Long recognized as South Korea's most expensive retail area, Myeong-dong in central Seoul has lost its crown. Recent surveys show that last year, this tourist-favored shopping district was surpassed by an unexpected contender in terms of store rent: Bukchang-dong.

Bukchang-dong’s commercial strip is located between the Bank of Korea building, City Hall Station and Hoehyeon Station, and it topped the annual retail market analysis conducted by the Seoul Metropolitan Government with an average monthly store rent of approximately 180,000 won ($135) per square meter.

Myeong-dong's main shopping street in Jung-gu trailed behind with an average of 173,700 won per square meter, followed by the Myeong-dong Station area at 153,600 won.

The average monthly retail rent in Seoul reached 74,900 won per square meter last year, marking a 7.8 percent increase from the previous year’s figure of 69,500 won.

In 2022, Myeong-dong's shopping district boasted the highest retail rent at 205,500 won per square meter, followed by the Gangnam Station area at 143,600 won and Gwanghwamun in Jongno-gu at 112,700 won.

Bukchang-dong did not make the top five in 2022, recording a monthly average of 66,100 won.

The average monthly rent encompasses the basic rent fee, the security deposit amount divided by the number of contract months, and management fees, city government officials explained.

This marks the first occasion for Bukchang-dong to hold the title for the highest retail rent fees ever since the city government began its real estate analysis in 2015.

While Myeongdong relies heavily on tourists, Bukchang-dong has a consistent flow of patronage from the nearby business district. This appears to have played a significant role in this year’s ranking.

The monthly rent for commercial stores, with an average size of 60.2 square meters in Bukchang-dong, totaled 10.87 million won.

The 2023 report further disclosed the locations in Seoul having the highest monthly sales per square meter. The City Hall Station area claimed the top spot with 966,000 won, followed by the Sinchon Station area in second place with 957,700 won. The Dongdaemun History & Culture Park Station area secured the third position with 944,000 won.