Gangnam-gu and Building Owners Join Forces to Revive Garosugil's Commercial District

Gangnam-gu has joined forces with building owners along Garosugil to reduce vacancies and restore vitality to the once-thriving commercial strip.

On Friday, the district office signed the "Garosugil Community Commerce Pact with Building Owners" with five landlords representing the Garosugil Building Owners' Association at the district office's first small conference room.

The agreement was drawn up amid a prolonged slump in sales and rising vacancies along Garosugil, driven by the economic slowdown and shifting consumer patterns. It links the district's commercial revitalization support with landlords' voluntary efforts to stabilize rents, laying the groundwork for the street's comeback.

The district has been working toward this outcome since February, when it began holding roundtable meetings with the Garosugil merchants' association to discuss vacancies and revitalization strategies. It subsequently proposed the pact to the building owners' association and secured their participation. As a result, owners of 59 properties have now committed to lowering rents and easing lease conditions.

Signs of recovery are already emerging along Garosugil, with new furniture and home-goods brands moving in and construction of new buildings under way. Foreign tourists continue to visit the street in search of K-beauty and fashion brands such as Tamburins, Gentle Monster and CJ Olive Young.

The district plans to build on this momentum by pairing the pact with broader efforts to energize the commercial area.

Under the agreement, building owners will work to create reasonable leasing conditions — including rent reductions and more flexible lease terms — while complying with relevant laws such as the Commercial Building Lease Protection Act and cooperating to foster a culture of mutual growth between landlords and tenants.

The district will pursue a range of revitalization projects covering streetscape improvements, cultural events, and marketing and promotion. Building owners will participate in and support these initiatives, and both sides have agreed to work together through ongoing dialogue to eliminate vacancies, attract new tenants and build a sustainable commercial district.

Going forward, the district plans to identify and expand the pool of "cooperative building owners" who actively participate in rent stabilization and vacancy reduction. It is also reviewing possible amendments to local ordinances to create incentives for such landlords. The district intends to identify successful cases and spread the Garosugil cooperation model to other commercial districts across Gangnam-gu.

"Restoring Garosugil's competitiveness requires not just administrative support, but building owners and merchants working together to drive change," Gangnam-gu District Mayor Kim Hyun-ki said. "By combining landlords' voluntary rent reductions with Gangnam-gu's commercial revitalization policy, we will cut vacancies, bring in new businesses and attract more visitors — making Garosugil a place people want to come back to."