AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Woo Joo-seong
  • Noryangjin Redevelopment Premiums Jump as New-Home Prices Hit $25 Million Won Level
    Noryangjin Redevelopment Premiums Jump as New-Home Prices Hit $25 Million Won Level "With Noryangjin Zone 6 (Ra Clarte Zide Fine) posting a 2.5 billion won presale price for a standard-sized unit, expectations are rising for Zone 1 as well. Most Zone 1 listings were gone by last week, and inquiries keep coming in from buyers trying to secure the few units that can still be transferred," said the head of a real estate office in Noryangjin-dong. Banners hung across Seoul’s Noryangjin New Town redevelopment area on April 22 after Noryangjin Zone 1 received approval of its management and disposition plan from Dongjak-gu on April 21. Zone 3 received the same approval in February. Large contractor banners promoting high-end brands were also visible, and brokerage windows were covered with flyers advertising imminent approvals and low initial cash requirements. Momentum has been building as projects move through permits and approvals, following strong demand for Zone 6’s general presales despite a price of 76 million won per 3.3 square meters. Zone 1 has been among the slower-moving projects in the New Town. Although it was designated a redevelopment promotion district in 2003, it faced setbacks and only secured the management and disposition approval this year. Local industry officials said listings in Zone 1 were quickly snapped up through mid-April even with premiums in the mid-1 billion won range. According to the Transport Ministry’s public real estate transaction system, a detached home on 172 square meters of land in Zone 1 sold for 3.29 billion won on April 7. A small villa on 27.91 square meters of land changed hands for 1.95 billion won on April 8. On April 17, a multi-family home with 72.59 square meters of floor area and a 49-square-meter land share sold for 2.2 billion won. In Zone 3, which received approval earlier this year, a 23.5-square-meter villa sold for 1.8 billion won on Feb. 19, just ahead of the Feb. 26 public notice date. A broker at a Zone 1 office said villa appraisals are typically 300 million to 400 million won, but many deals added premiums of at least 1.5 billion won. Brokers said the approval blocks transfers of cooperative membership status, but premiums on the limited number of transferable units in Zones 1 and 3 are still expected to rise by at least several hundred million won. A broker near Zone 3 said Zone 6’s sales helped cement the idea that “new Noryangjin apartments cost 2.5 billion won,” and predicted transferable units would trade at prices several hundred million won above the existing 1.5 billion won premium. The broker added that transferable villas in approved Zone 3 have risen by about 100 million to 200 million won over the past two months. Zone 6’s presale price for an 84-square-meter unit reached as high as 2.5532 billion won. The cooperative-member price for the same size is 671 million won, a gap of more than 1.8 billion won. Cooperative-member prices for 84-square-meter units in Zones 1 and 3 are said to be around 1.08 billion won and 1.03 billion won, respectively, implying a roughly 1.5 billion won “safety margin” versus general presale prices. A broker said buyers can still calculate that paying a 1.5 billion won premium secures move-in rights below general presale prices, and that asking prices for those rights tend to rise as presale prices climb. Brokers also pointed to last-minute competition for properties eligible for “1+1 move-in rights,” which allow two cooperative-member allotments when a property’s appraisal exceeds a set threshold. A flyer seen at a brokerage listed a Zone 1 “1+1” package for 84 and 59 square meters with an initial cash requirement of 2.1 billion won on a 3.2 billion won purchase price. Brokers said the structure can amplify gains because price appreciation could apply to both units once market prices form after move-in. A representative at a brokerage near Noryangjin Station said about half of Zone 1 cooperative members applied for “1+1” units, reflecting demand from retired, cash-rich buyers who plan to live in one smaller unit and rent out the other as an income-producing asset. The representative added that recent transactions have been active, led by middle-aged buyers with substantial cash holdings. * This article has been translated by AI. 2026-04-22 15:35:44
  • Rents Surge in Seoul’s Nowon-Dobong-Gangbuk as 1 Million Won Leases Jump
    Rents Surge in Seoul’s Nowon-Dobong-Gangbuk as 1 Million Won Leases Jump As ultra-high monthly rents expand, prices are also rising sharply in Seoul’s outer districts, according to an analysis of new apartment lease contracts. In the so-called “Nowon-Dobong-Gangbuk” area — long seen as a last affordable option for working-class residents — the share of contracts with monthly rent of 1 million won or more jumped over the past year, adding to concerns that housing costs are reaching a breaking point. An analysis of new monthly-rent contracts for Seoul apartments signed from January through Tuesday, using the Transport Ministry’s public real-transaction price system, found a steep upswing in outer-district rents. In Nowon, Dobong and Gangbuk districts, the shift toward higher monthly rents was pronounced in small- and mid-sized apartments. Of 2,322 new monthly-rent contracts in the area this year, 671 — or 28.9% — were for 1 million won or more a month. A year earlier, 543 of 2,431 contracts, or 22.3%, were at that level, meaning the share rose 6.6 percentage points. Across Seoul, higher monthly rents also became more common. Of 18,733 new monthly-rent apartment contracts