As companies and tourists flock in, Seongsu-dong’s economic value jumps 33 trillion won over 10 years

[Financial News] The economic value of Seongsu-dong in Seongdong District, Seoul has increased by about 33.3 trillion won compared with around 2014, roughly a decade ago, according to a new analysis.

The Hanyang University Industry-University Cooperation Foundation, led by researcher Professor Choi Chang-gyu, announced on the 12th that, based on an analysis commissioned by Seongdong District, the area’s economic value has grown by 27 trillion won, with an additional 6.3 trillion won in economic ripple effects.

The report added that this was driven by an influx of companies following the designation of the Seongsu IT Industrial and Distribution Development Promotion District, the fostering of social ventures, and support for small and medium-sized enterprises and startups, as well as a rise in visitors thanks to the preservation of red-brick buildings and various urban regeneration projects.

According to the study, total sales of businesses in Seongsu-dong rose from 24.2 trillion won in 2014 to 51.2 trillion won in 2023, more than doubling. This appears to reflect not only a 71% increase in the number of businesses in Seongsu-dong—from 20,042 in 2014 to 34,381 in 2023—but also the arrival of high value-added companies such as Hyundai Glovis, MUSINSA, and SM Entertainment Co., Ltd.

Over the same period, the total wage bill for workers in Seongsu-dong also climbed from 2.5 trillion won in 2014 to 6.2 trillion won in 2024. Corporate income-related tax revenues increased from 22.28 billion won to 47 billion won. Spending by foreign tourists in Seongdong District grew from 13.3 billion won in 2018 to 198.9 billion won in 2024.
The study also analyzed the economic ripple effects generated by higher sales at businesses in Seongsu-dong. Production inducement effects expanded from 15.9 trillion won in 2014 to 22.2 trillion won in 2023, while value-added inducement effects rose from 7 trillion won to 10.9 trillion won over the same period. Employment inducement effects increased from 118,000 to 120,000 jobs.

Spending by foreign tourists in Seongdong District also had a positive impact on production inducement effects, which grew from 18.1 billion won in 2018 to 234.9 billion won in 2024. Value-added inducement effects increased from 9.4 billion won to 114.6 billion won, and employment inducement effects rose from 80 to 1,104 jobs.

y27k@fnnews.com Seo Yoon-kyung Reporter