"The most notable change in 2026 is that the value of space is no longer explained only by location and foot traffic. With foreign tourist demand recovering, in major districts such as Myeong-dong, Hongdae, and Seongsu, sales are rising while demand has become clearer for 'which brands to experience in what way, and how to leave that experience as content.'"
On Feb. 23 at the CBRE Korea headquarters in Jongno-gu, Seoul, Senior Managing Director Kim Yong-woo, who oversees retail, said this when asked about changes observed in Seoul's key commercial districts. Citing Myeong-dong as a prime example, Kim said, "More than the recovery phase itself, the clearer trend is the realignment of store composition and operating formats," and added, "We are moving away from a single-industry cluster focused on beauty and fashion, with more formats that include food and beverage (F&B) and experiential elements, and we are seeing stores that can operate content gain relative strength over short-term, sales-driven outlets."
He said, "In other words, retail space is no longer just a subject of leasing or a sales channel; it is being redefined as an 'operable platform' where brand strategy is implemented," adding, "From now on, retail strategy should be designed based on 'what experiences can be implemented and whether those experiences can be operated sustainably,' rather than 'where it is located.'"
Kim, who earned a master's degree in real estate from Konkuk University, has led landmark retail projects in Seoul at CBRE Korea since 2017, including consulting for Magok One Grove, Yeouido TP Tower, and the Hannam District 4 redevelopment. More recently, he has supported global brands entering Korea, such as opening Xiaomi's first offline store in the country, and helped K-beauty and K-fashion brands expand overseas. The following is a Q&A with Kim.
─With these shifts in commercial districts, how is the perspective on retail assets changing?
"We are moving beyond evaluations focused solely on location and vacancy rates to include the potential of brand experience and operating structure that a space can provide. Arcades, once regarded merely as ancillary facilities to offices, are increasingly being redefined as independent content-driven districts. For example, Gran Seoul strategically transplanted Starfield Avenue and restructured the character of its commercial area around brand curation and dwell-time-oriented circulation, while One Sentinel also repositioned retail as a core pillar of asset value through space expansion and merchandise planning (MD) adjustments. This shows that even assets with physical constraints can be newly defined depending on content strategy and operating design."
─What other changes are you seeing?
"It's the evolution of securing stability through tenant structures. In recent years, medical retail has absorbed upper-floor vacancy risks, spreading a strategy to operate all floors of an asset more stably. In major districts like Gangnam-daero, we are indeed seeing this, with medical businesses moving even into spaces formerly used as offices, increasing cases of securing stable tenant structures. This suggests that when designing the tenant mix in commercial facilities, it is becoming more important to combine sectors with stable demand bases rather than chasing short-term trends."
─How is the recovery in foreign tourist demand affecting this process?
"The recovery in foreign tourist demand goes beyond simply increasing foot traffic; it is changing the criteria for how we plan and operate retail space. It is becoming a catalyst for defining retail spaces as 'places that leave an experience.' From visual staging premised on filming and sharing, to circulation and signage that multinational customers can intuitively understand, to operating scenarios that allow content to circulate, space planning is increasingly shifting to an 'operations-centered' approach.
Foreign tourists look to Korean content and figure out where Millennials and Gen Z mainly hang out. They visit Seongsu, Hannam-dong, and Bukchon to consume that lifestyle. As a result, districts frequented by Millennials and Gen Z, with convenient access from the airport and many nearby hotels, are rising. In Hongdae, in particular, foreign demand often appears less as sightseeing tourists and more as consumers who explore and compare new brands to build their own tastes.
Going forward, rather than the quantitative recovery of foreign demand itself, the standard that will determine a district's competitiveness will be how precisely it can capture the level of experience that demand requires."
─In practice, how have tenants' perspectives on stores changed?
"In the past, store openings were often decided by sales or store development teams, but now marketing, brand, and content teams are increasingly involved from the early stages, reviewing as core criteria: 'Can this space fully embody the brand's identity?' and 'Can it create experiences that can expand into content?' Stores are being seen not as an 'operating expense' but as an 'investment that builds brand assets.' Ultimately, tenants' space choices are becoming harder to explain with rent levels or short-term sales prospects alone."
─As a consultant, what strategic points should be checked first?
"From a tenant's perspective, it is more important to first define the conditions under which our brand works well than to find a good location. This is also the first checkpoint in our practical advisory process. We look not only at visitor composition and circulation—which are hard to judge by foot traffic alone—but also at what role our brand can play in relation to nearby brands, and whether the space is flexible enough to implement the brand's message and experience.
Another is the operations perspective. Because the real game for retail space often begins after the lease is signed, we must also examine how content will be updated after the initial opening, how online and offline will be connected, and whether there is a scenario to grow the store. Ultimately, space is not a fixed container but an asset that is continually redesigned with brand strategy, so rather than concluding decisions based only on location and lease terms, it is necessary to set evaluation criteria that include planning and operations."
─Which next-wave districts are you watching closely?
"Seochon, Bukchon, and Euljiro, where the area's unique historical context combines with modern planning to create an irreplaceable narrative. Seochon and Bukchon have independent brands and galleries tucked into their alleys that form solid communities, offering the best stage for brands to calmly unfold their authentic storytelling. Euljiro, meanwhile, is the district showing the most dynamic change, in step with retail repositioning strategies for large office assets. It proves its value as a unique hybrid district where the stability of office-backed demand meets the explosive power of diverse content. I am most intrigued by the potential of these 'context-rich districts,' where brands can build emotional bonds with consumers and form long-term fandom."