The Seoul Housing and Communities Corporation (SH) is moving forward with a long-delayed plan to partially relocate its headquarters in Jungnang-gu, Shinnae-dong. Instead of relocating all employees and departments, the plan now involves maintaining some functions at the current headquarters in Gangnam's Gaepo-dong. This shift is attributed to concerns over project viability and financial burdens. Internally, SH is reportedly aiming to begin construction in the second half of 2027.
According to SH, a feasibility study has been commissioned from the Korea Local Administration Research Institute's Local Investment Project Management Center, with completion expected by the end of this month.
Following this, the project will undergo a series of approvals, including reviews by the internal investment review committee, board of directors, and city council. The timeline is being evaluated with a goal of starting construction in the latter half of 2027.
Discussions about relocating SH's headquarters began during the tenure of former Seoul Mayor Park Won-soon from 2018 to 2019 as part of a balanced development policy between Gangnam and northern Seoul. The project was seen as a key initiative for urban development in Jungnang-gu and balanced growth in the northeastern region. In 2020, a tripartite agreement was signed between the Seoul Metropolitan Government, Jungnang-gu, and SH, marking the project's official launch, followed by a feasibility study by the Korea Local Government Evaluation Institute in 2021.
However, the project stalled for several years due to issues related to its viability and financial burdens. Industry experts cite the competitive location of the Gaepo-dong headquarters, the high costs of a large-scale relocation, and concerns about the public benefits of the new headquarters as contributing factors.
An SH official stated, “The full relocation plan did not yield sufficient viability, leading us to explore various options, ultimately settling on a partial relocation approach. If the feasibility study results are positive, we plan to proceed with the project as planned.”
Initially, the principle was to relocate all employees and departments to Jungnang-gu, but opposition from labor unions and concerns over project viability prompted a change in direction. The current plan is to maintain some functions at the Gaepo-dong headquarters while relocating key departments and personnel to the new headquarters in Jungnang-gu. The specific distribution of departments and the scale of personnel movement will be determined after gathering feedback from internal stakeholders.
The funding approach has also changed. The project structure has shifted from SH's own project model to a REITs investment model. The new headquarters will be developed as a mixed-use project, including office facilities, a performance venue (public contribution), as well as residential and commercial spaces. This change was made because relocating only public offices did not sufficiently secure project viability, prompting a shift to a mixed-use development model that combines housing and commercial facilities. This decision was reportedly made after consultations among the Seoul Metropolitan Government, Jungnang-gu, local lawmakers, and SH.
SH's labor union continues to oppose the headquarters relocation, citing concerns over financial stability, changes in working conditions for affected employees, and accessibility issues for citizens. There are ongoing internal concerns about reduced public transport access and decreased work efficiency compared to the Gaepo-dong location.
SH stated, “The issue of relocating the headquarters involves changes in employment relationships and working conditions, so we plan to continue discussions with the union.”
* This article has been translated by AI.
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