Gwangju Chungjang-ro Shopping District Launches 'Half-Price Rent' Initiative

City, District, Building Owners, and Merchants Sign 'Win-Win Agreement'
Chungjang 1~3-ga Rents Cut by 40-50%... "Solving Vacancies"
Mayor Kang Gijung: "Revitalizing the Commercial District Through Various Support Measures"

Kang Kijeong, mayor of Gwangju, is taking a commemorative photo after signing a win-win agreement for 'half-price rent' to revitalize Chungjangno 1, 2, and 3 districts at the Chungjangno Gallery Zone in Dong-gu on the afternoon of the 12th. Provided by Gwangju City

One of the largest commercial districts in Honam, the Gwangju Chungjang-ro shopping area, is launching 'half-price rent' initiatives. This move aims to address the vacancy issue, with one out of every four stores (22.4%) currently unoccupied.

The Gwangju city government, together with the Chungjang-ro 1, 2, and 3-ga Merchants Association, building owners, and Dong-gu District, held a 'Half-Price Rent Win-Win Agreement Ceremony for the Revitalization of Chungjang-ro 1, 2, and 3-ga' at the Chungjang-ro Gallery Zone in Dong-gu on the 12th.

The agreement was signed by Mayor Kang Gijung, Dong-gu District Chief Lim Taek, building owner representative Kim Heejung, and Merchants Association President Jeong Sunki. A total of 23 building owners with 25 vacant stores in Chungjang-ro 1~3-ga participated.

According to the agreement, building owners will offer rents for vacant stores at prices 40-50% lower than the surrounding market rate, guaranteeing at least two years of operation. The Merchants Association will work to lower the barriers for entering the Chungjang commercial district and actively cooperate to revitalize the area. The Gwangju city government and Dong-gu District pledged to actively support the success of the half-price rent win-win model and to promote the 'Gwangju Economy All Together Chachachak' (good consumption, good finance, good jobs) initiative.

Mayor Kang Gijung said, "I thank everyone who participated in this half-price rent win-win agreement during these difficult times, which are said to be even harder than the foreign exchange crisis. This will serve as an opportunity to inject new vitality into the Chungjang commercial district," adding, "Gwangju city will continue efforts to reduce vacancies and revitalize Chungjang-ro 1~3-ga."

After the agreement ceremony, Mayor Kang and about 30 Chungjang-ro merchants held a 'Policy Picnic' under the theme of 'Plans to Revitalize the Chungjang-ro Commercial District.'

At the event, merchants stated, "Chungjang-ro, the representative commercial district of Gwangju, is struggling due to changes in consumption trends centered on online shopping and urban hollowing-out. As of the end of last year, the vacancy rate for medium and large stores (three floors or more, total floor area over 330 square meters) reached 24.3%, deepening concerns over the difficulties facing the Chungjang commercial district."

They also expressed hope, saying, "We expect this agreement to be an important turning point for the recovery of the commercial district. Merchants will continue efforts such as lowering rents, so we ask Gwangju city to actively support the re-leap of the Chungjang commercial district."

Meanwhile, in Chungjang-ro 1~3-ga, out of a total of 393 stores, 305 are operating and 88 are vacant, resulting in a vacancy rate of 22.4%. Chungjang-ro 4 and 5-ga have an even higher vacancy rate of 29.9%.

To reduce the proportion of commercial space, the city revised its ordinance last year, lowering the non-residential (commercial) ratio from 15% to 10% for mixed-use residential-commercial buildings in commercial zones. Since 2022, through the Ministry of SMEs and Startups' 'Commercial District Renaissance Project,' a total of 10 billion KRW has been invested in various projects such as the 'Raon Festa' shopping festival, creation of specialized streets, and alleyway tourism. This year, 53.4 billion KRW is being invested in 37 projects, including special guarantees for small business owners.

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