Basic Report

The alley commercial districts emerging since the 2000s have been transformed into more than just places to buy goods; they now serve as hubs for local culture, fostering unique interactions between the community and visitors. With the rise of social networking services(SNS) targeting the younger generations, these districts are gaining increasing attention for their diverse and unique features, becoming new hubs for new economic activities and places where young people envision their success.
   However, the COVID-19 pandemic after 2020 caused a significant crisis for these districts due to a decline in tourists and consumers. The commercial vitality of these districts, once the center of urban economic activity, rapidly decreased, imposing severe economic hardships on merchants. Nonetheless, alley commercial districts known for their unique and exotic atmospheres continued to attract interest, especially among younger generations who actively shared information through social media, thereby enhancing the districts' distinct imagery and spatial experiences. This heightened attention has led to increased capital investment in these districts, recognizing these areas as pivotal for cultural development and the evolution of consumption trends. Moreover, as these spaces cultivate the interactive synergies among attractive sensibilities, living culture, and place narratives, they have become fertile spaces for aspiring young entrepreneurs, thereby adding fresh cultural changes into otherwise static urban landscapes.
   Recognizing that the development and decline of commercial districts is intertwined with dynamic social and cultural changes, it is evident that merely changing the physical environment may be insufficient. Ultimately, it is essential to establish specific and practical policies that capture emerging social and cultural trends, provide ongoing support for entrepreneurs, small business owners, and small and medium-sized businesses(SMEs), and attract visitors. However, there remains a lack of strategies aimed at strengthening the competitiveness of local commercial districts and fostering sustainable growth, with limited research in this field. Consequently, revitalizing alley commercial districts is indispensable as an alternative to conventional urban development and regeneration, which formed a background for this study to adapt to a place-centered perspective.
   Building on this background, this study seeks to conduct an empirical analysis of the factors driving visits to small commercial areas. Sustaining and nurturing a commercial district necessitates enhancing visitor satisfaction and increasing return visitation rates, thereby fostering sustainable consumption activities in alley commercial areas. Through this analysis, the study aims to identify both direct and indirect factors influencing visit frequency and explore the determinants necessary to enhance visit satisfaction and encourage repeated visits.
   To this end, a structural equation model is devised for a case study of the selected alley commercial districts, Myeongju-dong in Gangneung-si, and Hwangnam-dong in Gyeongju-si. Surveys are administered among visitors to these areas, with measurement variables such as 'meaningful place experiences,' 'place identity,' 'place dependence,' and 'behavioral intention,' which are then analyzed comprehensively.
   Drawing upon the findings, this study proposes fundamental strategies for revitalizing alley commercial districts, including enhancing local image through a comprehensive local branding plan, creating alley commercial districts that utilize regional characteristics, and establishing a sustainable alley industry ecosystem. The first direction, improving local image through a local branding plan, entails devising a master plan led by local residents, identifying local resources through local branding indicators, and executing projects through a step-by-step, phased approach plan. Creating an alley commercial district that capitalizes on regional characteristics involves fostering the district through local value creation, spatial design and infrastructure construction reflective of regional identity, differentiated strategies considering the district's conditions, and building a sustainable alley industry ecosystem. Additionally, the study recommends the development and implementation of an alley artisan training program, nurturing local creators to foster a creative local environment, and fostering efforts to cultivate a cooperative alley community culture.