The Impact of Historic Building Preservation in Urban Economics: Focusing on Accommodation Prices in Jeonju Hanok Village, South Korea

The preservation of historic buildings, based on economic value, has long been discussed in developed countries. On the other hand, in Korea, where the history of preservation is relatively short, discussions have only recently started. Related to this, a discussion regarding the scope of buildings that need to be protected in relation to urban planning is needed. This study analyzes the Jeonju Hanok Village, a tourist destination where Hanok—the traditional Korean architectural type—is highly concentrated. The study provides evidence for the economic impact of historic building preservation with respect to rarity, experience and agglomeration, based on the price analysis of accommodations. As a result, the accommodation prices of Hanok were found to be higher despite being older. The relation between accommodation prices and building age was quadratic, which revealed that buildings that have become rare attained accommodation prices similar to new buildings. Also, it was found that the prices increased with the provision of traditional activities and meal services. Lastly, the price was higher in the area where Hanok was agglomerated. The results suggested that the preservation of buildings should not only be justified on cultural grounds but also economic grounds, based on market demand and the fact that such preservation could contribute meaningfully toward sustainable development.