Why Seoul’s office leasing market might be volatile through H1 2026

Major conglomerates are either downsizing or relocating.

Amid a sluggish economy, Savills said in a report that the Seoul office leasing market is expected to remain volatile through the first half of 2026.

“Major conglomerates such as SK Group and LG Chem, which expanded office footprints during the pandemic, are now downsizing or relocating to secondary buildings as part of cost-saving measures,” the report said.

Here’s more from Savills:

In the CBD, some major departures are scheduled, contributing to a slight increase in the vacancy rate. SK Group is expected to vacate several buildings sequentially including Center Place, Yonsei Foundation Building, and T-Tower. Meanwhile, Jongno-gu Office (9,500 sq m) is set to complete its remaining relocation to The K Twin Tower. Netflix (4,500 sq m) at Centropolis and Richemont Korea (2,800 sq m) at State Tower Namsan are planning to expand their office footprints.

The GBD vacancy rate is expected to rise slightly. While some IT firms plan to relocate toGangnam FinanceCenter(2,300sq m) andKyoboGangnam Tower(1,500 sq m), notable vacancies are expected as SK Honor Lounge (4,000 sq m),111Percent (3,900 sq m), and a 2,600 sq m tenant are scheduled to vacate BNK Digital Tower. The YBD vacancy rate is expected to rise slightly.

Taeyoung Construction located in the Taeyoung Building plans to downsize its space by 2,000 sq m. In 1H/2026, Mirae Asset Securities is expected to relocate to FKI Tower, occupying three floors totaling 10,300 sq m, following the redevelopment of the Mirae Asset Securities Building.

In addition, LG Group affiliates are anticipated to downsize their premises by 14,000 sq m in Parc.1 Tower1. Meanwhile, One Centinel, which completed its refurbishment in Q1, saw its vacancy rate decline from 56% in Q3 to an estimated 52% in Q4.