The long-anticipated Yongsan International Business District (IBD) will officially break ground in November 2025, marking the beginning of one of the most transformative redevelopment projects in central Seoul’s history. The foundational infrastructure phase will be led by Korea Railroad Corporation (KORAIL) and Seoul Housing & Communities Corporation (SH), in partnership with the Seoul Metropolitan Government.

According to the finalized development schedule, construction of roads, parks, and public facilities will begin in late 2025, while land parcels for private-sector development will be released concurrently. Private building construction is expected to start in 2028, with first occupants potentially moving in by 2030. 

In March, KORAIL launched formal bidding to select both a public relations agency and a model home builder for the Yongsan IBD project. These efforts follow the city’s announcement that the full implementation plan and district unit plan will be finalized by October 2025, clearing the way for infrastructure work to commence in November.

The development will unfold in two major phases:

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• Phase 1: Public Sector-Led Urban Infrastructure Development
  Led by KORAIL and SH, this phase will deliver critical transportation infrastructure, green spaces, and key public facilities including government offices and a 300-bed medical center.
• 17 road construction projects are planned, with a design prioritizing public transportation access to minimize future congestion.
• Parks and green space include four cultural parks (72,400 ㎡), one neighborhood park (5,200 ㎡), and scenic greenery zones (32,644 ㎡).

Phase 2: Private Sector Development
Expected to begin in 2028, this phase will involve the construction of commercial buildings, offices, and mixed-use assets by private developers. 

The total project cost is estimated at KRW 14.3 trillion (approx. USD 10.59 billion), comprising land compensation (USD 6.59 billion) and construction-related expenses (USD 4 billion).

A temporary model home for the project will be built in Yongsan-gu’s Hangangno 3-ga neighborhood. The three-story facility will include exhibition spaces, city branding halls, consulting rooms, a VIP theater, and rooftop observation decks, all within a 2,100 ㎡ structure budgeted at KRW 2 billion (USD 1.48 million).

The Seoul Metropolitan Government, KORAIL, and SH have agreed to initiate land parcel sales in tandem with infrastructure construction. However, the specific land supply mechanisms—whether through outright sale, long-term lease, or REIT structures—are still under review.

KORAIL has stated that investors have expressed preference for REIT participation or deferred land payment models. The final land disposition strategy is expected to be confirmed within the first half of this year.

According to a February project briefing document, the Yongsan IBD is projected to generate:

• 146,000 new jobs
• KRW 32.6 trillion in production inducement (approx. USD 24.15 billion)
• KRW 2.9 trillion in income inducement (approx. USD 2.15 billion)
• KRW 13.4 trillion in added value (approx. USD 9.93 billion)

Once complete, the Yongsan IBD is expected to redefine Seoul’s commercial core—both physically and economically—linking central Seoul to global capital through next-generation urban infrastructure.

This article was originally published by Corebeat on March 24, 2025.