Seoul office investment surpasses KRW21 trillion in 2025, setting new record

The previous historical high was recorded four years ago.

Seoul’s office investment market reached unprecedented heights in 2025, with total transaction volumes hitting KRW21.1 trillion, according to a report by Savills. The Q4/2025 office transaction volume alone totaled approximately KRW6.4 trillion, marking the third consecutive quarter to exceed the KRW5 trillion threshold and significantly surpassing the previous historical high of KRW14.6 trillion set in 2021.

Savills noted in the report that the Central Business District (CBD) remained the focal point for major transactions, highlighted by KB AMC’s acquisition of Signature Tower from IGIS AMC for KRW1.035 trillion, or KRW34.2 million per py, via a share deal. Key tenants, including affiliates of KB Financial Group and Kumho Petrochemical, participated as major investors. Strategically located near Euljiro 3-ga Station, Signature Tower is highly regarded for its superior physical specifications and potential for stable rental income.

The report added that Kyobo AIM AMC also made a notable acquisition, purchasing Center Point Gwanghwamun from Koramco REITs & Trust for KRW432.4 billion (KRW36.7 million per py) through a share deal. With Kim & Chang occupying roughly 80% of the gross floor area under a long-term lease, the asset is positioned for significant rental uplifts upon future renewal, as current rents remain below prevailing market levels.

Corporate investment activity remained strong across the CBD. Korea Computer acquired the Alpha Building in Seorin-dong for KRW117.5 billion (KRW28.7 million per py), while Chunkyung Shipping purchased the KT&G Euljiro Tower for KRW121.6 billion (KRW22.1 million per py), with both transactions primarily focused on securing rental income.

Meanwhile, LX Holdings purchased the LG Gwanghwamun Building from LG for KRW512.0 billion (KRW33.0 million per py) to consolidate its headquarters and unify affiliates previously dispersed across the LG Seoul Station Building and LG Electronics’ Yangjae-dong Campus. According to Savills, in a separate deal, Heungkuk Life Insurance sold its headquarters on Sinmun-ro to Heungkuk REITs Management for KRW719.3 billion (KRW33.0 million per py), with the asset subsequently acquired by Heungkuk Core REITs, a fund backed by Taekwang Group affiliates. Taekwang Group plans to deploy the liquidity from this sale to pursue new business ventures.

According to Savills, these transactions reflect sustained investor confidence in Seoul’s office market, underpinned by the city’s robust demand fundamentals, strategic asset locations, and the potential for rental growth across premium office properties. The record-breaking investment volumes underscore the attractiveness of prime office assets in the CBD as both income-generating and corporate-use properties.