Busan to End IESF’s Free Office Lease After Audit

Busan will end the International Esports Federation’s (IESF) free office lease after a city audit found that the arrangement lacked a legal basis. The federation must begin paying rent in January 2027.

The Busan Metropolitan City Audit Committee reached the finding during a September audit of public-property management in Haeundae district. The review covered city-affiliated organisations including the Busan IT Industry Promotion Agency, the Busan Cinema Center and BEXCO.

Auditors found that several organisations, including the IESF, had received public office space free of charge without the legal or regulatory grounds required under public-property rules. Busan told the federation that its rent-free status and private, noncompetitive lease would end.

City officials described the notification as a required response to the audit. The IESF’s executive leadership reported the decision to its Board of Directors, where it prompted concern about the federation’s future in South Korea.

Some board members are discussing moving the IESF headquarters abroad. Countries mentioned as possible destinations include Indonesia, the United Arab Emirates and Norway. Nineteen of the federation’s 20 board directors are foreign nationals.

The IESF board has not made a final decision on relocation. Busan is reviewing options to keep the federation in the city while complying with public-property law. These include reducing the office space allocated to the IESF to lower its rent and revising local ordinances to allow discounted or subsidised leases for international organisations.

The city is also examining other forms of support that would comply with the law. Officials have acknowledged that the federation could leave South Korea if the sides do not reach an agreement.

The notice came weeks after IESF President Vlad Marinescu met with the Busan mayor to reaffirm cooperation between the federation and the city. The timing added to the federation’s dissatisfaction with the change.

The IESF was founded in 2008 at the Nurimaru APEC House on Dongbaekseom Island in Busan. After operating mainly from Seoul, the federation signed a memorandum of understanding with Busan in 2017 to establish its permanent headquarters in the city. The agreement aimed to support Busan’s esports industry and strengthen its position as an international esports centre.

Under the agreement, the city provided rent-free office space in facilities managed by the Busan IT Industry Promotion Agency in Haeundae-gu. The IESF has held its annual World Esports Summit in Busan for about a decade, hosted the World Esports Championships and run international anti-doping programmes for esports.

Reviewed and fact-checked by Alex Panasenko on November 9.