The spatial structure of unplanned shopping clusters developed along the cheonggyechon-ro and the emerging new industrial clusters

This paper introduces a new type of industrial duster developed at the CBD of Seoul. Conventionally, dusters are said to be consisted of hi-tech, often IT activities, manufacturing industries or artisan craft industries with increasing vertical integration and performance usually supported by venture capitals and favorable business infrastructure, not to mention governments’, be it central or local, incentive plans. The study area, Cheonggyechon region has long been a traditional CBD frame of Seoul, Korea, being troubled by deterioration, traffic jams, and environmental degradation as most inner cities experience. Recently, this region has transformed to the most dynamic and productive area not by IT industries but by apparel and fashion activities. The study of the developmental trajectory and key characteristics for this kind of industrial cluster can give us insight both for the transition of inner city and for the duster theory. This paper firstly briefly profiles the growth of the Cheonggyechon region over the past decade. It then shows the current spatial and business structure of the new industrial duster, focusing on the fact that transactions costs are reduced, the creation and flow of information improves, and the local institutions are prone to be most responsive to the new duster’s spedalized needs. The third section presents the key components of the customized production- distribution-shopping cluster development process, emphasizing the localized networking, social capital, spontaneous institutionalization of associational economic climate, and cultural economy based on place-specific inertia. The paper condudes with some comments about the prospects and perils of the new industrial duster of Seoul.