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Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Wednesday, March 25, 2026

Vinyl Nation

With 80% of its oil coming from the Strait of Hormuz and a currency crisis that started long before the Iran war, Korea is feeling the pinch at many levels. Beyond the obvious impact at the gas station, possible shortages in secondary products already loom on the horizon. Recently, panic-buying swept the pay+as+you+throw plastic bags issued by Seoul districts, and that's a good occasion to talk about plastic dependence here.

I mean we've seen decent progress regarding single-use plastics, for instance with reusable shopping bags at the supermarkets or reusable cups in fast food restaurants. But the land remains covered with 'vinyl houses', the East Sea the most polluted by microplastics, and the dreaded black 'vinyl bongtu' pervasive.

Black plastic is the most toxic (don't forget plastics are full of chemicals) and the most difficult to recycle. Why on Earth is this increasingly health-conscious country still hooked to that thing? You see it everywhere, and particularly where you should never see it: wrapped around food. 

And of course that black plastic is not even see-through; one of the reasons some people still prefer them to paper bags. The good news is that there are bio-source and bio-degradable alternatives that have become common in Europe, some can break down naturally in non-industrial settings, and leave no harmful waste. 

We could  also write volumes about the deadly combo of over-packaging and plastics here (how many layers of plastic even in Coupang's renewable 'Fresh Bags'?), but getting rid of these little black bags would be a good step forward.


Vinyl houses in Gimjae


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Thursday, December 4, 2025

Business as usual

As usual in Seoul, real estate and urbanism are never far from the headlines, but let's skip topical stuff and limit to mere footnotes recent controversies (this Seoul city erection in front of Jongmyo*? that measure from the national government**?).

Let's talk shop. 

You see in with those 'for rent' signs, you measure it with the speed at which new stores tend to close: small businesses are really feeling the pinch***. Part of it is conjunctural - the Korean economy as a whole is struggling, and demographics don't bode well for the future. Part of it is structural - more than COVID, the labor reforms that preceded changed fundamentally the street experience for Seoulites: used to a city that never slept, they're now coping with last orders at 9 pm or restaurants closing for dinner altogether.

And of course, more and more Koreans are now ordering everything online. Not just these GenZ who don't cook and limit their IRL shopping experiences to retailtainment or browsing Seongsu-dong's pop-up streets like their parents did with fashion magazines. Yes, Seoul's last mile equation is not sustainable (and as much as I appreciate last minute, early morning, ultra fresh deliveries, I'm glad their social costs are being investigated), but the trend is global, and all cities have to adapt.

It's harder to adapt when the urban hardware is obsolete. 

You're less inclined to contribute to your neighborhood's vitality when 'proximity' shops and services are not so close and in Seoul, apartment blocks tend to cut citizens from their city.

In the old gen 'apateu' blocks, a building devoted to businesses was generally included near the main entrance, sometimes in secondary entrances. This 'open ring' was seldom complete, but everybody walked or drove by these shops every day, particularly since few parking spaces were underground. These businesses belonged to the community.


Some housing complexes are more blended with their surroundings, their edges consisting of mixed use buildings. Even if there's less often greenery to compensate****, pedestrians enjoy (functionally speaking) a better street experience from the outside (urban continuity, diversity...). On the other hand, the inside may seem more exclusive. 
By nature mixed use buildings, officetels usually include shops and services. But when those take too big a share residents can easily feel overwhelmed. Many exclusive, high rise projects with only a couple of buildings have a mall on the lower floors, a 'vertical buffer' that's de facto a separate building with a devoted parking to preserve the residents' quality of life. But then, since it takes anyway 10 mn to leave your luxurious apartment and reach an entrance that's far from everything, many prefer to take their car and shop elsewhere, and this vertical city can turn into a tale of two cities. 

Another tricky model is what I call the 'captive cluster'; very common in greenfield 'new towns' across the capital region and around major cities. In the middle (in best cases) or at the edge (too often) of a group of apateu blocks that can involve different developer brands, urban planners insert a low rise block of mixed use buildings with all the shops and services on the ground floor. Some can be relatively well done, making the best of what's left of a natural landscape (e.g. waterways), and you can almost enjoy a village atmosphere that changes from the dull tombstone collections around, particularly since each lot owner build their own. But too often these clusters fail because there are not enough candidates to open shop*****, or because they've been poorly designed. 

