New Investment Destination: Knowledge Industry Centers Rapidly Rising... Record High Number of Approvals Last Year

141 New Nationwide Approvals and Changes Last Year... Record High
Rapid Growth in the Past 5 Years... 82% Concentrated in the Seoul Metropolitan Area
23 Approvals in Seoul Digital Industrial Complex... Highest Among Nationwide Complexes

Geumcheon-gu Gasan Digital Complex panorama (Asia Economy DB)

[Asia Economy Reporter Ryu Tae-min] As investors' interest in knowledge industry centers increases, the number of new approvals and changes nationwide for knowledge industry centers last year reached an all-time high.

According to real estate information provider Economy Man Lab and the Korea Industrial Complex Corporation on the 14th, the total number of new approvals and changes for knowledge industry centers nationwide last year was 141 cases. This is the highest figure since the Korea Industrial Complex Corporation began compiling the data in 1997.

Knowledge industry centers have shown a sharp increase in supply over the past five years. The annual number of new approvals and changes remained at a maximum of 38 cases until 2014, but starting with 62 cases in 2015, which was about double, it recorded an all-time high of 141 cases in 2020, five years later.

Among the 141 new approvals and changes last year, the metropolitan area accounted for the largest share with 115 cases (81.56%). Among these, Gyeonggi-do accounted for more than half with 71 cases (50.35%), followed by Seoul with 28 cases (19.86%) and Incheon with 16 cases (11.35%). Outside the metropolitan area, Gwangju Metropolitan City had the most with 5 cases, while most other regions recorded fewer than 5 cases.

In Seoul, the Seoul Digital Industrial Complex showed the most active performance, recording the highest number of approvals within nationwide complexes with 23 cases last year. The Seoul Digital Industrial Complex is also showing active movements in the sales market with various development news such as the Doosan-gil underpass scheduled for 2021, the southern bridge of Cheolsan Bridge, and the Sinansan Line scheduled for completion in 2024.

Notably, ‘Gasan The Reason Valley,’ constructed by Bomi Construction, is currently on sale. This complex is located on the site of Seoul Digital Industrial Complex 2 in Gasan-dong, consisting of 4 basement floors to 14 above-ground floors, with a total floor area of 25,138㎡. ‘Gasan Mobius Tower’ is also planned to be built in the G-Valley of the Seoul Digital Industrial Complex, with 4 basement floors to 20 above-ground floors and a total floor area of approximately 43,500㎡.

Hwang Han-sol, a research analyst at Economy Man Lab, said, “In the case of knowledge industry centers, small-scale investments are possible, and with government tax support reducing the burden, the demand market has become active, leading to an increase in supply.” However, he added, “Recently, oversupply has occurred in some areas, so it is necessary to thoroughly consider location and underlying demand to avoid premature investments.”