While Cheongdam-dong became famous for being a home to the superrich, Samseong-dong has gained a reputation as the premium office area for the nation’s leading companies. Firms preferring neighborhoods quieter than the congested downtown area began gathering here in the 1990s, making it one of the wealthiest regions in Seoul.

Recently, Samseong-dong made another quantum leap thanks to Hyundai Motor’s recent purchase of a site smack-dab in the middle of the district. 

Hyundai Motor paid around 133 million won ($119,000) per square meter for the land, and with the construction of its Global Business Center the value of neighboring property is expected to increase dramatically.

The Korea Herald Investigative Team has taken a closer look at the rising fortunes of some of these lucky estate owners. 


Prime spots north of Samseong Subway Station

Hur Min, the largest shareholder of social commerce firm WeMakePrice and who built a private company to manage his real estate, is one beneficiary of the latest property boom in Samseong-dong. Hur in 2012 purchased four lots totaling some 1,743 square meters at the corner of Samseong Station’s Exit 7. 

The area is being used as the new head office for WeMakePrice since January. Its value is known to be rising following the development of the site purchased by Hyundai Motor.

In the case of the most expensive lot among the four, the official land value per square meter soared to 11.3 million won in the past year. The market value of all four lots is now estimated to be around 69.2 billion won. 

Then there is Lee Min-joo, chairman of Atinum Partners, a privately held investment company. Called a master of investment, Lee at one point owned assets worth up to 1.6 trillion won. The assets were the result of investments in domestic and international company shares and buildings with the proceeds of selling a cable TV company that he acquired cheaply during the 1997 Asian financial crisis and then sold for 1 trillion won.

The value of this land ― measuring about 1,651.4 square meters ― is currently estimated to be 22.7 billion won. However, it is expected to sell for over 40 billion won, according to industry watchers.

Next door is a lot owned by Hanjin Heavy Industries and Construction Holdings Co. According to its semiannual report and land book, Hanjin Heavy Industries acquired the 1,722.7-square-meter lot for 13.6 billion won in 2005.

The current appraised value is around 23.9 billion won, but it is expected to fetch up to 43 billion won with the value increasing more than twofold in a decade.

Once the development of Hyundai’s business center officially takes off, the value is expected to further rise to hand Hanjin a bigger profit when sold.

Last but not least, Samsung Group owns real estate near the site purchased by Hyundai. The 10,988-square-meter lot, purchased by Samsung Life Insurance in 2011, is the former location of the Korea Appraisal Board. The appraised land value is currently 145 billion won, but its market value is assumed to be around 260 billion won, up 27.2 billion won from when Samsung Life made the purchase three years ago.

The downside is that the lot is located in the innermost part of the region, but the value of the property is expected to rise considerably given the price paid by Hyundai Motor for its new plot.

Samsung Life Insurance said it bought the land to build an office building to rent out for lease income. However, there is still the possibility that the property could be sold off one day to hand Samsung a fair amount of profit.


Early settlers northeast of GBC

Meanwhile, there are several companies already settled northeast of Hyundai’s Global Business Center. These include the four lots that Hyundai Development Company has had since 1999. Measuring up to 4,518.4 square meters, the official land value is around 55 billion won but industry watchers expect the property to fetch up to 100 billion won.

Another example is an estate owned by Daekyo D&S, an affiliate of private education firm Daekyo Group. Established in 1994, it runs real estate and housing businesses for the parent company. 

Daekyo D&S owns five lots in this area measuring a total of 1,382.1 square meters. It is located near the roadside with a great view of the soon-to-be-developed GBC, which is why industry watchers expect its value to soar in the near future.

The book value of the property is 18 billion won, but the market value has been estimated at around 32 billion won.

Daewoong Pharmaceutical Co. also owns lots around this area. Daewoong’s head office and some of its subsidiaries operate here, meaning there is a low possibility of sales or relocations, but the development of Hyundai’s GBC has been shedding new light on the firm, the industry watchers said.

The total area owned by Daewoong is 3,930.3 square meters appraised at around 40 billion won, but the actual value is expected to stand at 72.8 billion won.

By Korea Herald Investigative Team
(hjlee0301@heraldcorp.com)

Kwon Nam-keun
Hong Seung-wan
Sung Yeon-jin
Bae Ji-sook
Yoon Hyun-jong
Min Sang-seek
Kim Hyun-il
Lee Hee-ju