Dongjak District: "Redevelopment of Old Noryangjin Government Site to Generate 1 Trillion Won Economic Impact"

A 49-Story Mixed-Use Complex with 7 Underground Floors
Construction to Begin in 2028

Dongjak District in Seoul (District Mayor Park Ilha) announced on March 25 that the redevelopment project of the old Noryangjin government building site is expected to generate an economic impact of more than 1 trillion won.

Aerial perspective of the redevelopment site of the old Noryangjin government office building. Provided by Dongjak District Office.

The district explained that, according to an analysis conducted by Nodeone PFV Co., Ltd. (IMM Investment Consortium at the time of the bid), the project operator, using the Bank of Korea's input-output table, the project is estimated to create a total economic value of approximately 1.0256 trillion won. This includes a production inducement effect of around 720.8 billion won, a value-added inducement effect of about 304.8 billion won, and the creation of 3,000 jobs.

The district expects that the economic benefits will not be limited to short-term effects during the construction phase. It anticipates that the move-in of prominent companies, such as unicorns, will lead to increased sales and job creation, serving as a sustainable growth engine for the local economy. IMM Investment, the private partner, is a financial and venture investment firm that has fostered companies such as Celltrion (annual sales: 1.2 trillion won), Musinsa (annual sales: 1.1 trillion won), Ecopro, and Ecopro BM (annual sales: around 1.6 trillion won).

The district expects that attracting a unicorn company with annual sales of 1 trillion won could increase annual local tax revenue by about 3 billion won, create 2,000 direct jobs, and up to 4,000 jobs including indirect employment.

There have also been achievements in terms of fiscal gains. The district stated that through this sale and development project, it was able to cover the cost of constructing the new district office and still secure financial profit exceeding 100 billion won. Dongjak District fully recovered the 43 billion won it had invested in LH for the settlement of the new office construction cost and saved more than 1 billion won in interest expenses by shortening the project period. In addition, it secured space worth approximately 36.5 billion won through contributions in kind, and as the actual sale price exceeded initial expectations, additional profits were realized.

The site will be developed into a high-rise mixed-use facility with 7 underground and 49 above-ground floors. Construction is scheduled to begin in the first half of 2028, with completion targeted for the first half of 2033.

Park Ilha, Mayor of Dongjak District, stated, "This project is a strategic choice that elevates the city’s prestige by shifting from the previous plan, which focused on public rental housing, to a private-sector-led initiative. We will combine IMM Investment’s investment capabilities with Dongjak District’s proactive administration and focus all administrative resources so that global unicorn companies can be born in Dongjak District."

This content was produced with the assistance of AI translation services.