Gentrification Problem

[Anchor Lead]

Gentrification is a buzzword in urban areas, and typically results in long-time tenants of up-and-coming neighborhoods being priced out due to soaring rent. One local government in Seoul has launched a new experimental solution to this problem.

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Each back alley in this area called Seoul Forest Street is lined with unique cafes and restaurants. The neighborhood is very popular among young people. Starting next month, franchise stores run by conglomerates will be banned from opening here. The local district ward has imposed the restriction by designating this neighborhood as a "sustainable development zone."The tenants were relieved to hear the news.

[Soundbite] Tenant(Voice modified) : "When franchises move here, the neighborhood loses its serenity."

Owners of existing stores in so-called "hot spots" such as Gyeongnidan Street in Seoul had to move out because of the soaring rents. As the situation kept deteriorating, local governments began to introduce their own solutions. Last year, the Seoul City government banned franchise restaurants from opening in the residential area in Hyehwa-dong, Jongno-gu District, except for roadside areas. This time, the Seongdong-gu District Office introduced a similar measure in the entire designated neighborhood.

[Soundbite] Kang Hyung-koo(Seongdong-gu District Office) : "If landlords and tenants coexist together in line with the new regulation, they will be able to protect their neighborhood and commercial power."

The public welcomed the move.

[Soundbite] Han Jin-hee(Seoul Resident) : "Many neighborhoods have their unique charm. But it becomes overshadowed when large franchises move in."

However, for the experiment to be successful, the local governments must address opposition from building owners, who will be unable to exercise their property rights.