JLL Korea CEO Taeho Yi: "Pangyo Has Established Itself as an Independent Business District" [FN Market Watch]

[Financial News] Pangyo has been recognized as having firmly established itself as Seoul's fourth business district.
On the 14th, Taeho Yi, CEO of JLL Korea, said, "Pangyo has firmly established itself as an independent business district, supported by excellent transportation infrastructure, an innovative tenant mix centered on the information and communications technology industry, and rents that are competitive with those in Gangnam."
As of August, Pangyo's vacancy rate stood at 1.2%, well below the average of around 4% in Seoul's major business districts. Tenants from the information and communications technology industry accounted for 73.3% of the total. Major companies such as Kakao, NCSoft, NEXON Korea, and Samsung SDS have established themselves as long-term tenants, keeping the vacancy rate below the natural vacancy rate since the fourth quarter of 2016. Additional leasing demand is also expected as related industries, including AI and cloud computing, continue to grow.
Rental competitiveness is another strength. Effective rents are approximately ₩110,900 per pyeong per month, about 70% of the level in the Gangnam district. Pangyo has emerged as an alternative business district for IT companies, which can lease newer offices at relatively lower costs.
The total office space supplied in Pangyo is approximately 5.11 million square meters. Pangyo 1st Techno Valley accounts for about 55%, while Pangyo 2nd Techno Valley represents approximately 28%. Pangyo 1st Techno Valley has entered maturity, while Pangyo 2nd Techno Valley, developed on a scale of approximately 1.54 million square meters, has also completed construction of most of its assets and is establishing itself as a new growth center.
Institutional investment is also continuing to flow into the area. In 2025, TECH1 was sold by GIC to Korea Investment Real Asset Management for approximately ₩1.98 trillion, setting a record as the largest transaction in Korea's office investment market.
Large transactions continued this year as well. In the first half, Building E of I-Square, the first major transaction in Pangyo 2nd Techno Valley, was sold by IGIS Asset Management to IGIS X Asset Management for ₩111.9 billion. In July, GB 1, whose sale was arranged by JLL, was sold by BentallGreenOak to Kyobo AIM Asset Management for approximately ₩306.6 billion.
Meanwhile, the expansion of transportation infrastructure is also enhancing Pangyo's investment value. Once the EX-Hub transfer station at Pangyo on the Gyeongbu Line is completed in the second half of 2027, travel time from central Seoul to Pangyo 2nd Techno Valley is expected to be reduced by up to 30 minutes. Following improved regional access through the opening of Seongnam Station on Metropolitan Area Rapid Transit Line A (GTX-A), an extension of Seoul Subway Line 8 to Pangyo is also being pursued. These developments are expected to support corporate inflows and demand for office investment.
[email protected] Koo-gwi Kang Reporter