Yeongdeungpo-gu Begins Relocation of 1,279 Metal Workshops in Mullae-dong

‘Feasibility Study and Basic Plan Establishment Service for the Relocation of Mullae-dong Machine Metal Cluster’ Implemented

Preliminary survey shows that over 700 companies wish to relocate

Conducting actual condition survey, estimating relocation scale and costs, preparing incentive plans to select the optimal location

District office operates a service advisory group composed of 10 members including external experts and stakeholders

Overview of the Mullaedong Machine Metal Cluster Area

Yeongdeungpo-gu (District Mayor Choi Ho-kwon) is promoting a large-scale project to relocate 1,279 ironworks in Mullae-dong all at once to the outskirts of Seoul or nearby metropolitan areas.

On May 31, the district held a kickoff meeting for the ‘Feasibility Study and Basic Plan Establishment Service for the Relocation of Mullae-dong Machine Metal Cluster’ and announced its policy to select the optimal location where Mullae-dong factories can maintain their original functions and proceed with a collective relocation.

The Mullae-dong machine metal cluster was formed since the 1980s around Gyeongin-ro between Sindorim Station and Yeongdeungpo Station, as urban manufacturers such as Seun Shopping Center relocated according to the metropolitan area maintenance plan. It is the last remaining root industry hub in Seoul, where craftsmen capable of “making tanks just from blueprints” gather.

In the 1980s and 1990s, more than 2,500 related companies gathered and enjoyed their heyday. However, due to development pressure, rising rents, and changes in industrial structure, only 1,279 companies remain mainly in Mullae-dong 1 to 4 ga. Over 90% are leased factories, with metal processed product manufacturing accounting for 1,003 companies or 75.8% of the total. This is followed by other machinery and equipment manufacturing at 15.1%, primary metal manufacturing at 5.8%, and steel material wholesale and retail at 3.3%.

Due to the nature of the machine metal industry, connected processes are important. Casting, mold making, plastic working, welding, surface treatment, heat treatment, and painting processes must proceed sequentially. Therefore, the closure or relocation of some processes to other regions leads to increased costs for nearby businesses, causing contraction of the entire industry.

Lee Yong-hyun, Honorary President of the Seoul Small Business Association, said, “Sometimes more than 100 machines are needed to make a single product,” and “Until now, small factories in Mullae-dong worked interlocked like gears, but after companies left due to rising rents, it has become increasingly difficult.” Although the industry is still surviving, it has long been said that it has “reached the limit of endurance.”

Urban maintenance projects driven by the revitalization of the real estate market are also accelerating factory relocations. Redevelopment district maintenance projects are underway in Mullae-dong 1 to 3 ga, where factories are densely located. The 94,087㎡ area in 4 ga 23-6 received approval for redevelopment association establishment in April.

Meanwhile, a preliminary public opinion survey showed that over 700 companies support relocation. Therefore, the district commissioned related services to prepare accurate data for a successful relocation.

The service is being carried out by the Community Research Institute and the Korea Industrial Relations Institute Foundation. They conduct actual condition surveys and comparative analyses, estimate relocation scale and costs, develop evaluation indicators for candidate relocation sites, and plan for securing project funds and providing incentives.

Choi Ho-gwon, Mayor of Yeongdeungpo District, is presiding over a meeting to review the feasibility study and basic planning service for the relocation of the Mullae-dong machinery and metal complex.

An advisory group for the service is also operated. The advisory group consists of 10 members including district office officials, external experts, and stakeholders. The plan is to enhance the reliability of the service by incorporating opinions from experts in various fields.

After the service is completed in October, the district plans to use the related data to persuade the National Assembly, relevant ministries, and Seoul City to continue steps toward relocation.

Choi Ho-kwon, Mayor of Yeongdeungpo-gu, stated, “The relocation of the Mullae-dong machine metal cluster is a project with triple benefits: protecting the root industry, improving the urban environment, and creating jobs in the relocation area,” adding, “After relocation, we will attract facilities related to the 4th industrial revolution to the Mullae-dong site and develop it into a new economic hub comparable to Yeouido.”