Jungnang-gu Signs Agreement with Seoul City and SH Corporation on the 28th for SH Corporation's Relocation to Jungnang-gu... Expected Direct and Indirect Economic Effects of 480 Billion KRW and Creation of Over 4,000 Jobs Over 5 Years
[Asia Economy Reporter Jongil Park] “This year, we will do our best to firmly establish an economic foundation in Jungnang-gu.”
This was a promise made by Ryu Gyeong-gi, Mayor of Jungnang-gu, to the residents of Jungnang-gu at the New Year's meeting last January.
Jungnang-gu (Mayor Ryu Gyeong-gi) has begun to actively relocate the headquarters of Seoul Housing and Communities Corporation (SH). On the 28th at 9:30 a.m., at the 8th-floor conference room of the new Seoul City Hall, a ‘Seoul Housing and Communities Corporation (SH) Relocation Agreement to Jungnang-gu’ was signed with the attendance of Jungnang-gu Mayor Ryu Gyeong-gi, Kim Hak-jin, Acting Mayor of Seoul, and Kim Se-yong, President of SH.
This agreement was established to bring together SH, Seoul Metropolitan Government, and Jungnang-gu to mutually strive for administrative and financial support and implementation to ensure the relocation project proceeds smoothly.
In particular, Jungnang-gu enacted the ‘Ordinance on Promotion and Support for the Relocation of Seoul Housing and Communities Corporation’ to support a successful relocation and plans to strengthen cooperation with SH to invigorate the local economy.
The relocation of SH headquarters to Jungnang-gu, a groundbreaking turning point for the district’s development, is part of the plan to move public institutions under Seoul City to the northern part of the city. Seoul announced the relocation sites for public institutions in August 2019.
The new SH building in Jungnang will have four basement floors and 15 above-ground floors, and besides office facilities, a high-quality performance hall will also be included. This will create not only economic infrastructure but also cultural infrastructure, expected to be the finishing touch for Jungnang-gu’s development.
Moreover, near the SH new building site at 318 Sinnae-dong, projects such as a knowledge industry center and startup support center are underway as part of the ‘New Economic Hub Development in the Sinnae IC Area,’ which is expected to further accelerate the development of Jungnang-gu.
Additionally, with about 1,300 SH employees and an annual influx of approximately 100,000 people for public rental housing applications, it is anticipated that the local economy will be greatly revitalized through increased commercial sales and overall economic activity.
Mayor Ryu Gyeong-gi stated, “Through this agreement, we have secured the driving force for SH’s relocation to Jungnang-gu and will accelerate the process. The relocation is expected to generate direct and indirect economic effects of 480 billion KRW and create about 4,000 jobs over five years. Please look forward to Jungnang-gu’s transformation from a residential area to a new economic hub.”
Seoul City, Jungnang-gu, and SH are currently conducting preliminary negotiations for urban planning changes for the relocation site. They plan to complete the urban planning changes within this year, proceed with design competitions, and aim to start construction in 2022 and complete it by 2024.
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