Planning

When establishing a new performance venue or undergoing remodeling, the planning phase precedes the design phase. Key aspects of this planning phase include defining the venue's purpose, selecting a location, securing funding, developing a business plan, and choosing the design team. Once the planning phase is complete and the design team is finalized, the project typically proceeds through well-established design and construction processes.

This approach can be applied to all fields, including drama theaters, opera houses, classical concert halls, as well as commercial and religious facilities.

Realistic Purpose Types for Performance Venues

What is the purpose of this space?

This question is the very first one you encounter when starting a performance venue project. Since the target audience, funding structure, design direction, and priorities differ completely depending on the type, clearly selecting one (or a combination) of these at the initial stage determines the majority of the project's success.

The six types below are not entirely mutually exclusive. In reality, most projects apply a hybrid of 2-3 types. The key is being able to clearly articulate in a single sentence the reason why 'this space should exist'—so that even 20 years from now, someone will say, 'This was really well built.' Once that one sentence is defined, almost everything else falls into place automatically.

Performance Venue Location Selection

In a performance venue project, the very first decision is the location. No matter how excellent the technology is, if the audience cannot arrive comfortably, the facility becomes meaningless. Conversely, an outstanding location can achieve an annual occupancy rate of over 80% even with mid-level facilities. In the performance venue market, location selection is the most critical strategic decision that determines the entire project's fate.

Public Transportation Accessibility

Considering that 60~80% of the audience uses public transportation, it is recommended to be within a 10-minute walk from subway or bus stations. The venue should be within 500m of a subway exit, with no transfers required.

Parking Capacity

In general, aim for 0.2~0.6 parking spaces per seat. For Living SOC type (community-focused), target 0.3 or more per seat; for Seoul downtown (paying audience), plan for 0.2 or more per seat.

Surrounding Commercial Area and Foot Traffic

The flow for dining, shopping, and cafes before and after performances is important. For MZ generation, dates, and family targets, dense areas with cafes, restaurants, and shopping malls are essential. For K-POP or musical types, proximity to hotels and large shopping malls is advantageous.

Long-term Profit Potential Relative to Land Cost

Downtown premium areas (Gangnam, Yeouido, Jongno) have high land costs but offer excellent ROI due to high ticket prices and occupancy rates. Suburban low-cost areas allow initial cost savings, but face high risk of long-term deficits due to difficult audience inflow.

Optimal Location Strategy by Purpose Type

• National/City Representative Cultural Landmark Type - Core Downtown Area
• Regional Balance & Living SOC Type - City/County/District Central Areas
• Commercial Profit-Oriented Type - Major Urban Commercial Districts, Subway-Connected Complex Malls
• Global K-Culture Platform Type - Core Downtown Area, Airport Proximity (Still Under Validation)
• Complex Culture & Lifestyle Type - MZ Generation Hotspots. Areas Dense with Cafes and Restaurants
• Corporate-Centered Welfare & Lifestyle Type - Within or Adjacent to Large Corporate Headquarters

Performance Venue New Construction Costs

The budget for a performance venue project varies dramatically depending on scale, purpose, and level of facilities. Below are realistic total project cost ranges based on actual bidding and completed cases in Korea as of 2026. Land costs are excluded, while construction, structural, stage machinery, facilities, interior, and ancillary costs are included. (VAT excluded)

Ultra-small Theater (100 seats or less, black box/experimental theater)

Total project cost range: $2.07 million ~ $5.52 million (approx. $2,414 ~ $3,448 per ㎡)

Key features: Basic framework, sound, lighting, and stage flooring installation account for most of the cost. New construction cases of small theaters in Daehangno or Hongdae average $2.76 million ~ $4.14 million. Costs rise to the upper limit when introducing latest LED lighting or simple variable acoustics systems.

Small Theater (100~300 seats, focused on theater, contemporary dance, talk concerts)

Total project cost range: $5.52 million ~ $12.41 million (approx. $2,207 ~ $3,103 per ㎡)

Key features: Basic performance venue with emphasis on sound, lighting, seating, and stage design. Costs increase with addition of variable stages or sound-absorbing materials. Small-scale new construction cases in Daehangno, Hongdae, and Itaewon average $6.90 million ~ $9.66 million.

