Hyungji to sell headquarters, key properties to fund robotics and senior-tech push

Fashion Group Hyungji announced Thursday it will pursue a strategic asset rebalancing — including the sale of its headquarters — to strengthen the company's fundamentals and secure new growth engines.

The group plans to streamline its real estate holdings, including the Hyungji Global Fashion Complex Center where its headquarters is located and the Art Malling complex in Busan, and channel the resulting capital into senior-tech-based growth businesses.

The assets earmarked for rebalancing include the Hyungji Global Fashion Complex Center in Songdo International City, Incheon, and Art Malling, a major mixed-use shopping complex in Hadan-dong, Saha-gu, Busan, in the western Busan area. The Hyungji Global Fashion Complex Center is a mixed-use facility with a total floor area of about 64,000 square meters, located in the transit-oriented area around Incheon National University Station.

Art Malling in Busan spans 17 above-ground floors and 8 below-ground floors, with a total floor area of about 58,896 square meters. A regional landmark, it offers a wide range of lifestyle services including shopping, dining, culture, medical care and wedding facilities. Also included in the rebalancing are Hyungji Square in Goejeong-dong, Saha-gu, Busan; Hyungji Gaepo Building in Gaepo-dong, Gangnam-gu, Seoul; Hyungji Gangnam Vision Center in Gaepo-dong, Gangnam-gu, Seoul; land in Idong-eup, Cheoin-gu, Yongin, Gyeonggi Province; and land in Ujeong-eup, Hwaseong, Gyeonggi Province.

Hyungji has begun selecting a professional divestiture advisory firm and structuring the assets for efficient utilization and capital mobilization. Given that major landmark properties such as Art Malling are included, the group expects the rebalancing to generate hundreds of billions of won in liquidity.

The capital secured will be concentrated in five future growth areas the group has identified: wearable robots and physical humanoid robot apparel; advanced functional materials and smart textiles; global technology partnerships and R&D; an AI-based fashion and retail platform and digital transformation; and overseas market expansion.

Hyungji particularly intends to develop senior tech as a core future business, given the sector's rising growth potential as South Korea enters a super-aged society. The group views wearable robots designed to assist and rehabilitate elderly users as directly tied to the growth of the senior-tech market, and plans to make it a flagship business driving the group's future expansion.

The group also plans to leverage its materials and wearable technology expertise to build differentiated competitiveness in physical humanoid robot apparel. It will also push to strengthen smart textile technology — combining high-performance materials and fabrics with sensors and digital technology to deliver specialized functions such as temperature regulation and activity tracking.

Hyungji plans to build R&D capabilities through partnerships with companies and universities holding competitive technology both at home and abroad, using that foundation to accelerate its overseas expansion. The group will also deepen technology and retail synergies across its affiliates to improve the group's overall fundamentals and enhance shareholder value at the same time.

"This asset rebalancing is not a simple real estate sale, but a strategic reallocation to maximize corporate value by deploying capital flexibly," a Fashion Group Hyungji official said. "We will concentrate the investment capacity we secure into the five future growth areas — including senior-tech-based wearable robots and smart textiles — to build a sustainable next-generation growth foundation."