The National Pension Service (NPS) of South Korea has officially launched Magok One Grove (CP4) — the largest office complex in Seoul’s Magok District — marking the single biggest real estate investment by a Korean pension fund to date, with over USD 1.93 billion (KRW 2.7 trillion) deployed.

Located in western Seoul, the Magok District has rapidly emerged as a biotech and business cluster, attracting growing attention from corporates and institutional players alike.

According to industry sources, NPS held an opening ceremony on June 12 at Building B of Magok One Grove, attended by major tenants and domestic and global asset managers. The event highlighted both the area’s rising profile as a new commercial hub and NPS’s push to diversify its real estate strategy. 

Magok One Grove is a premium mixed-use complex in the heart of Magok. With a total floor area of 463,500㎡, it is larger than neighboring projects like The Rest (326,000㎡) and K Square Magok (160,300㎡). Of this, about 315,500㎡ is dedicated to offices and 147,600㎡ to retail.

The market initially voiced deep concerns about a potential supply glut, given that multiple massive buildings were coming online at the same time with no major pre-leasing secured. So far, however, robust leasing at Magok One Grove has helped calm some of those fears. Tenants such as DL E&C, Saramin, biotech firm Inbitros, FlagOne (an LG-affiliated co-working brand), plus airlines and global investment firms, have signed on.

On the retail side, leasing momentum is strong too. E-Mart Traders will occupy the entire second basement floor, alongside anchor tenants like Kyobo Bookstore, Uniqlo, and MUJI. 

Industry sources say NPS’s aggressive leasing tactics — offering effective NOC around USD 30–32 per ㎡, more than 30% below early projections — have pushed the occupancy rate above 50% for now.

But there’s a catch. Starting in 2026, a new wave of office supply will hit Seoul’s CBD, fueling worries that Magok and other fringe submarkets could see prolonged leasing challenges if tenant demand softens.

A real estate market insider noted:

“Roughly two-thirds of the office space remains vacant. With over USD 1.35 billion (KRW 1.9 trillion) in secured loans, reportedly through Shinhan Bank, IGIS Asset Management, which has been mandated to manage this investment for NPS, must maintain strong leasing momentum to meet debt service and secure steady cash flow.”

Magok One Grove is also symbolic of NPS’s broader push to strengthen its alternative portfolio. As Korea’s pension giant expands real estate and infrastructure allocations, this asset is positioned as a long-term core holding — expected to generate stable rental income while anchoring the district’s transformation.

This article was published in Corebeat on June 12, 2025.