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  • P-ISSN 2586-2995
  • E-ISSN 2586-4130
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KDI Journal of Economic Policy. Vol. 47, No. 1, February 2025, pp. 1-17

https://doi.org/10.23895/kdijep.2025.47.1.1

× KDI Open Access is a program of fully open access journals to facilitate the widest possible dissemination of high-quality research. All research articles published in KDI JEP are immediately, permanently and freely available online for everyone to read, download and share in terms of the Creative Commons Attribution 4.0 International License.

Exploring Revenue Trends in Alley Commercial Areas in Seoul, Korea†

HONGJAI RHEE

Author & Article History

Manuscript received 15 January 2025; revision received 20 January 2025; accepted 13 February 2025.

Abstract

This study examines changes in sales by business category and area in Korea’s small commercial districts. Unlike previous studies that focused primarily on overall sales levels before and after the COVID-19 pandemic, this paper emphasizes temporal variations in the inequality of sales distributions. Using credit-card-based data comprising 392,832 sales records aggregated by (category, area) units, the primary analysis reveals that sales distributions have recently become more dispersed across most categories, underscoring the vulnerability of less-advantaged areas in the post-pandemic period. In a secondary analysis, regression and machine learning models were applied to investigate factors influencing regional sales disparities. The findings indicate that although overall sales, which declined sharply during the pandemic, rebounded rapidly after 2021, they have shown a significant downturn in recent periods. The paper concludes with a discussion of relevant policy implications.

Keywords

Commercial Districts, Sales Growth, Distributional Inequality, COVID-19

JEL Code

L1, L8, C5

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