Which Subway Station Name Is the Most Expensive? ... 'Gangnam Station' Sold for 1.1 Billion Won [News Explanation]

(32) Hospitals and Financial Institutions Buying Subway Station Names
Seoul Metro Corporation Promotes Station Name Co-Branding Project Amid Financial Difficulties
Stations Near Office Districts with High Foot Traffic Gain Popularity

Editor's Note'Seolcham' is a newly coined term meaning to refer to explanations for more detailed information. In [News Seolcham], we aim to pinpoint and explain parts of the news that require fact-checking or further explanation in more detail.

"This station is OO Dental Clinic Station.", "This station is OO Bank Station."

How much does it cost to include a company or institution's name in a subway station name? With Gangnam Station being awarded at about 1.1 billion KRW, the highest ever in Seoul Metro's station name co-branding project, attention is focused on the winning bids for Seoul Metro's station name co-branding project. Looking at the historical winning bids, hospitals and financial institutions tend to participate in the station name co-branding project.

Gangnam Station, which recorded the highest winning bid ever, will be labeled as 'Gangnam Station (Haroo Plant Dental Clinic)' starting this October. The dental clinic won the substation name at 1.111 billion KRW. Nonhyeon Station on Line 7, which ranked third in winning bids, was won by an ophthalmology clinic for 900 million KRW, but the co-branded name has since been removed. When a substation name is won, the institution or company name is displayed together at the subway station, entrances, platforms, and safety doors, providing significant promotional effects. Therefore, office districts with high foot traffic are popular.

The beauty industry has also targeted commercial districts through station name co-branding. Seongsu Station on Line 2 (CJ Olive Young, 1 billion KRW), which ranked second in winning bids, has become a hotspot for the MZ generation (Millennials + Generation Z), with popular pop-up stores opening one after another, significantly increasing foot traffic. According to Seoul Metro, the average daily boarding and alighting passengers at Seongsu Station increased by nearly 50% over three years, from 53,231 in 2020 to 70,818 last year. Amorepacific won the substation name at Sinyongsan Station on Line 4 for 380 million KRW.

The financial sector also shows interest in paid subway station naming rights. The 4th and 5th highest bids were in the Euljiro area, where many financial institutions are located, and all substation names were purchased by banks and card companies. Fourth place was Shinhan Card, which won Euljiro 3-ga Station for 870 million KRW. Fifth place, Euljiro 1-ga Station on Line 2, was used by IBK Industrial Bank for six years from June 2016, but in 2022, Hana Bank outbid them, resulting in a station name change. Euljiro 4-ga Station was purchased by BC Card for 220 million KRW, and nearby Myeongdong Station on Line 4 was won by Woori Bank for 654.67 million KRW.

Additionally, Seolleung Station on Line 2 was won by Aekyoon Savings Bank. KDB Industrial Bank and KB Financial Town are co-branded at National Assembly Station and Saetgang Station on Line 9, respectively. SC First Bank used station name co-branding at Jonggak Station on Line 1 for six years but did not participate in this round of bidding.

Meanwhile, the station name co-branding project has been promoted by Seoul Metro since 2016 to overcome financial difficulties. Recently, Seoul Metro held a public offering for a total of 10 stations, and except for Gangnam, Seongsu, Yeouinaru, and Sangbong Stations, which were awarded this month, the remaining six stations (Samgakji Station, Sadang Station, Nowon Station, Sillim Station, Jonggak Station, and Dapsimni Station) are planned to be re-announced within this month. To participate in the bidding, companies or institutions must be located within 1 km of the target subway station (within 2 km for outside Seoul). The substation name can be used for three years, and the contract can be extended once more without re-bidding.