A Single House Worth 10 Billion Won on 'Golden Land'... Family Towns of Korean Chaebols [The Future of Yongsan]

②Yongsan Established as Home for Large Conglomerate Families
Threatening the Status of Traditional Wealthy Neighborhoods in Gangnam 3 Districts

Political Hub with Presidential Residence
High Preference Among Celebrities Who Value Privacy

Following the sloping alleys flanking the Seoul Grand Hyatt Hotel, a parade of luxurious mansions unfolds. However, one can only gauge this from glimpses of the houses seen through the high walls stacked like fortress ramparts. The alleys exude an intimidating and closed-off atmosphere. Yongsan-gu, the central district of Seoul bordering the Han River to the south, Sindang-dong and Jangchung-dong to the north, and Seoul Subway Samgakji Station and Oksu-dong to the west and east respectively, is home to one of Seoul’s representative ‘wealthy neighborhoods’.

Residences of Samsung, Hyundai Motor, SK, Lotte, LG Family Heads Concentrated... Basic Price per House in the Billions of Won

This area has been or is home to the heads of South Korea’s leading conglomerates. The late Lee Kun-hee, chairman of Samsung Group, owned five houses in Hannam-dong and Itaewon-dong. ‘Seungjiwon,’ the former residence of Samsung Group founder the late Lee Byung-chul, now used as Samsung Group’s guesthouse, is also located in Itaewon-dong.

Currently, Lee Kun-hee’s wife, former Leeum Museum director Hong Ra-hee, eldest son Lee Jae-yong, chairman of Samsung Electronics, daughter Lee Boo-jin, president of Hotel Shilla, and Lee Seo-hyun, chairwoman of Samsung Welfare Foundation, all reside in this area. Members of the broader Samsung family, including Lee Myung-hee, chairwoman of Shinsegae Group and Lee Kun-hee’s younger sister, and her son Jung Yong-jin, chairman of Shinsegae, live in Hannam-dong.

The residence of Lee Myung-hee, Chairwoman of Shinsegae Group, in Hannam-dong, Yongsan-gu, Seoul. [Image source=Yonhap News]

The Hyundai Motor Group family has also formed a ‘family town’ here. Honorary chairman Chung Mong-koo, eldest son Chung Eui-sun, first daughter Chung Sung-yi, advisor at Innocean, second daughter Chung Myung-yi, president of Hyundai Commercial, and third daughter Chung Yoon-yi, president of Haevichi Hotel & Resort, all live in the upscale villa area of Hannam-dong’s UN Village.

Additionally, SK Group chairman Chey Tae-won, Lotte Group chairman Shin Dong-bin, LG Group chairman Koo Kwang-mo, Amorepacific chairman Suh Kyung-bae, JoongAng Group chairman Hong Seok-hyun, Kumho Petrochemical chairman Park Chan-koo, Nongshim Group chairman Shin Dong-won, DB Group founder Kim Joon-ki, and Booyoung Group chairman Lee Joong-geun also have residences in Hannam-dong and Itaewon-dong.

Hannam-dong and Itaewon-dong, as nests of chaebols, are also home to some of the most expensive houses in South Korea. Among the top 10 single-family homes by official assessed price this year, seven are located in Yongsan-gu. Lee Myung-hee’s single-family house in Hannam-dong has held the top spot in official assessed price for nine consecutive years since 2016. This year’s official price is 28.57 billion won. Seungjiwon, owned by the Samsung Ho-Am Foundation, ranked third with 17.17 billion won, and fourth place went to Suh Kyung-bae’s single-family house in Itaewon-dong (16.75 billion won). The Itaewon-dong house owned by the Kyungwon Century owner family (16.46 billion won) and Park Chan-koo’s Hannam-dong house (15.02 billion won) ranked fifth and seventh respectively. The eighth (13.9 billion won) and tenth (12.96 billion won) places are also located in Hannam-dong and Itaewon-dong.

Most Expensive Apartments Also in Yongsan... Breaking Gangnam’s Dominance

Not only single-family homes but also the country’s most luxurious apartments and villas are located in Yongsan. ‘Nine One Hannam’ and ‘Hannam The Hill,’ both located in Hannam-dong, ranked first and second among the highest-priced apartment sales nationwide this year.

In the case of ‘Nine One Hannam,’ a 207㎡ unit on the 3rd floor sold for 9.7 billion won in January, and ‘Hannam The Hill’ saw a 235㎡ unit on the 11th floor sold for 9.55 billion won in February. These prices surpassed traditional wealthy neighborhood complexes in Gangnam-gu such as Samsung-dong’s ‘I-Park’ (175㎡, 9 billion won), Apgujeong-dong’s ‘Hyundai 2nd’ (197㎡, 8 billion won), and Banpo-dong’s ‘Raemian Prestige’ (223㎡, 7.85 billion won).

Last year, apartments in Yongsan-gu such as ‘Park Hannam’ and ‘Hannam The Hill’ also ranked high. A 269㎡ unit on the 4th floor of ‘Park Hannam’ sold for 18 billion won in August, setting a record for the highest apartment price in South Korea. ‘Hannam The Hill’ ranked second with a 240㎡ unit on the 5th floor sold for 11 billion won in March of the same year.

