[Edaily Reporter Han Jeon-jin ] Large retail brands, once viewed as a threat to traditional markets, have now become the recipients of “love calls” from the markets themselves. This shift comes as market merchants’ associations have begun actively courting well-known brands. Fashion and beauty brands, as well as household goods stores, are setting up shop one after another in the market alleys. This is the result of a mutual alignment of interests between markets seeking to attract foreign tourists and the MZ generation, and the retail industry looking for new customer touchpoints.

◇From Starbucks and Olive Young to Daiso… The Market’s Transformation
According to industry sources on the 28th, Daiso, a fixed-price household goods store, is considering opening a store within Gwangjang Market in Jongno-gu, Seoul. It is reported that the market merchants’ association was the first to propose the move. Daiso has been opening stores in traditional markets one after another, including a location at Suyu Market in Gangbuk-gu, Seoul, last May. A Daiso official said, “We are currently in discussions with the merchants’ association and are comprehensively reviewing market potential and location conditions.”

Gwangjang Market, which opened in 1905 and boasts a history of over 100 years, has recently become a “hot spot” attracting foreign tourists and the MZ generation. According to the merchants’ association’s estimates, an average of more than 60,000 domestic and international visitors come to the market daily. Buoyed by this popularity, it has emerged as a new hub for retail brands. Last May, Starbucks opened its “Gwangjang Market” location, the 10th branch of its profit-sharing “Community Store” chain, and last April, Olive Young unveiled “Ollyeong Yanghaeng” (Gwangjang Market branch), an 806-square-meter (244 pyeong) store on the second floor of the Judanbu building, which houses hanbok and fabric shops.

Fashion brands had also previously set up shop in Gwangjang Market. Brands such as Matin Kim, Kodak Apparel, Setter, and Fruit of the Room opened stores one after another starting in the second half of last year. It is said that as traditional and youthful brands blend together, the market has begun to enjoy a new draw for visitors. The sight of people lining up for limited-edition releases has blended with the streams of tourists seeking bindaetteok and kimbap, transforming the market into a space for enjoyment and lingering that goes beyond just food.

This collaborative model is not unique to Gwangjang Market. Seoul’s Dongdaemun Gyeongdong Market is cited as an early example of partnering with retail companies. Following the opening of the “ E-MART Co., Ltd.(139480) ” Nobland International Inc. Win-Win Store in 2018, the Gyeongdong Market Merchants’ Association brought in a Starbucks “Gyeongdong 1960” location in 2022. Remodeled from a defunct theater built in the 1960s, this store has become a new landmark in the market, attracting young people and tourists since its opening. It is regarded as a prime example of how traditional markets and brands can coexist to boost foot traffic.

◇ Markets as New Touchpoints for the Retail Industry… Mutual Prosperity and Coexistence Are Key
Behind this trend lies a convergence of interests between traditional markets and the retail industry. In the past, large hypermarkets and corporate-owned supermarkets (SSMs) repeatedly clashed with traditional markets over issues such as new store openings and mandatory closing days, amid conflicts with the Retail Industry Development Act. Traditional markets, in turn, had long been wary of major corporate brands. However, the rise of online shopping has changed the calculus. Traditional markets gain access to new customer segments and increased foot traffic, while retailers can build an image of mutual benefit and establish stores with unique concepts. As both sides stand to gain more, experts note that cases of cooperation are increasing over confrontation.

This trend toward collaboration appears to be spreading to regional areas as well. The Ministry of Culture, Sports and Tourism and the Korea Tourism Organization selected 11 markets across 10 regions nationwide—including Busan’s Haeundae Market, Daegu’s Seomun Market, Jeonju’s Nambu Market in North Jeolla Province, and Jeju’s Dongmun Traditional Market—as part of the “K-Tourism Market Phase 2” program this year. Selected markets will receive support for developing brand strategies, overseas marketing, and expanding experiential programs. This signifies that the transformation of traditional markets is no longer a phenomenon limited to certain parts of Seoul.

However, attracting brands does not necessarily translate directly into the market’s overall competitiveness. A prime example of this is the stark contrast between flashy brand stores and small-scale merchants. Gwangjang Market recently faced a major backlash due to allegations of price gouging by some vendors. If tourists—who were painstakingly attracted by brands—end up turning their backs on the market due to the unfriendliness of the vendors, the effect of drawing crowds will inevitably be limited to only a few stores. Other challenges that must be addressed include gentrification—where existing vendors are forced out by rising rents as the market becomes a tourist attraction—and the dilution of the market’s unique character.

A retail industry official stated, “What’s more important than attracting a single brand is spreading that impact throughout the entire market,” adding, “To become a commercial district that tourists visit consistently rather than just passing through once, we need a structure where merchants and brands grow together.” The official continued, “If we fail to retain visitors—who came solely for the brand—with the market’s authentic food and goods, we risk losing momentum once the trend fades.”