OREANDA-NEWS. On Jan. 12, Doosan Group announced its decision to build Doosan’s new office building, temporarily called “Doosan Bundang Center,” in Jeongja-dong, Bundang-gu, Seongnam-si, Gyeonggi Province.

The construction site is near Jeongja Station and currently owned by Doosan Engineering & Construction (Doosan E&C). In July 2015, Doosan E&C signed a memorandum of understanding (MOU) with Seongnam-si to construct an office building which will serve as the new home of the Doosan affiliates.

Under the MOU, Doosan E&C looks to obtain the building permit by the first half of this year and have the new building built by 2019. Upon the completion, the new building will house all or part of the seven Doosan affiliates: Doosan Corporation, Doosan Heavy Industries & Construction, Doosan Infracore*, Doosan E&C, Doosan Engine, Hancomm and Doosan Credit Union.
(*Doosan Infracore is to be confirmed after approval by the Board of Directors on Jan. 15)

The seven Doosan affiliates decided to share the cost of building their own office building together, which is expected to create benefits including lower rent expenses and a more efficient work environment. In accordance with their ratio of interior space to be occupied, the six affiliates will primarily pay for the share of the property they will own to Doosan E&C, the current property owner. The area to be purchased by the six affiliates accounts for about 60 percent, amounting to 106.5 billion won ($88.2 million) total.

“We did not have enough office space in Seoul to begin with, and the opening of the duty-free shops in Doosan Tower, Dongdaemun, have cramped the available office space we had,” said a Doosan official. “When a large part of the Doosan affiliates—currently scattered across Seoul, including Dongdaemun, Jongno, Nonhyeon-dong and Seocho-dong—move in together, we will be able to not only secure reliable work space and cut rent expenses but also have more effective communication among the affiliates by having them all in one place; hence enhancing management efficiency and building a strong cultural foundation for the Group.”