[Exclusive] 'Baeksaek-ui Geonchukga' Richard Meier Designs Kiwoom Securities' New Headquarters Building

Confident in 1 Trillion Operating Profit This Year, Rebuilding Yeouido as a 'Landmark'

[Asia Economy Reporter Minwoo Lee] Kiwoom Securities has entrusted the design of its new headquarters in Yeouido, Seoul, to the world-renowned "master" Richard Meier. This move is interpreted as Kiwoom Securities, which rapidly grew alongside the "Donghak Ant Movement," expressing confidence in making its new building a "landmark" in Yeouido.

According to the financial investment industry on the 3rd, Kiwoom Securities commissioned Richard Meier and Hyundai Architects & Engineers to design the new headquarters and recently received the initial design draft. Once the final design is confirmed, various permits and approvals will be obtained, and construction is expected to begin as early as the second half of next year. A Kiwoom Securities official explained, "We pursued reconstruction with the ambition to establish a new landmark in Yeouido," adding, "Once the permit process is completed, a detailed construction schedule will be set."

Richard Meier, born in New Jersey, USA, is regarded as a "master" in the industry, having won the Pritzker Prize, known as the Nobel Prize of architecture, in 1984 as the youngest recipient. He is also known as the "architect of white" for his frequent use of light and white buildings. Representative works include the Getty Center in Los Angeles (LA), USA, the High Museum of Art in Atlanta, and the Jubilee Church in Rome, Italy. The Seamarq Hotel in Gangneung Gyeongpodae, which opened in 2015, is also a collaborative work between him and Hyundai Architects & Engineers. The Seamarq Hotel, unveiled to commemorate the 100th anniversary of the birth of the late Chung Ju-yung, Honorary Chairman of Hyundai Group, was built by Hyundai Group at a cost of 138.4 billion KRW, with a total floor area of 39,406.52㎡, consisting of 4 basement floors and 15 above-ground floors. It also won the Korea Architecture Culture Award in 2016.

However, there was a somewhat unfortunate incident. In 2018, when the "Me Too" movement was emerging, he was embroiled in allegations of sexual harassment against an employee of the architectural office. Subsequently, he stepped down from the front lines in June of this year, and the name of his architectural firm changed from Richard Meier & Partners to Meier Partners. However, it is reported that he is still consulting with clients. A Kiwoom Securities official said, "Among several candidates during the process of recruiting an architect capable of creating a Yeouido landmark, we chose his company," adding, "We understand that Richard Meier directly participated in the design."

Discussions about reconstructing Kiwoom Securities' Yeouido headquarters began last year. After purchasing the current building, Kiwoom Finance Square, for 78.6 billion KRW in 2009 and moving in September 2014, they are building a new headquarters after eight years. The current building is already an aging structure over 40 years old. This year, several securities firms pursued relocating their headquarters, but most moved into partially leased existing buildings. Mid-sized securities firms such as KTB Investment & Securities and Ebest Investment & Securities moved into Post Tower in Yeouido, Seoul, as representative examples. This is based on the judgment that it is more efficient to limit rental costs and use the remaining funds in other areas rather than investing capital in purchasing buildings.

Nevertheless, Kiwoom Securities decided to reconstruct its headquarters. While owning the building directly reduces cost burdens, this is also interpreted as an expression of confidence in their expanding business. At the beginning of last year, as COVID-19 spread and abundant global liquidity was supplied, sparking a stock investment boom in the domestic market, Kiwoom Securities, known as an online leader, began rapid growth. Operating profit on a consolidated basis, which was 473.7 billion KRW in 2019, surged to 969 billion KRW last year, more than doubling in one year. This year, operating profit is expected to exceed 1 trillion KRW for the first time ever. Already, in the first half of the year alone, sales reached 2.4628 trillion KRW, and operating profit was 639.8 billion KRW. Mirae Asset Securities was the only securities firm to exceed 1 trillion KRW in operating profit last year. This year, NH Investment & Securities and Korea Financial Group (the parent company of Korea Investment & Securities) are also expected to surpass 1 trillion KRW along with Kiwoom.