Instead of an open grid, some of these clusters (particularly recent ones) propose only one or two car entrances and force visitors into a full round along a conveyor belt before exiting. On purpose, like a journey in an Ikea store makes you browse the whole catalogue. Except people move by car because these new towns are humongous, and the streets and parking spaces are seldom as entertaining, well drawn, and planned. Sometimes, these clusters are even split into two independent halves that don't communicate directly. And this 'captiveness' is actually a sales argument to recruit new businesses... Needless to say, not very sustainable.

 

If Seoul's 'MOA Town' concept signaled an evolution from massive tabula rasa to partial redevelopment, allowing more diverse cityscapes and ecosystems (see "From Human Town to Gather Town"), the market remains dominated by big projects, New Towns that obliterate real cities. 

It's not its big blocks but its remaining villages that make Seoul special. If we neuter them, if we destroy diversity, city centers will die. If we do nothing they'll die out, even if a few local markets miraculously manage to thrive and warm up whole neighborhoods.

I've been advocating pragmatic approaches to revive decaying city centers. They all involve bringing back inhabitants, even if that means designing exceptions to the rules, for example by allowing mixed uses in low rise business areas, or small scale revamps that involve shared facilities or obligations (e.g. elevators, parking spaces). Some may be implemented, stay tuned.


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* ICYMI Seoul city decided to replace Sewoon Sangga with a park between Jongmyo and Namsan, but also to 'compensate' by allowing much taller buildings in the vicinity, which of course doesn't fit preservation or UNESCO Heritage guidelines:

 

Adieu #SewoonSangga. #Seoul to replace #KimSwoogeun landmark with a park between #Jongmyo & #Namsan. But bdg heights raised to 71.9m on #Jongro (+16.9) & 141.9m on #Cheonggyecheon (+43.2). Will #UNESCO accept? #세운상가 #urbanism (20251104 SeoulVillage on X)

** ICYMI the government extended Seoul's speculative zone from the 3 usual districts (Gangnam, Songpa, Seocho) to the whole city, which resulted in a freeze in transactions (except in the 3 districts that became relatively more attractive), and a hike in rental costs. Like previous reforms, the aim seems to be crushing further the middle class and making first purchases impossible (the guy in charge of the reforms was driven by his idea that first time homeowners tended to vote more conservative)....

*** Big players are not spared, but if HomePlus will yet again change hands (Carrefour, HomeEver, Tesco... WhatEver?), its financial trouble have a lot to do with MBK Partners' disastrous management.

**** Wangsimni New Town's Majang-ro 19-gil sets a better example with dense trees on both sides,  

***** yes, these new towns also include new schools, so it's not just dwellings that are in oversupply nationwide
 

Sunday, April 27, 2025

A Fade Out - Not 'The End'

Missing all Cannes Festival selections for the first time in 26 years came as a brutal yet necessary wake up call for Korean cinema.

Everybody knew the figures were bad, but there was always an opportunity to cheer up on the creative side. This year, no one passed the cut for the Croisette.

And business-wise, the maths don't look good:

  • Ticket sales nosedived by 46% between 2019 and 2024, from 226.9 to 123.1M. And Korea was not hit as hard by COVID as France, who shrunk by only 16% (from 213.3 to 181M).
  • Premium experiences (4D, norebang-style individual projection rooms, k-pop corn, or high tech retailtainment) don't make up for the decline in the average ticket price (8% last year according to KOFIC). More coupons, more promotions for more budget-conscious viewers.

Don't blame only the usual streaming suspects; the local context clearly didn't help: 

  • Koreans have been busy worrying about democracy and demonstrating en masse on the streets 
  • Koreans don't go and stay out as often and as late as they used to. Even before COVID, the nation's nightlife declined sharply due to abrupt labor reforms - now most restaurants close early, and formerly buzzing areas have become eerily quiet

The near future doesn't look bright because there will be a shortage of new films in 2026: the well of COVID-delayed movies is drying up, and risk-adverse Korean majors have divided by two their number of yearly releases.

Of course, Korea wouldn't be this vulnerable if it weren't that blockbuster-dependent. France's resilience is in great part linked to the diversity of movies and documentaries screened nationwide, and I have already stressed the importance of indie cinema to save Korean cinema as a whole for decades (i.e. 'Saving Korean cinema... and even Chaebolplex').

