Dongdaemun Design Plaza stimulating growth in its environs

Posted on : 2014-10-22 16:07 KST Modified on : 2019-10-19 20:29 KST
Structure had been criticized as an expensive, out-of-place eyesore, but study shows it’s attracting millions of visitors
 designed by Iraqi-British architect Zaha Hadid.
designed by Iraqi-British architect Zaha Hadid.

Dongdaemun Design Plaza (DDP), which has the reputation of being an eccentric structure, is stimulating growth in the Dongdaemun area, a recent analysis claims. The evidence is that the floating population in the surrounding area has increased by 20% since the DDP opened.

According to an analysis released on Oct. 21 by the DDP management team at the Seoul Design Foundation, more than 5 million tourists had visited the DDP as of Oct. 17 since it opened on Mar. 3, with an average of 23,000 people visiting each day.

Passengers using Dongdaemun History and Culture Park Station
Passengers using Dongdaemun History and Culture Park Station

Naturally, the floating population in the area is increasing as well. The number of people who have been getting on or off the subway at Dongdaemun History and Culture Park Station, located next to the DDP, rose from 2,315,275 in January to 2,845,682 in August. The growth trend is also borne out by a quarterly analysis, with 2,500,586 average subway passengers per month in the first quarter, 2,867,083 in the second quarter, and 2,915,212 in July and August.

The rise in the floating population is also having a positive influence on revenues at clothing stores in the area such as Doota, Migliore, Lotte Fitin, Good Morning City, and Hello APM. The DDP management team found that monthly revenues at Doota and Lotte Fitin had increased around 20-30% since the DDP opened.

Former Seoul Mayor Oh Se-hoon lavished 484 billion won (US$458.6 million) of city funds on the construction of the DDP. The project faced withering criticism for a number of reasons. The building, designed by Iraqi-British architect Zaha Hadid, did not match the surrounding landscape; it required the demolition of Dongdaemun Stadium, a historically significant structure; and historical artifacts that were discovered during the construction had to be moved elsewhere. The structure was also blasted as a money drain, since it costs 31.1 billion won a year to keep open.

Park Won-soon, who succeeded Oh Se-hoon as mayor of Seoul, vowed not to pour any more money into the project and set a goal for the building to become 100% self-sufficient. Most experts were dubious, believing the structure could not attract the 750,000 yearly tourists needed to achieve self-sufficiency even in the initial period after opening.

But the DDP has already had more than 5 million visitors. “We have already earned 71% of the 31.2 billion won operating cost that we are meant to raise by ourselves, excluding a loan from the city of Seoul, through revenue from renting out the exhibition space. We are well on our way to reaching and surpassing our goal by the end of the year,” a member of the DDP’s management team said.

Dongdaemun Design Plaza
Dongdaemun Design Plaza

By Eum Sung-won, staff reporter

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