More than 250 people have been evacuated after a fire tore through an impoverished town near the famous Gangnam district in southern Seoul on Friday, authorities said.

The blaze broke out in the early hours of the morning in Guryong village, often described as one of the South Korean capital's last remaining shanty towns.

The cause of the blaze remains unknown, Seoul's National Fire Agency said.

"The fire spread rapidly into a major blaze due to the area's vulnerability to fires, with a dense concentration of temporary structures," authorities said.

Two hundred and fifty-eight people were safely evacuated from their homes, they added.

No one was harmed.

Guryong was formed by low-income residents who had been forced to relocate due to development projects elsewhere.

It lies just a stone's throw away from the glitzy district of Gangnam – one of Seoul's best known and wealthiest neighbourhoods, synonymous with South Korea's rise as an economic and cultural powerhouse.

Fires are frequent in the area.

In 2023, 500 people were forced to flee their homes ahead of the Lunar New Year holiday when a massive blaze broke out. (AFP)