One of Korean cinema's fundamental problems is that, in this country, most movie theaters are not about culture but about real estate. And like with residential or office real estate, diversity and obvious demographics trends are not really taken into account. Worse, when a movie theater has a unique cultural value, authorities destroy it to make room for a parking lot - yes, our dear Wonju landmark ('Wonju's Academy Theater') was eventually obliterated last October.

Yet. The widening gap between these huge pipes and thinning streams might be the kick in the butt multiplex operators needed. If they don't diversify their offer now, they never will, and they will never survive. They can't wait for Korean majors to de-hibernate. They must leverage their assets to act as cultural leaders, like MK2 in France, with weekly events like encounters with players in the film industry or stimulating lectures on science or culture.

We also see new venues searching for the essence of cinema. From CHO Minsuk's new Seoul Cinematheque, which fosters a dialog with film archives and even provides an outdoor venue to Laika Cinema in Yeonhui-dong, a young, well curated, intimate and cosy boutique theater giving meaningful movies the place they deserve.

And by the way, Korean majors must also seize this kick in the butt as an opportunity to improve their failing business model and to leave their comfort zone without risking much: instead of doing business as usual and betting everything on elusive blockbusters, they should devote a greater share of their budgets to small films, to source the new blood Hallyuwood needs. If you invest in startups, you know most of the time you won't hit the jackpot, but taking more small risks allows you to give disruptors and game changers a chance, to nurture the whole ecosystem. And spotting new talents will become even more vital for Korean majors now that technology enables every creator to make a film. Look how an unknown Latvian creator could claim an Academy Award (Gints Zilbalodis with his lovely 'Flow').

Beyond the movie industry, Korea Inc as a whole can play a role by financing original creations. Hyundai had the brilliant idea to sponsor 'Night Fishing', a short film by MOON Byounggon's 'Night Fishing' starring SON Suk-ku and of course one of its electric cars. The short was screened in 15 CGV theaters for a symbolic price of KRW 1,000. That's not just smart advertising and PPL, that's true cultural leadership contributing to the pedagogy of an audience formatted for blockbusters.

All stakeholders can make a positive difference, even local and national authorities. For instance by subsidizing or offering incentives only to venues devoting a significant share of independent films.

Remember that movie theaters are all about projection. Not only about projecting stuff to consumers, but about projecting people into different contexts and mindsets. We're not entering a dark bubble, we're disconnected from our phones and ambient noise, with unknown people focusing at the same time on the same brain stimulators. And when these stimulators are not the usual formatted algorhythms but creative works of art, each member of the audience sees, remembers, imagines something different, almost like we do by reading a good book. 

Don't worry, this is not The End: after this welcome kick in the ass, Korean cinema will kick ass again. 


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Friday, January 12, 2024

Seoul Smart Life Week - What happens in Vegas stays in Seoul?

So taking more space at CES was not enough: Seoul wants to be a match with the World's leading consumer electronics show and launch 'Seoul Smart Life Week' later this year (Oct 7-9 in COEX).

Mayor OH Se-hoon announced the event at the 640 sqm Seoul Pavilion in Tech West Eureka Park, where 81 companies exhibited their solutions and gizmos (very strong biotech and A.I. verticals behind  Seoul Biohub and Seoul AI Hub). 18 of them claimed a CES Award, but the prize OH and Seoul Business Agency are after means even bigger bucks.

Well the first edition 'only' aims at 100 cities and 200,000 visitors, but it takes time to install a big show in a crowded calendar, and COEX can't host a Barnum the size of CES.

KINTEX would gladly oblige, but Korea's biggest exhibition venue is in Ilsan, Goyang, Gyeonggi-do, with limited hospitality capacity nearby. Seoul wants to become a global or at least an Asian leader, to put for good Tokyo, Hong Kong (and its half-yearly Electronics Fair), or Singapore (COMEX- ITSHOW-The Tech Show-Consumer Electronics Exhibition) behind. 

