Cheongdam Luxury Fashion Street, a street in Seoul lined with flagship stores of luxury fashion brands, is undergoing another transformation. The street was formed in 1990 when the Galleria Department Store opened, and luxury brands such as Armani and Prada set up stores nearby.
The first wave of change happened during the COVID-19 pandemic when semi-luxury brands such as Metro City and Tory Burch were replaced by high-end fashion houses like Saint Laurent and Fendi, as luxury spending surged in place of international travel. In the post-pandemic era, the street is experiencing what industry insiders call its “second evolution,” with a broader range of watch and jewelry brands moving in as the South Korean luxury goods market reaches its mature stage.
Stretching approximately 650 meters from Apgujeong Rodeo Station to Cheongdam Intersection, Cheongdam Luxury Fashion Street has been likened to New York’s Fifth Avenue and Tokyo’s Ginza. The difference is that only 55 buildings along this street can house stores, which leads to fierce competition among brands vying for a spot.
Unlike typical shopping districts, the street lacks cafes, parks, or affordable fashion brands that cater to the general public. The stores target customers who clearly intend to visit specific brands rather than those who might casually browse. Most of the stores do not feature window displays that reveal their interiors.
Recently, prestigious brands such as watchmakers Audemars Piguet and Richard Mille and fashion label Loewe have opened stores on Cheongdam Luxury Fashion Street. Armani was the first luxury brand to open its boutique in the 1990s, and other iconic brands like Chanel, Gucci, and Prada followed suit. The street is now attracting even more high-end brands.
But these stores operate on a different model from the crowded luxury sections of department stores. The area is home to numerous flagship stores, which serve as the ultimate representation of each brand’s identity.
While luxury stores in department stores are often packed with people, making shopping inconvenient with frequent “open runs” (when customers rush in as soon as the stores open), Cheongdam’s boutiques cater to affluent shoppers who prioritize privacy and are willing to forgo the perks of department store perks like loyalty points. Many stores offer exclusive underground shopping areas or VIP-only cafes and restaurants for a more personal, discreet shopping experience.
The competition to lease space in this coveted district is intense. The average rent for a 200-square-meter store is around 50 million won ($38,000) a month, with an initial deposit of 1.5 billion won, according to real estate market insiders. Despite the high costs, brands eagerly compete for these prime locations. In some cases, executives from luxury brands meet with landlords months before a lease expires, even offering advance deposits to secure a space. With only 55 buildings available for lease and a minimum lease term of 10 years, opportunities to move in are rare, and once a brand misses its chance, it can be difficult to get a second shot.
Korean brands have also been searching for a spot in the district. Time, a Korean brand owned by Hyundai Department Store’s fashion subsidiary, Handsome, also secured a lease in one of the 55 buildings. The company plans to open a Time flagship store in the second half of next year.
