It has already been 10 years since Daelim Warehouse, a mixed-use cultural complex regarded as the starting point of Seongsu-dong's revival, opened its doors. As soaring rents pushed distinctive small business owners out to other areas and vacancies rose, some once worried that "Seongsu-dong is now past its prime." But the current scenery across the Seongsu area has instead become more complex and larger. As footfall from domestic visitors—centered on those in their 20s and 30s—somewhat waned, foreign tourists have rapidly filled the void.
According to the Korea Tourism Organization's Data Lab on the 24th, cumulative card spending from January to July this year in Seongsu 2-ga 3-dong—stretching from Exit 3 of Seongsu Station on Seoul Subway Line 2 to Yeonmujang-gil, a key commercial district—reached 350.3 billion won, nearly matching the 367.7 billion won spent in all of 2024. Of that, 54.4% came from foreign tourists' wallets. The number of foreign tourists, which stood at just around 22,000 in 2021, surged more than 100-fold to about 2.228 million last year, and 1.98 million had visited through July this year. According to global real estate services firm CBRE Korea, rents in Seongsu's main street-level commercial districts rose 14% year-on-year in the second quarter, while the vacancy rate stood at 3.4%—lower than Gangnam (13.6%) and Hongdae (10.4%).
From "a neighborhood you go out to" to "a neighborhood you commute to"…fashion and Big Tech converge, leaping toward "SBD"
An even bigger change is unfolding in the office market. The alleys that drew crowds evolved into a battleground for major brands, and are now emerging as a new business district drawing in even large companies from Gangnam and Pangyo. With a stylish local image and pulling power created by young consumers, a location embracing Seoul Forest and the Han River, transit conditions close to Gangnam, and the addition of large-scale new office supply, Seongsu—once "a neighborhood you go out to"—is transforming into "a neighborhood you commute to." As a result, some forecast that a new Seongsu Business District (SBD) will emerge in the office market, alongside the Central Business District (CBD), Gangnam Business District (GBD), and Yeouido Business District (YBD).
The early Seongsu office market was led by fashion and lifestyle companies. After Musinsa left Gangnam and moved its headquarters to Seongsu-dong in 2022, it successively opened offices, studios, and stores, while IICOMBINED, which operates Gentle Monster and Tamburins, also built large workshops and brand spaces in Seongsu. Musinsa currently operates six offices in Seongsu alone and is jointly developing a seventh, a 12-story office called E4, with Mastern Investment Management. IICOMBINED's headquarters, "Gentle Monster Haus Nowhere Seoul," has established itself as a landmark where tourists line up to take verification photos, thanks to its unconventional exterior design. The strategy of these brands, which run the streets like one giant "showroom," has clustered numerous fashion and cosmetics companies in Seongsu.
Recently, the nature and scale of companies moving to Seongsu have expanded. Krafton, the game company famous for "PUBG: Battlegrounds," is building an ultra-large new headquarters with a total floor area of about 218,000 square meters on the site of the former E-Mart Seongsu store, to consolidate its organization scattered across Gangnam, Pangyo, and elsewhere into Seongsu. Krafton is also securing preemptive purchase rights for eight surrounding offices, working to tie the Seongsu area together into a single "Krafton Town." Gmarket's headquarters and some Hyundai AutoEver business divisions have also announced plans to relocate to new offices completed in Seongsu-dong this year.
Flood of large developments including the Sampyo site and Booyoung Hotel…"It will move up another weight class"
A string of large-scale development projects that will raise Seongsu's standing another notch are also waiting ahead. A representative example is the development of the former Sampyo Remicon site next to Seoul Forest, a project to build up to an 81-story residential tower and a 53-story office tower on a 28,332-square-meter site. Foundation work such as soil remediation is currently under way, with groundbreaking set to begin next year and completion planned for 2032. Upon completion, it is expected to become Seoul's second-tallest landmark building and the birth of a large mixed-use business district connecting Seoul Forest and the Han River.
Booyoung Group is also pushing a high-end mixed-use complex development combining a hotel, residences, and cultural and commercial facilities at the nearby Ttukseom Booyoung Hotel site. After buying the site from the Seoul city government for 370 billion won in 2009, development stalled for 17 years, but foundation work resumed after Chairman Lee Joong-keun expressed his intent to restart the project early this year. According to the plan, it will include two towers of up to 49 stories, with 604 rooms in a five-star tourist hotel, 332 residence units, and a multipurpose performance hall seating about 900.
