Hanwha Group is accelerating the expansion of its Seoul Station business with Hanwha Connect at the center. As the commercial value of Seoul Station rises on the back of an increase in foreign tourists visiting Korea and the revitalization of the Seoul Station commercial district, attention is also turning to the public return framework as the government's system overhaul secures a foundation for long-term operations.
According to related industry sources on the 13th, Connect Place at Seoul Station, a complex shopping and cultural space operated by Hanwha Connect, is maintaining growth thanks to a rise in foreign tourists and the effects of commercial facility renovations. First-quarter sales this year rose 33% from a year earlier, and overseas (foreign) payment sales increased 209%.
Recently, Hanwha Connect has continued to differentiate its content by expanding specialized food and beverage (F&B) menus sold only at Seoul Station. It has been creating a series of convenience spaces tailored to foreigners—equipped with luggage lockers that can store suitcases, currency exchange kiosks, and portable battery charging services—focusing on tapping demand from tourists visiting Korea.
Seoul Station's standing has also changed in recent years. As a transportation hub where KTX, the airport railroad, and the subway are connected, and as the movement paths of foreign free independent travelers (FITs) concentrate there, it is being assessed as having established itself as a core consumption base that combines distribution and tourism. In fact, at Lotte Mart Zeta Plex Seoul Station, foreigners account for about 40% of total sales, and the overall Seoul Station commercial district is emerging as a representative foreign consumer hub.
The higher Seoul Station's value rises, the larger Hanwha Connect's role and gains are expected to be. Hanwha Group is expanding its projects in the area by pushing ahead with a complex development project for the northern station area of Seoul Station through a consortium that includes Hanwha Connect, following the operation of the privately funded station through Hanwha Connect. When the project is completed, an ultra-high-rise complex equipped with office, residential, and commercial facilities is planned to be built.
Changes in government systems are also backing this trend. Earlier, the Ministry of Land, Infrastructure and Transport revised an enforcement decree in 2023 to extend the maximum permit period for occupying railway sites from the existing 30 years to 50 years. At the time, the reason cited for the revision was "to secure a stable revenue base for private operators."
Under the revised enforcement decree, Hanwha Connect, which operates the privately funded station at Seoul Station, can extend its existing operation period (2004–2033) by up to an additional 20 years after it ends. The privately funded station at Seoul Cheongnyangni Station can also be extended by up to 20 years after the current operation period (2010–2040) ends. With the system overhaul, it has effectively secured a long-term operation foundation approaching 50 years.
Hanwha Connect's performance is on an improving trend. According to the Financial Supervisory Service's electronic disclosure system, Hanwha Connect's sales last year were 201.6 billion won, up 9.3% from a year earlier, and operating profit was 40.4 billion won, up 19.2%. Korea Ratings cited "excellent location and long-term contracts with high-credit tenants" as factors for Hanwha Connect's business stability. The analysis is that it is a business capable of generating stable revenue based on national core transportation hubs such as Seoul Station and Cheongnyangni Station.
However, as Seoul Station's value rises and a long-term operation foundation is established, attention is turning to the public return framework for private projects that utilize public infrastructure. Currently, the railway site occupancy fee is known to be calculated mainly based on asset value such as the officially assessed land price, and it is understood that it is not directly linked to increases in the operator's commercial facility sales or excess profits.
As the Ministry of Land, Infrastructure and Transport (MOLIT) cited "securing a stable revenue base for private operators" as the reason for extending the occupancy permit period, discussions are continuing on whether the balance between the benefits of long-term operations and public returns is appropriate. It is necessary to examine whether the benefits from the rise in Seoul Station's value are concentrated on a particular operator and how revenue generated based on public infrastructure is being returned to society.
Governance is also being discussed. Hanwha Connect's largest shareholder is Hanwha Solutions (48.31%), and Korea Railroad Corporation (KORAIL) holds 30.07% as the second-largest shareholder. As a public institution participates as a major shareholder, key issues include how much revenue generated through long-term operations is being channeled into reinvestment in rail infrastructure or passenger benefits, and whether the occupancy fee calculation method properly reflects the current business environment.
Hanwha Connect's position is that it will focus on strengthening customer convenience and content competitiveness based on a long-term operation foundation. A Hanwha Connect official said, "Based on the location and symbolism of Seoul Station and Cheongnyangni Station, we plan to focus on customer-centered space innovation and strengthening content competitiveness," and added, "While continuously advancing the space into one that customers want to visit and stay in, we will build a sustainable operation model that grows together with our partners."