"The store that used to sell 1,000‐won items, Daiso"...Now the new owner of a 350 billion won Gangnam building

Financial News – Asung Daiso, which built its brand as a "1,000‐won shop" selling everyday goods at a single low price, has become the new owner of a 350 billion won building in a prime location near Gangnam Station. The market views this as the result of explosive growth, driven by consumers flocking to Daiso for value-for-money products amid high inflation and an economic downturn, which ultimately led to the building purchase.
According to the real estate industry on the 10th, Hanwell Group, which owns Daiso Industries, signed a contract late last year to purchase K-Square Gangnam 2 in Yeoksam-dong, Gangnam-gu, Seoul for 355 billion won and recently completed the title transfer. Around 300 billion won of the purchase price is believed to have been financed through loans.
The building acquired by Daiso is an ultra-prime property located right next to Exit 3 of Gangnam Station on Seoul Subway Line 2 and the Shinbundang Line (lot number 826 and surrounding area in Yeoksam-dong), fronting Gangnam-daero. It is a large office tower with a total floor area of 21,942 square meters (about 6,649 pyeong), spanning four basement levels and 20 floors above ground.
The deal is estimated to have been concluded at about 53.5 million won per pyeong (3.3 square meters). This is only the second office transaction in the Gangnam Business District (GBD) to exceed 50 million won per pyeong. The previous record in the GBD was set by Scale Tower, purchased by Hyundai Motor Group, which traded at around 54 million won per pyeong.
Market observers attribute the background of this building acquisition to Daiso's explosive earnings growth. As high inflation persists and the economy slows, weakening consumer sentiment, more people have turned to Daiso in search of ultra-low-priced products.
In 2024, Daiso Industries posted sales of 3.9689 trillion won and operating profit of 371.1 billion won. Compared with the previous year, revenue jumped 14.7% and operating profit surged 41.8%. Hanwell Group is expected to use the building either as a group headquarters or in various other ways, such as opening a large flagship store.
y27k@fnnews.com Seo Yoon-kyung Reporter