A person surnamed An (38), who had been preparing to open a wine bar, nearly signed a lease for a retail space near Seoul's Gangnam Station recently but ultimately walked away. Two restaurants at the front of the same alley were operating normally, selling wine and beer, but An was told that alcohol sales would not be allowed in the building under consideration. An said, "The building next door sells alcohol, but I'm told a building with the same conditions can't, which I just can't understand."
According to the real estate industry on the 26th, in the Gangnam Station commercial district, operations prohibited by regulation continue in some buildings, while new entrepreneurs are blocked from entry even in the same locations, causing confusion and complaints in the surrounding market.
This situation is not confined to specific buildings but appears across the backstreets of Gangnam Station. Parts of the area around Seoul's Gangnam-daero have been designated a Type 1 exclusive residential area since 1977, and most buildings there are classified as Type 1 neighborhood living facilities, where strict business-type restrictions apply.
Under current rules, permits for general restaurants (restaurants allowed to sell alcohol) are effectively restricted in Type 1 exclusive residential areas. In most cases, only cafes, dessert shops, and light-meal snack bars are permitted, and, in principle, snack bars are banned from selling alcohol and allowing on-site drinking. To sell alcohol such as soju, beer, or wine, a business must be registered as a general restaurant.
In practice, however, the rules are not applied consistently. Two specific restaurants in the backstreets near Gangnam-daero 106-gil have been confirmed to be selling alcohol, including wine, beer, soju, and cocktails. Store menus and user reviews clearly indicate alcohol sales.
By contrast, the building directly across the street is in a completely different situation. That building allows only tenants such as cafes, nail salons, hair salons, and offices. Another building's first-floor retail space has remained vacant for over a year, and the monthly rent is around 10 million won, set lower than in nearby commercial areas. Meanwhile, buildings where alcohol sales are allowed attract tenants and command relatively 2 to 3 times higher rents.
A manager of a building on Gangnam-daero 106-gil said, "Several businesses, such as French restaurants and wine bars, have tried to move in, but all gave up because alcohol sales weren't allowed," adding, "Tenants move right into the building across the street because it can sell alcohol, but we have prolonged vacancies due to business-type restrictions." The manager added, "Even when real estate agents bring in clients, many deals fall through once they ask, 'Why isn't it allowed here?'"
Despite being the same Type 1 exclusive residential area and Type 1 neighborhood living facilities, the stark split in allowed business types by building appears to stem from a combination of past permitting histories and administrative management practices. Stakeholders in the Gangnam Station market said, "Only some buildings that obtained entry permits as general restaurants in the early 2000s, when regulations were relatively loose, have continued to operate in that manner by custom to this day."
At the same time, suspicions of "preferential permitting" for certain buildings are being raised. Among people in the Gangnam Station commercial district, rumors have long circulated that "regional politicians intervened" for specific buildings. A person surnamed An also said, "I heard from a building manager that a district lawmaker pulled strings to allow alcohol sales," arguing, "It's hard to accept why only certain buildings can do it even though they're in the same location."
Gangnam District Office said it has not confirmed any special preferential treatment for specific buildings. It emphasized, however, that the current operating formats themselves do not comply with regulations.
A Gangnam District Office official said, "With more than 7,000 restaurants in the district and only about six staff handling related work, inspections are conducted primarily based on reports," adding, "All of the establishments we have identified are registered as snack bars, which are not business types permitted to sell alcohol." The official added, "Because selling alcohol would be illegal, we will crack down on any confirmed establishments."