Seoul's commercial landscape is undergoing a transformation. While the growth of areas once dominated by young consumers, such as Hongdae and Sinchon, has slowed, districts like Cheongnyangni, Jongno 3-ga, and Suyu Traditional Market, which have a higher proportion of consumers aged 60 and older, are expanding rapidly. Analysts suggest that the era of youth-driven consumption is giving way to a resurgence of established markets supported by the spending power of seniors.
According to an analysis of data from the Seoul Metropolitan Government's commercial analysis service, areas with a high percentage of consumers aged 60 and older have shown significant revenue growth. Traditional markets, long-established businesses, and sectors such as healthcare, jewelry, and daily necessities are thriving based on senior consumer spending.
A prime example is the area around Cheongnyangni Station, where the proportion of consumers aged 60 and older is 34.1%, one of the highest among major commercial districts analyzed. During the same period, revenue in this area surged by 228%. Historically recognized for its strong middle-aged and elderly consumer base, Cheongnyangni is now emerging as a key commercial hub in northeastern Seoul, bolstered by mixed-use developments and improved transportation networks.
Suyu Traditional Market has also experienced rapid growth, with revenue increasing by 302% over the past five years. Similarly, the Jongno 3-ga area saw a 71% increase during the same timeframe. These regions share a commonality in their strong demand from middle-aged and older consumers for sectors such as jewelry, traditional medicine, and dining.
In contrast, the growth of traditionally youthful commercial areas has not kept pace. The Hongdae area saw only a 16% increase in revenue during the same period, while Sinchon experienced an 8% decline. Although both areas continue to attract a significant number of visitors in their 20s and 30s, they are no longer driving explosive consumption growth as they once did.
This shift is attributed to changes in demographic structure and consumption patterns. Over the past five years, the population of individuals in their 20s in Seoul has decreased from 1.63 million to 1.49 million, a decline of 8.6%. Additionally, as consumption shifts from offline to online, the growth of card-based spending in youth-centric areas has also slowed.
Conversely, the consumer base aged 60 and older is expanding rapidly. As the baby boomer generation enters retirement, the so-called 'active seniors' are increasingly engaging in consumption. They are proactive in dining out, health management, and leisure activities, and they exhibit strong loyalty to the offline markets they have frequented for years.
Particularly in established areas like Cheongnyangni, Jongno 3-ga, and Suyu Traditional Market, the markets serve as vital consumer hubs that go beyond mere retail functions, offering a dense mix of hospitals, pharmacies, traditional markets, restaurants, and lifestyle services. This aligns with senior consumers' preferences for shopping in person, frequenting familiar stores, and addressing their healthcare, food, and dining needs in one visit.
Moreover, the trend of 'retro consumption' among younger consumers is contributing to the reevaluation of older markets. Traditional markets and long-standing businesses, once considered outdated, are being reinterpreted as 'hip' spaces among younger demographics. The stable consumer base provided by seniors, combined with the influx of younger visitors, is broadening the appeal of these markets.
However, not all older markets are experiencing revitalization. For senior consumer spending to translate into commercial growth, factors such as transportation accessibility, diversity of businesses, density of lifestyle services, and residential demand must be present. Cheongnyangni benefits from transit-oriented development and enhanced transportation networks, while Jongno 3-ga thrives with specialized sectors like jewelry, healthcare, and dining. Suyu Traditional Market plays a strong role in capturing local consumer spending.
Song Seung-hyun, CEO of Urban and Economy, noted, “Consumers aged 60 and older have accumulated extensive experience using traditional offline markets, maintaining a consumption pattern that emphasizes direct purchasing, dining, and enjoyment.” He added, “Old markets like Cheongnyangni and Jongno are not just retail spaces; they still evoke nostalgia for seniors through offerings like fresh produce, seafood, and traditional medicine. Markets that maintain a structure allowing for both wholesale and retail, like Cheongnyangni Market and Gwangjang Market, are regaining competitiveness.”
* This article has been translated by AI.
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