[Yongsan's Future] From 'Resettlement' to 'First Headquarters'... Companies Gather in Yongsan

⑦ Yongsan, Amore & LG Uplus Resettlement
Welcom Finance & HYBE Move In, 'Bustling'
Formerly the Starting Point of the '3 Major Confectionery Companies'

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

Yongsan is changing the landscape of Seoul's business districts. Companies that were once the 'old-timers' of Yongsan have returned by constructing eye-catching new headquarters, and the advantage of being located in the center of Seoul has led to an increase in companies relocating their offices here.

In the past, was Yongsan a 'corporate wasteland'? Not exactly. As a railway transportation hub, Yongsan attracted people and money, with distribution and factory-based manufacturing industries dominating. Among the companies that originated in Yongsan, confectionery is indispensable. Confectionery factories, which were concentrated mainly in Yongsan during the Japanese colonial period, were handed over to Koreans after liberation, and the three major confectionery companies?Crown Haitai, Lotte, and Orion?all originated in Yongsan. In Orion's case, it was established when founder Lee Yang-gu acquired Poongguk Confectionery, which had been transferred to Koreans by the US military government. Haitai Confectionery was also founded based on the equipment of the Nagaoka Confectionery factory left in Namyeong-dong, Yongsan after liberation. Lotte, which was first established in Japan in the 1940s, entered Korea in 1967 and set up its first factory in Yongsan.

Although companies that left their mark on Korean corporate history started in Yongsan, ominous 'rumors' once made Yongsan a place to avoid. One such rumor was the so-called 'west-facing office building superstition,' which claimed that having an office facing west, such as those in Jung-gu and Yongsan-gu, especially opposite Seoul Station, was bad for business. The collapse of Daewoo, one of the 'Big Four' conglomerates that had its west-facing office right across from Seoul Station in 1999, and the fall of the once top-ten ranked International Group based in Yongsan, gave credence to these rumors.

Rising Again Where It All Began... Amorepacific & LG Uplus

However, the notion that Yongsan is a bad place for companies is now a thing of the past. Companies that established their roots in Yongsan decades ago have recently moved into new headquarters, making the area a 'hot place' once again. High-rise new office buildings have been constructed along the main roads centered around Yongsan Station and Sinyongsan Station, dramatically changing the atmosphere of Yongsan.

Amorepacific has already built its third headquarters in Yongsan. After the late chairman Seo Seong-hwan settled in Hangang-ro, Yongsan in the 1950s, the company built a new headquarters on the same site in 1976 during the 'Taepyeongyang' era. Later, in 2017, Amorepacific constructed its current headquarters, which has become a 'landmark' of Yongsan. At the 73rd anniversary ceremony held after moving into the new building, Seo Kyung-bae, chairman of Amorepacific, said, "Yongsan, where Amorepacific's headquarters is located, will become a hub for the newly emerging Eurasian era beyond the Korean Peninsula."

Yongsan holds great symbolic value for Amorepacific as the place where it has grown for over 70 years. The benefits gained from the continuously developing transportation network are also significant. An Amorepacific representative explained, "(Yongsan is) a symbolic location for the company."

Some companies have returned to Yongsan to reconnect with their roots. LG Uplus built its headquarters on the site of LG Dacom, which launched Korea's first data communication service in the 1980s, and moved in in 2015. LG Dacom is well known for providing the PC communication service 'Chollian.' LG Dacom, which handled internet networks and internet telephony, was incorporated into LG affiliates in 2000 and merged with LG Powercom (broadband internet) and LG Telecom (mobile communications) in 2010 to form LG Uplus.

After five years in Namsan, LG Uplus returned to Yongsan. With the ambition to surpass past glories and establish itself as a next-generation landmark leading 5G technology in Yongsan, the center of urban transportation and logistics, LG Uplus made the move. At a performance report meeting shortly after relocating, then vice chairman Lee Sang-chul emphasized, "We became the world's number one LTE operator in Namsan, and now let's become the world's number one New Life Creator once again in Yongsan."

