'For Lease' 'Entire Building for Rent' 'Key Money Only'

On June 24, Garosugil was lined with empty storefronts. The building immediately facing you as you exit Sinsa Station on Subway Line 3 once housed Olive Young and Twosome Place. Now, only the marks of the old first-floor store signs remain. Even the chairman of global SPA brand Zara and well-known celebrity Kang Ho-dong bought and then sold buildings here before leaving. This is the current state of Garosugil, which used to be overflowing with shoppers and trendsetting young people.

The building located at the entrance of Garosugil near Sinsa Station on Subway Line 3 was once a key commercial area housing Olive Young and Twosome Place, but it has remained vacant for over four years. Photo by Youngchan Choi

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The commercial building on Garosugil where the clothing brand Tommy Hilfiger was located has remained vacant for several months. Photo by Youngchan Choi

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A woman in her 20s surnamed Kim, who visited a hair salon, said, "I could feel Garosugil dying after COVID-19," adding, "From 2023, the number of vacant stores noticeably increased, and almost all the famous brands left."

These days, Garosugil is a regular "on-site inspection" location for real estate YouTubers, who come to explore the "vacancy hell." According to real estate consulting firm Cushman & Wakefield Korea, the vacancy rate for Garosugil's commercial district in the first quarter of this year was 41.6%. Nearly half of the stores are empty. Despite the high vacancy rate, rents are paradoxically rising. According to rental statistics from Korea Real Estate Board, rents for collective commercial buildings, mid- to large-sized stores, and small-scale stores near Sinsa Station increased from the third quarter of 2024 to the first quarter of this year.

The economic recession has swept through the Gangnam commercial district. One of the representative hot places in Gangnam, the Garosugil shops in Sinsa-dong, have become eerily empty and desolate. Photo by Kang Jinhyung

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The economic recession chill has swept through the Gangnam commercial district as well. One of the representative hot places in Gangnam, the Garosugil shops in Sinsa-dong, have become eerily empty and desolate. Photo by Kang Jinhyung

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Even as demand declines, rents rarely decrease, creating a vicious cycle that blocks new tenants from entering. In 2018, when Apple opened an Apple Store here and paid 60 billion won for 20 years' rent, nearby building rents soared as well, but that bubble is now rapidly bursting.

Garosugil was once a mecca for foreigners, fashion influencers, and trend-sensitive people in their 20s and 30s. However, the COVID-19 pandemic stopped the flow of foreign visitors. On top of that, the rise of online shopping trends dealt a direct blow. A local real estate agent said, "The rents are already too high, and there are too many overlapping types of businesses," adding, "Recently, even foreign tourists have started going to places offering medical tourism or to the nearby Serosugil area." Another agent said, "The rent per pyeong in Garosugil exceeds 300,000 won, making it one of the most expensive areas in Seoul, and when you factor in the high key money, it's practically impossible for new tenants to enter."

Experts point out that not only gentrification due to high rents but also the district's failure to keep up with trends are problems. Kwon Daejung, a professor at Sogang University, said, "Gentrification has caused rents to skyrocket, and as more people shop online rather than offline, vacancies have increased," adding, "Since rents are linked to building prices, once they go up, it's hard to bring them down." He also said, "Ultimately, the area needs to be reborn as a street where people want to walk and stay. It's difficult for merchants alone to achieve this, so support from merchant associations and government policy is essential."

On the same day, a bakery cafe near Apgujeong Rodeo Station in Gangnam, Seoul, was bustling with foreigners waiting to enter from early in the morning. Tourists browsed nearby flagship stores and lifestyle shops while waiting to get in. Jason, a tourist from Hong Kong (age 29), said, "There are so many brands, so it's great for shopping. Before going to the bakery cafe that's popular on Instagram, I bought some activewear."

Although Garosugil, just a 20-minute walk away, is suffering from "vacancy hell," Apgujeong Rodeo Street has regained its energy and become a hot spot for young people. Like Garosugil, Apgujeong Rodeo also struggled with vacancies and a sharp drop in visitors after COVID-19. Just a few years ago, real estate agents were saying, "Apgujeong Rodeo is finished." But now, fashion shops in the Apgujeong and Dosan-daero area are crowded with both foreigners and locals. It's a dramatic change.

People waiting to enter in front of a bakery cafe near Apgujeong Rodeo Station around 11 a.m. Photo by Lee Eunseo

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People bustling not only at the fashion flagship store but also at dining restaurants, brunch cafes, and bakeries. Photo by Lee Eunseo

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Ella, a 14-year-old tourist from Singapore waiting to enter a famous sunglasses store, said, "This was the first tourist spot I visited after arriving in Korea. My sister is really into K-POP, so we came to see the sunglasses worn by Jennie."

Apgujeong Rodeo is home to not only fashion flagship stores but also many dining restaurants and bars. The ability to hang out in lounges or pubs until dawn is another factor attracting young people. Lim Heejin (age 40) said, "There are a lot of hot brands around Dosan Park, and hardly any empty stores, so it's fun to walk around and check out the shops. The atmosphere in restaurants and cafes is also stylish and sophisticated, which makes me feel like my own taste is improving."

According to the Korea Real Estate Board, the small-scale store vacancy rate in Apgujeong and Dosan-daero was 0% in the first quarter of 2025. In the first quarter of 2025, rents for mid- to large-sized stores on Dosan-daero rose to 55,760 won per square meter, and small-scale stores to 54,680 won per square meter, both up from the same quarter last year. Rents for mid- to large-sized stores in Apgujeong also rose to 53,940 won per square meter, and small-scale stores to 58,380 won per square meter, compared to last year.

Signs for lease or vacancy are hard to find. Instead, the streets are filled with the noise of construction for new commercial buildings. Real estate agent Yoo said, "New brands are moving in, mainly large ones, and most contracts are long-term, lasting two to five years. Even near my real estate office, there is construction underway for a new fragrance store."

On the 19th, the street of Myeongdong in Seoul was adorned with event banners as the 2025 Korea Beauty Festival began. Photo by Yonhap News

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This year, the number of foreign tourists is expected to exceed 20 million, leading to an estimated increase of approximately 29 trillion won in domestic consumption. Yonhap News

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The Myeongdong commercial district in Seoul has also recovered to pre-COVID-19 levels. Thanks to the K-culture boom, foreigners looking to buy accessories, K-pop merchandise, and Korean fashion brands are flocking to Myeongdong. According to Cushman & Wakefield's "Q1 Retail Market Report," Myeongdong's vacancy rate in the first quarter of this year was 5.2%, down 2.4 percentage points from the same period last year.