This article was posted on the ChosunBiz MoneyMove (MM) site at 4:01 p.m. on Dec. 17, 2025.
Kangwon Land is pursuing the purchase of an office located in the Gangnam area of Seoul. Because its headquarters is located in Gangwon Province, it plans to secure an operational base in the conveniently accessible Gangnam area. Analysts say it expects to reduce annual high rental costs amounting to several hundred million won while also anticipating future increases in asset value.
On the 17th, investment banking industry sources said Kangwon Land recently distributed a request for proposal (RFP) to real estate consulting firms and accounting firms to acquire commercial real estate in Gangnam and Seocho, Seoul. It plans to receive proposals by the end of this month and then hold presentations. It is expected to complete the selection of advisory firms early next year and begin formal purchase procedures.
The conditions Kangwon Land proposed call for an office building of about 16,000 square meters of total floor area within the Gangnam business district (GBD) in Seoul. It is reported to have designated the Gangnam area as the top priority for investigation and requested preparation of a first-round candidate list. If no suitable properties are found, it has left open the option of expanding the search to nearby districts. The desired purchase amount is about 200 billion won.
The background for this office purchase drive is analyzed to be the annual Seoul office rental costs that amount to several hundred million won. Kangwon Land currently maintains a Seoul office in GT Tower, a landmark building near Gangnam Station. Industry sources say GT Tower rent per pyeong varies by floor but is in the low-to-mid 100,000 won per month range. Kangwon Land's leased area is about 1,077 square meters (326 pyeong), and with maintenance fees included, rental costs run into tens of millions of won.
Kangwon Land expects that owning its own office will reduce rental burdens while improving asset efficiency. It is interpreted that the judgment reflects the view that converting to asset purchase would be advantageous for stabilizing the financial structure and for establishing long-term business plans. If Kangwon Land uses some floors and leases the remaining floors, it is expected to be easier to secure cash flow.
Kangwon Land plans to use the newly purchased office not simply as a Seoul office but as a complex operational hub. In addition to existing Seoul office functions, it is expected to create employee training facilities, food and beverage establishments, and a promotional center to develop it into a talent development and brand promotion platform. Kangwon Land also requested in the RFP a feasibility analysis of the purchase, including evaluation of operational utility.