The Sharosugil Merchants' Association, backed by Gwanak-gu, has established the first merchants' cooperative among Seoul Metropolitan Government-designated local brand commercial districts, launching a merchant-led growth model for the area.
Sharosugil is Gwanak-gu's signature alley commercial district, known for its concentration of distinctive restaurants, cafes and retail shops that draw young entrepreneurs and visitors alike.
The cooperative's founding marks a significant shift away from individual store-centered operations, giving merchants a shared platform to identify and run joint revenue-generating ventures.
The cooperative plans to develop a joint local brand capturing Sharosugil's unique character, with a portion of the resulting revenue set aside as operating funds to reinvest in revitalizing the district.
It will also pursue bulk purchasing of commonly used raw materials to reduce costs for individual stores, creating a virtuous cycle in which savings and shared profits feed back into strengthening the district's competitiveness.
Gwanak-gu has committed a total of 3 billion won ($2.05 million) from 2024 through this year to its local brand commercial district development project. The district office supported the cooperative's launch by providing expert training, guidance on establishment procedures and administrative consulting to strengthen the merchants' organizational capacity.
Going forward, the district plans to arrange study tours of leading cases and support revenue model development, benchmarking best practices to identify business models suited to Sharosugil and help the cooperative build a foundation for self-sufficiency from its earliest stages.
Gwanak-gu has also laid the groundwork for a sustainable alley economy through a local brand commercial district community co-prosperity agreement, bringing together landlords, merchants and the broader community in a shared commitment to preventing gentrification and fostering mutual cooperation.
"The establishment of the Sharosugil Merchants' Cooperative is an important starting point for merchants to shape the future of their own commercial district," district mayor Park Jun-hee said. "We will do our utmost to ensure this case raises the self-sufficiency of Gwanak-gu's alley commercial districts and develops into a sustainable model for local economic revitalization."
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