As its current lease nears expiration next year, LG Energy Solution, which had been considering relocating its headquarters to Magok, has decided to remain at Parc1 in Yeouido.

According to the commercial real estate industry, LG Energy Solution CEO Kim Dong-myung recently informed employees at an internal communication event that “there are no plans to relocate the headquarters to Magok,” officially confirming the decision to stay.

The company, which has occupied floors 57 to 64 of Tower 1 since January 2021, currently leases approximately 52,900 square meters—about 25% of the total office space in the tower. With the lease set to expire in February, LG Energy Solution had explored alternative sites in Magok, submitting Letters of Intent for leases at One Grove and K Square, and appointing S&I Corporation as its exclusive leasing agent.

As one of the early tenants of Parc1, LG Energy Solution had initially benefited from below-market lease rates, but current market rents have risen significantly—reportedly to over 250 dollars per square meter.

In contrast, rents at the Magok locations are estimated to be in the range of 107 to 143 dollars per square meter, potentially cutting lease costs in half.

Additionally, Magok houses the LG Science Park, which centralizes R&D functions for eight LG affiliates, including LG Energy Solution, offering potential operational synergy.

However, after evaluating the cost of new facility investments and the logistics of moving, along with reported opposition from younger employees, the company concluded that the relocation would offer limited benefit. Details of the renewed lease terms with Parc1 have not been disclosed.