Both companies have created shared spaces in their headquarters to promote coexistence with the local community. Amorepacific has opened floors B1 to B3 as public cultural spaces offering exhibitions and cultural events to the general public. LG Uplus initially established a 'small library' on the first floor for local residents, which has since been remodeled into an experience center. A small park was created on the north side of the building and donated to the Yongsan District Office.

Finance 'Welcome' and Entertainment 'HYBE' Also Move to Yongsan

Welcome Financial Group, which started in Guro, Seoul, established its 'integrated headquarters' in Yongsan for the first time in its 20-year history in 2022. This was a different choice from most financial companies concentrated in Yeouido. A representative of Welcome Financial Group said, "We decided to relocate our headquarters to Yongsan to commemorate the group's 20th anniversary. We judged that Yongsan is excellent in terms of transportation and location."

Now two years after moving to Yongsan, employee satisfaction is reportedly high. Thanks to the convenient transportation environment for commuting, many employees express satisfaction, and the proximity to 'Yongridan-gil' near Sinyongsan Station makes it convenient to enjoy leisure activities such as exploring popular restaurants.

Among entertainment companies that were concentrated in Gangnam, HYBE also moved to Yongsan. After changing its name from Big Hit to HYBE in 2021, the company remodeled the Yongsan Trade Center building and moved in, declaring a 'new beginning.' Real estate experts cite fan accessibility as one of the reasons HYBE chose Yongsan. With KTX passing through and excellent connectivity via Lines 4 and 1 to the Airport Railroad (Seoul Station), it is an easily accessible location for foreign fans.

In fact, since HYBE moved to Yongsan, the Yongsan and Sinyongsan areas have become lively with fans visiting for 'agency tours.' HYBE has opened the complex cultural space 'HYBE Insight' in the basement of its headquarters, offering exhibitions and content to fans. Fans visiting the headquarters to see exhibitions of their favorite celebrities often take photos and interact at 'birthday cafes' and 'birthday advertisements' held near the agency.

In the future, we may also see global companies settling in Yongsan. The Seoul Metropolitan Government plans to develop the Yongsan International Business District to attract global companies. A global settlement support center to assist foreign residents will be established, along with residential facilities for executives and employees, as part of efforts to facilitate the settlement of global companies.

Cases of Coexistence Between Companies and the Community... ‘Yongsan Dragons’

As companies have rapidly gathered in Yongsan, unexpected 'synergies' have emerged. One example is the volunteer group 'Yongsan Dragons,' which brings together the public, private, and academic sectors. Established in 2018 centered around the Amorepacific Gonggam Foundation, Yongsan Dragons includes 19 organizations from various sectors, including private companies like LG Uplus and CJ CGV, as well as the Yongsan District Volunteer Center, Sookmyung Women's University, National Health Insurance Service Yongsan Branch, and Korail Networks. The group has grown large enough that over 100 people gather for each quarterly activity. Kim Tae-woo, secretary-general of the Amorepacific Gonggam Foundation who first conceived Yongsan Dragons, said, "Returning to Yongsan, the hometown of Amorepacific, I wondered what we could do together with the local community. Even before moving to the Yongsan headquarters, we started contacting companies in Yongsan."

Yongsan Dragons has diversified its activities beyond volunteer work like gardening to include job mentoring for youth. The mentoring program was initiated based on the judgment that the mentoring system between school seniors and juniors had collapsed during the COVID-19 period. Encouraged by positive responses, the program will continue. Companies from outside Yongsan Dragons will also participate in the upcoming job mentoring session next month.

Through Yongsan Dragons activities, not only the local community but also companies have gained better promotional effects. Media exposure has increased two to three times compared to activities organized by individual companies. Interacting with people from various companies and job fields positively influences each other's corporate cultures. Kim said, "When volunteering, we don't form teams by company but mix members. Conservative companies have reportedly experienced cultural shocks through conversations with members from other companies. This has had a positive effect."

Because it is rare for multiple companies based in a region to unite and continue charitable activities, inquiries from other regions and companies are active. A Yongsan Dragons representative explained, "Many inquiries come about how we started and how we operate as local companies unite for activities. In Yongsan-gu, companies are concentrated near Yongsan Station and Sinyongsan Station, which seems to have enabled organic cooperation."