[비즈한국] The site of the DMC Promotion Center in Sangam-dong, Mapo-gu, Seoul, is seeking a third owner after two failed attempts at sale. Although the Seoul Metropolitan Government eased development conditions after the first failed bid, no bidders were found in the second round. With the reserve price remaining at approximately 92.2 billion won, experts point out that securing profitability is difficult due to the high total project cost burden.
The DMC Promotion Center was an exhibition and experience facility built to showcase the Sangam Digital Media City (DMC); it operated at 1612 Sangam-dong before closing in 2023. Subsequently, to encourage private development, the Seoul Metropolitan Government changed the district unit plan in late 2025 to abolish the designated use of the promotion center site, deciding to sell the 2,874.2㎡ (869-pyeong) city-owned land along with the existing temporary structures. The first sale was initiated last December with a reserve price of approximately 92.2 billion won, combining 91.9744 billion won for the land and 225.47 million won for the structures.
However, the first sale fell through as no bidders were found. In response, the city collected feedback from the real estate development industry and eased regulations by adjusting the setback distance on the western boundary and requirements for opening lower-level floors, while also extending the development deadline from three to five years after the start of construction. Despite these changes, the second sale held in June also ended in failure. Even after abolishing the designated use and further relaxing sale conditions, no bidders appeared in either instance.
The repeated failure of the sale, despite the location being at the heart of DMC and the relaxation of various conditions, appears to stem from a heavy project cost burden. When construction and financing costs are added to the approximately 92.2 billion won land and building purchase price, the total project cost that a private developer must bear increases significantly. This, coupled with a sustained high-interest rate environment and rising construction costs, makes it difficult to secure profitability.
Lee Eun-hyung, a research fellow at the Research Institute of Construction Policy, stated, "In a market economy, if a project is deemed profitable, private developers will enter; if not, they won't. If no bidders appeared despite some deregulation, it can be judged that the project is not sufficiently profitable under the current conditions."
Shin Bo-yeon, a professor in the Department of Real Estate AI Convergence at Sejong University, also identified the high project costs as a burden. Professor Shin said, "Even if the land price is around 90 billion won, adding construction costs and financing expenses could push the total project cost toward the 200 billion won range. With construction costs having risen sharply and PF (project financing) procurement being difficult, the situation is challenging."
The Seoul Metropolitan Government also cited low profitability due to the high reserve price, persistent high interest rates, and rising construction costs as reasons for the two failed sales of the promotion center site.
Experts have discussed other ways to enhance profitability. Research fellow Lee Eun-hyung suggested that adjusting the reserve price or expanding the scope of utilization could be considered. However, he explained that as it is public land, there are limits to lowering prices or significantly relaxing the usage of a specific site.
Professor Shin Bo-yeon suggested that a public-private joint development model could be an alternative to a simple sale. Professor Shin said, "If the Seoul Metropolitan Government contributes the land in-kind and develops it through a REIT or joint venture with the private sector, the private entity could reduce initial land costs, and the city could share in the development profits. This approach is worth considering."
The third sale process for the DMC Promotion Center site has been underway since September 17, with the bidding deadline set for October 23. The Seoul Metropolitan Government has applied the same development conditions that were relaxed during the second sale. However, a condition has been added for the temporary use of approximately 12.5㎡ of the site until 2032 to facilitate construction of the Daejang-Hongdae Line, and the reserve price remains unchanged at approximately 92.2 billion won. The reserve price was determined based on an appraisal conducted last December.
The Seoul Metropolitan Government maintains that if no bidders appear in the third round, it will consider future measures, including further easing supply conditions. For now, however, it is not considering any utilization plans other than a sale. A city official stated, "If the third sale fails, we plan to review various options, such as appropriate relaxation of supply conditions."