[News Trans]The reason for the BYJ’s management company’s relocation from Cheongdam-dong to Samseong-dong
source: reposted from suehan's blog
JES | Reporter Kim In Koo| 2010.07.21 13:36
Recently, Keyeast, of which Bae Yong Joon is a major shareholder, moved and it drew attention to its background.
On the 16th, Keyeast left Geumha Building in Cheongdam-dong and moved to the 6th floor of the American Standard Building in Samseong-dong. Geumha Building has been their home for last four years. It was once called Motorola Building when the American telecommunication company Motorola moved in, but it was called “Yonsama Building” in the entertainment industry after Keyeast moved in. They have an excellent accessibility because they’re located near the intersection of Gangnam ward office station of the Subway Line Number 7 and they also have a good view since they’re located on high ground.
But, there were some changes in the company when co-ceo Shin Pil Soon and Yang Geun Hwa were appointed at the end of last May. They reorganized every department and decided to relocate their office because their lease contract was about to expire.
The will of the management to reduce the high fixed expenses like the rent also came into play. The rent of Geumha Building is high because they are located in the closest transit area.
To rent one floor which has 1600㎡ is about 26,000,000 won for each month and it has a security deposit that is about 1,400,000,000 won. Compared to this building, it’s been known that they made a good condition contract with the American Standard Building. Even though it’s located in Samseong-dong, they could reduce the rent because it’s in the residential area about a block away from the big street.
In the last first quarter, their sales amount was 8,161,000,000 won and their operating income was 586,000,000 won, but their net profit was deficit 900,000,000 won.
It takes about 10 minutes from the Bae Yong Joon’s house in Samseong-dong to the American Standard Building by walk and this also drew attention. He usually doesn’t go to his office, but we can feel his special love toward his company in various ways. Especially, now that he is much closer to his management company with this moving.