The Seongsu service center in Seoul, operated by Hansung Motor, an official Mercedes-Benz dealer, will close in Dec. Hansung Investment, an affiliate of Hansung Motor, decided to hand over the center's land and building to a real estate investment company (REITs). Hansung Motor plans to integrate the Seongsu service center into the nearby Seongdong service center, but consumer harm appears inevitable. In particular, Hansung Motor has been locked in conflict with its labor union all year, and there are assessments that service quality has significantly declined.
According to the automobile and real estate industries on the 27th, Hansung Investment, an affiliate of Hansung Motor, an official Mercedes-Benz dealer, decided to sell the land and buildings in Seongsu-dong 2-ga, Seongdong-gu, Seoul, where the Benz Seongsu service center is located, to HL Seongsu Project Entrusted Management REIT. The price of the land and building here is 93 billion won, and the total transaction amount, including fees and other expenses, is said to be 111.5 billion won. The ownership transfer transaction date is Dec. 1.
Hansung Motor, which operates the service center, expanded and reopened the site in 2020. It currently houses several buildings, including a maintenance building with 40 work bays and a total floor area of 5,261 square meters (about 1,600 pyeong) on two above-ground floors, as well as an office building from one basement level to three above-ground floors.
HL Seongsu Project REIT is reported to plan to build an office building here. HL Seongsu Project REIT said, "We plan to transfer the buyer status to the REIT before the ownership transfer registration date," and noted, "The timing of real estate acquisition may change depending on the transaction progress."
Accordingly, the Seongsu service center will close at the end of Dec. The Seongsu service center is one of the key hubs at the center of Gangnam and Gangbuk. It is close to Apgujeong-dong and Cheongdam-dong, making it a place particularly frequented by Benz owners in the Gangnam area. In addition to receiving multiple certifications from Mercedes-Benz Korea as a "top accident repair service center," it also operates "Express Service 2.0," which offers regular inspections and consumable replacements.
The Seongsu service center will be absorbed into the Seongdong service center, about 4 kilometers away. Hansung Motor said, "We will transfer and integrate all personnel, equipment, and supplies from the Seongsu service center to the Seongdong service center to deliver even higher customer service," adding, "The Seongdong service center will be transformed into a one-stop service center with enhanced service accessibility and processing efficiency." The Seongdong service center is the largest Benz service center in Korea, with 95 work bays. However, it is said that even after the centers are integrated, the number of work bays will inevitably decrease compared with before.
With one of the service centers disappearing, consumer complaints are expected to mount. In particular, Hansung Motor has suffered service disruptions throughout this year, not only in showroom sales but also in maintenance, due to conflict with the labor union.
Hansung Motor holds the position of Benz's largest dealer, but its standing is gradually weakening. Recently, Ola Källenius, chairman of the Mercedes-Benz Group, visited Korea and discussed business cooperation with Vice Chairman Cho Hyun-sang of HS Hyosung. HS Hyosung The Class is an official Mercedes-Benz dealer and has been operating the "Maybach Brand Center Seoul," which opened in Apgujeong-dong, Seoul, in Jul.
An industry source said, "They said the discussion focused on automotive materials produced by HS Hyosung, but naturally there would have been talks about the dealership as well," adding, "It looks like HS Hyosung The Class is gaining clout over the noisy Hansung."