Yongsan Electronics Market begins reinvention as AI hub

Seoul's decades-old mecca for electronic devices is set to become a specialized district for artificial intelligence and information and communications technology in central Seoul.

The first construction phase of the Yongsan Electronics Market overhaul is scheduled to begin this month, the Seoul Metropolitan Government said Sunday.

The project marks the first construction work since the city announced a redevelopment strategy in June 2023 aimed at market transformation and stronger ties to the neighboring Yongsan International Business District. The plan followed Seoul Mayor Oh Se-hoon’s 2021 pledge to turn the area into “Asia’s Silicon Valley.”

“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.

Plans call for spaces for software business; digital content production; research and development and startups; alongside retail, cultural and sports facilities.

Redevelopment is underway in eight of the area’s 11 zones. Building permits have been issued for four, including Zone 5, which serves as a gateway to the market.

Yongsan Electronics Market opened in 1987 and flourished as the country’s largest electronics shopping center as personal computers and mobile phones became widely available in the 1990s. But it has since lost ground amid the growth of online shopping and the deterioration of its aging facilities.

The market comprises about 20 buildings, and its vacancy rate exceeded 60 percent at one point, according to the city.

The city also plans to connect the redevelopment zones with an approximately 570-meter elevated public walkway running east to west, as well as 11 bridges between zones. The linked public spaces and greenery are intended to create a pedestrian corridor connecting the market with Yongsan Station.

The city said it expects to secure about 247 billion won ($184 million) in cash contributions from developers to support balanced development across Seoul.