Mugyo-dong and Dadong are areas that can be said to be the origins of ‘food alleys’ in Korea. In this commercial district, which has been occupied for a long time by long-established stores armed with their own expertise, rather than franchises or a mixture of them in every major commercial district, many long-established restaurants, including <Nampo Myeonok>, which is on the Michelin list every year, are constantly opening in the surrounding building forest. It is attracting a flood of office workers and foreign tourists. <Mugyo-dong Pollack Soup>, which makes office workers stand in two lines every lunch and tourists line up from the morning on weekends, has been open since 1968, and <Bu Min-ok> satisfies lovers of both hangover soup and snacks with 'Yukgaejang' and 'Yangmuchim'. > are long-established restaurants that have been guarding Dadong in Mugyo-dong since 1956. There are many long-established restaurants like Teojudaegam here, but among them, <Yonggeumok>, a Seoul-style soup restaurant that boils loaches whole instead of grinding them, opened in 1932 at the current location of The Exchange (former Kolon Building) in Mugyo-dong, and has continued to serve generations of customers. It has become a long-established restaurant and restaurant representing Korea that people visit again and again.
At one time, the octopus restaurants in Mugyo-dong, which were synonymous with octopus as 'Mugyo-dong octopus', left due to redevelopment in the 2000s, and now, more than 20 years later, the redevelopment of the city center has become so much that 'Mugyo-dong octopus' has become a distant memory. It can also significantly change the commercial area. The previously mentioned <Yonggeumok> and <Mugyo-dong Bukeo Gukjip> were also close to closing due to the redevelopment of Mugyo-dong in the 1960s and 1970s, but they moved to their current locations and remain as long-established stores to this day. However, it seems that the time for change due to redevelopment is approaching in the commercial districts of Mugyo-dong and Dadong, which have been established for such a long time and have become familiar.
Last March, the Seoul Metropolitan Government passed four architectural approvals, including the 'Mugyoda-dong District 29 Urban Maintenance-type Redevelopment Project'. Accordingly, between City Hall Station on Subway Line 1 and Euljiro 1-ga Station on Line 2 (Keumsegi Building, which was the office of the late POSCO Chairman Park Tae-joon and was used as the Seoul office of POSCO Group until the move to the POSCO Center in Samseong-dong), an office facility with 6 floors underground and 23 floors above ground will be built. Cultural and assembly facilities, and neighborhood living facilities will be built. As the redevelopment of Mugyo-dong begins, the 'Mugyo-dong Urban Maintenance Redevelopment Area District 31' (Mugyo-dong and Da-dong's food alleys are included in this area), which has an established plan even though it may take time, is also affected by this trend. It seems impossible to avoid. If the current plan goes as planned, one day we will be able to see a new commercial district harmonized with a neighborhood park created within the forest of buildings.
According to statistics from the Real Estate Institute, the vacancy rate in the CBD area continues to decrease from 10.9% in the first quarter of 2022 to 7.7% in the first quarter of 2024 (Gwanghwamun and Jongno, the core of the CBD, have vacancy rates of 4.0% and 4.0% in the first quarter of 2024, respectively. It shows 4.1%). The main reasons for this can be attributed to various changes in the working environment, such as the cessation of working from home after the pandemic, and the increased demand for companies to locate offices in core areas to secure good talent, but the lack of office supply in the CBD area is also a major cause.
Most of the prime-level offices scheduled to be supplied to the CBD area in the future are scheduled for 2027 or later or have no confirmed schedule. However, through the 'Gongpyeong District 15 and 16 District Urban Renewal Redevelopment Construction' scheduled to be completed at 87 Insa-dong in July 2026, a total floor area of approximately 43,388 (3.3㎡) (143,431.88㎡, 8 floors underground ~ the highest above ground) The construction of a new business and commercial facility (25 floors, 2 buildings) is expected to provide a boost to the supply of offices in the CBD area, which is experiencing a supply shortage.
The supply of these large office facilities can fill the insufficient demand for offices in the CBD area, but it is also expected to lead the change and revitalization of the area's commercial districts. Once the 'Gongpyeong District 15 and 16 urban renewal-type redevelopment construction' is completed and offices and commercial facilities are filled, the commercial district of Insa-dong will demonstrate synergy with the recent increase in foreign tourists, and Jongno, which has been holding its breath since the pandemic, The commercial district of Gwancheol-dong, represented by the ‘Street of Youth’, will also be able to expand once again and welcome spring.
In addition, the supply of large-scale offices due to redevelopment and reconstruction planned in CBD areas such as Seunji Station, Euljiro and Seosomun areas will continue to act as a factor of change in commercial districts surrounding major office districts such as Euljiro commercial district and Bukchang-dong, previously called 'hipjiro'. There is a need to pay attention and pay attention.
Overall, the CBD area is experiencing an increase in supply due to increased demand for offices, an accompanying increase in consumption and floating population, and Revitalization of commercial districts and stabilization of the rental market It is expected that the investment value will increase as these factors come together. However, from an investor's perspective, it is most important to closely monitor market conditions and approach cautiously through sufficient consultation with real estate experts.
Remax Meister, where I work, is located in Mugyo-dong, Jung-gu, Seoul. Experienced real estate experts provide domestic and foreign real estate-related consulting based on extensive data, and provide customized 1:1 consultation for customers.
A forest of buildings in the direction of Euljiro seen from the rooftop of the Remax Meister office building. You can see the Korea Deposit Insurance Corporation and Korea Tourism Organization on the left, Center Place, Duzone Tower, and Euljiro Hana Bank building on the right, and Center One and SKT Tower in the center. The area with the trees in the bottom left of the photo will be a neighborhood park during redevelopment, and the area on the right is the location of the food alley where old restaurants are currently located.
