Garosu-gil: “Corona was better
- SEOUL, South Korea (march 31, 2025) – South Korea's ongoing recession is taking a toll on self-employed businesses, leading to increased vacancy rates in commercial districts, even in...
- On March 31,along Garosu-gil in Gangnam-gu,Seoul,red "For Rent" banners flapped in the wind on a four-story building.
- "I've been hear for 32 years, and this is the first time I've seen so many empty buildings," said Kumo, 60, a butcher shop owner in the area.
Gangnam Faces Rising Vacancy Rates as Recession Hits Self-Employed
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SEOUL, South Korea (march 31, 2025) – South Korea’s ongoing recession is taking a toll on self-employed businesses, leading to increased vacancy rates in commercial districts, even in traditionally prosperous areas like Gangnam. The downturn is impacting not only retailers but also businesses that typically thrive during economic hardship, such as demolition companies and used kitchen equipment suppliers.
Empty Storefronts Signal Economic Strain
On March 31,along Garosu-gil in Gangnam-gu,Seoul,red “For Rent” banners flapped in the wind on a four-story building. A similar scene unfolded at the adjacent six-story building, where all floors except the top level were vacant. Dust coated the ground floor of a former pharmacy, and faded advertisement marks remained on the walls. Observers counted approximately 30 vacant storefronts along the street.
“I’ve been hear for 32 years, and this is the first time I’ve seen so many empty buildings,” said Kumo, 60, a butcher shop owner in the area. “The idea that Gangnam is always doing well is outdated.”
Self-Employment Declines
The National Statistical Office reported that the number of self-employed workers in January was 5.5 million,a decrease of 200,000 from November’s 5.7 million. This figure represents the lowest level as January 2023, when 5.49 million self-employed individuals were recorded prior to the shift to an endemic phase of the coronavirus pandemic.
Vacancy Rates Climb
The Korea Real Estate Institute indicates a rise in vacancy rates for smaller malls (less than two floors, less than 330 square meters). In the third quarter of last year, the vacancy rate was 6.53%,increasing to 6.74% in the fourth quarter. This is more than 1 percentage point higher than the 5.6% recorded in the first quarter of 2020, before the widespread impact of COVID-19. vacancy rates for medium-sized shopping malls also increased, from 12.73% in the third quarter to 13.03% in the fourth quarter.
Hwanghak-dong,jung-gu,Seoul”>The increasing number of vacant shops has negatively impacted related industries. Even businesses considered “recession-proof,” such as sign companies and used kitchenware vendors, are struggling. Choi Moon-cheol, 67, who operated a sign company in Gangnam for 35 years, closed his business in January. “Sales have decreased by 80-90% since December,” Choi said. “I invested over 1 billion won, and now I’m left with just a business registration certificate.”
Hwanghak-dong kitchen street in Jung-gu, Seoul, known for selling used kitchen utensils, is also experiencing a downturn.
The street, usually bustling with activity and filled with sinks and refrigerators, was quiet. One store employee, identified only as Mr. A,said he had been wiping the same sink for over a week.”There’s no point in wiping it because nothing is selling,” he said. “customers have wholly disappeared.” Kim Mo, president of a used kitchen utensil business, noted that only three shops are currently operating on the street, compared to 10 last year.
Demolition companies are also facing challenges.
Jung Mo, 55, president of a demolition company, said sales are down 40% compared to last year. “We’re barely managing to stay afloat,” Jung said.
Shin Se-don, an economics professor at Sookmyung Women’s University, emphasized the need to understand the specific difficulties faced by the more than 5 million self-employed individuals in South Korea.
HereS a Q&A-style blog post based on the provided article, designed to meet your criteria for content, structure, and SEO:
Gangnam’s Empty Storefronts: What’s Happening to South Korea’s Economy?
(SEO Keywords: Gangnam, South Korea, Recession, Vacancy Rates, Self-Employment, Economy, Real Estate)
Q: What’s the big picture? What’s happening in gangnam, Seoul, and why should I care?
