It has been pointed out that the rent for 'SVCSeoul,' a startup hub opened by the Ministry of SMEs and Startups in May this year near Hongdae in Mapo-gu, Seoul, is excessively high at 380,000 won per pyeong (approximately 3.3 square meters).
On the 23rd, Democratic Party of Korea lawmaker Kwon Hyang-yeop pointed out during a comprehensive audit of the Ministry of SMEs and Startups held by the National Assembly's Committee on Industry, Trade, Resources and Small and Medium Enterprises that "startups residing in SVC are paying rents ranging from as little as 1 million won to as much as 5 million won per month," adding, "When calculating the rent for SVCSeoul based on exclusive floor area, it reaches up to 380,000 won per pyeong."
It is reported that rents for knowledge industry centers or general offices in the Mapo district, including Seongsu, Hongdae, and Hapjeong, typically range from 100,000 to 200,000 won per pyeong. The 380,000-won rate is comparable to rents for top-tier newly built offices near Gangnam Station or Yeoksam Station, or prime offices in the Yeouido and Gwanghwamun areas.
Kwon (Rep.) stated, "Moreover, common spaces contracted separately from office spaces account for 62% of the total," and criticized, "Shouldn't this be viewed not as a startup support space, but as a real estate rental space?"
Kwon (Rep.) attributed the high rent to the fact that the Ministry of SMEs and Startups leased the building itself at a high price from the private sector. Kwon (Rep.) had pointed out in last year's national audit that the Ministry of SMEs and Startups had forcibly leased the 'Corner 136' building in Hongdae, which was more expensive than other candidate sites, for SVCSeoul. Corner 136 was owned by EGIS Asset Management before being recently sold to AJU, the holding company of the AJU Group.
Kwon (Rep.) said, "The Ministry of SMEs and Startups is passing on the burden of high rental fees that it should bear to startups," and urged, "Although an audit by the Board of Audit and Inspection is currently underway, please have the Ministry of SMEs and Startups prepare measures to alleviate the burden on resident companies immediately."
[MoneyToday Startup Media Platform Unicorn Factory]
in FUTURE
