LG Energy Solution (LGES) has decided to renew its lease at Parc1 in Yeouido, shelving its potential headquarters relocation to Magok even as the current lease nears its February 2026 expiration.

According to sources in the commercial real estate industry, LGES CEO Kim Dong-myung confirmed the decision during an internal communication event, stating, “There are no plans to relocate the headquarters to Magok.”

The company occupies floors 57 to 64 of Parc1 Tower 1, leasing approximately 52,900 square meters—about 25% of the tower’s total office space. Over the past year, LGES explored alternatives in Magok, submitting Letters of Intent for leases at One Grove and K Square, with S&I Corporation appointed as its exclusive leasing agent.

As one of Parc1’s anchor tenants since January 2021, LGES initially benefited from below-market rents. Today, however, asking rents in Parc1 have reportedly exceeded USD 250 per square meter. By comparison, rents in Magok are estimated to range between USD 107 and 143 per square meter, representing potential savings of up to 50%.

Magok also houses LG Science Park, which consolidates R&D functions for eight LG affiliates, including LGES, suggesting possible operational synergies.

Despite these factors, the company concluded that moving would yield limited benefits after factoring in relocation logistics, the cost of fit-outs, and pushback from younger employees preferring to stay in Yeouido. Specific terms of the renewed Parc1 lease have not been disclosed.