Keppel Asset Management, once hailed as a “value-add specialist” in Korea’s commercial real estate market, is now facing its toughest test yet.

The Singapore-based manager, which made bold bets on high-profile assets like the Samhwan Building (now Ino88 Tower) and the former Bank of Korea annex (K Finance Tower), is struggling to fill empty floors despite completing extensive redevelopment.

Keppel built its reputation through smart repositioning of prime properties like Seoul Square, Jongno Tower, and D-Cube City. Market observers were eager to see how it would transform the two iconic assets it acquired between 2022 and 2023.

K Finance Tower — once the BOK annex — was fully remodeled over a year ago, but remains nearly 80% vacant (about 10,000 m² unleased) excluding the retail podium. Keppel had rebranded the building and set out to attract global and domestic financial firms by leveraging its prime location near the central bank.

Yet, tenant commitments have been slow—reflecting not only a softer leasing market, but also the building’s physical constraints, such as its dense column layout, which reduces floor efficiency.

The Samhwan Building, also acquired by Keppel, finished its two-year redevelopment project this month, emerging as Ino88 Tower with expanded floor area (approx. 39,700 m²).

Keppel had high hopes of securing the Jongno District Office as an anchor tenant, but Samsung SRA outmaneuvered them and successfully lured the district office to The K Twin Towers for a 6,600 sqm lease.

A leasing industry insider remarked, “Keppel’s early pre-leasing strategy at Ino88 has faced serious headwinds. Losing the Jongno-gu Office to a competing landlord is a blow that underscores how fierce tenant competition has become.”

With the CBD office pipeline set to swell by 2029–2030, Keppel’s challenge is clear — it must prove that its value-add playbook can still deliver in a market increasingly defined by tenant leverage.

Analysts note that without strong pre-leasing momentum, even premium redevelopments risk longer lease-up periods and declining investor confidence.