This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:14 p.m. on Aug. 25, 2026.
The Public Officials Benefit Association (POBA) is weighing redevelopment or a sale for its headquarters building in Yongsan District, Seoul. Because the building is more than 30 years old since completion, the association is examining practical gains on the view that options such as development or a sale to raise the asset value would be more advantageous than continuing to use the current building. If it moves forward with redevelopment, it is reviewing separate plans that focus on office use and those that include non-office uses.
According to the investment banking (IB) industry on the 25th, the association recently conducted a bid to select a consultant for the highest and best use of the association hall. GenstarMate, Cushman & Wakefield, and Rsquare are confirmed to have participated in the bid.
The key is whether to boost the asset value through redevelopment or to sell by reflecting the current condition or development potential. The association is comparing the business feasibility of three scenarios: office-focused redevelopment, non-office-focused redevelopment, and a sale.
The subject asset is "POBA Association Hall" at 140 Hangang-daero, Yongsan District, Seoul. It is an office building with a total floor area of 8,459.91㎡, consisting of three underground floors and 10 aboveground floors. It received use approval in July 1994, making it more than 30 years since completion.
If redevelopment is chosen, the core of the business case will likely be how much it can leverage the development conditions around Yongsan Station. The consulting will examine whether related systems can be applied, including the possibility of changing the zoning and increasing the floor area ratio, as well as the Seoul station-area revitalization program. That is because the business feasibility, factoring in construction costs and financing costs, can vary greatly depending on how much the development scale can expand.
The development method is not fixed to a single approach. In addition to the association directly carrying out the project, options such as delegated development, joint development, and the use of funds, project REITs, and land-leasehold REITs were included among the comparables. Final profitability can also differ depending on whether it retains the property after development to secure rental income or sells after development to recover the investment.
A sale likewise would not be limited to simply disposing of the current building; a key point will be how high a price it can obtain by reflecting development potential. It plans to compare the price in a sale as-is with a sale after redevelopment, and analyze potential buyers' investment demand and preference structures. Because the actual amount recovered, net of taxes and transaction costs, can vary depending on the timing and method of the sale, it will compare these factors comprehensively.
In the industry, attention is on the fact that this is not a simple relocation or remodeling of the headquarters, but a reassessment of the capital efficiency of core real estate held by the association.
An industry official said, "In the end, the key is to compare the recovery amount if the current asset is sold with the development gains that can be secured through redevelopment," adding, "Given higher construction and financing costs, it appears the decision will be made by comprehensively assessing even the post-development asset value."