Hello, guys. Don't you go to Yeonnam-dong or Seongsu-dong to eat delicious food and see new clothes with your friends after the exam? Oh, you're going to Anguk Station to see Hanok after eating some bagel famous on Instagram recently? These are called ‘hot place’ and popular on social media now.

 When you visit these three places, would you like to take a look around? Don’t you think that there are so many good cafes good to take pictures or restaurants popular on social media? You may actually feel there are visitors more than residents although ‘hot place’ is also place where people can live. Also, you may be difficult to find out local diners in hot places.

 You might think it's a place where people didn't live originally. What if the people who lived or the stores were forced to relocate? And if that's fact! In this issue, let’s learn about that fact, ‘gentrification’.

What is gentrification?

 Gentrification is a term derived from the English word 'Gentry', which means the landowner class and the gentleman class. After World War II, the city center began to decline as a number of Londoners moved to the outskirts of London. Since the early 1960s, artists, literary artists, actors, or intellectuals have settled in underdeveloped areas or working-class areas where rents are low. As new residents are created in underdeveloped areas, old buildings are restored and residential environments change, and local rents gradually rise. As the value of the region increased and the middle class entered the city center, the working class could not afford the rent and involuntarily moved. British sociologist Ruth Glass used the term 'gentrification' to explain the changes in the housing market and social class as the middle class enters working class dwellings.

 Many scholars are using gentrification from both positive and negative perspectives. The positive aspect of gentrification is that it activates the surroundings as declining areas become more advanced or new commercial districts emerge. The negative aspect is that as the uniqueness of the alley commercial district becomes commercialized, tenants of existing shopping malls leave without being able to afford rising rents. The influx of outsiders or franchises with large capital is also judged from a negative aspect.

 A representative example of gentrification in the past is the "Soho" area in the United States. In the 1960 s, artists gathered in Soho in search of cheap rent and later became a central area of culture and art. As the number of artists increased, many galleries were naturally created in Soho, and various industries such as restaurants and bookstores appeared. The general public also flocked to Soho to encounter culture and art, and rent began to rise as the value of real estate increased. In addition, in the 1990s, global capital began investing in real estate in New York, USA, and Soho could not avoid the impact. Artists start to leave Soho because they can't afford rising rents. As the former Soho disappeared, stores of Zara, Uniqlo, or luxury fashion brands began to enter the place where the gallery was. Soho succeeded as a tourist destination with the emergence of large fashion brand companies, but it is evaluated that "gentrification" occurred in that artists who contributed to Soho's prosperity involuntarily migrated. Today, gentrification has expanded beyond past concepts, including large urban development projects such as urban industrial site redevelopment, luxury residential development, and water front development.

 Gentrification is also occurring in Korea, and this is sometimes called the 'homelessness phenomenon'. Gentrification in Korea is mainly caused by the inflow of external capital into the old city center or by urban regeneration projects of the state or local governments. The event that opened the door to Korean gentrification was the 'Durivan Incident' that occurred in 2009. The case of Durivan in front of Hongik University in Mapo-gu, Seoul, began with the construction of a subway station in the area near Hongik University, demanding eviction from a nearby building. Several tenants, including the restaurant "Durivan" in a nearby building, protested the eviction and took legal action, but lost. Tenants continued to protest, but the construction company and the demolition developer executed the forced demolition with only 3 million won paid for the relocation. The owner of the Durivan restaurant made various efforts to respond to the unfair demolition, and as a result, resumed restaurant in a new position. However, most indigenous people in front of Hongik University, such as artists and shopkeepers, had to involuntarily relocate due to urban development and rising land prices.

 In the wake of the Durivan incident in front of Hongik University, people began to be interested in Korean gentrification, and the problem of tourism gentrification has recently been pointed out. Tourism gentrification is also occurring in Korea as urban tourism is fostered to revitalize the local economy. Tourism gentrification refers to the phenomenon in which the city changes physically, economically, and culturally as tourism capital is invested in the citizenship, life, and culture of the existing city, and land prices rise and price fluctuations occur. As the number of tourists increases in the city due to tourism gentrification, there is a positive aspect that the city and the commercial area are revitalized. On the other hand, there are also negative aspects that make the lives of urban natives uncomfortable, such as noise, excessive garbage generation, and traffic congestion. Jeonju Hanok Village, where Koreans visit to see Hanok, Bukchon Seochon in Seoul, and Gamcheon Culture Village in Busan, which is an essential course for traveling to Busan, are examples of Korean tourism gentrification.

 If you look at the beginning of gentrification and Korean history, it is also necessary to find out the causes of gentrification. Representative causes can be 'increased value of the district and capital input' and 'increasing visitors through culture and store formation'. There are two types of causes of "increased value of the district and capital input.” The first type is a phenomenon in which the value of the rent increases as the high-income class flows into underdeveloped areas near urban centers or stations or as commercialization progresses. The second type is a phenomenon in which large-scale capital is invested as the potential rent value of the underdeveloped area is highly appreciated due to rising rent in the surrounding area of the backward area.