Medium-small Multi-purpose (300~800 seats, theater/musical/concert combined)

Total project cost range: $12.41 million ~ $31.03 million (approx. $2,414 ~ $3,310 per ㎡)

Key features: Introduction of basic variable acoustics and stage machinery. Facility costs account for 30~35%. New construction cases of local city/county small theaters average $17.24 million ~ $24.14 million.

Medium Multi-purpose (800~1,500 seats, musical/concert/multi-purpose events)

Total project cost range: $31.03 million ~ $58.62 million (approx. $2,621 ~ $3,586 per ㎡)

Key features: Introduction of variable reverberation systems, electric winches, and LED walls, with facility costs accounting for 35~40%.

Large Concert Hall/Opera Dedicated (1,500~2,500 seats)

Total project cost range: $62.07 million ~ $110.34 million (approx. $3,103 ~ $4,138 per ㎡)

Key features: Top-tier acoustic design, ceiling reflectors, and orchestra pit, with facility costs accounting for 45% or more.

Large Arena Type (3,000~5,000 seats)

Total project cost range: $137.93 million ~ $275.86 million (approx. $3,103 ~ $4,483 per ㎡)

Key features: Large LED screens, line array PA, and 360-degree stage, with facility costs accounting for 45~50%.

Ultra-large K-Culture Arena (8,000~15,000 seats)

Total project cost range: $344.83 million ~ $689.66 million+ (approx. $3,448 ~ $5,517 per ㎡)

Key features: Facility costs account for 50% or more.

Performance Venue Remodeling Costs

The budget for remodeling a performance venue varies significantly depending on the condition of the existing building, the scope of remodeling, and the level of upgrades. While it may appear to be 50~70% of new construction costs, expenses often increase more than expected due to replacing outdated facilities and introducing the latest technology. Below are realistic total project cost ranges based on actual remodeling cases in Korea and consulting experience as of 2026. Land costs are excluded, while construction, structural, stage machinery, facilities, interior, and ancillary costs are included. (VAT excluded)

Ultra-small Theater Remodeling (100 seats or less, black box/experimental theater)

Total project cost range: $1.38 million ~ $4.14 million (approx. $2,069 ~ $3,103 per ㎡)

Key features: Focus on conversion of existing buildings. Most costs go toward replacing sound, lighting, and stage flooring. Small-scale remodeling cases in Daehangno or Hongdae (e.g., 80~100-seat black box) average $2.07 million ~ $3.10 million. Remodeling using existing structure allows cost savings, but costs rise to the upper limit when introducing latest LED lighting or simple variable acoustics systems.

Small Theater Remodeling (100~300 seats, focused on theater, contemporary dance, talk concerts)

Total project cost range: $3.45 million ~ $8.28 million (approx. $1,931 ~ $2,896 per ㎡)

Key features: Emphasis on replacing existing seating, lighting, and sound systems. Costs increase with addition of variable stages or sound-absorbing materials. Small-scale remodeling cases in Daehangno, Hongdae, and Itaewon average $4.83 million ~ $6.90 million. Conversion of existing commercial spaces or warehouses can be $3.45 million ~ $5.52 million, but costs rise to the upper limit when replacing outdated electrical and fire safety systems.

Medium-small Multi-purpose Remodeling (300~800 seats, theater/musical/concert combined)

Total project cost range: $8.28 million ~ $20.69 million (approx. $2,207 ~ $3,103 per ㎡)

Key features: Basic upgrades to variable acoustics and stage machinery. Facility costs account for 35~40%. Average $12.41 million ~ $17.24 million for remodeling of local city/county small theaters or mid-sized arts centers. Remodeling using existing structure can be $8.28 million ~ $12.41 million, but additional costs occur when introducing reverberation control systems.

Medium Multi-purpose Remodeling (800~1,500 seats, musical/concert/multi-purpose events)

Total project cost range: $20.69 million ~ $41.38 million (approx. $2,414 ~ $3,448 per ㎡)

Key features: Focus on upgrading variable reverberation systems, electric winches, and LED walls. Facility costs account for 40% or more. Average $27.59 million ~ $37.93 million for partial remodeling at the level of Seongnam Arts Center or Goyang Aram Nuri. Remodeling using existing structure can be $20.69 million ~ $27.59 million, but costs rise to the upper limit when performing acoustic corrections or stage machinery expansion.

