DL E&C Followed by DL Geonseol Headquarters Also 'Decentralization from Downtown'

Yeouido FKI Tower Lease Ends in June
Considering Relocation to Outskirts of Seoul or Bucheon, Gyeonggi Province
Industry-Wide Trend of Moving Away from City Centers Accelerates

DL E&C's core subsidiary, DL Construction, is also leaving its Seoul office in the city center. It has joined the trend of major construction companies moving away from downtown areas. There is a noticeable atmosphere of trying to secure liquidity by cutting costs even by a single penny.

Seoul Yeouido FKI Tower Korea Economic Association Plaque. Photo by Jinhyung Kang aymsdream@

According to the construction industry on the 22nd, DL Construction decided not to renew the lease contract for the Yeouido FKI Tower, which expires in June. This location serves as DL Construction's Seoul office. Although DL Construction's registered headquarters is the Ilryu Building in Guwol-dong, Incheon, this office, where key personnel are concentrated, effectively functions as the headquarters. DL Construction established its base in Yeouido in 2020 and currently occupies three floors (24th to 26th) of the FKI Tower.

A DL Construction representative stated, "It is customary to vacate the office one or two months before the lease expires," adding, "We are still reviewing where to relocate." Considering collaboration with the parent company DL E&C, there is a strong possibility of moving to the outskirts of Seoul near Magok or to Bucheon in Gyeonggi Province. DL Construction is a 100% subsidiary of DL E&C and jointly uses the apartment brand e-Pyeonhansesang. DL E&C is moving from Donuimun D-Tower in Jongno-gu to a newly constructed office building, One Grove in Magok, in the second half of this year.

DL Construction is making every effort to secure liquidity. Recently, it halted the construction of infrastructure for the Hwanyang District urban development project in Pyeongtaek, Gyeonggi Province, due to unpaid receivables. The Pyeongtaek Hwanyang District Urban Development Project Association is developing approximately 2.79 million square meters around Hwanyang-ri. DL Construction declared a suspension of work after the association failed to pay about 17 billion KRW of construction fees for last year's work. The association has stated that it will be difficult to resume construction unless the overdue payments are fully settled.

The trend of construction companies moving away from city centers is accelerating amid the shadow of an industry-wide downturn. From this year until 2028, three major companies ranked in the top 10 by contract amount have confirmed office relocations. Starting with DL E&C this year, SK Ecoplant will move its headquarters in 2027 from its Jongno Susong-dong office to an office building in Yangpyeong-dong 4-ga, Yeongdeungpo-gu. The following year, HDC Hyundai Development plans to relocate its headquarters from Yongsan I'Park Mall to the Nowon Gwangwoon University Station area development site. Hanwha Construction is also considering moving to the northern Seoul Station area development site, which it is responsible for developing.