Downsizing, relocations to shape Seoul office market in 2026

The market faces moderate vacancy shifts this year amidst relocations.

Seoul’s prime office market is expected to experience moderate shifts in vacancy levels through 2026, driven by ongoing downsizing and relocations of major conglomerates, according to a report by Savills. Following moves by SK and LG groups, some departments from Hana Financial Group are scheduled to relocate to the company’s headquarters in Cheongna.

In the Central Business District (CBD), Savills noted that the vacancy rate is projected to edge up slightly. While existing tenants in Pine Avenue A and the Yonsei Foundation Building are reportedly planning expansions, SK Group affiliates are set to vacate the Yonsei Foundation Building, T Tower, and Centerplace as they move to other districts. Additional relocations include JT Chinae Savings Bank from Pine Avenue B, while Transcosmos Korea is expected to downsize its headquarters at City Center Tower.

The Gangnam Business District (GBD) is anticipated to remain relatively stable. According to Savills, vacancies in POSCO Tower Yeoksam and Gangnam Finance Center are expected to be backfilled, but these gains will be offset by ABB Korea and Nature Republic, which are each downsizing or relocating approximately 2,000 square meters from Parnas Tower and Glass Tower, respectively.

The report added that in the Yeouido Business District (YBD), large-scale tenant departures are expected in the first quarter of 2026. LG Chem is scheduled to move 10,000 square meters from Parc.1 Tower 1 to Magok, while GC Biopharma and its affiliates will relocate 15,000 square meters from Parc.1 Tower 2 to Seoul Forest The Sharp. Although some major vacancies in One Centinel and FKI Tower are expected to be backfilled, the overall vacancy rate in YBD is projected to remain broadly in line with the previous quarter or increase slightly.

Savills noted that while these relocations and downsizing activities will create localized vacancy fluctuations, the overall market is expected to maintain a relatively balanced outlook in 2026, with tenant movements reflecting the ongoing preference for modern, strategically located office spaces.