Three Commercial Banks Arrange KRW 550 Billion PF Loan for 'CORDIA'

Banks directly arrange financing amid a PF crunch for high-end residential projects... Financial sector's confidence in Seobu T&D's development track record
Seobu T&D as direct developer... Commercial banks respond to its track record with Square One Incheon and Seoul Dragon City

On October 7, 2026, Hana Bank, KB Kookmin Bank and Shinhan Bank signed a KRW 550 billion project financing (PF) loan agreement for CORDIA, Yongsan's first hotel house, which is being developed by Seobu T&D and operated by Seoul Dragon City. The deal was completed with the three commercial banks serving directly as joint financial arrangers, at a time when securing PF financing for high-end residential developments is difficult.

The market regards a PF agreement for a high-end development led by commercial banks and completed directly as virtually the first case of its kind in South Korea. The deal has drawn attention from across the financial sector because it comes as many sites have yet to secure agreements and even projects arranged by major securities firms are facing delays in fund disbursement.

The PF environment for high-end residential development projects has recently been challenging. With high sale prices and construction costs, lenders have tightened their reviews of project feasibility, and many sites have failed to secure agreements. Conditions are similar even at the small number of sites that have signed agreements. In some cases, although major securities firms have arranged the financing and signed agreements, difficulties raising funds have delayed the PF drawdown.

■ Three commercial banks reach the same conclusion... Recognizing developer Seobu T&D's track record

One point worth noting is that three commercial banks, rather than just one, jointly stepped in as financial arrangers. Banks assess not only a project's feasibility but also a developer's financial stability and ability to carry out the project according to their own criteria before deciding whether to lend.

Founded in 1979 and listed on KOSDAQ, Seobu T&D is a developer that successfully completed Square One Incheon and Seoul Dragon City. It is currently undertaking the Square One Seoul project and a project to build 990 apartments in Sinjeong-dong. The PF loan agreement for CORDIA is seen as a result of commercial banks recognizing Seobu T&D's experience and expertise in guiding large-scale commercial real estate projects from planning through construction and operation.

■ Combined with direct operation by Seoul Dragon City... 88 high-end officetels

Having cleared the first hurdle of securing financing, CORDIA is a high-end officetel complex comprising 88 units. Seoul Dragon City, the largest hotel complex in Seoul and part of the Accor group, will operate it directly rather than under a management contract. Seoul Dragon City comprises four hotel brands: Grand Mercure, Novotel Suites, Novotel and ibis Styles.

With Seoul Dragon City's expertise and world-class infrastructure incorporated into the project, CORDIA is expected to stand out from existing high-end officetel developments.

CORDIA will be built in the vicinity of Hangangno 3-ga, Yongsan-gu, Seoul, at a site closest to the planned Yongsan International Business District. According to the official Yongsan Seoul Core website, the Yongsan International Business District covers a total project area of 456,099 square meters, including 265,330 square meters of mixed-use land for private development and 190,769 square meters designated for public facilities such as roads, parks and green spaces. The project, with a total budget of approximately KRW 51 trillion, held its groundbreaking ceremony in November 2025, and land sales are scheduled for the end of 2026. Plans also call for attracting the headquarters of domestic and global companies, anchored by a 100-story landmark building.

In the nearby Yongsan Electronics Market area, 11 special planning zones are set to enter the implementation phase and be developed as an AI and ICT-focused development promotion district. Nine of the 11 zones have a single owner, raising expectations for faster project progress. The area is expected to shed its image as an aging electronics market and, together with the Yongsan International Business District, become a business and residential district drawing a concentration of high-income workers.

Yongsan Station is the area's transportation hub. Passengers can access KTX and ITX-Cheongchun trains, Subway Line 1 and the Gyeongui-Jungang Line there. With the GTX-B line and an extension of the Shinbundang Line also planned, the station is expected to develop into the largest transportation hub in northern Seoul. Plans are also underway to put the Gyeongbu and Gyeongui-Jungang railway lines underground and create a green corridor at ground level.

CORDIA and Seoul Dragon City will be directly connected by the planned CORDIA Bridge, a canopy-covered skywalk crossing the park in front of the complex. The design will allow residents to travel to Seoul Dragon City and Yongsan Station without being affected by the weather or outdoor conditions.

The CORDIA Gallery is scheduled to open at the Novotel in Seoul Dragon City in October 2026. It will operate by advance reservation, with one-on-one consultations held in a private space at a five-star hotel. Visitors can view a sample unit and detailed product information, while also getting an early taste of the hotel-house lifestyle.

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