Gwangjang Market in Jongno-gu, Seoul, has emerged as a new base for fashion and beauty brands. The traditional market, once symbolized by hanbok, fabrics, and food, is now being filled with stores of K-fashion brands such as Matin Kim, Marithe Francois Girbaud, Kodak Apparel, and Setter.
According to the industry on the 4th, fashion and beauty stores have been increasing recently inside Gwangjang Market. Starting with the late May opening of Offbeauty, an urban beauty outlet, with a 60-pyeong footprint, Kodak Apparel opened in late July, and last month five brands under Dae Myung Chemical (Matin Kim, Marithe Francois Girbaud, Setter, Fruit of the Loom, and Kirsh) opened stores simultaneously.
The first fashion brand to enter Gwangjang Market was Rawrow in 2015. Since then, The North Face Market and Pleatsmama have moved in. This year, popular K-fashion brands have been opening stores one after another. The traditional market, once represented by hanbok, fabrics, and food, is now establishing itself as a new base for fashion and beauty brands.
Behind K-fashion brands gathering at Gwangjang Market are lower rents and steady inflows of tourists compared with hot spots like Seongsu-dong. In major commercial districts such as Seongsu-dong and Yeonnam-dong, surging rents have made new entry difficult. Gwangjang Market can secure steady foot traffic with relatively low rents.
According to the real estate industry, monthly rent for first-floor space in the Gwangjang Market area is about 170,000 to 180,000 won per pyeong, putting a 30-pyeong store in the low 5 million won range per month. Compared with Seongsu-dong, where the daily rental fee for a popup store (temporary store) hovers above 10 million won, it is inexpensive. In the case of department stores and shopping malls, entry commission rates are around 20% to 30% of sales.
Already famous for its food, Gwangjang Market also sees a steady influx of foreign tourists. According to Cushman & Wakefield Korea, foreigners are estimated to account for 40.9% from Taiwan, 14% from Japan, 7.1% from China, 6.1% from the United States, and 4.6% from Hong Kong in the market's total payment sales. In other words, more than half are estimated to be foreigners.
Gwangjang Market is also drawing attention as a stage where brands can visualize Korean aesthetics. Opened in 1905, this permanent market is a unique space where old alleys, the scenery of Cheonggyecheon, and modern architecture coexist. K-fashion brands can leverage this kind of Korean concept.
In response, brands are releasing limited-edition collections or exclusive-concept products using Hangul, hanji, and traditional materials. It is an attempt to reinterpret traditional aesthetics in a modern way. Matin Kim unveiled a Hangul graphic line available only at its Gwangjang Market store, and Setter branded the store space itself with an interior that highlights the texture of hanok.
A fashion industry official said, "Gwangjang Market guarantees low rents and many foreign tourists. On top of that, the distinctive spatial feel where tradition and modernity coexist completes the trifecta," and added, "If Seongsu drew attention for its 'hip' vibe, Gwangjang Market shows potential to become a second Seongsu with a differentiated identity as K-local."