The rise of Hannam-dong apartments shaking Gangnam’s dominance began with the construction of ‘Hannam The Hill’ in 2011. Known as the ‘most expensive apartment in the country,’ ‘Hannam The Hill’ was built on land left behind when Dankook University relocated its campus to Jukjeon-dong, Yongin-si, Gyeonggi Province in 2007. At that time, the entire site was designated as a ‘height restriction zone’ due to the protection of natural landscapes such as Namsan and Eungbongsan, limiting building heights. This spatial limitation led to lawsuits. However, after a final loss in the Supreme Court, the campus was moved to Jukjeon in 2007.

Hannam The Hill, with 600 households, consists of 32 low-rise buildings due to height restrictions. Although the floor area ratio is 120% and the maximum height is only 12 floors above ground, profitability was enhanced through large unit sizes and a luxury strategy. Subsequently, high-end villas such as Nine One Hannam in 2019 and Park Hannam in 2020 were built one after another, laying the foundation for the area to become a representative wealthy neighborhood in Korea.

Hannam The Hill, Hannam-dong, Yongsan-gu, Seoul

Accelerating ‘Golden Redevelopment’ of Hannam New Town

The Yongsan-gu area is facing another major transformation through the Hannam New Town project. Known as the ‘golden redevelopment’ due to its large scale and excellent location in northern Seoul, development is currently underway in four zones (Zones 2, 3, 4, and 5). Although designated as a ‘reconstruction promotion district’ over 20 years ago, progress was slow due to conflicts among union members but has recently gained momentum again.

Among these zones, Hannam Zone 3 is progressing the fastest, having received management disposition approval last year and started relocation in October. Prior to that, the construction company (Hyundai Engineering & Construction) was selected in 2020. The project will feature a complex of 1,977 buildings ranging from six basement floors to 22 floors above ground, totaling 5,816 households. Zone 2, with Daewoo Engineering & Construction as the contractor, is preparing for management disposition approval after project implementation approval. Zones 4 and 5 completed architectural review submissions in January and plan to select contractors in the first half of this year.

Once development of the four zones is complete, the area will be reborn as a massive complex with about 12,000 households. Coupled with development benefits such as the Yongsan International Business District, Yongsan Park development, and the opening of the metropolitan wide-area express railway (GTX), the area is expected to have value comparable to Gangnam, according to industry evaluations.

A panoramic view of Hannam New Town area, Yongsan-gu, Seoul

Residences of Power Holders Gather and Popular Among Famous Celebrities

Hannam-dong is both a ‘land of wealth’ and a ‘land of power.’ It is home to residences of high-ranking public officials and many diplomatic residences where foreign dignitaries are received. The official residence of the National Assembly Speaker, ranked second in the national protocol hierarchy, has been located here since 1993. The residence of the Chief Justice, ranked third, is also in this neighborhood.

The residences of the Minister of National Defense, Chairman of the Joint Chiefs of Staff, Army Chief of Staff, and Marine Corps Commander are also in Hannam-dong. Seoul Mayor Oh Se-hoon, who lived in Jayang-dong, Gwangjin-gu after taking office, moved to the mayor’s official residence in Hannam-dong last year. Additionally, embassies of Italy, Spain, India, Iran, Thailand, and others are densely located here.

The so-called ‘diplomatic residence village’ in Hannam-dong formed because of its easy access to the power centers of the Four Great Gates and the Blue House. Security and protection convenience are also high. Proximity to the U.S. military base and the Ministry of National Defense likely offered safety advantages. Practical reasons such as the availability of state-owned land also played a role.

Since President Yoon Suk-yeol’s inauguration in 2022, Hannam-dong has solidified its status as the center of power with the establishment of the presidential residence. President Yoon moved into a remodeled building formerly used as the Foreign Minister’s official residence in November 2022. The Foreign Minister’s official residence was relocated to the former Presidential Chief of Staff’s residence in Samcheong-dong, Jongno-gu.

The Hannam-dong and Itaewon-dong area is also favored by famous celebrities who value privacy. Bang Si-hyuk, chairman of HYBE, Big Bang’s Taeyang, actor Min Hyo-rin and her husband live in Park Hannam, as do singer Psy, BTS, BLACKPINK’s Jennie, singer Rain and actress Kim Tae-hee, actor Song Joong-ki, among others. Convenient access to anywhere in Seoul via Gangbyeonbuk-ro and Olympic-daero, views of the Han River, and thorough security are cited as reasons celebrities prefer this neighborhood.

Editor's NoteYongsan, which once held the ‘forbidden land,’ is entering a new turning point. The Yongsan U.S. military base, which had been off-limits to the public for over a century, has been transformed into Yongsan Park, a space for all citizens. With the relocation of the presidential office, it has established itself as the new center of power in South Korea, and development plans have begun in earnest. There are also ongoing demands to expand its role as a center of history and culture. Despite being a ‘golden land’ connecting Namsan and the Han River in the heart of Seoul, it still harbors underdeveloped residential areas. Experts say that to enhance Seoul’s global competitiveness as a city where power, business, history, and culture converge, attention must be paid to Yongsan. In that sense, Yongsan represents both the present and future of Korean cities.