1 of 2 | Restaurants line a street in Seoul’s Hyoja-dong neighborhood, with signs offering discounts for Blue House staff posted outside shops. Photo by Asia Today
Feb. 5 (Asia Today) — Merchants in Seoul’s Hyoja-dong neighborhood say the long-anticipated economic boost from President Lee Jae-myung’s return to the Blue House has failed to materialize, while commercial areas around the former presidential office in Yongsan continue to struggle.
Restaurants near the Blue House, once hopeful that an influx of staff and visitors would revive lunchtime demand, report thinning crowds and declining sales.
“Business is slow these days,” said Kim Kwang-jae, 64, who runs a Korean restaurant in Hyoja-dong, Jongno District. Despite offering discounted meals to Blue House staff and police officers, Kim said daily customer numbers hover around 70, far below expectations.
When the Blue House was open to the public, his restaurant served about 150 customers a day, providing a brief lifeline to nearby eateries and market stalls. That traffic evaporated after public access was suspended last August, merchants said.
Hope briefly returned after President Lee announced plans to resume work at the Blue House. On Jan. 29, he instructed staff to eat outside the compound every Wednesday in an effort to support local businesses. Wednesday marked the first day after the directive took effect.
The scene on the ground, however, told a different story.
Jeon Sun-myeong, owner of a dumpling shop in nearby Tongin Market, said customer numbers have fallen since the return to the Blue House. “I can’t even prepare dumplings in advance anymore,” she said, noting that the impact is especially severe for low-margin, high-volume businesses.
An official from the Tongin Market Merchants’ Association said frequent protests near the Blue House have further reduced foot traffic. Demonstrators occupying roads near market entrances have discouraged visitors, the official said, adding that declining orders are also hurting suppliers who provide ingredients to nearby restaurants.
A similar downturn is unfolding in Yongsan, which had benefited from increased activity after the presidential office moved there in 2022.
Around lunchtime in the Hangang-ro area, restaurant-lined alleys stood largely empty, with rows of mourning wreaths protesting the government’s Jan. 29 housing supply measures adding to the somber atmosphere.
“Our customers were mostly office workers,” said Jin Seon-il, 64, who has operated a knife-cut noodle restaurant in the area for 23 years. “Since the office moved back to the Blue House, the drop in lunchtime customers has been immediate.”
While nearby Yongridan-gil remains popular with younger crowds, Jin said most visitors favor cafes and bars over traditional eateries. “Rents rose during the presidential office era, but customers are gone,” he said.
Shin Deok-soon, 67, who runs a gamjatang restaurant, said she relocated to Yongsan three years ago to capture lunchtime demand tied to the presidential office. After Lee’s return announcement, she said sales steadily declined, forcing her to lay off all employees at the start of this year and raise menu prices.
A local real estate agent said commercial rents in Yongsan surged two to three times following the presidential office relocation and have yet to come down. “With rents staying high and sales falling, more shops are closing,” he said.
Office worker Kim Min-gyu, 27, said several once-popular eateries have already shut down. “A year ago, you had to line up at lunch,” he said. “Now you can walk right in.”
The Yongsan Small Business Association has urged lawmakers to adopt measures to revive the area. An association official said rising rents and falling foot traffic are placing severe strain on merchants and called for practical steps to ease rent burdens and draw customers back.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260205010002050