Seoul broke ground this month on the redevelopment of Yongsan Electronics Market, committing 247 billion won ($184 million) in developer contributions to transform the district into an artificial intelligence cluster.

The project covers eight of the market’s 11 commercial zones, replacing a cluster of 20 aging buildings where vacancy rates previously exceeded 60 percent with high-density tech labs, software offices, and modern retail premises.

Municipal authorities issued building permits for four initial zones, clearing the way for work to start on Zone 5, the primary gateway into the complex. The approved blueprints designate dedicated floor space for research and development labs, digital media studios, and technology startup incubators alongside leisure, cultural, and sports facilities.

Pedestrian connectivity forms the backbone of the physical master plan. The municipal government will construct a 570-meter elevated walkway running east to west, linking individual blocks through 11 pedestrian bridges that connect directly to Yongsan Station.

“With this first groundbreaking, Yongsan Electronics Market is beginning a new chapter as a growth hub for AI and ICT,” said Kim Chang-gyu, director-general of the city’s Balanced Development Headquarters.

Traditional wholesale hardware districts across Asia face identical structural obsolescence as consumer electronics purchasing shifts to digital platforms. Tokyo saw Akihabara pivot toward gaming and subculture retail decades ago, while Shenzhen turned Huaqiangbei into an agile hardware incubator. Yongsan failed to execute either pivot during the early 2010s, allowing e-commerce platforms to capture consumer hardware sales while physical foot traffic collapsed.

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