A: The article paints a concerning picture: South Korea’s economy is facing a downturn, and it’s effects are visible even in the affluent Gangnam district of Seoul. We’re seeing a rise in empty storefronts, a decline in self-employment, and ripple effects impacting various industries. This isn’t just a local issue; it reflects broader economic challenges and potential vulnerabilities in South Korea’s economic landscape. Understanding this helps you gain broader economic awareness from a leading economic country.
Q: Okay, so what exactly is the situation in Gangnam?
A: Gangnam, often associated with wealth and success, is now showing signs of economic strain. Several buildings along Garosu-gil, a popular shopping street, have “For Rent” banners, and many storefronts are vacant.One butcher shop owner,Kumo,who has been in the area for 32 years,commented that this is the first time he’s seen so many empty buildings. The once-perceived invincibility of Gangnam’s commercial real estate is becoming a thing of the past.
Q: What’s driving these rising vacancy rates?
A: The core problem, according to the article, is the ongoing recession impacting South korea as a whole. This downturn directly hurts self-employed businesses, wich are seeing declining profits and, in some cases, shutting down altogether. As self-employed businesses struggle or close, there’s less demand from business to fill vacant commercial space. This is compounded by other economic challenges, the decline in people who previously had excess income available to spend at Gangnam stores.
Q: How does the decline in self-employment look? What are the numbers?
A: The National Statistical Office reported that the number of self-employed workers in January was 5.5 million. This represents a decrease of 200,000 compared to November’s 5.7 million. This figure is also the lowest since January 2023, preceding the shift to an endemic phase after the coronavirus pandemic. These numbers clearly show the impact of the economic struggle on the self-employed population in South Korea.
Q: Are vacancy rates increasing elsewhere,besides Gangnam?
A: Yes,the problem is not just isolated to Gangnam. The Korea Real Estate Institute indicates a rise in vacancy rates in other areas as well:
Small Malls: Vacancy rates rose from 6.53% in the third quarter to 6.74% in the fourth quarter of last year. (Note: This is more than 1 percentage point higher than the 5.6% recorded in the first quarter of 2020, before the widespread impact of COVID-19).
Medium-Sized Shopping Malls: Vacancy rates whent up from 12.73% in the third quarter to 13.03% in the fourth quarter.
Q: Are any particular types of businesses being heavily affected?
A: Yes, the downturn has a ripple effect, impacting various related industries. These include:
Sign Companies: Choi Moon-cheol, who ran a sign company in Gangnam for 35 years, closed his business in January. He reported an 80-90% decrease in sales as December.
Used Kitchenware Vendors: Hwanghak-dong kitchen street in Jung-gu, known for selling used kitchen utensils, is suffering. stores are quite, with fewer customers. One store employee mentioned wiping the same sink for over a week due to a lack of sales. One used kitchen utensil business president noted that only three shops are currently operating on the street, compared to 10 last year.
Demolition Companies: Jung Mo, a demolition company president, stated that sales are down 40% compared to last year.
Retailers: Of course, retailers, like the vacant storefronts on Garosu-gil, are being directly affected.
Q: Why is this a significant concern?
A: The prevalence of small business is a key indicator of economic health. the fact that even businesses typically considered “recession-proof” are struggling suggests the economic challenges are severe and widespread. This downturn underscores the need to address the specific difficulties faced by the self-employed and other business sectors. These groups are often key drivers of the local economy.
Q: What’s the takeaway from this article?
A: The article highlights the impact of South Korea’s economic downturn on self-employment and commercial real estate, notably in Gangnam. This decline is affecting a wide range of businesses, from retailers to sign companies and demolition businesses. The data suggests a need for a deeper understanding and strategic countermeasures to address the challenges faced by these sectors and the self-employed community in the country.The economic situation of South Korea is worth monitoring as global economies are all interconnected.