Large Concert Hall/Opera Dedicated Remodeling (1,500~2,500 seats)

Total project cost range: $34.48 million ~ $68.97 million (approx. $2,759 ~ $4,000 per ㎡)

Key features: Emphasis on top-tier acoustic corrections, ceiling reflectors, and orchestra pit upgrades. Facility costs account for 45% or more. Comparable to partial remodeling cases at Seoul Arts Center (approx. $34.48 million level in the late 2010s). Acoustic redesign of existing halls costs tens of millions of dollars.

Large Arena Type Remodeling (3,000 seats or more)

Total project cost range: $55.17 million ~ $137.93 million+ (approx. $2,759 ~ $4,138 per ㎡)

Key features: Focus on upgrading large LED screens, line array PA, and electronic reverberation systems. Facility costs account for 50% or more. Comparable to partial remodeling of KSPO DOME ($20.69 million ~ $34.48 million level), while full remodeling exceeds $68.97 million. Expansion costs rise sharply due to limitations of existing structures.

Operating Costs and Staffing Plans by Performance Venue Size

In performance venue business planning, operating costs and staffing are key items that recur every year. Below are realistic estimates based on actual operation cases of Korean arts centers and performance venues as of 2026, along with consulting experience.

Ultra-small Theater (100 seats or less)

Annual operating cost: approx. $552,000 ~ $1.38 million (average operating cost approx. $827,000, based on 3~5 regular staff)

• Personnel Costs: 40~50% ($220,000 ~ $690,000)
• Facility Management Costs: 20~25% ($110,000 ~ $345,000)
• Marketing & Programming Costs: 15~20% ($83,000 ~ $276,000)
• Other (Taxes, Insurance, Administration): 10~15% ($55,000 ~ $207,000)

Small Theater (100~300 seats)

Annual operating cost: approx. $1.03 million ~ $2.41 million (average operating cost approx. $1.72 million, based on 5~8 regular staff)

• Personnel Costs: 40~50% ($414,000 ~ $1.21 million)
• Facility Management Costs: 20~25% ($207,000 ~ $603,000)
• Marketing & Programming Costs: 15~20% ($155,000 ~ $483,000)
• Other (Taxes, Insurance, Administration): 10~15% ($103,000 ~ $362,000)

Medium-small Multi-purpose (300~800 seats)

Annual operating cost: approx. $2.07 million ~ $4.14 million (average operating cost in the $2.76 million ~ $3.45 million range, based on 20~35 regular staff)

• Facility Management Costs: 25~30% ($517,000 ~ $1.24 million)
• Marketing & Programming Costs: 15~20% ($310,000 ~ $827,000)
• Other (Taxes, Insurance, Administration): 10~15% ($207,000 ~ $621,000)

Medium Multi-purpose (800~2,000 seats)

Annual operating cost: approx. $5.52 million ~ $13.79 million (average operating cost in the $8.97 million range, based on 25~40 regular staff)

• National/City Representative Cultural Landmark Type - Core Downtown Area
• Regional Balance & Living SOC Type - City/County/District Central Areas
• Commercial Profit-Oriented Type - Major Urban Commercial Districts, Subway-Connected Complex Malls
• Global K-Culture Platform Type - Core Downtown Area, Airport Proximity (Still Under Validation)
• Complex Culture & Lifestyle Type - MZ Generation Hotspots. Areas Dense with Cafes and Restaurants
• Corporate-Centered Welfare & Lifestyle Type - Within or Adjacent to Large Corporate Headquarters

Large Concert Hall/Arena (2,000 seats or more, including Global K-Culture type)

Annual operating cost estimate: $20.69 million ~ $55.17 million (average operating cost in the $34.48 million range, based on 30~60 regular staff)

• Personnel Costs: 30~40% ($6.21 million ~ $22.07 million)
• Facility Management Costs: 30~40% ($6.21 million ~ $22.07 million)
• Marketing & Programming Costs: 15~20% ($3.10 million ~ $11.03 million)
• Other (Taxes, Insurance, Administration): 10~15% ($2.07 million ~ $8.28 million)