Ahn-gook Pharmaceutical has completed preparations to move to its new headquarters office in Gwacheon, south of Seoul, in April.
Ahn-gook said Monday that it made the remaining payment of about 59.1 billion won ($44.3 million) for purchasing its Gwacheon headquarters through a correction announcement last Friday. It has also completed the transfer of ownership registration about two months earlier than initially planned.
The new building is “Gwacheon Knowledge and Information Town 7th Block Business Facility,” which Ahn-gook purchased from the Gwacheon City Hall in Gyeonggi Province, comprising land and buildings. The new building will have six basement floors and 14 floors above ground, with a gross floor area of 31,640 square meters.
The final purchase price totaled 79.2 billion, about 4.7 billion more than expected, due to changes in construction costs. The purchase price represents 36.37 percent of Ahn-gook Pharm’s total assets.
The counterparty to the transaction is Prism Square PFV, which is engaged in constructing Knowledge 7BL in Gwacheon Knowledge and Information Town and real estate development, supply, sale, and lease. It is an affiliate of Ahn-gook Pharm.
In 2020, Ahn-gook announced that it would make a large-scale investment to utilize a Gwacheon Knowledge and Information Town business facility in Gyeonggi Province as a new headquarters office integrating all affiliates.
The company expects to create a foundation for continued growth through the forthcoming move. In addition to its headquarters and central research center, the new building will house affiliates, including AGBIO Diagnostics and Ahn-gook Newpharm.
"We plan to start moving in toward the end of April," an Angook Pharm official said. "We expect to create synergies by bringing together our scattered affiliates."
As the workspace is larger, it is expected to improve the working environment and welfare of employees, the official added.
Some other Korean pharmaceutical companies are also moving their headquarters to Gwacheon.
According to industry sources, JW Pharmaceutical, Kwangdong Pharmaceutical, Ilsung Pharmaceuticals, Huons, and KyungDong Pharmaceutical have decided to relocate to Gwacheon or have already done so.