Seoul plans to change venues after the Jamsil Sports Complex is fully transformed into the Jamsil Sports MICE Complex, with a business hub connecting the COEX, SETEC, Hyundai Motors Global Business Center, Dominique Perrault's new Yeongdong-daero, and of course the Han River in this very vegassy vision mentioned in my recent focus (see 'Seoul waterways and urbanism - the full story'):

Seoul already hosts many tech-related events, but no top-of-mind brand emerges. At least, if it may not seem very original, 'smart life' sounds definitely more human-oriented than the old-tech-y 'electronics' or 'IT'. Unlike CES with the CTA, this new SSLW will not be led by an industry but by a local authority, with city pavilions rather than national spaces. To compete with Vegas, Seoul will not only need new hardware and software, but also the power hitters Korea Inc. sends to the national pavilion. And ultimately, Samsung LG, and Co. will have to be convinced to release buzzworthy novelties 3 months earlier than usual.


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Wednesday, September 22, 2021

Seoul 2030 - a software update

Mayor OH Se-hoon unveiled the 'Seoul Vision 2030' he announced on his inaugural address last April*, an occasion to highlight differences with his 'predesuccessor' PARK Won-soon.

By picking the slogan 'Seoul, a fair city that runs again', ever the ambitious OH delivers two not so subliminal political messages:

  • I want to rally all citizens who want an end to the unfair system that's controlling local and national politics, and 
  • it's not just Seoul that's moving again: I'm running again, with 2027 in sight.

The goal remains the same as a few months before he left office: to lift the capital into the World's top 5 cities. The difference is that since then, under PARK, Seoul has lost its momentum and regressed from 10th in 2010 to 17th last year, which makes the task all the more daunting. To foot the KRW 48 tn bill (USD 41 bn), OH bets on a surge in real estate revenues as well as on undisclosed budget trade-offs. Not sure the equation stands, but Seoul must do something to stop the bleeding as its population shrinks and its businesses struggle.

This 'Seoul Vision 2030' is more about software than about hardware. Typically, it doesn't challenge the urban planning part of 'Seoul Master Plan 2030' laid out in 2015, with its triangle of international hubs (historic center / Yeouido-Yeungdeungpo / Gangnam) and its 7 metropolitan hubs (Yongsan, Sangam-DMC-Susaek, Cheongnyangni-Wangsimni, Jamsil, Magok, Gasan-Daerim, Changdong-Sanggye). Such macro projects are freight trains that can't be rerouted at will. OH can't even stop lighter projects such as the controversial Gwanghwamun Square revamping**; only pause to adjust and adapt in order to limit the negative impacts and to improve urban continuity.

But of course, this being Seoul, a lot of real estate remains on the menu. And hundreds of thousands of new dwellings will be added to the existing oversupply.

The bad news is that redevelopment is unleashed on a large scale, with significant deregulation and the removal of key constraints (F.A.R.), and that a lot of the few remaining Seoul villages could suffer.

"Old #Seoul neighborhoods potentially open for redevelopment jumps from 14 to 50% through #Seoul's new #urbanism guidelines... brace for the worst." (20210527 - twitter.com/theseoulvillage/status/1397728062775513090)

Focusing around certain subway stations may help spare some of them, and result in Hapjeong-izing more neighborhoods (no mentions about new subway projects, but that could come, as usual, closer to next year's elections...):

"#Seoul confirms plan to 'revitalize' #subway station areas (250m radius around stations), starting with 13 pilot projects. Higher rise allowed, mixed uses residential / commercial / offices / services. Will #Hapjeong-style clusters multiply? I'd prefer more stations. #urbanism" (20210705 - twitter.com/theseoulvillage/status/1411963191089721346)
On the upside (literally), new neighborhood parks are planned in proto-urban limbos around Seoul mountains. If done properly (that's a big if), it could paradoxically protect the mountains themselves by creating sanitized but green buffer leisure spaces in stead of unlimited, littered gateways that push unruly crowds deeper into the wild. Most visitors would enjoy a pleasant moment without needing to reach any further, leaving more space to wildlife and respectful mountain lovers.
"#Seoul creates new neighborhood parks in decrepit mountainous areas where development projects have failed for 20 years, starting this year in #Cheonwangsan (#Cheongwandong and #Hangdong, #Gurogu) and #Choasan (#Changdong, #Dobonggu and later #Wolgyedong, #Nowongu). #urbanism"
(@theSeoulVillage 20210910 - twitter.com/theseoulvillage/status/1436132137258795017)

Seoul targets a 40% greenhouse gas reduction by 2030 and carbon neutrality by 2050, but to achieve that, will it continue to outsource part of the dirty job to Gyeonggi-do (see "Seoul Power Play: One Less Nuclear Plant, One More Coal Plant")?

