Gangnam-gu - Economy

Economy

Both the Greater Gangnam Area and Gangnam itself are widely known for its heavily concentrated wealth and high standard of living, which has been compared to cities such as Beverly Hills, California. The most significant indicator is its extremely expensive real estate. Seoul as a whole is already known for its expensive house prices and as of 2011, its average apartment costs approximately US$5,500 per m2, but the average price in Gangnam is almost twice as high, roughly US$10,000 per m2, which is 3.5 times the nationwide average. As for land value, a mere 40 km2 land of Gangnam district rivals with the entire land value of the city of Busan, the second largest city in South Korea. Combined with the neighboring districts of Seocho and Songpa, Greater Gangnam Area account for almost 10% of land value of the entire country.

While Seoul's traditional business centers such as Central District, Jongno District, Yongsan District and Yeongdeungpo District still maintain their leading roles, Gangnam and its neighboring districts have fast become the new core across all areas of business over the last few decades. KOSPI 200 companies based in Gangnam district include KEPCO, GS Group, Hyundai Department Store Group, HITEJinro, Hansol, Hankook Tire, GLOVIS and Korea Zinc Corporation. Besides, POSCO also operates POSCO Center in Teheran Valley, and KT&G operates Kosmo Tower. Other notable companies based in Gangnam include Dongbu Fire Insurance, Young Poong Group, T'way Airlines and Hankook P&G. Gangnam is also home to many IT and other internet-related companies including NC Soft and Pandora TV, and is also one of strong hubs of the country's financial and banking sectors. Many international companies also operate key offices in Gangnam, including Google, IBM, Toyota, and AMI. Major entertainment companies like SM Entertainment and JYP Entertainment are also based in Gangnam. Residential areas in Gangnam are known to be home to a large number of elected officials and celebrities.