Chapter 261
Chapter 261
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Translator: penny
Chapter: 261
Chapter Title: The Commercial Prosperity Association
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Gentrification Response: Commercial Prosperity Association Establishment Committee.
Kim Jong-chun's face twisted in confusion at that long, unfamiliar name. I grinned and said,
"After hearing your story, Uncle, I spent the whole day hustling around."
Why else would I show up to find Kim Jong-chun right as the shop was about to close? I'd been going around to all the merchants in the area, explaining the situation and asking for their understanding.
"Wh-what's this? A commercial prosperity association?"
"It's like a merchants' association. Remember? Back when you first came here, those merchants' association guys were throwing their weight around, demanding protection money."
People like Yoon Kang-deok had muscled in, saying they deserved a cut for developing the district.
At my words, Kim Jong-chun's eyes widened as the memory hit him.
"Yeah, yeah! I remember! ...But you're saying you're going to start one?"
"The local merchants' association got a bit corrupt, but originally, a commercial prosperity association is an organization where merchants band together to revitalize the commercial district and protect their rights."
It's essentially a group formed to tackle issues like gentrification.
"Raising the rent is incredibly tough for individuals to handle on their own."
If we treat it as just a personal problem or rely solely on the law's limited protections, not a single original merchant in this alley would be left.
"I've laid out the purpose and goals for the establishment. Quite a few merchants have already promised to join. We'll be doing an official survey soon."
"Th-that's really going to solve the problem?"
He didn't seem convinced that a bunch of merchants getting together would scare the landlords. And he had a point.
Unless the merchants came out in a group protest or something, the landlords could just pretend it didn't exist.
That's why the next step was crucial.
"Once the commercial prosperity association starts taking shape, we'll register it as a corporation."
"Huh?"
"That way, it'll have legal standing and evolve beyond a casual social club into a real organization."
And above all, it would gain legitimacy as the representative body for the merchants in this alley.
"Then... we can request cooperation from the local government."
"......!"
Kim Jong-chun's eyes bulged.
"The law has its limits for legal recourse, but local governments want to curb gentrification as much as possible, too."
If you reach out to the regional economic development office or urban regeneration department, you'll find people tearing their hair out over this exact issue.
"Once we submit an official request and go through consultations with the local government, they'll step in as mediators between the landlords and merchants."
Even the toughest landlord would have to back down at that point.
'If they were dead set on running the place themselves, that'd be one thing. But demanding a 300% rent hike means they just want higher rent more than anything.'
With local government involvement, the pressure would make them mind the public eye, even if reluctantly.
"On top of that, we could get subsidies for rent stabilization, trigger investigations for compliance with the Commercial Building Lease Protection Act, or even push for anti-gentrification ordinances."
"I-I see. I had no idea..."
Kim Jong-chun fidgeted with his fingers, then suddenly looked up.
"So, I don't have to close up shop?"
"Ah, not sure about that yet."
"What?!"
Unfortunately, it wasn't a magic fix-all.
"The timing doesn't line up. Your lease ends in a month, Uncle. But just setting up the association and registering as a corporation will take at least two months."
Even rushing the association's formation, becoming a legal entity would take one or two months for sure.
And factoring in consultations and discussions with the local government... it'd take at least three or four months to gain any real influence.
Way too late. Kim Jong-chun's shop would already have changed hands by then.
"Then what do we do?!"
Kim Jong-chun looked stricken.
"Should I move somewhere else? Maybe I should start scouting other spots nearby right now...!"
"Calm down."
I barely settled the panicking Kim Jong-chun. I got that he was shocked—this was all new to him—but moving wasn't the answer.
"If business booms at a new place, that landlord will jack up the rent or kick you out too, right?"
This time, he'd gotten unlucky with an unscrupulous landlord after just two years.
Even if you luck into a law-abiding one, things wouldn't change much.
The 9% cap on rent increases only lasted five years at best. No one knew how high the rent would climb after that.
If you didn't want to keep hopping shops every five years, it wasn't a real solution.
'In the future, gentrification gets recognized as a full-blown social issue. But right now, that's not the case.'
This was just the beginning, with the side effects starting to emerge one by one.
There were still plenty of things left for individuals to handle on their own.
