Yongsan Electronics Market begins reinvention as AI hub

Seoul is beginning the first construction phase of its overhaul of Yongsan Electronics Market. The goal is to turn the decades-old electronics center into a specialized district for artificial intelligence and information and communications technology. The change matters because the market has lost customers and struggled with aging facilities.

Construction is scheduled to begin this month. Zone 5 is among four zones with building permits and serves as a gateway to the market. Plans include software businesses, digital content production, research and development, startups, retail, cultural facilities, and sports facilities.

Redevelopment is already underway in eight of the market’s 11 zones. The city also plans an elevated public walkway and 11 bridges to link the zones and connect them with Yongsan Station. The project follows Seoul’s 2023 redevelopment strategy and the mayor’s 2021 vision for an “Asia’s Silicon Valley.”

AI means artificial intelligence, and ICT means information and communications technology. Together, the terms describe a technology-focused district built around digital tools, communications, software, and related innovation. Yongsan’s proposed shift matters because it moves the market beyond its former role as mainly an electronics shopping center.

The plans include spaces for software businesses and digital content production. They also provide for research and development and startups, which can bring new products and services into the district. Retail, cultural facilities, and sports facilities are included as well, giving the area uses beyond office work.

The city describes the redevelopment as a way to make Yongsan a growth hub for AI and ICT. Eight of 11 zones are already under redevelopment, while construction is about to begin in the first phase. Its success will depend on filling these spaces with active businesses and visitors.

Yongsan’s redevelopment is a large, connected district project rather than a single-building renovation. The market contains about 20 buildings and is divided into 11 zones. Redevelopment is underway in eight zones, and four, including Zone 5, have received building permits.

The city plans an approximately 570-meter elevated public walkway running east to west. It also plans 11 bridges between zones. These links are intended to join the market’s public spaces and greenery into a pedestrian corridor connecting the market with Yongsan Station.

The financial scale is also significant. Seoul expects to secure about 247 billion won, stated as $184 million, in cash contributions from developers. The city says this money will support balanced development across Seoul. Construction is beginning in the first phase, but the article does not provide a total completion date or final project cost.

Yongsan Electronics Market flourished in the 1990s as personal computers and mobile phones became widely available. It became the country’s largest electronics shopping center, drawing customers who wanted access to newly common technology. That success made it an important retail destination.

Its position weakened as online shopping expanded. Customers could increasingly buy electronics digitally instead of visiting the market’s stores. At the same time, the market’s facilities deteriorated, making the older shopping environment less competitive and less attractive.

The result was a severe decline in activity. The market consists of about 20 buildings, and its vacancy rate exceeded 60 percent at one point, according to the city. Redevelopment is now intended to address that decline by adding technology businesses, research, startups, cultural uses, sports facilities, and improved connections rather than relying only on traditional retail.

The public-space plan could change Yongsan from a collection of separate market buildings into a more connected district. An elevated walkway would run approximately 570 meters east to west, while bridges would link the redevelopment zones. This matters because easier movement can make more parts of the market accessible.

The city intends to connect the walkway and bridges with public spaces and greenery. Together, they are meant to create a pedestrian corridor running between the market and Yongsan Station. People arriving at the station could therefore reach more of the district on foot, rather than stopping at one building or zone.

The connections may also support the market’s new mix of uses. Visitors could move between software and startup spaces, cultural and sports facilities, retail areas, and digital-content businesses. The article describes the intended design, but does not report how many visitors the completed corridor will attract.

The Seoul Metropolitan Government is the main public planner described in the article. It announced the redevelopment strategy in June 2023 and is coordinating the market’s transformation and its connection to the neighboring Yongsan International Business District. Seoul also expects developer contributions to support wider balanced development.

Developers are responsible for carrying out individual redevelopment projects in the zones. Building permits have been issued for four zones, including Zone 5, showing the city’s approval role. The first construction phase is scheduled to begin this month, although the article does not name the construction companies.

Seoul Mayor Oh Se-hoon supplied the earlier political vision in 2021, when he pledged to make the area “Asia’s Silicon Valley.” Kim Chang-gyu, director-general of the city’s Balanced Development Headquarters, represented the city in describing the groundbreaking. The article identifies developers as funders, but gives no individual company names.

Online shopping changes what a traditional electronics market must offer. When customers can purchase devices digitally, a cluster of stores has less power to attract them simply through product availability. Yongsan’s decline shows this pressure: online shopping grew while its facilities aged, and vacancies eventually exceeded 60 percent.

The redevelopment’s answer is to add activities that are harder to replace with a basic online purchase. Spaces for research and development, startups, software businesses, and digital content production can support work and innovation. Cultural and sports facilities can provide reasons to visit, while retail remains part of the mix. The key mechanism is diversification.

This approach could make the district useful even when people are not buying electronics. Researchers, entrepreneurs, creators, residents, and visitors could use different parts of the area throughout the day. The article presents these as planned uses, not guaranteed results, so their future impact remains to be seen.