Beginning in the early 2000’s, the Seoul Metropolitan Government launched an initiative offering attractive land prices and a range of tax benefits to induce companies to relocate from Seoul’s major business districts and invest in knowledge innovation bases designed to host specific industries outside the city centre.
Along with Pangyo Techno Valley (PTV) and Sangam Digital Media City (DMC), Magok Business District (MBD), located in Gangseo-gu in Seoul’s southwest, is one such area. The development of MBD commenced in 2009 and has progressed rapidly, with the area now firmly established as an R&D hub for cutting-edge convergence technologies driven by companies in the fields of Information Technology (IT), Biotechnology (BT), Nanotechnology (NT) and Green Technology (GT).
Many of Korea’s major Chaebols and other leading companies have already established a presence in MBD, either in offices or in the form of research institutes. These facilities are supported by a range of residential, commercial, and cultural amenities, together with new R&D centres, an industry-academic campus and Meetings, Incentives, Conventions and Exhibitions (MICE) facilities, all of which are scheduled to be completed by 2024.
In addition to the completion of a new Gangseo-gu district office in 2026, improvements to MBD’s transportation network are also underway. With restrictions on building height set to be lifted in the long-term, MBD is poised to develop into a leading research complex spearheading the development of Korea’s Industry 4.0-related technologies.
Following the publication of “Pangyo 2030: Charting the Evolution of Korea's Silicon Valley” in January 2020, this second report in a CBRE Korea Research series profiling Seoul’s up-and-coming office districts explains factors driving the rise of MBD; analyses the composition of tenants and industries in the district; and assesses investment opportunities in one of Seoul’s most dynamic emerging commercial areas.