APAC-BFSI-Outlook-2017

MARKET OVERVIEW SEOUL BANKING AND FINANCIAL SECTOR SUMMARY

42.59

1.8%

40%

Prime Rent (USD/Sf/Year)

Rent Growth (YOY in local)

% Occupancy of Financial Sector

Banking and Financial Sector Trends Among the three major business districts in Seoul, Yeouido is well known to be Korea’s core financial district. However, some financial companies are moving out of Yeouido Business District (YBD), and consolidating their oŸce footprints. Recently, Mirae Asset Securities Co., South Korea’s leading asset management firm, merged with KDB Daewoo Securities Co. Mirae Asset Securities are located in Center 1, and the merged entity consolidated its oŸces out of YBD to Center 1 in the Central Business District (CBD). Dashin Finance Center and IBK's headquarters in the CBD will be completed in the fourth quarter of 2016. Dashin Finance Group plans to move its new headquarter from YBD to the CBD. The wave of mergers and acquisitions among brokerage houses is expected to impact the Banking and Financial Sector.

Outlook, Opportunities & Strategies for Occupiers Due to regulations, South Korea’s financial technology (fintech) sector is still in its early stages. Thus, banks and financial companies in Korea are not fully realizing the increasing threats triggered by fintech companies. However, there has been significant development in Korea's banking industry. The Korean government carried out drastic regulatory reform and opened the Fintech Center. In addition, the government opened two Internet-only banks. This is expected to change the landscape of the nation's financial industry. Although a demand recovery has not been observed due to the slowing economy, the growing number of start-ups, like those in the fintech sector, is expected to generate oŸce leasing demand, particularly benefitting serviced oŸce providers. Amid a gloomy economic outlook, major securities and insurance companies will continue to put their real estate holdings for sale. Samsung Life Insurance sold its symbolic headquarters building to Booyoung Group. The group also purchased Samsung Fire &Marine Insurance headquarters building in Euljiro, central Seoul recently. - Ryan Lee, Senior Director

Key Banking and Financial Services Sector Lease Transactions – 2016 PROPERTY SF TENANT

TRANSACTION TYPE SUBMARKET

Center One

5,683

Sumitomo Mitsui Banking Corporation Relocation

CBD

Tower 8

12,939

NH Bank

Relocation

CBD

Shinhan L Tower

13,987

BNP Paribas Cardif Life Insurance

Relocation

CBD

K Twin Tower

47,889

K Bank

New Lease

CBD

Platinum Tower

37,717

Dongbu Life Insurance

Relocation

GBD

Key Banking and Financial Services Sector Sale Transactions – 2016 PROPERTY SF BUYER PRICE (US$ MIL)

PRICE (US$/SF)

SUBMARKET

Samsung Life Insurance main oŸce 943,812 Booyoung Group

519

550

CBD

Samsung Fire & Marine Insurance's headquarters building

593,373 Booyoung Group

368

618

CBD

44 ASIA PACIFIC BFSI OUTLOOK 2017