[Edaily Reporter LEE JUNGHYUN ] The vacancy rate for general retail spaces nationwide has exceeded 13%. Observers point out that vacancy rates have risen compared to five years ago in most regions across the country, worsening business conditions for small business owners.

According to data submitted by the Korea Real Estate Board to Rep. Hwang Hee (Democratic Party of Korea, Seoul Yangcheon-A), a member of the National Assembly’s Land, Infrastructure, and Transport Committee, on the 28th, the vacancy rate for retail spaces has risen compared to five years ago in 16 of the country’s 17 metropolitan cities and provinces. The nationwide vacancy rate for general retail spaces rose by 1.4 percentage points over the past five years, from 11.96% in the first quarter of 2021 to 13.36% in the second quarter of 2026. It has shown an upward trend for seven consecutive quarters since the third quarter of 2024.

By region, nine cities and provinces—including Busan, Daegu, Incheon, and Sejong—recorded their highest vacancy rates since 2021. As of the second quarter of 2026, Sejong had the highest vacancy rate nationwide at 22.79%, followed by Daegu (17.84%), North Chungcheong Province (17.43%), North Gyeongsang Province (16.66%), and Gwangju (16.50%).

Vacancies also increased significantly in ground-floor retail spaces, which are considered the heart of commercial districts. The vacancy rate for first-floor retail spaces nationwide worsened from 4.79% in the first quarter of 2021 to 6.68% in the second quarter of 2026. Sejong also had the highest first-floor vacancy rate at 11.12%, followed by Daegu (10.21%) and North Gyeongsang Province (8.95%).

The trend of increasing vacant storefronts is also evident across different types of retail spaces. The vacancy rate for medium- and large-sized retail spaces nationwide rose by 1.35 percentage points, from 12.98% in the first quarter of 2021 to 14.33% in the second quarter of 2026, with vacancy rates increasing in 15 out of 17 metropolitan cities and provinces. In particular, Sejong’s vacancy rate for medium- and large-sized retail spaces reached 29.68%, meaning that 3 out of every 10 retail spaces were vacant. The vacancy rate for small-scale retail spaces also rose by 2.06 percentage points during the same period, from 6.41% to 8.47%, with Incheon recording the largest increase nationwide, rising from 5.16% to 10.59%.

Vacant retail spaces clearly reflect the harsh business conditions faced by small business owners. According to an analysis of National Tax Service statistics conducted by the Ministry of SMEs and Startups, 975,681 businesses closed last year, resulting in a closure rate of 8.64%. Of these, more than half—50.4%—cited “poor business performance” as the reason for closing.

Rep. Hwang Hee pointed out, “The rise in retail vacancy rates is not just a problem limited to specific regions; it is a signal from the people’s economy that reflects a complex interplay of changes in domestic demand conditions and the consumer environment,” adding, “We must closely examine trends in commercial districts nationwide, including Seoul, as well as the situation faced by small business owners.”