Korail Begins Long-Awaited 'Yongsan International Business District Development' Project

After Finalizing Year-End Development Plan
Infrastructure Construction and Land Supply to Begin from 2025

Korea Railroad Corporation (KORAIL) announced on the 30th that it will finalize the plan for the Yongsan International Business District development project by the end of the year and officially commence the project, starting with a proposal for the designation of the development zone.

Development site of Yongsan International Business District located in the center of Seoul. (Provided by KORAIL)

The Yongsan International Business District development project involves transforming approximately 500,000㎡ of land near Yongsan Station, the former Yongsan Maintenance Depot site (70% owned by KORAIL, 30% public land), into a complex district featuring international business facilities, residential areas, and park green spaces.

The project was initially led by the private sector in 2007 but was delayed for a long time due to the bankruptcy of the developer amid the global financial crisis. In May 2018, KORAIL regained ownership of the site.

Since then, through consultations with related agencies such as the Ministry of Land, Infrastructure and Transport and the Ministry of Economy and Finance, KORAIL completed a preliminary feasibility study for public institutions in December 2020. To promote public-led development, KORAIL signed an implementation agreement with SH Corporation in May 2021. As public institutions, KORAIL and SH secured 70% and 30% equity stakes in the site respectively and have been preparing to relaunch the project under a stable system as project implementers.

Currently, KORAIL is in the final stages of reviewing the plan through consultations with the Seoul Metropolitan Government, the permitting authority, at each project phase to ensure stable project progress. A working-level consultative body has been formed, including an advisory group, to ensure successful development, and detailed project plans will be announced later by the Seoul Metropolitan Government.

To minimize project risks, KORAIL is receiving advice from a Master Planner (MP) team composed of urban development experts and continuously operating a working-level consultative body consisting of Seoul City, KORAIL, and SH Corporation based on specialized service results from professional firms in various fields.

As the project implementer, KORAIL plans to proceed with permits and approvals by the end of this year, starting with the proposal for zone designation, followed by the announcement of the development plan, and approval of the implementation plan (finalization of the district unit plan). From the second half of 2025, construction of infrastructure and land supply will begin, with infrastructure completion scheduled by 2028.

Han Moon-hee, President of KORAIL, stated, "The Yongsan International Business District development project is a crucial initiative that will serve as a focal point for improving KORAIL’s financial structure and investing in railway safety." He added, "We will transform the maintenance depot site, which has occupied the heart of Seoul for a long time, into an international business district, simultaneously enhancing Seoul’s international competitiveness and creating a sustainable revenue model for KORAIL." He further said, "We will establish and realize a pioneering development plan that can serve as a role model for urban development in other station areas in the future."

Meanwhile, KORAIL aims to achieve net profit starting in 2026 through multifaceted management improvement efforts centered on the Yongsan International Business District development project, with plans to reduce its debt ratio to the 100% range by 2026.

This content was produced with the assistance of AI translation services.