Relocations and sales of IT offices in Korea due to recession and AI

Kakao Entertainment, a subsidiary of IT giant Kakao, is moving its headquarters from the high-rise Jongno Saint Police in Seoul to Pangyo H Square in the suburbs.
The company plans to relocate. It was previously located on the fifth and sixth floors of Jongno Saint Police A and B buildings. According to real estate agency Office Find, the company was paying rent, management fees and fixed costs.
The total amount of rent for the company is 1.31 billion won (US$13.4 billion) per month. The office relocation is expected to reduce the company's rent.
In addition, the major gaming company NC Soft has decided to sell its own building, NC Tower 1.
The asking price for the sale is about 450 billion won (about 48.234 billion yen). During the COVID-19 pandemic, when the IT industry was growing rapidly, the industry's salary figures reached a record high in a single quarter.
However, after the COVID-19 virus subsided, the economy continued to stagnate, and the company found itself in a difficult position, having to lay off staff. For this reason, the company is aiming to improve its business environment by selling its building.
In addition, the shortening of content development time through generative artificial intelligence (AI) is leading to staff reductions. An IT industry insider said, "It is true that companies in the industry are facing an unprecedented downturn.
However, we are even using AI to reduce costs, so we have high hopes for good results this year."