Meritz and Mirae Asset Buildings Also Set for Redevelopment... Deregulation and Capital Inflow to Transform Yeouido Skyline [Real Estate AtoZ]

Five First-Generation Financial Office Buildings to Be Redeveloped by 2028-2033
Asset Management and Financial Capital Flow in as 1,000% FAR Becomes Possible
Office Supply Shortage Pushes Vacancy Rates Below 2%... Policy Consistency Remains Unce

As a wave of reconstruction begins for aging office buildings in Seoul’s Yeouido financial district, the skyline of Yeouido is expected to undergo significant changes. Reconstruction projects are now visible at five sites, including the main office of KB Kookmin Bank in Yeouido, the Korea Fire Protection Association Building, Kiwoom Finance Square, the former Meritz Fire & Marine Insurance Yeouido Building, and the former Mirae Asset Securities Building. These buildings, constructed in the 1970s and 1980s, represent the first generation of office towers that marked the establishment of Yeouido as a financial business district.

The boom in office reconstruction among Yeouido financial companies is largely due to Seoul’s “Yeouido Financial Center District Unit Plan.” In May 2023, the Seoul Metropolitan Government released its plan to nurture Yeouido into an international digital finance hub, and in November 2024, the final decision was officially announced. Approximately 1.12 million square meters on the east side of Yeouido Park, where financial institutions are concentrated, was designated as the “Yeouido Financial Center District Unit Plan Area.”

Within this area, the Financial Special Development Promotion District has been classified as a “zoning adjustment area,” allowing rezoning from a general commercial district (floor area ratio of 800%) to a central commercial district (1,000%). If requirements such as public contributions are met, it becomes possible to apply the central commercial district’s floor area ratio. Furthermore, if eco-friendly and creative or innovative designs are incorporated, the floor area ratio can be further relaxed to over 1,200%. The maximum permitted building height has also been raised to 350 meters, opening the way for super high-rise office towers that would surpass Park One (333 meters), currently the tallest building in Yeouido.

The areas where high-density reconstruction is most evident are the Korea Fire Protection Association Building (completed in 1977) and Kiwoom Finance Square (completed in 1979), both built in the 1970s. In June last year, both projects passed the Seoul Urban and Architecture Joint Committee’s infrastructure adequacy review, confirming plans to rebuild with a floor area ratio exceeding 1,000%.

The Korea Fire Protection Association Building, set for demolition this year, will be redeveloped by Mirae Asset Global Investments as a new building with eight basement floors and 31 above-ground floors, with a total floor area of 82,645 square meters. Completion is scheduled for 2030. Kiwoom Finance Square, currently under construction, will be transformed into an office facility with seven basement floors and 28 above-ground floors, targeting completion in 2028. The design is by renowned American architect Richard Meier, and construction is being handled by SK Ecoplant.

Office buildings constructed in the 1980s have also joined the reconstruction wave. The Meritz Fire & Marine Insurance Building, completed in 1983, is being redeveloped under the leadership of Brighton Asset Management, a subsidiary of Shinyoung. Construction is being handled by Dongwon Industrial Development. The site will be redeveloped with a high floor area ratio exceeding 1,000%, with completion targeted for 2028.

The Mirae Asset Securities Building, completed in 1984, was acquired by Woori Financial Group in 2024 for 372.7 billion won. Woori Financial Group reportedly plans to rebuild the structure as a new building with seven basement floors and 28 above-ground floors, and a total floor area of 82,306 square meters, to serve as the new headquarters for Woori Investment & Securities and other Yeouido hubs. Completion is targeted for 2031. The KB Kookmin Bank main building, built in 1984, will also be rebuilt as a new facility with eight basement floors and 34 above-ground floors, and a total floor area of 104,800 square meters (about 31,700 pyeong).

The commercial real estate industry predicts that the Yeouido office market will maintain a uniquely strong position compared to other business districts for the time being. Since the completion of the TP Tower (formerly the Teachers’ Pension Hall) in 2024, there has been virtually no new large-scale office supply, and as existing offices are demolished during reconstruction, vacancy pressures are also easing.

Kyungja Lee, Head of Alternative Investments at Samsung Securities, stated, “The Yeouido area has the smallest absolute office area among Seoul’s office districts, and the potential for new development is limited. Traditional financial institutions continue to prefer the area, and the redevelopment business remains highly profitable, so integrated development is ongoing.” According to R Square, a commercial real estate comprehensive service company, Yeouido’s vacancy rate stood at only 1.9% in the fourth quarter of last year, even as overall vacancy rates in Seoul increased. During the same period, the vacancy rate in the downtown district was 4.5%, and in the Gangnam district, it was 4.8%, both more than double Yeouido’s rate.

However, policy continuity remains a variable. The CEO of a commercial real estate consulting firm commented, “The fact that these projects are possible under the policy vision of former Mayor Oh Sehoon’s ‘Asia Financial Hub’ is separate from each individual site ultimately receiving final approvals. Since nurturing Yeouido as a financial hub is closely linked to Seoul’s urban planning, the pace of detailed projects and how incentives are applied could change depending on future local elections and the direction of city administration.”

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