However, with at least 600,000 square meters of office space expected to be supplied over the next five to six years, some worry about oversupply. According to RSQUARE, a commercial real estate comprehensive services company, Seongsu-dong's office vacancy rate, which had stayed below the natural vacancy rate (5%) through the third quarter of last year, spiked to 14.5% in just one quarter. Ryu Kang-min, head of RSQUARE's research center, noted, "New construction was concentrated in the fourth quarter of last year, but leasing demand filled quickly and the office vacancy rate has been steadily declining," adding, "In the Seongsu area, office leasing demand based on preferred industries such as IT, fashion, beauty, and content is interlocking with commercial district growth, raising corporate density, so it is worth watching whether it grows into one of Seoul's major business districts going forward."
A mammoth complex of 10,000 units along the Han River…the skyscraper showdown of Seongsu Districts 1-4
As Seongsu-dong—established as Seoul's most vibrant commercial district centered on pop-up stores, fashion, beauty, and dining—evolves into a business district where large corporations and unicorns converge, the residential facilities that form the last piece of the "live-work-play" puzzle are also poised for a complete transformation. Mixed-use residences near Seoul Forest such as Galleria Foret, Trimage, and Acro Seoul Forest currently lead the luxury housing market, but expectations are that the entire area's standing will rise significantly once the redevelopment of Seongsu Strategic Redevelopment Districts 1-4 along the Han River is completed, creating a mammoth high-end apartment complex of nearly 10,000 units.
According to the redevelopment industry, Seongsu Districts 1-4 have all entered project implementation authorization, and the process of selecting contractors is nearing its final stage. In April, GS E&C secured the construction rights for Seongsu District 1 with a sole bid, followed by Lotte E&C winning the rights for Seongsu District 4 in July. Seongsu District 3, with construction costs reaching 1.8275 trillion won, is proceeding toward a private contract as Samsung C&T submitted sole bids in both the first and second rounds. For Seongsu District 2, with construction costs of 2.0137 trillion won, interest is high over whether a competitive bid will materialize, as DL E&C and HDC Hyundai Development Company attended the on-site briefing. The first-round bidding deadline is the 31st of this month.
The four contractors are expected to compete to claim the Han River landmark with ultra-high-rise designs and differentiated technology. As the Seoul city government scrapped the uniformly applied 35-story height limit of the past, Seongsu Districts 1-4 have emerged as flagship redevelopment sites that will redraw the Han River skyline. Construction firms are each promising everything from exterior designs to showcase complexes rising from 64 to 72 stories, to more advanced floor plans and high-end community amenities. An industry official said, "Seongsu-dong is a symbolic project site where changes in Seoul's urban planning and the ultra-high-rise residential trend are being realized first," adding, "The core of the competition is which brand, design, and technology will complete Seongsu's new skyline."
The last piece of "live-work-play" is redevelopment…hopes for transformation into an emerging wealthy enclave along the Han River
Luxury residential facilities to be supplied on sites such as the Sampyo Remicon site abutting Seoul Forest are also expected to lead one axis of change. According to the supply plan, the residential facilities include 403 mid-to-large apartment units of 111-760 square meters (exclusive area) and 61 officetel units. According to local brokers, in the case of Acro Seoul Forest, now in its sixth year since completion, a 260-square-meter penthouse is listed with a jeonse deposit in the 15 billion won range and an asking sale price of up to 30 billion won. For Trimage's 84-square-meter units, a 40th-floor unit traded at 5.2 billion won in April, and a 22nd-floor unit at 4.65 billion won in July.
An official at a brokerage near Seoul Forest forecast, "Because demand is limited, transactions aren't many, but Acro Seoul Forest is one of Seoul's top-tier residences, where large units trade at monthly rents of 30 million won or more," adding, "If new large luxury housing is supplied, high-income earners living in Apgujeong, Cheongdam, and Hannam will show interest."
Indeed, experts also assess that, once the Seongsu Districts 1-4 redevelopment is completed, the area will become an "emerging wealthy enclave with easy work commutes" that absorbs young, high-income professionals. They explain that Seongsu's residences—directly connected to Apgujeong and Cheongdam just across the Seongsu and Yeongdong bridges, and combining views of Seoul Forest and the Han River with trendy infrastructure—are highly popular among young high-income earners who prioritize quality of life.
Also notable is that, in January, the Seoul city government expanded the Seongsu IT Industry Development Promotion District to cover the entire 2.05 million square meters of Seongsu's semi-industrial zone and introduced policies such as easing the floor area ratio and height by up to 1.2 times if cultural content industries like fashion and design move in, raising the likelihood that even more young companies and talent will flock there.
An industry official said, "Seongsu's competitiveness lies not in any single function—commerce or business—but in the fact that consumption, business, residence, and culture are all being upgraded simultaneously," adding, "It's also worth noting that Seongsu is becoming a place that absorbs companies and talent, as young professionals prefer to work there."
