JYP Entertainment's plan to build a new headquarters, for which it spent 75.5 billion won to purchase land and even obtained building permits, is facing the risk of being scrapped.

The issue arose when the zoning of a park site just 20 meters away was changed to allow the construction of high-rise buildings.

JYP has been pursuing the construction of a new headquarters in the Godeok Biz Valley in Gangdong-gu, Seoul, with five basement levels, 17 floors above ground, and a total floor area of approximately 69,000 square meters.

Having purchased the site for 75.5 billion won in 2023, the company passed environmental impact assessments on traffic as well as architectural and urban aesthetic reviews, and even secured building permits with the goal of breaking ground in the second half of this year.

However, the problem surfaced after a park site spanning some 13,000 square meters, located only 20 meters away from the planned headquarters, was recently changed into a self-support facility zone where high-rise buildings can be built.

Professor Yoo Hyun-joon of Hongik University, who is in charge of designing JYP's new headquarters, designed the building in a loop shape with a central courtyard surrounded by the structure.

One of the key objectives of the design was to block external views and protect the privacy of the agency's artists.

Yet, if high-rise buildings go up right next door, such design intentions could be undermined.

According to Professor Yoo, in order to continue the project, JYP proposed to the Seoul Housing and Communities Corporation (SH) measures such as applying the same floor area ratio to the site while limiting building heights to six floors or below, or adjusting the location of the park to secure distance between the two buildings, but these proposals were not accepted.

SH maintains its stance that green spaces were reduced in accordance with relevant laws to secure funds for the installation of school facilities, and that it had no choice but to change the zoning of the park site because other green areas are bound as preservation zones.

Ultimately, Professor Yoo stated that he received word from JYP regarding the withdrawal of the project, adding that "things are leaning toward a complete scrapping."

Meanwhile, JYP stated that the construction of the new headquarters has not been finally withdrawn, adding that it is "reviewing future response measures from various angles."

Reported by Kim Minjeong | Video by Seo Byeong-wook | Graphics by Yook Do-hyun | Produced by SBS Digital News