JYP Entertainment’s plan to build a landmark headquarters in Seoul’s Gangdong-gu is facing delays as construction costs continue to rise. Originally scheduled to begin in the second half of 2025, the project has been put on hold, with the start date now uncertain and the expected completion timeline of 2028 to early 2029 also in doubt.
The new headquarters is designed by Yoo Hyun Joon Architects, led by Hongik University professor Yoo Hyun Joon. It will stand 22 stories above ground with five basement levels, covering a total floor area of 59,475 square meters. The building is envisioned as more than just an office tower, with integrated green spaces and public areas meant to create an environment for creativity and collaboration.
The building will house an MV studio, gym and basketball court, auditorium, lounges, offices, and a restaurant. Artists will train in multiple advanced practice rooms, while staff benefit from modern workspaces. The landmark will also include a rooftop helipad and a striking central void designed to bring in natural light and greenery.
JYP acquired the 10,675-square-meter site in Godeok Biz Valley in 2023 for KRW 75.6 billion (~$54.5m) from the Seoul Housing and Communities Corporation. The company paid KRW 7.6 billion (~5.5m) as a down payment and the remaining KRW 68 billion (~$49m) in cash.
The Godeok Biz Valley, already home to companies like IKEA, Cuckoo Electronics, and Aju Design Group, is expected to attract about 11,400 commuters once all businesses, including JYP, move in.
Despite these plans, the entertainment industry reports that rising costs have made it difficult for JYP to move forward. Prices of international raw materials, exchange rate fluctuations, and higher construction labor costs have driven up expenses across the sector.
The construction cost index, which measures changes in direct construction costs, was around 127 in 2023 but rose to 131 by July 2025. With management fees, profits, and financial costs added on top of direct expenses, the final price of JYP’s headquarters is now estimated to exceed KRW 200 billion (~$144m).
On the other hand, the company’s financial performance has remained solid. In the second quarter of 2025, JYP posted consolidated sales of KRW 215.8 billion and an operating profit of KRW 52.9 billion, its best quarterly result to date. Cash equivalents have steadily increased from KRW 139.6 billion at the end of 2022 to KRW 190.6 billion in 2024, and reaching KRW 206.4 billion in the first half of this year.
However, much of this capital is already allocated to other expenditures such as artist activities, global concerts, and labor costs. The additional burden of higher construction costs has therefore become a serious concern.
To address the issue, JYP is reportedly considering financing options such as issuing convertible bonds, selling treasury stock, or securing loans. Internally, the company is reassessing the project’s total budget. While no official move-in date has been announced, industry observers believe that the completion could be delayed beyond 2029 if construction does not begin soon.
The need for a new headquarters stems from the company’s current situation. JYP is based in Seongnae-dong, Gangdong-gu, but the existing building cannot house all its employees.
This has forced the agency to lease additional office space nearby, including around Gangdong-gu Office. The planned headquarters is intended to consolidate operations under one roof and support the company’s long-term growth strategy.
Gangdong-gu officials see the headquarters as a landmark development and expect it to bring economic benefits to the district. Signs of this “JYP effect” are already visible, with rising commercial rents and advertising costs near the planned construction site.
During the site selection process, several other municipalities, including Hanam City, expressed interest in hosting JYP, but the agency ultimately chose Gangdong’s Godeok Biz Valley.
JYP has stated that it has no official position regarding the construction timeline, but discussions are ongoing.
JYP Entertainment, launched in 1997 by singer-songwriter and producer J.Y. Park, has grown into one of Seoul’s leading record labels. Over the years, it has introduced and managed some of K-pop’s most successful acts, from Wonder Girls and 2PM to GOT7, TWICE, Stray Kids, ITZY, NMIXX, NiziU, NEXZ, GIRLSET, and KickFlip