this year, 6,020 — 32.1% — were for 1.5 million won or more, up 3.4 percentage points from 28.7% a year earlier. The Korea Real Estate Board said Seoul’s average apartment monthly rent stood at 1.515 million won as of February, up 12.5% from a year earlier. In the market, critics say tighter financial rules are pushing renters into expensive monthly leases. With loan restrictions last year lowering the jeonse loan limit for one-home owners to 200 million won and applying stricter debt service ratio rules, tenants with limited ability to raise large deposits have flowed into the monthly-rent market. A real estate agent in Gangbuk said tenants often cannot cover the gap even after borrowing the maximum for a jeonse deposit, leaving them to look for listings with monthly rent above 1 million won. The agent said monthly-rent deals overtaking jeonse in working-class neighborhoods shows how difficult it has become to hold on in the jeonse market. Supply constraints are also lifting rents, the report said. With all of Seoul designated as a land transaction permit zone, so-called gap investment has been blocked, and tighter owner-occupancy requirements have kept would-be rental units off the market. According to the real estate big-data platform Asil, Seoul had 14,649 apartment monthly-rent listings as of Tuesday, down 31.4% from the start of the year. With fewer listings available, some landlords have increasingly passed tax burdens onto tenants through higher rents. KB Real Estate’s monthly rent price index, which rose gradually through June 2024, has climbed more steeply since last year, reaching 133.99 in March. Nam Hyeok-woo, a researcher at Woori Bank’s real estate research center, said monthly rents remain strong because supply in the rental market is limited and new supply in non-apartment markets has fallen to its lowest level. 2026-04-21 16:21:02
  • Ultra-High Monthly Rents Surge in Seoul as Wealthy Rent Instead of Buy
    Ultra-High Monthly Rents Surge in Seoul as Wealthy Rent Instead of Buy Seoul’s average apartment rent has entered the 1.5 million won-a-month range for the first time, and the market for ultra-high monthly rents is expanding quickly this year, led by wealthy tenants. As the tax burden tied to owning expensive homes grows, more affluent households are opting to pay steep rents rather than buy, signaling a shift toward “occupying” prime housing without ownership. According to transaction data from the Ministry of Land, Infrastructure and Transport, Seoul recorded 64 lease contracts with monthly rent of 10 million won or more from the start of this year through April 21, up 16.4% from 55 a year earlier. The move upmarket is becoming clearer. New monthly-rent deals above 10 million won totaled 56, more than 33% higher than the same period last year (42). Contracts above 15 million won reached 23, up 35% from a year earlier. Analysts say rents in the 10 million won range, once largely limited to large units in Seoul’s Gangnam area or ultra-luxury villas, are taking a bigger share as rent levels rise across the city. This year, an Acro Seoul Forest unit (198 square meters) was leased with a 500 million won deposit and 29 million won in monthly rent. Deals in the 20 million won range also continued, including Poses Hannam River (27 million won) and Aper Hannam River (25 million won). Higher-end rents are also spreading beyond the very top of the market. In the broader category of contracts with monthly rent of 2 million won or more, the share has been rising not only in Seoul’s three Gangnam districts — Gangnam, Seocho and Songpa — but also in the “Ma-Yong-Seong” area of Mapo, Yongsan and Seongdong. Of 3,744 new apartment monthly-rent contracts in the three Gangnam districts this year, 1,644 — or 43.9% — were for 2 million won or more, up 4.4 percentage points from 39.5% a year earlier. In Seongdong, 367 of 806 contracts, or 45.5%, were 2 million won or more, higher than the Gangnam-district share. In Yongsan, 239 of 523 contracts, or 45.7%, were in that bracket, up 3.2 percentage points from a year earlier. Mapo’s share was lower at 29.3% — 270 of 921 contracts — but still up from 25.3% last year. Experts attribute the expansion of high-end monthly rents to heavier taxation on multi-homeowners and tighter requirements tied to owner occupancy. With acquisition taxes and comprehensive real estate holding taxes adding to the cost of ownership, they say some wealthy households see it as advantageous to keep liquidity and pay high rent to live in top neighborhoods rather than tie up assets in property. They also point to a clearer “tax pass-through” trend: As holding-tax burdens rise due to higher official assessed values and interest-rate increases, some landlords are converting lump-sum deposit leases into monthly-rent contracts or raising rents to shift costs to tenants. Experts say the rental market is being pushed upward overall, with wealthy tenants choosing ultra-high rents for risk management, while less affluent renters seeking apartments instead of villas run into limited supply and financing constraints and are driven toward higher monthly payments. Park Won-gap, chief real estate expert at KB Kookmin Bank, said perceptions are changing, particularly among active seniors. “For wealthy people, owning a home has become a risk,” he said. “Paying a high monthly rent to maintain housing quality is emerging as a reasonable alternative, and that is expanding the high-end monthly-rent market.” 2026-04-21 16:19:47
  • Korea FDA Signs Deal With Hankook Vaccine to Stabilize Syringe Supply Chain
