Koramco, Fursys Deliver “Value-Add” Results at Gwanghwamun’s Doban Building

Attracts KB Kookmin Card and Kim & Chang as Tenants
Reborn as a Prime CBD Office

Koramco Asset Trust said on November 11 that it had transformed the Doban Building in Gwanghwamun into a prime office asset, building on a strategic investment agreement with Fursys. The project combined Koramco’s value-add capabilities and Fursys’s office interior expertise to upgrade an asset acquired at a price below nearby market levels.

A view of Doban Building in Gwanghwamun. Koramco Asset Trust

Koramco Asset Trust recently completed the remodeling of the Doban Building in Jongno-gu, Seoul. Upon completion, KB Kookmin Card and Kim & Chang joined as major tenants, bringing the building’s occupancy rate to 100%.

The Doban Building is a mid-sized office building at 33 Saemunan-ro 5ga-gil, Jongno-gu, Seoul. It has six basement levels and 15 above-ground floors, with a gross floor area of 13,007.82 square meters. Gyeongbokgung Station and Gwanghwamun Station are within walking distance, and the building is in a prime location in the central business district (CBD), near the Government Complex Seoul, the Gwanghwamun business district, major financial companies, and embassies.

Kim & Chang had used the building for many years, and until recently, Doban Korean Medicine Hospital occupied about 80% of the space available for lease. After the hospital decided to relocate and the process of vacating the premises began, concerns about vacancies grew, and the building was put on the market. Considering its location, physical potential, and tenant demand, Koramco acquired the building for a total of KRW 108 billion. Including remodeling costs, the price came to about KRW 28.7 million per 3.3 square meters (one pyeong), substantially below nearby market levels.

Koramco focused not simply on the purchase price but on the asset’s potential for recovery. The Gwanghwamun area is a traditional business district with strong demand from government agencies, large corporations, financial companies, law firms, and foreign companies. The Doban Building also offers a rare location with views of Gyeongbokgung Palace and Bugaksan Mountain, self-parking, and an efficient floor plan with a typical floor measuring about 260 pyeong. Koramco determined that converting the space from a hospital to office use would allow the building to meet demand from financial and professional services firms seeking mid-sized offices.

Fursys’s office interior brand, Purple Six Studio, led the remodeling. The studio renovated the lower-level facade and entrance, and expanded the first-floor lobby to create a new layout suited to office use. It enhanced security by installing speed gates and an access control system, and upgraded the elevator halls, common areas, parking lot, and rooftop lounge. The building was redesigned as a modern office space suited to the Gwanghwamun business district, replacing its former hospital image.

Last year, Koramco and Fursys entered into a separate managed account (SMA) worth up to KRW 80 billion, agreeing to jointly pursue value-add office investments and space innovations in Seoul’s major business districts. The arrangement differs from conventional real estate investment in that Fursys contributes its space-planning and interior design expertise as a workplace specialist, rather than acting solely as a financial investor. The Doban Building is the first asset in which this collaborative model has been put into practice.

The tenant mix is also considered stable. KB Kookmin Card occupies the main office space from the second through the 13th floors. With an AA+ credit rating and headquarters near the Doban Building, KB Kookmin Card is a blue-chip financial company with strong demand for office space in the Gwanghwamun area. Kim & Chang leases the 14th and 15th floors. As Korea’s largest law firm, Kim & Chang operates multiple offices in the Gwanghwamun and Gyeongbokgung areas, making it a tenant whose demand for expansion within the district has been confirmed.

Demand for mid-sized offices in prime locations has also remained steady in Seoul’s major business districts. Large corporations, financial companies, law firms, and foreign companies tend to prefer offices near their headquarters or exclusive-use spaces with strong security. The Doban Building has been repositioned to meet this demand, with its central Gwanghwamun location, self-parking, and improved work environment following the remodeling.

Koramco plans to make the Doban Building remodeling a leading example of its value-add strategy. The project demonstrates that even an asset facing vacancy concerns can be turned into a stable investment asset through a detailed analysis of its location, structure, and tenant demand.

Jeong Seunghoe, CEO of Koramco Asset Trust, said, "The Doban Building was viewed conservatively by the market because of concerns about vacancies following the hospital’s relocation. However, considering its prime location in Gwanghwamun, its structure, and tenant demand, the asset had substantial intrinsic value. Koramco acquired it at a competitive price compared with nearby market levels and, by combining that with Fursys’s expertise in improving workplace environments, was able to turn an undervalued property into a stable office asset."

He added, "This project was not simply a matter of buying cheaply and remodeling. It was a value-add investment in which tenant demand, the competitiveness of the space, and the potential for an exit were all taken into account from the acquisition stage. We will continue to work with strategic investors to identify undervalued assets in prime urban locations and transform them into office assets that create value for both investors and tenants."

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