Seoul’s Shopping Hubs Roar Back to Life: Myeong-dong, Hongdae, Gangnam, and More Regain Pre-Pandemic Glory

2. Status of major commercial districts
Myeongdong
Myeongdong suffered a severe downturn at the beginning of the pandemic, but is recovering quickly with an increase in foreign tourists starting in 2023. As of the second quarter of 2024, the vacancy rate in Myeong-dong has significantly decreased to 6.8%, and the commercial district has regained vitality with the opening of many new stores. Myeong-dong is the area most visited by foreign tourists and plays a significant role as a tourist destination due to the concentration of major hotels. New stores that have recently opened in Myeongdong are mainly in the cosmetics and fashion industries, and K-beauty brands are especially popular among foreign tourists.

Hongdae
The Hongdae commercial district is the second most visited place by foreign tourists after Myeong-dong, and the number of tourists in 2024 has increased by about seven times compared to the previous year. Hongdae has maintained a relatively stable commercial district even during the pandemic, and new stores are actively opening. In particular, the clothing and fashion accessories industries are increasing significantly, and the number of cosmetics stores is also steadily increasing.

Gangnam
In the Gangnam commercial district, the medical industry accounts for a large portion of overall sales, and medical-related sales have more than doubled compared to before the pandemic. However, sales in other industries such as clothing and cosmetics have decreased. As of the second quarter of 2024, Gangnam’s vacancy rate was 20%, a slight increase compared to the previous year, but major brands are still operating stably in the commercial district.

Garosu-gil
The vacancy rate in the Garosu-gil commercial district has been rising since 2023, and vacancy continues centered on the main road. On the other hand, in Serosu-gil, the commercial district behind it, rental activity is active and relatively stable. In Garosu-gil, mainly lifestyle and fashion brands are opening new stores.

Hannam, Itaewon
The Hannam and Itaewon commercial districts have remained relatively stable even during the pandemic, and although the vacancy rate has slightly increased to 11.5%, new stores continue to open. The fashion and cosmetics industries are the main industries, and many unique brands are flocking to this area.

Cheongdam
The Cheongdam commercial district is dominated by luxury brands, and the vacancy rate rose slightly to 17.4% in 2024. However, demand for luxury brands is still strong, and Cheongdam maintains stability in the luxury goods market. With many luxury brand flagship stores opening, the commercial area is expected to recover.