In Seoul, over 98% of grade-A offices are occupied thanks to white-collar workers returning to the office post-pandemic. The increase in competition for office space has led to a 15% rise in rental prices over the last year. Claire Choi, the head of research for Korea at Global Commercial Real Estate Services (CBRE), told that the trend was "a cultural thing."
In the summer of 2021, 91.5% of the country's leading firms were implementing a WFH policy, a survey by Korea Enterprises Federation (KEF). As the Covid-19 pandemic eased, jobs that allowed employees to work from home declined. Now, fewer than 60% of big companies will allow their employees to work remotely, KEF found.
Of the 40% of companies surveyed that still allow remote work, almost two-thirds said they were only allowing it selectively. "The main form of telework nowadays is selecting those who need to work from home or allowing it on a limited basis by receiving applications as needed," an official from Korea Enterprises Federation (KEF) told.
The Korean market's strength is not solely down to demand and working culture. There has been a general shortage of office space since 2021 due to government restrictions on redevelopment and disruption to construction caused by the pandemic. The Korean economy has also seen steady growth, bolstering both international and domestic investment.
