Effects of urban regeneration projects on store survival rate in neighborhood commercial areas: the case of South Korea

Abstract

Neighborhood commercial areas in cities densely populated with small stores serve as crucial social, economic, and cultural hubs. However, the emergence of large discount stores and online shopping and urban decline have challenged these commercial areas. In response, South Korea introduced urban regeneration policies in 2014, known as urban regeneration leading areas (URLAs), with related projects carried out between 2017 and 2019. This study explored how urban regeneration projects impacted neighborhood commercial areas. It specifically examined the relationship between store survival rates - a key indicator of revitalization - and influencing factors (e.g. characteristics of urban regeneration projects, store characteristics, and regional features). The results, derived from a survival analysis model, indicated that revitalized areas, such as artificially specialized streets, negatively impacted store survival rates. Moreover, stores established at the commencement or midpoint of regeneration projects demonstrated lower survival rates, indicating temporary gentrification. Contrarily, stores linked to convenience facilities integral to residents' lives and those existing before regeneration projects exhibited higher survival rates. These results suggest the need for a shift in urban regeneration projects and policies, such as increasing support for established local stores rather than creating new commercial zones and setting reasonable rents to sustain newly established stores.