Many Chinese tourists who have visited South Korea have been to Mingdong, the bustling District of Seoul. There not only gathered all kinds of Korean brand stores, but also a number of large department stores and duty-free shops, which are very popular among tourists. Affected by the epidemic, the vacancy rate of shops in Mingdong business district is as high as 28.5%, which is even called “ghost business district” by South Korean media.
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In South Korea, the famous Mingdong business district is located in a place where it has been the top land price in South Korea for 17 consecutive years, about RMB 1.18 million per square meter.
The shops at the entrance of the main street in Mingdong are all gold shops. However, many shops have been closed or even empty, and there are not a few such shops in Mingdong. Nowadays, most of the people who visit Mingdong are office workers nearby. It’s hard to connect the ever crowded Mingdong with the scene in front of you. Even so near the main street, some alleys are almost empty.
South Korea’s first store in Mingdong, an internationally renowned fashion brand, will close at the end of this month, and buildings near the landmark Mingdong art theater are also being rented.
According to the data released recently by Korea’s real estate research institute, the vacancy rate of small shops with a total area of less than 330 square meters under two floors in Seoul in the third quarter of this year was 5.7%, the highest since statistics. The vacancy rate of Mingdong is five times of the average, as high as 28.5%.
As a landmark business district in Seoul and a popular tourist attraction for foreign tourists to visit South Korea, the top ten land prices in South Korea are basically located in Mingdong. Affected by the epidemic situation, the number of tourists visiting South Korea has dropped sharply this year, which has directly hit Mingdong and reduced the flow of personnel by nearly 90%. Many businesses said that their sales volume is less than 30% of that of previous years.
In addition to the Mingdong business district, the vacancy rate of shops in Jiangnan, Xincun, Zhonglu and other business districts where South Korean people are concentrated is two to three times higher than that of last year. In particular, South Korea’s domestic consumption shrank, and many brand stores and cinemas were closed, which accelerated the depression of business circle.
Earlier, the South Korean government called on shop owners to reduce shop rents by reducing corporate tax or income tax. With the long-term epidemic, the South Korean government recently extended this policy to June next year. Many shop owners in Mingdong said that even if the rent is reduced to 50%, it still can not stop the pace of shop tenants withdrawing.
Recently, the epidemic situation in South Korea has worsened again. Under the high-intensity epidemic prevention measures, the passenger flow has been further reduced, making the business circle’s operation worse. In the past, the noisy and lively streets of Mingdong are now only the music played by the shops.
Reprint indicated source：Spark Global Limited information