E-Mart sold its Seongsu-dong headquarters site to a Mirae Asset-Krafton consortium for 1.22 trillion won in January 2022, with a contract clause allowing E-Mart to re-enter as a tenant after construction completion. The sale funded E-Mart's 3.44 trillion won acquisition of an 80.1% stake in eBay Korea in June 2021, transforming offline real estate assets into digital e-commerce holdings. The transaction generated a disposal gain of 1.08 trillion won, exceeding E-Mart's standalone net profit for 2022, while E-Mart secured re-entry rights to maintain its commercial presence in the Seongsu-dong area without operational disruption.
E-Mart Generates 1.08 Trillion Won Disposal Gain from Seongsu-dong Site Sale
E-Mart's board approved the sale of the Seongsu-dong site on November 11, 2021, to finance the eBay Korea acquisition completed in June 2021. The Mirae Asset-Krafton consortium paid 1.22 trillion won and completed the site acquisition in January 2022. E-Mart recognized a disposal gain of 1.08 trillion won from the transaction, which exceeded the company's standalone net profit of 1.05 trillion won for 2022. The sale contract included a condition requiring the buyer to allocate a portion of the new building for E-Mart's re-entry through a condominium arrangement. An E-Mart representative stated the Seongsu-dong site sale is part of a strategic asset reallocation planned years in advance to support the group's transformation into a digital enterprise. The transaction became E-Mart's most successful asset liquidation case as the broader real estate market entered a downturn following the deal.
Krafton Constructs 17-Story Headquarters Targeting November Completion
Krafton is building a 17-story headquarters with eight basement levels on the Seongsu-dong site, designed by architect David Chipperfield and constructed by Samsung C&T, targeting completion in November next year. Krafton released a sustainability report last month outlining plans to connect seven sites including the nearby Megabox Square, open lower floors and rooftops to the public, and convert floor area ratio incentives received from Seoul City and Seongdong District into infrastructure shared with the local community. The new headquarters will serve as Krafton's core hub in Seongsu-dong, an area that has become a popular destination among younger demographics.
E-Mart Secures Re-Entry Rights as Lower-Floor Tenant
E-Mart will re-enter the lower floors of the completed Krafton headquarters as a tenant operating a future-oriented store format. The contract structure allowed E-Mart to liquidate real estate assets while securing re-entry rights to maintain its commercial foothold in the Seongsu-dong retail district without operational gaps. E-Mart will return to the site it previously owned, now as a tenant in a landmark building constructed by Krafton.
FAQ
What did E-Mart do with the Seongsu-dong headquarters site in January 2022?
E-Mart sold the Seongsu-dong headquarters site to a Mirae Asset-Krafton consortium for 1.22 trillion won in January 2022, generating a disposal gain of 1.08 trillion won that exceeded the company's standalone net profit for 2022.
Why did E-Mart sell the Seongsu-dong site?
E-Mart sold the site to finance its 3.44 trillion won acquisition of an 80.1% stake in eBay Korea completed in June 2021, transforming offline real estate assets into digital e-commerce holdings as part of a strategic shift toward becoming a digital enterprise.
How will E-Mart return to the Seongsu-dong site after the sale?
E-Mart secured re-entry rights in the sale contract, allowing the company to return as a tenant in the lower floors of Krafton's new 17-story headquarters after construction completes in November next year.
