercial districts of Seoul have been hit hard by the economic downturn. Myeongdong, Gangnam, Hongdae, Garosu-gil, Hannam·Itaewon, and Cheongdam-dong, the six major commercial areas of Seoul, are showing an overall slowdown and appear to be shrinking.

However, amidst this, there are places that have steadfastly endured. They are Myeongdong, Hongdae, and Hannam·Itaewon!

Myeongdong·Hongdae·Hannam, why did they survive?

According to the recently released **‘2024 Q4 Retail Market Report’**, Myeongdong’s vacancy rate is just 4.4%, recording the lowest figure among the six major commercial districts in Seoul, and still showing a robust presence.

Following that, **Hongdae (10%) and Hannam·Itaewon (10.5%)** also maintained a relatively stable trend and performed well. On the other hand, Garosu-gil recorded a staggering 41.2% vacancy rate, suffering the biggest blow.

What is happening in each commercial area right now?

1) Gangnam – Not fully recovered yet, but…

The Gangnam commercial area has been slow to recover after COVID-19, but recently it is gradually regaining vitality.

• In the fourth quarter of last year, new stores such as Decathlon, Spao, Butter Shop, and Converse opened, leading to a decrease in the vacancy rate to 15.4%.

• However, it still cannot escape the effects of the economic slowdown.

2) Hongdae – The power of the youth is strong!

Hongdae has been consistently visited by young people and foreign tourists, maintaining a stable presence.

• Recently, the medical sector has rapidly increased, leading to new changes in the commercial area.

• As long as the unique personality and sensibility of Hongdae are maintained, it is likely to continue to be loved.

3) Hannam·Itaewon – The holy land of brand showrooms

Hannam and Itaewon are still maintaining a trendy sense as fashion brands’ showrooms and flagship stores continue to open.

• This place is transforming into a space where fashion and lifestyle can be experienced, not just a commercial area.

• Thanks to the steady visits from foreign tourists and discerning consumers, it is maintaining a relatively stable commercial area.

4) Garosu-gil – The atmosphere is concerning

Garosu-gil was once the center of hot trends, but now visitors are dispersing to areas like Hannam and Dosan Park, leading to a gradual decline.

• The current vacancy rate has reached 41.2%, recording the highest empty store rate in Seoul.

• To regain its past glory, new content and brand influx are urgently needed.

5) Cheongdam-dong – A battleground for jewelry and luxury brands

Cheongdam is transforming into a battleground for luxury brands.

• Celine has opened a flagship store, and

• previously, Audemars Piguet, Richard Mille, etc., have opened stores, and Tiffany & Co. is also preparing to open soon.

• The influence of high-end jewelry & watch brands is expected to grow even larger.

In 2025, will the retail market become even more challenging?

Throughout 2024, retail sales decreased by 2.2% compared to the previous year, marking the largest drop in 21 years.

• High prices, high exchange rates, and increasing household debt are freezing consumer sentiment.

• In 2025, there are analyses suggesting that the possibility of low growth in the 1% range is high, making consumer recovery difficult.

How will the landscape of the retail market change in 2025? Now is the time for real survival strategies.