Gwanak-gu and Sharosugil Merchants Association Establish Merchants' Cooperative
First Case of Seoul Local Brand Commercial District
Promoting a Joint Profit Model
Gwanak-gu, Seoul (Mayor Park Junhee) announced on July 28 that the Sharosugil Merchants Association has established a merchants’ cooperative for the first time among Seoul's local brand commercial districts, initiating a merchant-led growth model.
Sharosugil is a representative alley commercial district in Gwanak-gu, packed with unique restaurants, cafes, and retail shops that attract young entrepreneurs and visitors. The formation of this cooperative is significant as it enables merchants to move beyond individually managed stores and together discover and operate profit-generating businesses.
The cooperative plans to develop a joint local brand unique to Sharosugil, contribute a portion of profits generated as operating funds, and use these to invigorate the district. It also aims to jointly purchase raw materials frequently used by stores to reduce costs, establishing a virtuous cycle where the savings and shared profits lead to strengthened competitiveness.
The district has invested a total of 3 billion won from 2024 to this year to promote the local brand commercial district development project. To enhance merchant organization capacity, it has provided expert training, guidance on the formation process, and administrative consulting, supporting the cooperative’s launch. Moving forward, Gwanak-gu plans to facilitate study tours of advanced cases, develop sustainable business models, and benchmark best practices to create business models tailored for Sharosugil, ensuring stable operations.
In addition, through the Sharosugil Local Brand Commercial District Community Win-Win Agreement, the district has laid the groundwork for landlords, merchants, and the local community to cooperate in preventing gentrification (the displacement of existing communities) and promoting mutual growth.
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Mayor Park Junhee stated, "The establishment of the Sharosugil Merchants Cooperative is an important starting point for merchants to shape the future of their own commercial district," adding, "We will do our utmost to make this case a model for strengthening the self-reliance of alley commercial districts in Gwanak-gu and for developing a sustainable, locally-driven economic revitalization model."
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