    Korea FDA Signs Deal With Hankook Vaccine to Stabilize Syringe Supply Chain The Ministry of Food and Drug Safety said Friday it signed a business agreement with Hankook Vaccine to stabilize the online supply chain for syringes. The ministry said the agreement is expected to help ensure a steady supply of syringes needed by online shopping malls and medical clinics. Hankook Vaccine has applied for special extended work hours — an exemption from the 52-hour workweek limit — to support online supply stability, enabling additional syringe production and securing more inventory, the ministry said. The ministry noted that it and the Ministry of Economy and Finance recently issued a notice banning hoarding and price-gouging of syringes and needles, but some online shopping sites are still reporting sold-out items. MFDS Commissioner Oh Yu-kyoung said syringes are an essential medical device that must be available for patient treatment. She said the ministry is providing active support to keep production on track, including dispatching staff to the top 10 manufacturers by output.* This article has been translated by AI. 2026-04-18 17:36:00
  • INTERVIEW: Data centers, nuclear power to drive next wave of overseas construction
    INTERVIEW: Data centers, nuclear power to drive next wave of overseas construction SEOUL, December 09 (AJP) - South Korean construction companies must move beyond traditional building roles and reposition themselves as comprehensive value creators to remain competitive globally, said Han Man-hee, chairman of the International Contractors Association of Korea (ICAK). In an interview, Han said international clients are increasingly seeking partners capable of improving quality of life through integrated urban and infrastructure solutions, rather than firms focused solely on construction. “Clients now want partners who can deliver long-term value, not just physical structures,” Han said. “Korean companies should fully leverage their strengths in engineering, procurement and construction (EPC) and expand into development, operation and investment.” Han said global construction demand is being reshaped by carbon-neutral policies, digitalization and the rapid adoption of artificial intelligence, creating new opportunities in data centers, power infrastructure and nuclear power plants. He called on the South Korean government to expand policy-based financial support, strengthen training for public-private partnership (PPP) specialists and reinforce so-called “sales diplomacy” to help domestic firms secure overseas contracts. According to Han, the global construction market is shifting toward low-carbon development, digital construction and diversified supply chains. “Korean builders must incorporate eco-friendly technologies from the earliest project stages,” he said, pointing to the growing importance of smart construction tools such as building information modeling (BIM), artificial intelligence, drones and big data. He also stressed the need to reduce reliance on single-country supply chains and to work more closely with technology-driven partners to improve competitiveness in international bids. Han identified data centers, power grids and nuclear power as key growth engines, driven by surging global demand for AI-related infrastructure. Global electricity consumption by data centers is expected to reach about 1,000 terawatt-hours as early as next year, he said. Korean firms are increasingly exporting domestic experience in cooling efficiency, modular construction and eco-friendly digital infrastructure that combines renewable energy with data center development. Han also said a global “nuclear renaissance” could open doors to Korean nuclear technology in North America and Europe. To support overseas expansion, ICAK has launched the “Convergence K-City Platform,” a framework designed to promote joint international projects across construction, engineering, culture, healthcare, logistics, information technology and energy. Urbanization and infrastructure demand are rising sharply in the Middle East and Southeast Asia, creating opportunities for Korean companies to export integrated city development models, Han said. Han said smaller construction companies face growing barriers due to the increasing size and complexity of overseas projects, particularly in financing. ICAK provides market research support, invites potential foreign clients to Korea and subsidizes feasibility analysis costs. It also offers legal and tax advisory services through partnerships with law and accounting firms and supports on-site training programs to ease labor shortages. The association additionally provides training subsidies to small and medium-sized firms to lower hiring costs. Han said the industry must move toward high-value PPP projects for sustainable growth, which requires stronger institutional support. He called for expanded capital injections into policy finance institutions, higher credit limits and enhanced tax incentives to reduce early-stage investment risks. He also urged faster guarantee approvals for urgent international bids and expanded tax benefits for overseas workers to prevent talent outflows. Support for small and mid-sized companies in recruiting global talent should also be strengthened, he added. During his term, Han said ICAK plans to institutionalize the Convergence K-City Platform and expand it into sectors such as railways and airports through proposed “K-Rail” and “K-Airport” initiatives. He also said the association is strengthening global networks by signing memoranda of understanding with construction associations worldwide and expanding ties with foreign officials trained in South Korea. “We aim to restore overseas construction as a core engine of Korea’s economic growth,” Han said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-09 08:52:24