The vacancy problem in commercial districts of new towns in Korea has reached a serious level. In response, the Anti-Corruption and Civil Rights Commission (ACRC, Chairperson You Chul-hwan) announced that it will launch an investigation into the situation to address the economic downturn and small business owners’ management difficulties caused by prolonged vacancies in new town commercial districts. Through this, they plan to analyze the root causes of the vacancy problem and develop measures for institutional improvement.
When developing new towns, developers and construction companies tend to set high ratios of commercial facilities to maximize profitability. However, due to economic recession and the shift of consumption patterns to online platforms, the demand for commercial facilities has dramatically decreased, leading to prolonged vacancies in new town commercial districts. In particular, according to the Korea Real Estate Board’s commercial real estate rental trend survey, some new towns show vacancy rates exceeding 40% in their commercial buildings. Notable examples include △Gwangju-Jeonnam (Naju) Innovation City (42.1%) △Gimcheon Innovation City in North Gyeongsang Province (42.1%) △Daegu Innovation City (35.3%) △Yeongjong New Town (25.8%).
While local governments are commissioning research projects and preparing regional measures to address this issue, no substantial changes have emerged. This is because fundamental solutions to the commercial vacancy problem cannot be established due to regulations such as the National Land Planning Act, municipal urban planning ordinances, and district unit planning.
In this investigation, the ACRC plans to review the appropriateness of commercial facility ratios and conduct an in-depth analysis of the causes of vacancies. Based on the survey results, they will develop regulatory improvements to prevent vacancy issues during new town development processes and recommend institutional improvements after gathering public opinions and consulting with relevant agencies.
ACRC Chairman You Chul-hwan emphasized, “The vacancy problem in new town commercial districts is not just an issue in specific regions but a nationwide phenomenon,” adding that “related agencies need to cooperate at the national level to solve this problem.” He also stated, “The ACRC will continue to work to resolve public grievances and requests active cooperation from relevant agencies.”
It remains to be seen whether effective institutional improvements will be made to resolve the vacancy problems in new town commercial districts.