After buying land for 75.5 billion won, JYP ultimately scraps plan for new headquarters in Godeok-dong

[Financial News] JYP Entertainment has decided to halt the project it had pursued to build a new headquarters in Godeok-dong, Gangdong-gu, Seoul. The company concluded that it would be difficult to stick to its original plan after the land-use designation was changed to allow a high-rise commercial facility to be built directly in front of the planned site.
JYP issued an official statement on the 8th announcing its withdrawal from the project. The company said, "Since first learning in April this year that the land in front of the planned new headquarters site in Godeok-dong had been redesignated, we held multiple consultations with Seoul Housing & Communities Corporation (SH Corporation) and the Gangdong-gu Office and made efforts in various ways to keep the project moving. However, we ultimately decided to withdraw from the new headquarters construction project."
The new headquarters project was launched to address the lack of space at JYP’s existing office in Seongnae-dong. In 2023, JYP won the bid for 10,675 square meters of land for 75.5 billion won in Block 2 of the distribution and sales facilities site in the Godeok-Gangil district, offered by SH Corporation. The company planned to build a structure there with a total floor area of 69,259 square meters, spanning five basement levels and 17 floors above ground, with large rehearsal rooms, a concert hall, and office space for employees.
The project ran into trouble when the designation of the neighborhood park site in front of the planned new headquarters was changed. JYP objected after SH Corporation changed the designation to allow an 18-story commercial facility to be built on the site. The company said a large building directly in front of the new headquarters could seriously affect the privacy of its artists and their working environment. However, JYP’s request was not accepted.
SH Corporation said that there had been no problems with the land-use change process and that the site could not be returned to a park. JYP explained, "On August 31, we received a final official response from SH Corporation stating that there were no procedural issues with the change in the designation of the land in front of the new headquarters site and that restoring it to a park was also impossible." It added, "With the key conditions for carrying out our project having changed completely, we reviewed all the circumstances from various angles, including the situation with our currently dispersed leased buildings, and concluded that it would be difficult to proceed with the project any longer."
Having abandoned its plan for a new headquarters in Godeok-dong, JYP plans to secure workspace centered around its existing office in Seongnae-dong. It will pursue ways to supplement its dispersed workspaces, including purchasing additional buildings near the headquarters.
JYP said it would continue its business with its Seongnae-dong headquarters in Gangdong-gu as its base. The company added, "As this decision was made after lengthy consideration and careful consultations, we ask for your understanding." It continued, "Since relocating to Gangdong-gu in June 2018, we have continued to grow. With our Seongnae-dong headquarters as our base, we will work closely with the local government where we are based and continue to pursue sustainable growth."
[email protected] Han Seung-gon Reporter