The evaluation of the Magok district has changed. Following the establishment of corporations based on advanced industries, the perception of the area, once considered a mere business district, has shifted dramatically to that of the 'Magok Silicon Valley,' a blueprint from the early stages of development. As a result, housing prices in the region have also risen significantly, newly placing it among the affluent neighborhoods that represent Seoul.

A view of the Magok District business complex in Seoul / Photo = Magok Industrial Complex

The Magok district is an urban development area where the Seoul Housing and Communities Corporation (SH) has developed approximately 3.66 million square meters of land in Gangseo-gu, Magok-dong, which is the last large undeveloped area in Seoul, into industrial complexes and residential buildings. It has been divided into a total of three zones: a residential complex of about 1.1 million square meters, an industrial and business district (approximately 1.86 million square meters), and a park complex (about 700,000 square meters).

In particular, the industrial complex in the Magok district (Magok Industrial Complex) is a strategically developed research and development center by the Seoul government, housing the research and development (R&D) facilities of leading domestic corporations. Headquarters or office branches of corporations such as Lotte, E-Land, Kolon, Nexen Tire, and Guangdong Pharmaceutical are located here; LG has built a 'Science Park' that serves as offices for nine subsidiaries, including LG Chem, LG Display, and LG Uplus.

According to statistics from the Magok Industrial Complex, as of 2023, the number of tenant corporations (based on tenant contracts) is 209, with research personnel totaling 15,855, and total sales exceeding 25 trillion won. Furthermore, the resident population is projected to reach a total of 170,000 by 2027. This figure is four times that of Sangam DMC (about 40,000) and more than double that of Pangyo Techno Valley (about 78,000), positioning it as a mammoth industrial cluster representing the country.

Meanwhile, the completion of Seoul's largest MICE (meetings, incentives, conventions, and exhibitions) complex is also cited as a reason supporting this outlook. The Magok MICE complex will comprise a total of three blocks in the Magok Special Planning Zone CP1-3, covering a land area of 82,724 square meters and a total floor area of 820,000 square meters, boasting twice the area of COEX and nine times that of the Sangam World Cup Stadium.

In particular, the Magok MICE complex includes the completion of the 'One Grove,' a large-scale complex facility spanning a total floor area of 463,098.48 square meters in September, and the 'COEX Magok Convention Center,' the first exhibition and convention center in the western region of Seoul, which opened on the 28th of last month. Additionally, facilities like 'Case Square,' which includes offices, high-end senior residences, business spaces, and retail facilities, are either completed or nearing completion. Together with Jamsil and Seoul Station, it is expected to rise as one of the 'three major MICE' hubs in the country.

The rise in housing prices is also notable. According to data from real estate R114, the increase in apartment sales prices in Magok-dong as of Dec. 19 this year is 4.69%, surpassing the average increase rate in Gangseo-gu (3.96%) during this period. It has continued the trend from last year, where it recorded a 3.14% increase, being the only area in Gangseo-gu to do so amid a downturn.

Apartment prices are also rising rapidly. A transaction for an 84-square-meter unit of 'Magok M Valley 7' (which was delivered in June 2014) took place this month (December) at 1.75 billion won. This is comparable to the peak price recorded in September 2021 (1.755 billion won). Additionally, a 114-square-meter unit in the same complex was traded at 1.98 billion won in November, nearing its peak price (1.999 billion won).

As residential, business, and commercial facilities are systematically being established around the Magok district, it is expected to attain a self-sufficient city status similar to that of Pangyo New Town in the future.