 The cause of "increasing visitors through culture and store formation" is a phenomenon that occurs when tourists and young people are introduced as a unique culture is formed in underdeveloped areas. Gentrification can be caused not only by the above causes, but also by various factors such as infrastructure expansion such as subway construction. In addition, it is important to keep in mind that gentrification may occur due to the combination of these factors.

Now, South Korea.

 In order to gain a deeper understanding of gentrification and its problems, I would like to explain the neighborhood you have visited at least once. The most representative area where gentrification has been taking place in Korea recently is Yeonnam-dong, Mapo-gu, Seoul. Yeonnam-dong was recognized around Exit 3 of Hongik University Station, and in the past, it was just a neighborhood south of Yeonhui-dong where luxury houses are lined up. In 2015, Gyeongui Line Forest Road was built as an urban regeneration project in Yeonnam-dong, where multi-family houses and driver's diners were located. Various stores such as cafes, restaurants, and clothing stores have opened in the shopping mall near Gyeongui Line Forest Road, increasing the number of young people visiting. Yeonnam-dong is lined with famous restaurants and cafes in Korea, has more attractions, and the number of foreign tourists and guesthouses has also increased.

 Many people visit Yeonnam-dong and emerged as a "hot place" and the neighborhood was revitalized, but rents rose proportionally. According to a survey on the trend of commercial rent in Seoul, the rent for commercial districts in Yeonnam-dong rose 29.5% from 87,724 won in 2016 to 113,585 won in 2019. The rising rents and increasing number of stores have intensified competition among businesses, leading to the rapid closure of most stores. According to the 2019 commercial district survey in Yeonnam-dong, Seoul, the number of restaurant stores in Yeonnam-dong increased from 553 in 2017 to 771 in 2019. According to the same survey, the average business period in the commercial district in Yeonnam-dong is 2.1 years, which is short.

 In Yeonnam-dong, rent and prices naturally rise as tourists flock, and most buildings are turning into shopping malls. The space, which used to be a residential area, is transformed into a commercial district, and friction between visitors and residents is intensifying. According to a 2016 World Biz article interview, Mr. A, who lives alone in Yeonnam-dong, said that there are many bars, so it is noisy until late at night and often quarrels between residents and visitors over parking issues. In addition, according to a 2019 The Scoop article, Mr. B, who has lived in Yeonnam-dong for about 30 years, said that two-thirds of the natives left Yeonnam-dong and he was wondering whether he should leave it. The commercial sphere is concentrated in the area, and for reasons such as noise pollution and environmental problems, it loses its attractiveness as a living space, and natives leave.

 Thanks to gentrification in Yeonnam-dong, we can eat delicious food and take a rest while enjoying beautiful cafes and parks. On the contrary, someone is forced out of the nest due to gentrification or has to stop shop operations due to rising rents.

 Yeonnam-dong is the place where gentrification is progressing at an alarming rate, and there are areas placed in tourism gentrification due to 'overtourism'. It is the Bukchon area of Seoul, where problems have been steadily raised even before the outbreak of COVID-19. According to Trend Monitor's 2018 survey on the perception of overtourism and gentrification, a majority of people cited Bukchon Hanok Village as an "area in which over-tourism issues are urgently needed.”

 Bukchon is a real residential area, and residents suffer from ‘over-tourism’ problems such as noise and invasion of privacy. In July 2018, the Seoul Metropolitan Government and Jongno-gu implemented a total of eight measures, including limiting the time to visit the village, designating intensive cleaning areas, and advance tourist guides to solve the residents' grievances. However, the problem could not be solved with eight measures because measures were not promoted enough for tourists to know the measures and could not secure coercion. The issue was temporarily resolved during the COVID pandemic, but travel was activated after the pandemic ended, and the issues of the recent past have resurfaced.

 Currently, the Seoul Metropolitan Government has set a tourist visit time for Bukchon residents or allocates village guards at crowded times, but the effect is insufficient. According to the 2023 YouTube channel "Try It," commercial facilities such as cookie shops and cafes are coming in around Bukchon, and hanoks are changing from residential facilities to commercial facilities. As Bukchon emerged as a tourist destination and a "hot place," commercial facilities gradually entered the hanok, which was the residence, and natives left due to noise.

 Unlike the previous two examples, Gamcheon Culture Village in Busan is an area that is actively trying to solve problems caused by gentrification. The name of the administrative district of Gamcheon Culture Village in Busan is Gamcheon-dong, Saha-gu, Busan, and is currently one of the representative tourist destinations in Busan. Gamcheon-dong served as a residential area for workers during the Japanese occupation and after the war, evacuation villages were formed. Gamcheon-dong, which used to be an ordinary neighborhood, began to paint murals throughout the village in 2009 due to the village art project. With beautiful paintings and maze-like neighborhood paths, it has gained popularity as a tourist destination. According to the Busan Saha-gu Office's Gamcheon Culture Village visitor survey, the number of visitors surged from 25,000 in 2011 to 3,082,289 in 2019.