"So what should we do?"
"There are ways."
I grinned at the puzzled Kim Jong-chun.
"We're going to negotiate directly with the landlord."
***
Knock knock.
I glanced at the clock as the knock came. It was right on time for our appointment.
"President, your guest is here."
At Jo Yi-ruk's words, I nodded.
"Show them in."
Whoosh. The door opened, and a middle-aged woman stepped inside.
She looked ordinary and mild-mannered, but the bag she carried was a famous brand. Her clothes didn't scream logos, but they had a subtle air of luxury.
"Nice to meet you. I'm Song Woo-yeon."
I extended my hand, and she smiled back.
"Likewise. Kim Mi-hyang."
"Thanks for making time in your busy schedule to come in person. Have a seat here."
I seated Kim Mi-hyang and brought out some simple tea and snacks.
"My, you're even better looking in person than on TV."
"Haha, you think so?"
"And meeting you like this, I get it now."
Kim Mi-hyang savored the tea's aroma before continuing.
"You seem so calm and mature. That's the kind of thing TV can't capture."
A few people had said similar things. On TV, I just looked like a kid since it's all face, but in person, my vibe made me seem older and more mature.
"Thanks for the compliment."
I brushed it off lightly and got straight to business.
"The reason I arranged this meeting today—I'm sure you know—is the upcoming lease expiration for Hapjae Gukbap."
"I've heard you've been stirring things up lately. Some prosperity association or revival committee..."
Her previously friendly tone shifted in an instant.
Just as I thought. That must be why Kim Mi-hyang came here herself.
'If they'd just asked you to leave, they wouldn't have bothered.'
She knew the merchants' movement was gaining steam—and that I was at the center—which was why she'd accepted this meeting.
I'd nudged things that way, but as expected, she wasn't an easy mark.
"Let me say this upfront: don't start ranting about the 300% hike. You know full well how much this alley's value has changed in the last two years."
Kim Mi-hyang came out swinging.
"I've heard other buildings in the alley are getting 3.5 million won in rent already. My property's value has shot up too. If it's not a 300% increase, we're better off running the shop ourselves."
"Yes, I understand your position."
It wasn't hard to see where Kim Mi-hyang was coming from.
'I did a full survey of rents while forming the prosperity association, and the recent contracts were hefty indeed.'
All in the same alley. If others' rents go up and yours doesn't, who'd be happy?
Each of those rents contributes to the property's value—like apartment prices rising next door while yours stagnates.
"So, what do you think caused the rents to rise like that?"
"Well..."
Kim Mi-hyang trailed off evasively.
"Isn't it because our brand shops settled in and boosted the whole district?"
"......"
"And kicking out the core one, Hapjae Gukbap? Haven't you considered that might be like killing the goose that lays the golden eggs?"
"...If you leave, my son will open a new gukbap place there."
Kim Mi-hyang looked away as she said it.
"We'll just tweak the interior a bit and keep it as is. No difference, right?"
So, they just wanted to skim the cream off Hapjae Gukbap. Shameless, saying it outright without a hint of guile.
But Kim Mi-hyang acted like it was her god-given right. I swallowed a sigh and pressed on.
"That's exactly how gentrification happens, and it ends up costing the entire district big time. It even hurts property values. You've seen plenty of cases like that, I'm sure?"
"Then pay more rent."
There it was—her real motive.
She claimed she'd run a gukbap shop herself, but that was just plan B.
From her perspective, it'd be best if the thriving business stayed put—ideally paying more rent.
"With that hike, rent would eat up nearly 25% of revenue. For food businesses, 10% is standard, and even at most 20%. At 25%, you're basically breaking even after sales."
"Then boost revenue. Raise prices."
"It's not that simple. Jack up prices now, and customers will stop coming."
As I calmly countered, Kim Mi-hyang snapped back.
"So what, you want me to just take what I was getting before and shut up? I'm not running a charity...!"
"Of course not."
I cut her off before tempers flared. She started to snap again but flinched at my gaze and clamped her mouth shut.
"That's why I have a proposal ready."
Whoosh!
In an instant, the room lights went out, and the beam projector screen descended.
Like I'd mentioned before...
'I'm confident when it comes to PPT presentations.'
