[Exclusive] SK hynix to Build Headquarters in Central Seoul... Plans New Office on Former Le Meridien Gangnam Site

SK hynix's Status Rises... Need for an Independent Base in Seoul
"AIRace in the Heart of Gangnam"
Le Meridien Development Project Expected to Shift Toward Office-Oriented Use

SK Chairman Chey Tae-won is speaking at the 'San Francisco AI Summit' held on the 24th (local time) at The Midway in San Francisco, USA, attended by President Lee Jae-myung. Photo by Yonhap News

SK Group is pursuing the construction of a new SK hynix headquarters on the former Le Meridien Hotel site in Gangnam-gu, Seoul. The plan is to establish a strategic base in Seoul’s Gangnam district that will symbolize the company’s stature, following its dominance in the AI memory market with high-bandwidth memory (HBM).

Independent Headquarters in Central Seoul...Rising Status within the Group

According to business and investment banking industry sources on July 27, SK Group is currently pushing for the acquisition and development of the Le Meridien Hotel site in Gangnam-gu, Seoul. The company is considering constructing a headquarters for SK hynix on this site. The location is just over 1 kilometer from Gangnam Station on Subway Line 2, where Samsung Group’s office buildings, including those of Samsung Electronics, are concentrated. Since the Le Meridien Hotel site is situated on elevated ground, the new headquarters could overlook ‘Samsung Town.’ This means a direct competition between two of the world’s largest semiconductor companies will unfold in the heart of Gangnam, Seoul.

Initially, SK Group was planning to secure space within the group’s main headquarters, the Seorin Building in Jongno-gu, Seoul, and relocate SK hynix’s Seoul office and sales divisions there. The idea was to forward-deploy major organizations to the group’s main base. However, as AI semiconductors have become the group’s core and vital business, it is now seen as essential for SK hynix to have a large presence in Seoul—personally overseen by SK Group Chairman Chey Tae-won.

Should SK hynix have its own independent headquarters in central Seoul, its status within the group is expected to rise further. Securing a larger space than the Seorin Building will make it possible to separately establish security infrastructure required for a semiconductor business, as well as facilities to serve global customers. In addition to enabling strategic communication with SK Group’s top management, this Seoul base is expected to become a hub for engaging with international clients and investors, and attracting top talent.

The specific way in which SK Group will participate in this project remains a key variable in the transaction. According to the project status disclosed by the Seoul city authorities, the current landowner is Daishin Asset Trust, and the developer is Nexplan. The development project is being carried out through B120 Project Financing Vehicle (PFV). Depending on whether SK acquires the land and business rights directly, acquires PFV shares, or participates by pre-purchasing office facilities, the business structure could differ significantly.

Hyundai Engineering & Construction Finds Relief After Struggles with Le Meridien Site

Le Meridien Hotel Development Project Perspective View

The Gangnam Le Meridien Hotel site development project began in 2021 when Hyundai Engineering & Construction and real estate developer Wells Advisors formed a consortium to acquire the hotel and land for about 700 billion won. The initial project operator was Mastern No.116 Gangnam Premier Project Financing Vehicle (PFV). Hyundai Engineering & Construction held approximately 30% of the PFV shares, Wells Advisors held 55%, and the remaining shares were divided among Mastern Investment Management and affiliates of Meritz Financial Group.

Due to negative factors such as COVID-19, Hyundai Engineering & Construction immediately closed the hotel in the same year it was acquired. The company then sought to transform the site into a new mixed-use landmark for business and culture, aiming to expand Gangnam’s international business functions. Plans were launched to develop a complex greater in scale than Kyobo Tower by 1.5 times, but delays caused by the real estate market downturn and rising financial costs led to repeated changes in business structure. In 2025, Wells Advisors and Mastern Investment Management withdrew from the project, while Nexplan, a high-end residential developer, became the new largest shareholder and developer.

If the site is used as SK hynix’s headquarters, the current business profit structure is likely to be completely reconsidered. Reducing the allocation of officetels and residential units, and expanding the portion that SK hynix will directly use as office space, is being strongly considered. However, if the focus shifts heavily to headquarters use and building height or purpose is significantly changed, amendments to the existing building review process and special architectural district plan may become necessary.

The involvement of SK Group is also being seen as an opportunity for business normalization from the perspective of Hyundai Engineering & Construction, for whom this development has been a "problematic project." An industry insider commented, "Having a stable and large end-user secured could reduce uncertainties regarding funding and profitability compared to the previous business model."

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