Obsessed with Seoul's business competitiveness, OH Se-hoon wants to seize a momentum and snatch as much of the Hong Kong exodus away from Singapore as possible, and to attract FDIs getting cautious about Korea's neighbors Japan (who wants to be the next Carlos GHOSN?) and China (hard-soft power supremacy challenged worldwide, investors wary of XI Jinping's authoritarian moves). Foreign media were already flocking in before South Korea's government pushed its own laws stiffling press freedom.  In that context, the creation of an agency modeled after Singapore's EDB makes perfect sense. How it articulates with existing entities (SBA etc) remains to be seen.

How Yeouido can turn into an international finance magnet without structural reforms at the national level also puzzles me.

Like during his first mandate, OH wants to boost international tourism, this time up to 20M visitors a year. He insists on culture which is of course essential, but that will take more than a 'Seoul Festa' and kpop events.

I'm more interested in how Seoul intends to nurture and boost the local startup ecosystem, deep and wide. Hosting 40 unicorns by 2030? that's mostly for the show. Building new clusters? as if there weren't enough already... I prefer the concept of mentoring programs for seniors: recent trends already show more 50-year+ executives joining previously almost exclusively young crews, but there's a need for a much broader-reaching, more inclusive approach. 

The 5 pillars of 'Seoul Vision 2030' are "fairness, coexistence, safety***, future sensitivity, global leadership", and 'future sensitivity' is a nice way of saying the whole population should be involved, innovation requires pedagogy and respect for everyone.

"Fairness", and "coexistence" are the most beautiful and difficult challenges. Seoul aims at equal opportunity, fostering women activity and youth employment, seniors access to lifelong learning programs, Seoul Learn online education platform for underprivileged students... Basic income will even be tested. Ending the gender war among younger generations should be added as a core Seoul Development Goal.

By the way, on Thursday, the 3rd SBAU (Seoul Biennale of Architecture and Urbanism) kicked off. An anticlimatic event in a most complex climate, but always the opportunity to connect a few new dots and to confront different visions of different cities:


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* The launch of a Seoul Vision 2030 Committee was the 5th pledged made by the new Seoul Mayor:

"
The 5 pledges of #Seoul mayor #OhSehoon (NB: good luck with that):" (@theSeoulVillage 20210428 - twitter.com/theseoulvillage/status/1387308187209015300)


** see among others "Gwanghwamun Square 3.0 re-Deep-Surfaces"

*** mostly in a pandemic context.

Monday, November 23, 2020

Korean Errlines

The Korean Air - Asiana Airlines merger would face severe antitrust backlash anywhere, but Korea doesn't seem ready to welcome a foreign full-service carrier, and this is 2020. Yes, the new giant will lose many international routes, since Asiana competed with KAL on almost half of its overseas destinations, but it will also become a big player among Asia's low cost carriers after combining Jin Air, Air Seoul, and Air Busan (probably under the Asiana Airlines brand). Skyteam scores a major win against Star Alliance, and even slightly diluted as a KAL shareholder, Delta Airlines reinforces a key position in the region.


Needless to say, the pandemic spiced up this Korean drama where both Asiana suitors flew away: 

  • the preferred consortium (Hyundai Development Company - Mirae Asset - Daewoo) looked for every possible loophole to take off between the engagement and the wedding, 
  • Aekyung landed on a much smaller prey, beefing up its Jeju Air with Eastar Jet
  • in the end, Kumho Asiana will have to lead their daughter to their main rival

The Hanjin KAL holding company will be able to advance the funds thanks to KDB, who will get a bit more than 10% of the merged carrier. So indirectly, the government foots the bill. In spite of the chaebol family scandals (from the nutrage to its many sequels), the Cho must go on...

Earlier this year, Korean Air fared much better than its global rivals, mainly thanks to freight traffic. And these days, the most popular domestic route in the World happens to be between Seoul and Jeju, the nation's preferred holiday destination benefiting from the lack of overseas alternatives. 


