Crowds and vehicles fill the streets around Jungang-daero 680beon-gil in Seomyeon, Busanjin-gu, Busan. [Newsis]
Crowds and vehicles fill the streets around Jungang-daero 680beon-gil in Seomyeon, Busanjin-gu, Busan. [Newsis]

As consumer spending continues to concentrate in the Greater Seoul area, depressing commercial districts across the country, some regional areas — including Seomyeon in Busan, Buldang in Cheonan, South Chungcheong Province, and Gaengniridangil in Jeonju, North Jeolla Province — are bucking the trend by drawing visitors and sustaining foot traffic. Experts say "stay-and-spend" consumption is the key factor driving competitiveness in regional commercial districts, and that a differentiated local identity is essential.

KB Financial Group on Monday released "2026 KB Commercial District Vitality Insights," an analysis of commercial district competitiveness across the country. The report used the KB National Commercial District Vitality Index, jointly developed by KB Kookmin Bank, KB Kookmin Card and Korea DataBank, to assess 25 indicators including financial assets, sales, vacancy rates and rents. From that analysis, it identified the 10 most competitive regional commercial districts nationwide and examined what they have in common.

Seomyeon in Busan emerged as the leading example. The district was assessed as a self-sustaining commercial hub, with Jeonpo Cafe Street, department stores, hotels and office facilities all present in a balanced mix that draws both everyday spending from local residents and tourist spending.

Buldang in Cheonan, South Chungcheong Province, and Gyodong in Gangneung, Gangwon Province, were also cited as cases of growth driven by stable residential demand. Buldang is home to many employees of large companies including Samsung Electronics, and spending levels there are high, centered on department stores, upscale restaurants and golf facilities. The average transaction at department stores in the area was 106,000 won ($75) per purchase, exceeding the Cheonan average of 90,000 won.

Gyodong in Gangneung has seen active spending by families in their 30s and 40s, thanks to a concentration of new apartment complexes, schools and hagwon. On weekends and during vacation seasons, an influx of tourists adds further vitality to the district.

Samsan in Ulsan, the Sangmu district in Gwangju, Dunsan in Daejeon and Dongseongno in Daegu were grouped as commercial districts that have grown on the strength of office workers and younger consumers. Samsan benefits from steady spending by workers at large companies in shipbuilding, automotive and petrochemical industries, and its concentration of major hospitals also draws a significant number of outside visitors.

The Sangmu district and Dunsan have built their commercial bases around public institutions and office facilities, with hospitals and hagwon contributing to stable weekday foot traffic. Dongseongno in Daegu has shed its image as an aging commercial district and reinvented itself as a nighttime destination for consumers in their 20s and 30s, with an average transaction of around 80,000 won — comparable to Hongdae in Seoul.

Tourism-driven commercial districts also stood out. Gaengniridangil in Jeonju and the Marine Park area in Yeosu, South Jeolla Province, have drawn tourists through festivals and cultural content, with weekend and vacation-season sales rising sharply. Yeon-dong in Jeju was identified as a prime commercial district that captures spending by tourists and business travelers alike, thanks to its proximity to the airport and a cluster of duty-free shops, hotels, casinos and popular restaurants.

KB Financial Group identified "stay-and-spend visitors" as the critical variable determining the success or failure of regional commercial districts. With regional population decline continuing, strategies focused solely on growing the resident population have their limits, making it increasingly important for districts to attract outside visitors who will linger and spend. As of late June, the population outside the Greater Seoul area had fallen by roughly 470,000 from the end of 2022.

The gap between commercial districts in the capital region and those in the provinces remained wide. As of March this year, the average monthly sales per store in Seoul stood at 48.9 million won, more than double the provincial figure of 17.51 million won, according to KB Financial Group. Monthly visitors per store also averaged 116.6 in Seoul, more than three times the provincial figure of 31.6. The commercial district vitality index likewise showed the Greater Seoul area (60.08) outpacing the provinces (50.66).

"Creating a 'flexible commercial district' that serves different functions at different times — drawing office workers on weekdays and tourists on weekends — could be an important strategy for strengthening the competitiveness of regional commercial districts," a KB Financial Group official said.

Experts caution that simply adding more popular restaurants or tourist attractions has its limits. Sustainable growth for regional commercial districts, they say, requires building an environment where transport access, cultural content, office facilities and residential amenities work together to keep visitors coming back and staying longer.


rainbow@heraldcorp.com