Seoul’s Gangnam Business District (GBD) is undergoing a seismic transformation on two fronts. First, the region is set to see a fivefold increase in office stock by 2031, led by three megaprojects—Hyundai GBC, Seoripul, and Bokjeong Station—that are expanding the GBD footprint beyond traditional Teheran-ro. This broader pipeline is expected to deliver nearly 2.3 million square meters of new office space, a major leap from the 475,000 square meters added over the past 11 years.

Second, a dramatic policy shift is reshaping the GBD core itself. For the first time in 16 years, Seoul has revised the “Teheran-ro Urban Management Plan,” lifting the maximum floor area ratio (FAR) for commercial zones from 800% to 1,800%. This easing of development constraints is poised to be a game changer, unlocking vertical expansion across Teheran-ro and paving the way for redevelopment of underutilized plots.

Together, these forces are redefining the future of one of Asia’s most competitive office submarkets.

Seoul’s updated urban management framework significantly simplifies land use conversion across the Teheran-ro corridor and incentivizes high-density growth at the heart of the GBD. With outdated zoning restrictions now lifted and FAR nearly doubling, the region is entering a new cycle of redevelopment and reinvestment.

The updated framework is poised to ease the long-standing office supply shortage while catalyzing a strategic shift in investor interest toward new zones such as Seocho and Songpa, beyond traditional Teheran-ro.

According to Corebeat Insight Vol. 7, released May 29, approximately 1.1 million square meters of new office space is expected to come online in the GBD between 2024 and 2031. Including adjacent developments like those at Suseo and Bokjeong Stations, total supply could approach 2.3 million square meters.

This represents a fivefold increase compared to the 475,000 square meters delivered in the broader GBD area over the past 11 years (2014–2024).

Three megaprojects account for the lion’s share of new supply:

• Hyundai Global Business Center (GBC): Rising on the former KEPCO site in Samseong-dong, the GBC will house Hyundai Motor Group’s new HQ alongside hotel, retail, and cultural elements. The office component alone will exceed 495,000 square meters.

• Seoripul Complex Development: Located in Seocho-dong on the site of the former Defense Security Command, this project blends international business, culture, and commerce. It is projected to add another 495,000 square meters of office space, with construction potentially starting as early as June.

• Bokjeong Station Development: Aiming to reinforce Wirye New Town’s self-sufficiency, this mixed-use complex—set for completion by 2030—will integrate office, commercial, cultural, and lodging functions, totaling approximately 1.1 million square meters.

CoreBeat projects that these large-scale developments will push GBD’s boundaries outward, transforming it from a Teheran-ro-centric cluster into a broader, more distributed urban business hub.

The city’s May 8 revision to the district unit plan has been instrumental—lifting the maximum floor area ratio to 1,800% and eliminating outdated zoning restrictions, enabling higher density development.

CoreBeat concludes that GBD is entering a new phase of evolution shaped by both internal deregulation and external expansion. In this landscape, traditional metrics such as address or frontage are no longer sufficient.

Investors are urged to adopt a multi-dimensional lens—considering policy shifts, site-specific constraints, demand trajectory, and planning frameworks—to fully capitalize on what is being dubbed the “New GBD.”

This article was originally published by CoreBeat on May 29, 2025.