Hyundai Motor Group’s long-awaited Global Business Center (GBC) project in Seoul is gaining momentum, as pre-construction negotiations with the Seoul Metropolitan Government progress at an unusually rapid pace. The company aims to break ground on the project in the first half of 2026, with completion expected by 2031.

Once completed, GBC will deliver over 500,000 square meters (more than 5.4 million square feet) of new office space to the Gangnam Business District (GBD)—1.5 times the scale of Seoul’s International Finance Center (IFC) in Yeouido. The project is poised to become the most significant addition to Seoul’s prime office market in over a decade.

Hyundai’s GBC project has a long and complex history. The company acquired the land from Korea Electric Power Corporation (KEPCO) in 2014 for KRW 10 trillion (approx. USD 7.5 billion), a record-breaking deal at the time. In return for favorable zoning changes that boosted the floor area ratio from 250% to 800%, Hyundai committed to nearly KRW 3 trillion (approx. USD 2.3 billion) in public contributions.

The project was originally designed as a 105-story supertall tower and began excavation work in 2020. However, due to a strategic shift under Chairman Euisun Chung toward more conservative capital deployment, construction was paused before any vertical progress.

In late 2024, Hyundai proposed a more realistic scheme consisting of three 54-story buildings. The decision to cap building height at 54 floors reflects a deliberate effort to rein in construction costs, which tend to rise exponentially for high-rise structures above 50 stories due to added complexities in engineering, safety, and logistics.

For years, negotiations had stalled—partly due to Seoul Mayor Oh Se-hoon’s preference for a symbolic landmark—but recent developments mark a major policy shift that is finally unblocking progress.

According to the commercial real estate industry, Hyundai and the city government have been holding structured negotiations every three weeks since April 2025 to revise the design and development terms of GBC. This frequency is notably faster than similar pre-consultation processes in Seoul, such as the one for the Seoul Forest redevelopment, which typically sees meetings only every few months.

The Seoul Metropolitan Government has made it a condition that over 50% of the GBC's floor area be allocated to office use.

With the total gross floor area of the new GBC complex projected at over 1 million square meters (approx. 10.7 million square feet), this means more than half will be dedicated to office functions—making it a major anchor in Seoul’s evolving CBD landscape.

In February 2025, Hyundai submitted a revised plan to scale the design back from one 105-story tower to three separate 54-story buildings. This shift is widely believed to reflect Hyundai Chairman Euisun Chung's more conservative approach to capital-intensive landmark construction.

The 54-floor height cap is also a strategic choice to control costs, as construction expenses can increase dramatically once a project exceeds 50 stories due to the need for advanced structural systems, enhanced fire safety, and high-capacity elevators.

Since April 2025, a joint working group of officials and experts from Hyundai and the city government has been finalizing key components of the development plan—including urban design, traffic and environmental impact assessments, and public benefit contributions. Negotiations on transport and environmental impact are reportedly in their final stages.

The city plans to launch formal zoning amendment procedures immediately after the conclusion of the pre-consultation process.

“The goal for both the city and Hyundai is to finalize all regulatory approvals before Seoul Mayor Oh Se-hoon’s term ends in June 2026,” said a source familiar with the negotiations. “Unless unforeseen political or economic issues arise, groundbreaking within 2026 looks very likely.”

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