(source "These Are the World’s Busiest Airline Routes During Covid Times" - Bloomberg 20201117)

After inventing flights to nowhere (take off and landing in the same airport), Korea opened its skies to international fly-over travels. So there's always a quick fix if you miss international travels. Even for those who miss Jin Air's inflight meals (this is 2020, you are entitled to miss anything), there's a solution - low cost, of course:

'Travel withdrawal syndrome? Jin Air proposes inflight meals at home (today's KJD). For this plastic frenzy to make perfect sense, they should add a hundred gallons of kerozene to burn in your living room' (@theseoulvillage - 20201024)

But for cheap and easy escapes, nothing beats a travel book:

'Lonely Planet' indeed (they forgot 'Glamping on the balcony') (@theseoulvillage - 20201023)


Hep, taxi!


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Thursday, June 27, 2019

Magok updates

Last month, ULI organized a presentation of Magok District, starting with an update by SH Corporation, and a visit of the recently inaugurated Seoul Botanic Park, the most significant addition to the puzzle since our 3-part, May 2018 focus (Framing Magok (Part I - Location) / Magok's horizontal verticals (Part II - Cluster) / Magok's lifespace (Part III - Environment)).

'Definitely a greenhouse, and the effect that comes with one. Inside Seoul Botanic Park / 서울식물원. Magok District Seoul' (20190528 - https://twitter.com/theseoulvillage/status/1133291466761969665)
As expected (see the second part of that focus), bringing big players in innovation proved much easier than building a diverse and open startup ecosystem, which requires among other things a vision, planning, and free urban spaces for creativity to bloom. SH decided to devote a stretch along the waterway to a more open neighborhood (명소화거리). Let's hope it will remain low rise, not overly scripted, and free from the usual storytelling and franchises. 

Like the MICE strategy, this happens very late in the process. I couldn't help but think about Canal Walk. Cornerstone hot spots like this new street or the Magok Square should be ready from day one, with the rest of the city revolving around them, not a just final touch supposed to add some sort of soul to a big development.

As I put it in the DMC-Songdo parallel, particularly for a New Town, 'sequence is of the essence'.


'Urban planning sans urban planning. This is where Magok District's 명소화거리 will rise. A potential cornerstone for the whole neighborhood, unfortunately added very late in the project, like Sondo's CanalWalk. Hope it will be low rise, not flashy, but sustainable' (20190528 - https://twitter.com/theseoulvillage/status/1133291466279702528)



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Tuesday, July 17, 2018

Chaebolplex v. Indie Movies - The Sequel

According to KOFIC / KOBIZ, Korea's 2,870 movie screens recorded almost 220 M admissions last year, a 49% increase in ten years. That's enough to take over (30% more populated) France, where admissions gained only 11% over the same period, from 190 to 209 M. Korean and Foreign films have basically maintained their positions on the market: around 50/50 for the number of admissions, 28/72 for the number of films released, knowing that the biggest blockbusters tend to be local (only Avatar appears in the all time top ten, as #3).

The number of movies released exploded (from 380 to 1,765), which is not a guarantee for quality, but an encouraging sign for culture diversity*. Indeed, the big 'chaebolplexes' that control the market have at long last started to propose independent movies.

Which doesn't mean that Korea's indie movie ecosystem is better off.

When six years ago, chaebolplexes were forced to feature them following the 'Pieta' scandal, I worried that they would struggle to kick their bad, closed circuit habits (see "Saving Korean cinema... and even Chaebolplex"), and that's pretty much what happened.

Just a few significant events that followed the 2012 'Pieta Law':
- 2013: ten indie movie producers pool their efforts to create Little Big Pictures
- 2014: CJ Group launches CGV Arthouse (chaebolplexes create their own 'indie' theaters)
- 2015: it gets political when AHN Cheol-soo brings the spotlight on the cause, and indies push for laws similar to the 1948 Paramount Decree (the "antitrust case that ruled against big movie studios operating their own movie theaters"**)
- 2016: Netflix launches in Korea
- 2017: produced by Netflix, BONG Joon-ho's 'Okja' is boycotted by Korea's biggest theater operators
- 2018: IPTV takes over cable TV as main provider, controlled by the Big 3 (KT, SKT, LGU+), and 'chaebolplex' snatch exclusivities for indie movies away from 'independent art houses', even for re-runs.***

How can indie theaters survive, or compete with lavish complexes that in terms of diversity, contribute essentially to one of chaebolplex's core business models: real estate. There are so much new complexes Seoul can host, and the 'art house' alibi provides a perfect 'alternative' offer to developments that target culture-friendly elites.



