Seoul City Forms TF to Attract Global Headquarters
Customized Strategies Including Deregulation and Living Condition Improvements
Establishing Investment Attraction Marketing Strategy... Proactively Reflecting Corporate Demands
The Seoul Metropolitan Government has set a goal to attract global companies' Asia-Pacific headquarters by 2030 in order to elevate the Yongsan International Business District as one of the three major business hubs alongside Singapore and Hong Kong.
On the 3rd, Seoul announced that as the first step to attract global headquarters, it will form and operate a 'Global Headquarters Attraction Task Force (TF).' The TF will implement customized strategies such as regulatory relaxation and improvement of living conditions to attract global companies, and will also establish investment attraction marketing strategies.
The TF leader will be the Director of Future Space Planning of Seoul. The TF is structured to collaborate with related departments such as the Yongsan Three-Dimensional City Division, Financial Investment Division, and Urban Planning Division. A working group responsible for global company attraction will also be operated together.
The TF is tasked with establishing and operating customized strategies in cooperation with the government, including regulatory relaxation, improvement of living conditions, and resolving corporate difficulties, so that global companies can choose Yongsan as the optimal location for relocating their Asia-Pacific headquarters.
According to a report on Korea's strategy to attract global companies' Asia-Pacific regional bases released by the American Chamber of Commerce in Korea (AMCHAM), Korea ranked second in preference for Asia-Pacific headquarters locations, following Singapore. A survey of companies participating in the APAC Tax Symposium found that 30% are considering changing the location and operation method of their Asia-Pacific headquarters.
Active consideration will also be given to creating an eco-friendly business environment and relaxing physical location regulations. This is based on the insight that in successful large-scale development projects such as New York's 'Hudson Yards' and Singapore's 'Marina One,' the public sector's early investment in infrastructure and provision of various incentives to encourage private investment played a key role in the success of the development projects.
To ensure the successful settlement of the Yongsan International Business District, differentiated land supply and investment attraction marketing strategies will be established and operated in collaboration with the project implementer Korail, SH Corporation, and global real estate advisory firms.
Based on real estate market conditions and demand analysis, the TF will propose an optimal land supply plan to activate sales and establish customized investment attraction execution strategies such as target company selection. The requirements and characteristics of global companies wishing to purchase land will be identified and proactively reflected in the development plan from the early stages of the project.
Seoul announced the Yongsan International Business District development plan last February and plans to designate the urban development zone and announce the development plan within this month. The plan is to obtain implementation plan approval in the first half of 2025, begin infrastructure construction and land sales in the second half, complete infrastructure construction in the second half of 2028, and start building construction. The goal is to have the first group of tenants move in by the early 2030s.
Im Chang-su, Director of Future Space Planning of Seoul and leader of the Global Headquarters Attraction TF, said, "By attracting global headquarters to the Yongsan International Business District, we will create economic effects such as job and investment expansion and propel Seoul to become a top 5 global city in reality." He added, "We will develop the Yongsan International Business District into an innovative global business hub and establish it as one of the three major Asia-Pacific business centers."
The Yongsan International Business District is a development project to create the world's largest vertical city within walking distance that integrates work, residence, and leisure on a 495,000㎡ site behind Yongsan Station, formerly a railway maintenance yard. It will feature landmark buildings up to 100 stories high with a maximum floor area ratio of 1700%. The district will be divided into an 'Office Complex Zone' with prime-grade offices, MICE (Meetings, Incentives, Conferences, and Exhibitions), and hotels; a 'New Industry Office Complex Zone' for new industry workspaces; and an 'Office Support Zone' with residential, educational, and cultural support facilities.
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