Are Offices Leaving Gangnam and Pangyo for Seongsu, Guro, and Euljiro?

PanGyo Techno Valley panorama.

[Asia Economy Reporter Kim Hyemin] As finding office space on Teheran-ro in Gangnam, Seoul, and in Pangyo, Gyeonggi Province has become as difficult as "catching stars in the sky," Seongsu-dong in Seoul, Gasan and Guro Digital Complex (G-Valley), and Euljiro are rapidly emerging as the "Post-Pangyo" areas.

According to commercial real estate data company RSquare on the 26th, about 20% of office relocations in Seoul and the metropolitan area last year chose Seongsu-dong, downtown business districts such as City Hall, Gwanghwamun, and Euljiro, and G-Valley as their first-choice relocation destinations. The number of cases relocating headquarters to these areas also increased about threefold compared to 2020.

Gasan and Guro Digital Complex stand out for their easy access to Gangnam via subway lines 2 and 7 and relatively affordable rents. Last year, Netmarble completed moving into its new headquarters, 'G Tower,' in Guro Digital Complex. The Seongsu-dong area is highly rated for its convenient subway access to Gangnam and City Hall areas and the formation of retail districts, which increases employee satisfaction. Krafton and Musinsa have either settled or are planning to establish their bases in Seongsu-dong. In Euljiro, game company Com2uS recently announced plans to build a new headquarters with an investment of 155.9 billion won.

RSquare stated, "While Gangnam remains the top preference for IT companies, recent supply-demand imbalances have made securing office space difficult, leading many to consider these areas as alternative options. These locations offer an environment conducive to IT companies moving in, and their proximity to subway stations makes commuting to major business districts convenient, which is a strong advantage."