The construction of the Global Business Complex (GBC), the integrated headquarters building being developed by Hyundai Motor Group in Samseong-dong, Gangnam, Seoul, has been delayed, prolonging the 'temporary living' of its affiliates. Currently, the affiliates scattered across Gangnam, Seongsu, and Pangyo are known to be searching for affordable office spaces.
According to the finished vehicle industry on the 15th, Hyundai Motor Group submitted a design change proposal to the Seoul city in February, altering the GBC building from one 105-story building to three 54-story buildings. At that time, the Seoul city expressed its intention to expedite administrative procedures as much as possible, but after about five months, there has been no significant progress.
Hyundai Motor Group purchased the Korea Electric Power Corporation headquarters site for 10.55 trillion won in 2014. The plan was to build a super high-rise building and consolidate most affiliates there as a hub. However, to this day, they have not received permission from the Seoul city, and with multiple changes to the design proposal, the affiliates are renting external spaces.
Currently, the buildings that affiliates use as office spaces are concentrated in expensive rental areas like Gangnam, Seongsu, and Pangyo. Hyundai Steel has rented a building in Pangyo after leaving the group headquarters in Yangjae-dong, Seoul, in 2022. Hyundai AutoEver is located in a building in Daechi-dong, Seoul.
Since 2021, Hyundai GLOVIS has been renting AcroForest in Seongsu-dong, Seoul, as its office space. Hyundai Mobis, located in SI Tower in Yeoksam-dong, Seoul, is renewing its lease contract every five years, which ends in 2030.
As the likelihood of Hyundai Motor Group's performance deteriorating increases, the pressure for expense reduction among its affiliates has intensified. The finished vehicle business is expected to see reduced operating profits as the Donald Trump administration imposed a 25% tariff on all imported vehicles starting in April. Consequently, many believe that the affiliates engaged in related businesses such as parts, steel, and IT will also face difficulties in defending their performance.
A representative from Hyundai Motor Group said, 'Even if we finalize the GBC negotiations with the Seoul city as quickly as possible, there are still subsequent procedures remaining, and various factors exist until construction starts. It’s hard to guarantee that the affiliates will complete their move by 2030.'
Hyundai Motor Group is reportedly considering selling off some of the three GBC buildings or attracting external investment to jointly develop them in order to reduce the burden of construction costs. In this case, some affiliates may not be able to move into the GBC.
There are discussions within the group that some affiliates may move into the smart city being developed by Hyundai E&C in the Boksjung Station area. The Boksjung Station area development project involves creating office, residential, commercial, and research and development (R&D) facilities over approximately 220,000 square meters in the southern Songpa and Seongnam regions of Gyeonggi Province, and is scheduled for completion in 2029.
The Boksjung Station development area is close not only to Yangjae-dong, where the group headquarters is located, but also to Gangnam and Pangyo. Within the group, there are predictions that some organizations from the Hyundai Motor Namyang Research Institute, Hyundai Steel, and Hyundai AutoEver may relocate after the completion of the Boksjung Station development project.