Shinhan, KB Kookmin, and Woori Join Forces to Launch Development
MDM Designs Project Inspired by Google, Apple, and Other Big Tech
Creating an Office Town Modeled After Silicon Valley in the US
The Seoripul complex development project, planned for the former site of the Defense Security Command near Seoripul Park in Seocho-gu, Seoul, has entered full-scale preparations for groundbreaking. MDM Group, which is leading the project, has effectively completed funding of over 5 trillion won and is expected to begin construction as early as next month.
According to the development industry on June 17, MDM Group is set to finalize a main project financing (PF) loan agreement worth approximately 5.3 trillion won by the end of this month. This is the largest amount in the history of real estate PF in Korea.
Banks, insurance companies, and securities firms affiliated with Shinhan, KB, and Woori Financial Groups are all participating in this loan. Shinhan Bank is responsible for the largest portion at 2 trillion won, while KB Kookmin Bank and Woori Bank are each providing about 700 billion won and 500 billion won, respectively.
The remainder will be divided among non-banking affiliates of each financial group. An MDM Group representative stated, "Although the participation amount for each financial institution is still being adjusted, it generally matches the levels that have been reported."
The total area of the site is 165,511 square meters and is adjacent to Seocho Station (Line 2) of the Seoul Metro. After development, it will be transformed into a mixed-use complex combining office, commercial, and cultural functions. Excluding the portion to be developed as a park, 94,000 square meters will be dedicated to office and lifestyle convenience facilities. POSCO E&C will be in charge of construction, with completion scheduled for 2028.
MDM Group has set the goal of creating a "communication-centered work environment" for this development. Moon Juhyun, Chairman of MDM Group, has publicly stated his vision to turn the Seoripul site into an eco-friendly, high-tech industrial complex, effectively creating a "Korean Silicon Valley." In 2019, he even visited the United States with employees to study such developments firsthand.
In an interview with a media outlet in February, Koo Myungwan, CEO of MDM Plus, said, "Before starting the architectural design, we visited the headquarters of global companies such as Google, Apple, and Microsoft, and based on those experiences, we envisioned an open office layout that is rarely seen in Korea." He added, "Research shows that working in a wide-open space on a single floor can increase work efficiency by up to 50%. Reflecting this, one of the five buildings is designed to have a floor area more than twice as large as that of a typical office in Korea."
The planned development site is divided into north and south sections by the Seoripul Tunnel. The northern section will feature a global business town with four underground and seven above-ground floors, as well as public-use land. The southern section will house a mixed-use office and lifestyle building with seven underground and nineteen above-ground floors. MDM Group plans to attract advanced technology companies specializing in blockchain and big data to turn the area into an office hub comparable to Teheran-ro.
Cultural infrastructure is also included in the development. MDM Group will create a performance hall and art museum with a total floor area of about 36,906 square meters as part of its public contribution. The industry expects that, as an urban mixed-use complex combining parks and office facilities, the project will become a new business hub in the Seocho area and serve as a "Korean Silicon Valley" upon completion.
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