Seoul, South Korea
Last Revised: June 2010
Seoul, located 30 miles south of the North Korean border, is the capital of South Korea and the country’s economic, political, and cultural center. With a city population of over 10 million and a metropolitan population of 23 million, Seoul is the largest city in South Korea and one of the largest cities in the world by population.
As the educational hub of the nation, Seoul has the country’s most prominent public and private universities. Seoul, with connections to the rest of the South Korea and Asia, is also the transportation center of the country.
South Korea’s economy has recovered quicker than expected fueled by its large share of global products such as electronics, semiconductor, mobile phones, and giants such as Samsung, Hyundai and LG.
With moderate inflation, low unemployment rate, export surplus, and fairly equal distribution of income. Seoul is home to many of the Fortune 500 companies and is considered one of Asia’s business-friendliest cities.
About 62% of South Korea’s GDP is derived from the service sector, and major exports include electronics, automobiles, and machinery.
Although Class A office space value has stayed consistent, higher vacancy rates in Class B buildings have temporarily driven down rates, and increased landlord incentives, not before seen in the Seoul market.
A new supply of large scale office complexes/buildings is expected in the next two to three years do to a large scale urban redevelopment already underway.
Seoul Rates At A Glance
| Conversion 1,179 KRW |
Net Rent SQ Meter Per Mo. |
USD Net Rent SQ Foot Per Year |
|||
|---|---|---|---|---|---|
| Downtown Office | Low | High | Low | High | Vacancy |
| New Construction (AAA) | N/A | N/A | N/A | N/A | N/A |
| Class A (Prime) | 24,201 | 36,300 | $1.91 | $2.86 | 3.0% |
| Class B (Secondary) | 16,700 | 24,200 | $1.32 | $1.91 | 4.2% |
| Suburban Office | Low | High | Low | High | Vacancy |
| New Construction (AAA) | N/A | N/A | N/A | N/A | N/A |
| Class A (Prime) | 12,000 | $0.95 | $0.95 | $1.43 | 4.5% |
| Class B (Secondary) | 9,075 | 10,600 | $0.72 | $0.84 | N/A |
Doing Business in Seoul.
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