Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
Hyundai to donate $1.5 bil. for global headquarters
By Lee Hyo-sik
Hyundai Motor Group has offered to donate 1.7 trillion won ($1.55 billion) to the Seoul Metropolitan Government (SMG) for the latter to approve the company’s plan to create a global headquarters, including a 115-story skyscraper, in southern Seoul.
The country’s largest automaker must have the city government change the nature of its prime property in Samseong-dong from residential to commercial if it wants to build its global business center on the 79,342 square-meter site. Hyundai Motor is willing to offer 1.7 trillion won if SMG alters the classification of the site
SMG officials held a meeting with Hyundai Motor representatives on Tuesday to discuss a wide range of issues concerning the carmaker’s development plan for the land, once-owned by the state-run Korea Electric Power Corp. (KEPCO). Among other things, they discussed whether the amount of money the group intends to donate is appropriate or not.
In September 2014, Hyundai Motor agreed to pay 10.55 trillion won in its winning bid to purchase what is often called the “last remaining piece of golden property” in southern Seoul, more than three times the site’s appraised value.
“We will streamline an administrative procedure to facilitate the speedy implementation of the company’s development scheme,” a SMG official said. “We want Hyundai Motor to complete the project as quickly as possible, which will provide a significant boost to other public and private development schemes in the area.”
The automaker submitted a blueprint to the city government on June 11, saying that it aims to build an integrated global headquarters for its 30 subsidiaries. The 79,342 square-meter site will also house a 115-story building, a hotel, a museum, a convention center and other business-related facilities.
The company said the development and operation of its global business center will increase the capital city’s economic output by as much as 262.6 trillion won and create jobs for 1.3 million people over the years.
“We will work hard to reach a consensus with the Seoul city government as early as possible,” a spokesman for Hyundai Motor Group said. “What we would like to do the most to break ground. Hopefully we can begin the construction in early 2017.”