Possible rent increases of 25% to cafes at the popular Jeonpo Cafe Street may threaten the livelihood of many businesses in the district.
According to reports in local Korean media, Busanjin-gu Office and Jeonpo Cafe street traders said that there was a notice on July 9th that from January 1 of next year, 14 shops in Jeonpo cafe street would raise rents between 300,000 to 400,000 won a month.
Businesses in the area are filing a protest against the rent increase and petitioning the building owners. They are also preparing lawsuits based on the amended Leaseholder Protection Act, which was revised last October which states that the landlord can not raise the rent more than 5% without the tenant’s consent.
If the rent increases do take hold, monthly rents of 2,000,000 or more plus security deposits of around 100 million won may be more than most can handle.
Busanjin-gu office sent a letter to the 46 building owners from Busan Jeonpo Cafe on May 5 asking them to keep their rents at a reasonable level, but there is no way to force them to do so.
The number of cafes has decreased by six to 53 according to Busanjin district, while the number of restaurants has nearly doubled to 138.
There’s also been a sharp increase in hair and nail shops in the area, which now numbers 39.
Cafes are now being forced to move to a cheaper commercial area between NC Department Store and Jeonpo Elementary School.
The area shot to international fame after a New York Times article named the district as one of the best places to visit in 2017.