[Exclusive] Full Gospel Church Lists Prime Yeouido Land Bought for 60 Billion Won for Sale

Full Gospel Church Purchased Land for 60 Billion Won in 2012
Financial Hit Due to COVID-19... Decides to Sell Land
Undeveloped Site Rarely Found in Yeouido
Released from School Land Use After Over 40 Years
Industry Interest... Profit May Exceed 200 Billion Won

Yeouido Full Gospel Church, Yeongdeungpo-gu, Seoul / Photo by Honam Moon munonam@

[Asia Economy Reporter Moon Jiwon] A prime 8,264㎡ plot of land owned by Yoido Full Gospel Church in Yeouido, Seoul, has been put up for sale. This site had been designated as school land under urban planning facilities for over 40 years, but recent deregulation has opened the way for development. As undeveloped land is rare in Yeouido, attention is focused on whether the sale will be successful.

According to the real estate industry on the 26th, Yoido Full Gospel Church held an interim operating committee meeting in mid-last month and passed a resolution to sell the site at 61-1 Yeouido-dong, Yeongdeungpo-gu. The land is located between Yeouido St. Mary's Hospital and Kumho Richensia mixed-use complex and is currently used as a parking lot.

The church purchased this land from the Korea Asset Management Corporation (KAMCO) in June 2012 for 60 billion KRW. The reason for pushing the sale is to secure operating funds due to the prolonged COVID-19 pandemic. A church official explained, "The church operates on offerings, but the situation has been difficult due to COVID-19. Therefore, we decided to sell unnecessary real estate such as the Yeouido site."

Yoido Full Gospel Church is a mega Protestant church with an estimated 560,000 registered members. In August, some members were confirmed positive for COVID-19. The church appears to have worsened its financial condition while implementing social distancing and online services according to quarantine guidelines.

Currently, various institutions are reportedly showing interest in this land. A church official said, "Some institutions have offered between 270 billion and 275 billion KRW," adding, "We are receiving letters of intent, but negotiations have not yet reached the contract stage." If a contract is signed at this price range, the church will realize a profit exceeding 200 billion KRW in eight years.

Ko Jong-wan, President of the Korea Asset Management Corporation, evaluated, "Yeouido belongs to one of Seoul's three major downtown areas, so depending on the development method, significant profits can be made." According to the industry, conditions such as the buyer bearing capital gains tax and payment of the sale price in cash are being discussed.

This site was designated as school land under urban planning facilities in the 1970s and remained undeveloped for over 40 years. However, recent deregulation has raised development expectations. A Yeongdeungpo District Office official said, "According to the National Land Planning Act enacted in July 2001, if a site designated as school land is not executed for 20 years, the legal effect is lost. This site was deregulated in early July."

However, the Seoul Metropolitan Government judged that planned development is necessary here and designated the site as a district unit planning zone in June, just before deregulation took effect. A Seoul city official said, "Development has become possible, but if the current zoning as a Type 2 General Residential Area is to be changed, justification must be reviewed. If Full Gospel Church or the new buyer brings a development plan, we will consider it."

Some analysts suggest that developing this site together with the adjacent land owned by Korea Land and Housing Corporation (LH) (about 8,200㎡) may not be easy, limiting utilization options. That land was also designated as school land but has been deregulated. The government recently announced a plan under the 8.4 measures to build 300 new housing units there.