"With Daily Rental Fees at 10 Million Won, Must It Be Seongsu?"... Changing Popup Store Landscape

Rising Costs and Space Shortages Shrink Seongsu's Share

Yongsan and Myeong-dong Emerge as New Hubs...Cost and Location Competitiveness

The trend of popup stores, once concentrated in the Seongsu-dong area of Seoul, is now spreading to other commercial districts. Brands are turning their eyes to alternative business zones due to the combined pressures of rising costs, lack of available space, and the need for more efficient marketing.

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The Popup Market Has Grown, but Seongsu Shows Signs of Slowing...Skyrocketing Rents and Space Shortages Take a Toll

According to a "Popup Store Trend Report" released by SweetSpot, a company specializing in popup stores, on July 7, the number of popup stores held nationwide in the first half of this year reached 2,130. This represents a 44.9% increase compared to the same period last year, when there were 1,470 stores.

While the overall market has expanded, Seongsu's dominance has somewhat weakened. The proportion of popups in Seongdong-gu, including Seongsu, fell from 34.9% in the first half of last year to 26.0% in the first half of this year. On Yeonmujang-gil, known as the “Popup Street” of Seongsu-dong, the number of popup stores decreased from 233 in the first half of last year to 196 this year.

The slowdown in Seongsu's commercial activity is mainly attributed to sharply rising rent. The rental price per pyeong on Yeonmujang-gil is about three times higher than it was five years ago. A 160-square-meter store now costs over 3 million won per day to rent, while a 330-square-meter space can top 10 million won per day.

Because popup stores are classified as short-term rentals, they are not subject to the legal cap on rent increases under the Commercial Building Lease Protection Act. This structure allows landlords to set fees more freely in line with current market conditions. As a result, soaring rental fees have increased the burden on brands.

The reduction in available space is also a factor. Popular popup venues have been acquired by large companies and converted into flagship stores or corporate headquarters, making it harder for brands to secure venues of the desired size and timeframe. This is pushing brands to look beyond Seongsu to alternative locations.

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Yongsan and Myeong-dong Emerge as New Popup Hubs...Strength in Accessibility and Foreign Demand

Amid these changes, Yongsan and Myeong-dong are emerging as new hubs for popup stores. In Yongsan-gu, the number of popup events in the first half of this year rose to 165—an increase of 150% from 66 in the same period last year. Jung-gu (including Myeong-dong) saw 106 popup events—double the number from a year earlier.

Yongsan, with its standardized leasing system centered around large shopping malls, makes it easier to forecast costs compared to Seongsu. Myeong-dong's popup demand is being helped by a recovery in foreign tourist numbers. Both districts are in central Seoul and have superior public transport accessibility relative to Seongsu, which is also considered a key advantage.

Seongsu Still Holds Appeal...“Popup Market Diversifies”

Some observers voice concerns that Seongsu, plagued by gentrification due to soaring rents, could lose commercial vibrancy just as Garosu-gil and Gyeongridan-gil did before. The argument is that rapidly rising expenses may diminish the allure of established districts and prompt brands to leave.

However, within the industry, the prevailing view is that these changes reflect not a weakening of Seongsu’s competitiveness, but rather an easing of its previously monopolistic position. As brands search for more diverse options tailored to their customers and content, instead of relying solely on Seongsu, the popup market is entering a new era of competition.

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