Apgujeong Rides the Wave of COVID-19 'Revenge Spending'... Surpasses Gangnam Station

SK Telecom Big Data Analysis Solution Analysis
Apgujeong Station Tops Sales... Cheongdam-dong Shows Highest Growth Rate

[Asia Economy Reporter Minyoung Cha] "The top sales district this year is Apgujeong Station."

As a result of SK Telecom's analysis of commercial district big data this year, it was found that domestic consumption increased as part of revenge spending during the COVID-19 period, leading to Apgujeong Station area recording the highest sales. For the first time since the analysis began in 2012, it surpassed all commercial districts around Gangnam Station.

On the 23rd, SK Telecom released the 'Top 100 Commercial Districts in Korea 2021' data, analyzing the number of businesses, card sales, and floating population by commercial district using its big data analysis solution 'GeoVision.'

Among the top 100 commercial districts nationwide, Apgujeong Station had the highest average monthly sales, recording 409.2 billion KRW per month and 13.6 billion KRW per day this year. This is the first time this area has ranked first in sales since SK Telecom started commercial district analysis in 2012. The average daily floating population was 230,000, ranking 31st nationwide, but sales per floating person were about 59,000 KRW, the highest. SK Telecom analyzed that the commercial district, characterized by luxury stores, high-end restaurants, and hospitals, benefited from domestic consumption during COVID-19.

The Cheongdam Station commercial district, which was ranked around 120th in 2019, rose to 59th this year, showing the largest increase. Although the average daily floating population of 33,000 in this area, which has many luxury stores, high-end studios, and hospitals, was the smallest among major commercial districts, sales per floating person were high at 33,000 KRW.

The southern part of Gangnam Station saw its average monthly sales slow down, with 365.4 billion KRW in 2019, 381.7 billion KRW in 2020, and 358.6 billion KRW this year, ceding the top spot to Apgujeong Station. The commercial districts around Konkuk University Station and Myeongdong Station experienced the largest drops in ranking over the past three years, falling from 63rd to 97th and from 58th to 91st, respectively. In particular, Myeongdong Station was hit hard by the sharp decline in foreign tourists after COVID-19.

As of October this year, the number of businesses and stores nationwide with card sales occurring at least once a month was counted at 1.92 million. This is a 7.3% increase from 1.79 million in October 2019, before the COVID-19 pandemic. The sectors with the largest growth during this period were pet shops (34%) and coffee shops (26.3%). This is interpreted as a result of consumers spending more time at home and the spread of remote work and classes after COVID-19.

Jang Hongseong, head of SKT Advertising/Data CO, said, "We hope this commercial district analysis will be utilized for analyzing economic and social phenomena and for policy making, contributing to the development of Korea."

This content was produced with the assistance of AI translation services.