Game Companies Growing Bigger, Starting by Buying Buildings

[Asia Economy Reporter Kang Nahum] Domestic game companies are expanding their operations by promoting the construction of new headquarters and research centers across the Seoul metropolitan area. This is interpreted as an inevitable move to secure large-scale spaces due to recent massive recruitment of development personnel and the pursuit of various new businesses.

According to the industry on the 7th, NCSoft signed a land contract in April with Seongnam City for the construction of the "Global Research and Development Innovation Center (Global RDI Center)" to be used as its second headquarters. The site is located in Sampyeong-dong 641, Bundang-gu, covering an area of 25,719㎡.

NCSoft formed a consortium with Samsung C&T, Korea Local Government Officials Mutual Aid Association, and Mirae Asset Global Investments to purchase the land. The total land purchase price for the consortium is 837.7 billion KRW. NCSoft will use 50% of the entire land, with a purchase amount of 418.9 billion KRW, which is half of the consortium’s total amount. NCSoft plans to build the Global RDI Center on this site and use it as a second headquarters leading innovation.

Com2uS Holdings is promoting the construction of a new headquarters in Euljiro, Jung-gu, Seoul. It will be built on approximately 10,000㎡ of land with a total floor area exceeding 100,000㎡. By 2026, the entire Com2uS group plans to move in, establishing a strategic base to target the future global content market. The space will be used for high-quality games targeting the global market, blockchain business, and the metaverse platform "Com2Verse," serving as a research and development and business expansion hub for the entire group. It will also be developed into a value chain cluster maximizing synergy among subsidiaries focusing on future industries that Com2uS is prioritizing.

Pearl Abyss is currently constructing a new headquarters in Gwacheon Knowledge Information Town. The building will have 5 basement floors and 15 above-ground floors, with completion targeted for the first half of next year. Alongside this, an Art Center is also being built. With an investment of 30 billion KRW, a five-story building with a total floor area of 5,000㎡ will be constructed near Pyeongchon, Anyang City. The Art Center aims to open in the first half of next year and will be the largest of its kind in the domestic game industry. The center will include a new motion capture studio. The studio will cover 1,000㎡ and feature 150 motion capture cameras, a ceiling height exceeding 9 meters, and a steel truss roof (a type of beam assembled in triangular shapes from straight members), creating a large open space without pillars.

Krafton formed a consortium with Mirae Asset Group and purchased the Emart building in Seongsu-dong, Seongdong-gu, Seoul, in October. The purchase price was 1.22 trillion KRW. Krafton plans to expand new spaces to conduct large-scale developer recruitment while also creating a complex cultural space here to broaden contact points with global users both online and offline.

The reason why major domestic game companies are purchasing and constructing buildings across the metropolitan area is analyzed to be the need for numerous personnel and development facilities for the companies’ long-term growth. In particular, in Pangyo, considered the heart of the game industry, the vacancy rate of major buildings is close to zero, and rental fees have risen to levels comparable to Yeouido, increasing the burden on game companies to move in. The rapidly increasing workforce and the efficiency of game development are also considered. An industry insider said, "Game development requires not only many personnel but also active communication and cooperation among members, so building large-scale headquarters can improve work efficiency."