So I'm going with a group of friends for Chuseok (Korean Thanksgiving) next month. We know we want to whoop it up in the gayborhood that night we arrive (Saturday), so where is the best place to stay?

Honestly, it is even easier to stay somewhere multiple nights as long it's conveniently located to everything.

We're cheap. Hostel crowd. No chain brand big bucks stuff for us. Doesn't have to be a gay hotel.

Any suggestions?

Better yet, where should we eat or drink? Anyone live there?
So Osaka for Korean Thanksgiving? Maybe you mean Seoul?
I think OP is Korean and going to Japan for his holiday
I have a friend who tells of a wild night with some US military servicemen in Osaka several years ago...
I am an American English teacher living in Korea, so for the Korean Thanksgiving holiday we have three work days off (and a weekend).
Even if you are going cheap (hostels), check the hotels on Agoda or Priceline. Went for Lunar New Year to Fukuoka and it was only $65 for a 2 person hotel room at the Best Western while Budget Hotels wanted to charge us $40 a person. even the Capsule Hotels there were $43 a person.

EDIT: Also remember to book your bus/train tickets to the airport asap because most of them sell out like crazy. I had a singular KTX train left I could buy when I checked. I'm hitting Koh Phi Phi but enjoy Osaka!
First night w/ my gay friend: the bathhouse. So, just how is that place?

Then AirBnb for 26 USD a night and the last night a capsule for 43.

Only airport limo to GMP from my hood, no advance purchase. I'm also quite intrigued by this 747 for 1 hour business on Korean Air.
Yip, they ensure that they get the biggest planes on the routes for this weekend. They also don't generally allow reward redemptions for Chuseok or Lunar New Year. Even Asiana blocks it all out for these times so no mater how many miles you have you can't fly them. Luckily I'm booked on their *A partner Thai. Good luck with the bus. Remember, if all else fails, take the subway to Seoul station and get on the airport express. It stops at Gimpo too.
So, what's the deal with the bathhouse Hokuouka? I see they actually have REAL beds? How does one get one of those? First come, first serve?
And there's like a bar and spas? It looks way more legit and decked out than the Korean gay saunas. Same purpose, but better amenities!