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MARKET OVERVIEW
SEOUL
BANKING AND FINANCIAL SECTOR SUMMARY
Banking and Financial Sector
Trends
Among the three major business districts
in Seoul, Yeouido is well known to be
Korea’s core financial district. However,
some financial companies are moving
out of Yeouido Business District (YBD),
and consolidating their oce footprints.
Recently, Mirae Asset Securities Co., South
Korea’s leading asset management firm,
merged with KDB Daewoo Securities Co.
Mirae Asset Securities are located in Center
1, and the merged entity consolidated its
oces out of YBD to Center 1 in the Central
Business District (CBD). Dashin Finance
Center and IBK's headquarters in the CBD
will be completed in the fourth quarter of
2016. Dashin Finance Group plans to move
its new headquarter from YBD to the CBD.
The wave of mergers and acquisitions
among brokerage houses is expected to
impact the Banking and Financial Sector.
Outlook, Opportunities & Strategies for Occupiers
Due to regulations, South Korea’s financial technology (fintech) sector is still
in its early stages. Thus, banks and financial companies in Korea are not fully
realizing the increasing threats triggered by fintech companies. However,
there has been significant development in Korea's banking industry. The
Korean government carried out drastic regulatory reform and opened the
Fintech Center. In addition, the government opened two Internet-only banks.
This is expected to change the landscape of the nation's financial industry.
Although a demand recovery has not been observed due to the slowing
economy, the growing number of start-ups, like those in the fintech sector, is
expected to generate oce leasing demand, particularly benefitting serviced
oce providers.
Key Banking and Financial Services Sector Lease Transactions – 2016
PROPERTY
SF
TENANT
TRANSACTION TYPE SUBMARKET
Center One
5,683
Sumitomo Mitsui Banking Corporation Relocation
CBD
Tower 8
12,939
NH Bank
Relocation
CBD
Shinhan L Tower
13,987
BNP Paribas Cardif Life Insurance
Relocation
CBD
K Twin Tower
47,889
K Bank
New Lease
CBD
Platinum Tower
37,717
Dongbu Life Insurance
Relocation
GBD
Key Banking and Financial Services Sector Sale Transactions – 2016
PROPERTY
SF
BUYER
PRICE
(US$ MIL)
PRICE
(US$/SF)
SUBMARKET
Samsung Life Insurance main oce 943,812 Booyoung Group
519
550
CBD
Samsung Fire & Marine Insurance's
headquarters building
593,373 Booyoung Group
368
618
CBD
Amid a gloomy economic outlook, major securities and
insurance companies will continue to put their real estate
holdings for sale. Samsung Life Insurance sold its symbolic
headquarters building to Booyoung Group. The group also
purchased Samsung Fire &Marine Insurance headquarters
building in Euljiro, central Seoul recently.
- Ryan Lee, Senior Director
40%
42.59
1.8%
% Occupancy of
Financial Sector
Prime Rent
(USD/Sf/Year)
Rent Growth
(YOY in local)
44 ASIA PACIFIC BFSI OUTLOOK 2017