'51 Trillion Won Development' Yongsan International Business District Breaks Ground... Set to Become a Global Business Hub [Real Estate AtoZ]

100-Story Landmark on 460,000 Square Meters
Global Headquarters Expected to Move In by 2030
Reviewing Expansion of Housing Supply in the Area

The Yongsan International Business District, regarded as the largest development project since the founding of Korea, has officially broken ground. The 460,000-square-meter site, where development had been halted for 12 years, will be transformed into a global business hub featuring a 100-story landmark and an integrated live-work environment. The Seoul Metropolitan Government is also discussing with the Ministry of Land, Infrastructure and Transport ways to expand the scale of housing supply in the area, aiming for sales to begin as early as 2027.

On the afternoon of November 27, the Seoul Metropolitan Government held a groundbreaking ceremony at 40-1 Hangang-ro 3-ga, Yongsan-gu, marking the official start of development for the Yongsan International Business District.

Seoul Mayor Oh Se-hoon is taking a commemorative photo with Jeong Jeong-rae, Acting President of Korea Railroad Corporation, Kwon Young-se, a member of the People Power Party, and other attendees at the groundbreaking ceremony of the Yongsan International Business District in Seoul on the 27th. Photo by Yonhap News Agency

Seoul Mayor Oh Sehoon, who attended the event, stated, "Yongsan was once the site of the city’s grandest development ambitions, but after the project collapsed in 2013, it remained at a standstill for 10 years. Today’s groundbreaking is a testament to Seoul’s resilience and the fruit of our perseverance."

He went on to highlight the achievements of the city, Seoul Housing & Communities Corporation (SH), and Korea Railroad Corporation (KORAIL) in significantly reducing the project timeline through active cooperation. Mayor Oh emphasized, "After announcing the development plan in February, Seoul completely overhauled its administrative procedures and collaboration systems. As a result, we were able to shorten the timeline by about 20 months compared to the average for other urban development projects."

Total Project Cost: 51 Trillion Won … Global Headquarters to Move In by 2030

The Yongsan International Business District development project involves constructing a three-dimensional, mixed-use vertical city on a 456,000-square-meter railway maintenance site, 72% of which is owned by Korea Railroad Corporation. The project aims to create a compact city where residential, business, and educational facilities are all within walking distance.

The site will be developed into three main zones: the International Business Zone, the Business Complex Zone, and the Business Support Zone. The International Business Zone will feature a landmark tower of around 100 stories, with a maximum floor area ratio of 1,700%. The Business Complex Zone will house offices, retail, and advanced logistics facilities, while the Business Support Zone will include residential, medical, and educational facilities. Site preparation, including road construction, is scheduled for completion by 2028, with global corporate headquarters and residents expected to begin moving in from 2030.

The total project cost is 51 trillion won. KORAIL and SH will jointly serve as project operators, preparing the site and selling parcels to private developers, who will then develop each plot individually-an approach designed to minimize business risk. This structure was adopted in light of the previous failure, when the private project finance vehicle (PFV) in charge went bankrupt, leading to the cancellation of the urban development district designation in 2013 and causing the project to stall for 12 years.

Reviewing Expanded Housing Supply in the Area… Ruling Party’s 20,000-Unit Proposal Unlikely

Going forward, the area is expected to serve as a core axis for housing supply within central Seoul. The city is considering increasing the number of housing units supplied within the International Business District, targeting sales to begin in 2027. In addition to the previously announced 13,000 units (6,000 within the district and 7,000 in surrounding areas) in November, the city plans to explore the potential for further expansion.

However, the total supply is expected to be less than the 20,000 units recently proposed by some members of the ruling party. On October 13, Lee Soyoung, a lawmaker from the Democratic Party, suggested during a National Assembly audit that Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol consider supplying an additional 20,000 apartment units.

Seoul Mayor Oh Sehoon delivers the vision declaration and commemorative speech at the groundbreaking ceremony of Yongsan International Business District in Seoul on the 27th. Photo by Yonhap News Agency

Nevertheless, the Seoul Metropolitan Government has stated that it will hold discussions with the Ministry of Land and related agencies within the limits of the current development plan. The city is concerned that a complete overhaul of the development plan could delay the project due to the need for pre-administrative procedures. Regarding the plan to increase housing supply using the Yongsan maintenance site, Mayor Oh said on November 3, "We have no choice but to proceed as originally planned," adding, "Above all, if we revise the current development plan for additional housing supply, it would require a new development plan and changes to the infrastructure plan, inevitably delaying the project by more than two years."

A Seoul city official stated, "No internal decision has been made regarding the increased supply," but added, "We are in internal discussions with relevant agencies to the extent possible within the current development plan." The official further clarified, "The proposal to supply 20,000 units in the area is a request from some members of the ruling party, and it is not accurate to say that the government and the Seoul Metropolitan Government are at odds over expanding housing supply."