[Alpha Biz= Kim Jisun] Seoul, July 6 – Leading South Korean conglomerates including KT, KT&G, Lotte Group, and SK Innovation are expediting the sale of non-core real estate assets in a strategic move to bolster core business operations and secure capital for future investments.



KT Corp., the nation’s telecommunications giant, plans to raise approximately KRW 1 trillion by selling two luxury hotels: Novotel Ambassador Seoul Dongdaemun Hotel & Residences and Sofitel Ambassador Seoul, located in Dongdaemun and Jamsil respectively. These properties, known for their prime locations, are expected to attract strong market interest. The sale is part of a larger KRW 3 trillion asset optimization plan, advised by Samjong KPMG Consortium. KT aims to channel proceeds into AI and next-generation technologies while mitigating economic uncertainties.



KT&G, the leading tobacco company, is also actively restructuring its real estate portfolio. After disposing of the Bundang Tower for KRW 124.7 billion last year, it is now seeking buyers for the Namdaemun Marriott Hotel (approx. KRW 200 billion) and KT&G Tower in Euljiro (approx. KRW 150 billion). The Euljiro property is currently in the final bidding stage. KT&G plans to sell 57 properties by 2027, securing KRW 1 trillion to reinvest in its core tobacco manufacturing capabilities and execute a KRW 3.7 trillion shareholder return program.



Lotte Group, another major conglomerate, is working to divest and redevelop real estate assets. It is in the process of selecting a lead manager for the sale of Lotte Department Store Mia Branch, with a minimum expected price of KRW 300 billion. Lotte is also revisiting development plans for its Yangpyeong food factory site and the Lotte Chilsung site in Seocho-dong, while evaluating the sale and development potential of its Jamwon HQ building, valued at around KRW 500 billion.



Meanwhile, SK Innovation is exploring a bundled sale of five infrastructure assets—including LNG power plants and terminals in Gwangyang, Paju, and Yeoju—to raise up to KRW 5 trillion. Discussions are ongoing with local private equity firms including Meritz Financial Group. Although global PEFs such as KKR and Brookfield were initially considered, they have yet to make formal commitments. The deal structure may involve SK retaining ownership while offering downside protection to investors.



These moves reflect a broader trend among Korean corporates to enhance financial efficiency, reduce risk exposure, and secure long-term growth by reallocating capital from non-core assets to future-focused sectors.

 

 

 

 

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