Panepinto Properties Signs MOU for $5B South Korean Project

Transformative Project to Include a New Headquarters Facility for Korean Air Lines

On Aug 6, 2024

Jersey City-based Panepinto Properties and its affiliate, Panepinto Global Partners, have announced the signing of a Memorandum of Understanding (MOU) with Incheon City, South Korea, to oversee a $5.1 billion development on Yeongjong Island, opposite Seoul-Incheon International Airport. The project will include a new headquarters facility for Korean Air Lines, along with thousands of residential units, tourism, entertainment, and various commercial and public facilities.

The MOU was signed during a recent visit to Jersey City by Incheon Mayor Jeongbok Yoo, together with principals from Panepinto Properties and Panepinto Global Partners. Driven by the growth of air travel at Seoul-Incheon International Airport and the Korean Air merger with Asiana Airlines, the development aims to consolidate and relocate Korean Air Lines’ offices and other ancillary facilities.

Joseph Panepinto Jr. of Panepinto Global Partners stated, “Leveraging nearly five decades of expertise in developing coastal cities, we are thrilled to embark on this initiative in such a strategically significant location. This large-scale, multi-faceted project underscores Incheon’s emerging role as a global hub and aligns with our commitment to fostering international collaboration and sustainable urban growth.”

Incheon Mayor Yoo Jeong-bok commented, “Yeongjong International City, which is connected to the world’s best airport, ground-linked transportation network, and ports, and has been designated as a free economic zone, making it advantageous for attracting businesses, is the optimal location for an aviation complex cultural city.” He added, “Through close cooperation with Panepinto, Korean Air, and others, we will create a special aviation city where culture is integrated and Incheon takes another leap forward as a leading aviation city.”

Development Overview

The project will span two adjacent development districts on Yeongjong Island, comprising:

• Total Buildable Above-Ground Area: 1.8 million m²
• Office Space: 330,000 m²
• Residential Units: 7,000
• Officetel Units: 1,000

The development will feature high-rise buildings ranging from 59 to 79 stories. The new Korean Air Lines headquarters will occupy all of the planned office space, creating a consolidated base for both Korean Air and Asiana Airlines.

Seoul-Incheon International Airport is a major global hub, ranking 4th among the world’s best airports in 2023. It was the 2nd busiest airport by cargo traffic in 2022 and ranked 3rd for international passenger movements in 2024. The airport’s Terminal 2, opened in 2018, significantly increased capacity. The final phase of Terminal 2’s construction is set for completion in 2024, which will raise the airport’s capacity to 100 million passengers per year, solidifying its status as a leading global international airport.

Panepinto Global Partners has been involved in major projects in South Korea since 2008, including the Bucheon City Living development in the Seoul Metro area and the Songdo Global Campus Prugio, in collaboration with Daewoo Engineering & Construction Company. The Prugio residential complex, a core development within the Songdo Global University Campus, provides necessary housing for both Koreans and foreigners. It encompasses 1,703 condominium units, 603 officetel units (live and work condominiums), and 244,093 square feet of retail space.

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