 Tourists enjoyed watching the mysterious village, but residents suffered from noise, garbage and invasion of privacy. Saha-gu has come up with a solution to ban tourists from visiting from 6 p.m. in order to resolve the grievances of the residents of Gamcheon Culture Village. In addition, the district office and the residents' council are collaborating to implement a plan to return some of the profits from tourism products to residents, including a free laundromat for the elderly, a free resident shuttle bus and a free public bath.

 In summary, Gamcheon Culture Village is a typical example of tourism gentrification, and residents suffered inconvenience due to the increase in tourists. However, unlike Bukchon, one of the tourist gentrifications, there is a difference in that the district office actively strives to solve the grievances of the residents and cooperates with them. Since the residence has become a tourist destination, the inconvenience cannot be completely resolved, but it can be evaluated well in that the ward office continues to be interested in the grievances of the residents.

How can we solve this problem?

 Gentrification develops underdeveloped areas but creates a double-edged sword that indigenous people should migrate involuntarily. However, it is not correct to make a clear argument that gentrification should be continued or prevented by emphasizing only one outcome. In order to smoothly solve the gentrification problem that will occur in the future, our society should develop underdeveloped areas but find ways to solve the hardships of indigenous people.

 The Ministry of Land, Infrastructure and Transport has promoted the supply of “coexistence-cooperation shopping malls" to protect small local merchants who will leave due to rising rents after gentrification occurs. The coexistence-cooperation shopping mall is a system in which local governments purchase and remodel vacant houses or empty stores and supply them first to small merchants and local artists. The contract period of the coexistence-cooperation shopping mall is 6 years, and rent can be recalculated if the tenant agrees, and an additional extension of 4 years is possible. Seongdong-gu, Seoul, is implementing countermeasures against gentrification by local government. Seongdong-gu is implementing the ordinance that landlords maintain an appropriate level of rent and tenants maintain commercial rights in order to promote mutual interests.

 In order for the coexistence-cooperation shopping mall and that agreement to take effect, it is necessary for local governments or district offices to make efforts such as encouraging the conclusion and clarifying management standards. In the case of tourism gentrification, not only small merchants but also original residents suffered. Like Gamcheon Culture Village, local governments need to continue to show interest in the grievances of residents and discuss them with the residents' council. As problems caused by gentrification have recently begun to emerge, Korea should strive to come up with fundamental solutions rather than urgent solutions to problems.

 What about overseas’ solutions? Ehrenfeld, located in the western part of the city of Cologne, Germany, was a working class residence until the 1970s, but it was transformed into a young class community when urban renovation projects began in 2009. As the environment in Ehrenfeld improved, visitors increased, housing rents soared, and the area began to commercialize. Local residents formed the Ehrenfeld Community Garden to solve the problems caused by gentrification and practiced the cultivation of common crops by growing and sharing crops together. The sharing economy is the use of goods and services in cooperation with others, and Ehrenfeld practiced the sharing economy through crop cultivation.

 The scale of the sharing economy developed from crop cultivation to construction projects, and joint housing complexes were built in cooperation with local residents and young architects. Ehrenfeld can be said to be a representative example of overcoming the economic adverse effects of gentrification and the phenomenon of being forced out of the nest by local residents practicing the sharing economy themselves.

 Large cities such as Philadelphia and Atlanta in the United States have designated non-forced moving zones or non-eviction zones to prevent involuntary migration due to gentrification. Within the area, rent or property taxes for houses and shopping malls are relaxed or an upper limit is set. Philadelphia is providing free gentrification-related education and housing counseling services for local residents and small merchants to solve the problem of information imbalance.

 In addition to Atlanta and Philadelphia, the United States has many large cities with gentrification, such as Baltimore and Seattle. These cities encourage the formation of a resident council so that residents and merchants have a sense of ownership to solve extreme gentrification. What Germany and the United States have in common is that local governments sometimes come forward to solve gentrification, but they induce residents to solve it themselves.

 Gentrification is a process of urban development in capitalism and cannot be prevented. Therefore, while accepting this, local governments should be interested in the grievances of indigenous people and small merchants, and indigenous people and small merchants should establish a council to have a sense of local ownership.

 Through this issue, we can find out the other side of the neighborhood we often visit. Do you think gentrification, which takes away the space of residents and small business owners, is just as bad? It is difficult to evaluate it as a unconditional bad process because backward areas are developed by gentrification. In the case of Bukchon Hanok Village, residents will suffer hardships, but the number of tourists will increase, promoting Hanok and revitalizing the surrounding commercial districts.

 Because it is gentrification with a double-edged sword, it may be an unwise decision to conclude for the benefit of either side. States should continuously investigate areas where gentrification is in progress or at a pre-stage. Local governments have to be interested in the grievances of residents and small business owners, and residents and small business owners should form a local resident organization and consult with local governments.

 Gentrification occurs as the world changes. In the gentrification process, the assignment is to find a way for everyone to coexist rather than treating this as a bad thing that should be banned or accepting gentrification only for its advantages.

이연수  lys0716@inha.edu

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