[비즈한국] JYP Entertainment has officially abandoned plans to build its new headquarters in the Godeok-Gangil District of Gangdong-gu, Seoul. The decision follows a change in business conditions, specifically the conversion of part of a planned park site near the proposed headquarters into development land. With tensions simmering between JYP and the Seoul Housing & Communities Corporation (SH)—which authorized the land use change—the Seoul Metropolitan Government has now stepped in with a rebuttal, escalating the dispute over responsibility.
On the 8th, JYP announced in a regulatory filing that it had signed contracts to acquire two real estate properties near its existing headquarters in Seongnae-dong, Gangdong-gu, for a total of 96 billion won. The company decided to withdraw the Godeok-Gangil project and expand its workspace around its current location instead. JYP also stated it plans to sell the land in the Godeok-Gangil District—which it had contracted to purchase from SH for approximately 75.5 billion won—after completing the parcel subdivision registration.
JYP's withdrawal was triggered by the change in the intended use of the adjacent park land. In May of last year, to secure funds for school facility installation, SH applied to convert 13,261 square meters of neighborhood park land—separated from the planned headquarters site by a road—into a self-sustaining facility zone where hotels or commercial facilities could be built. The Ministry of Land, Infrastructure and Transport approved this request in October of that year.
JYP had originally planned to build its new headquarters in the Godeok-Gangil District. The vision was to purchase a 10,675-square-meter plot from SH to construct a building with 5 basement levels and 17 floors above ground, totaling 69,259 square meters in gross floor area. The design was intended to be an integrated office space equipped with large rehearsal studios, a concert hall, and business facilities, with an open layout facing the park. However, concerns were raised that if high-rise buildings were erected directly across from the headquarters, it would compromise the open space and pose risks to artist privacy and security.
Ultimately, JYP decided to scrap the Godeok project. In a statement released on the 8th, the company explained, "As the core environment for the project changed, we conducted a multi-faceted review of all circumstances, including the status of buildings currently under lease, and reached a final conclusion that the project could no longer proceed." They explained that they had been in talks with SH and the Gangdong-gu Office since discovering the land use change in April, but were informed by SH in August that restoring the park was impossible.
In response, the Seoul Metropolitan Government issued an explanatory statement on the 9th, refuting claims of SH's sole responsibility. The city stated that the September 2023 land sales notice clearly mentioned the possibility of changes to the surrounding land use plan, and that JYP had applied for architectural review after the land use change in October, subsequently receiving a construction permit in April of this year. The city noted that JYP only raised its first formal objection the day after receiving the permit, adding, "This is creating a misunderstanding as if the fault lies solely with SH, but this is different from the facts."
The city also claimed that SH had proposed alternatives to resolve the conflict. According to the Seoul Metropolitan Government, SH offered to hold off on the supply announcement while restoring the site to park land, or alternatively, setting a low-rise zoning constraint of 5 floors or less in the section facing JYP’s new headquarters. The city criticized JYP, stating, "After informing SH on October 6 that they wished to hold discussions on the 13th, JYP announced their withdrawal on the 8th and issued a statement suggesting all causes lie with the SH Corporation."
The controversy surrounding the park land conversion had been brewing even before JYP withdrew. In February, SH attempted to supply the Godeok land—now reclassified as a self-sustaining facility zone—for approximately 104 billion won, but received no bids. Professor Yoo Hyun-joon of Hongik University, who was in charge of the JYP headquarters design, criticized the public sector for converting land intended for future generations into development plots. Local residents also voiced their desire for the park to be developed according to the original plan.
The Seoul Metropolitan Government maintains that the park land conversion was a lawful measure to secure funds for school facilities. In a clarification issued on the 1st, the city stated, "The Godeok-Gangil District plan was modified in a limited capacity, while still exceeding the mandatory park and green space requirements by 140%." The city explained that the park and green space in the Godeok-Gangil District covers 471,450 square meters, or 28.4% of the total project area, which exceeds the statutory requirement of 20%.