Institutions like Seoul Cinema or Indie Space embody the resistance, but for how long?


'Smells like Seoul Cinema spirit' (20180517 - www.instagram.com/p/Bi4AYl9ll7H/?taken-by=stephanemot)


'not sure the one in the middle will be featured in a chaebolplex' (20121213 - twitter.com/theseoulvillage/status/279079561419960320)


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* on this issue, read " Heralding cultural diversity - a stronger and more sustainable Korean wave" (2013)
** "South Korea’s Chaebol-sized Movie Problem"  (WSJ 20150130)
*** "Art house cinemas lose their exclusivity : As more indie films are screened at theater chains, smaller venues suffer losses" (KJD 20180706)

Monday, May 21, 2018

Riding along 'horizontal verticals' in Magok District (Part II)

This is the second part of my focus on Magok District:
    1. Framing Magok (Part I - Location)
    2. Magok's horizontal verticals (Part II - Cluster)
    3. Magok's lifespace (Part III - Environment)


***


2) Magok's horizontal verticals

In the first part we saw how, by its simple location and connectivity, Magok District enjoyed key assets for a business hub. In the third one, we'll see if its environment can, as advertised, attract researchers and creative minds. Here, we'll focus on the innovation cluster promise.

The signature used in recent advertorials sounds familiar, and as usual with previous Korean projects sharing similar ambitions in the past, 'Korean Silicon Valley Magok' ("한국의 실리콘밸리 마곡") is supposed to create a haven where big fish and small fry cohabit. But as usual, chaebol struggle to envision innovation clusters beyond proprietary ecosystems, which can become a major hurdle for diversity and creativity (see "Redrawing Korean Maps - Innovation Clusters").

Magok doesn't aim at aggregating value around business 'verticals' like the Sangam DMC, conceived as the name suggests for media and entertainment, or even Songdo, when it was desperately looking for a way to reboot and better market itself. Here, we're into 'convergence and fusion technology', more in the Pangyo Techno Valley vein, but with a stronger industrial - manufacturing touch.

As the first big fish to sign for this former swampy rice paddy area, LG Group set the tone for 'convergence and fusion', pooling Research and Development teams from key subsidiaries (LG Electronics, LG Chem, LG Display...) in its LG Science Park complex (18 buildings, capacity of 25,000 employees) to better tackle such challenges as robotics or A.I.. Similarly, Lotte Group is looking for new synergies between Lotte Food, Lotte Confectionery, Lotte Chilsung Beverage, and Lotteria...

Should we dub this higher stage of chaebolism 'horizontal verticals'?


Clockwise, the site of Tadao Ando's future LG Art Center / LG Science Hall, LG Science Park's ISC (Integrated Support Center), Kolon One and Only Tower.
LG Science Park Integrated Support Center (www.instagram.com/p/Bi8rK-slfWJ)

LG also provides the neighborhood with a cultural venue designed by Tadao Ando. The new LG Art Center will open in 2020 on Magokjungang 10-gil, across the LG Science Park and next to the park itself. The group will operate the theater for thirty years before offering it to Seoul city.




It's way too early to judge this new ecosystem, particularly since, like in the DMC, small players are supposed to join after the big ones. Urbanism and architecture can give us clues about the potential, though. For instance, LG Science Park can look like series of containers from a distance, but many buildings are porous, with atria and green walkways, giving the ensemble a campus-like touch, more open to its surroundings than other, more monolithic centers.

Unlike the actual Silicon Valley, where most companies of all sizes and shapes settled in existing urban or peri-urban environments, this research complex consists of contiguous lots, most of which will be developed by one powerful player. So if you're having a coffee in the Eastern half of Magok District, chances are it will be in a building owned by one of those, which may alter the way you pitch your startup over a cup of java.



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If Magok District will welcome garage startups, they are not its main target. The aim is to boost innovative research in industries that do have fuzzy edges, but also complex cores and cycles, and it already signed enough significant players to succeed. More will want to join in a site ideally located for logistics and within the capital city, but quality of life will also be a factor. Ideally, Magok's environment must stimulate creativity, but in not necessarily too 'speedy' and disruptive ways. 

Is it likely to deliver? That's what we'll check in our last part of this focus.

 
Seoul Village 2018
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