Yongsan Electronics Market to Be Developed as 'Asia's Silicon Valley' with Floor Area Ratio Over 1000%

Seoul City Announces Plan to Develop 'Yongsan Meta Valley'
Creating Future Growth Linked with International Business District
Announces Bold Benefits Including Reduced Public Contribution Burden

The declining area around Yongsan Electronics Market in Seoul is being reborn as the "Silicon Valley of Asia." The Seoul Metropolitan Government plans to develop the area connecting Yongsan Electronics Market and the International Business District into an AI·ICT-based new industry hub responsible for future growth engines. To this end, it has announced unprecedented benefits such as a 30% reduction in public contribution burdens and allowing a floor area ratio (FAR) of over 1000%.

Yongsan Meta Valley Project Bird's-eye View

Declining Electronics Market... Linked with International Business District to Become a New Industry Innovation Hub

On the 15th, Seoul announced plans to develop the Yongsan Electronics Market area into "Yongsan Meta Valley," an AI·ICT-based digital + metaverse new industry innovation hub. The plan is to create a converged urban space where jobs, housing, and green spaces coexist.

Yongsan Electronics Market was established in 1985 following the relocation of the Yongsan Grain Wholesale Market, as part of a government policy to foster the electrical and electronics industry at the time. It prospered in the 1990s with the spread of PCs but saw a significant decline in commercial vitality in the 2000s due to changes in industry trends such as the rise of mobile devices and online shopping, as well as aging facilities.

To address these issues, Seoul commissioned a study in 2021 to develop a plan linking the Yongsan Maintenance Depot site, being developed as the International Business District, with Yongsan Electronics Market. The study highlighted the strong industrial base of Yongsan Electronics Market, once the mecca of the electronics industry, and its proximity to the International Business District, which is set to become a center for international business. A Seoul city official explained, "We believe that integrating Yongsan Electronics Market, a hub for electronics industry distribution, manufacturing, and sales, with international business functions will establish a new form of industrial ecosystem."

Mandatory Introduction of 30% New Industry Use in Exchange for 30% Reduction in Public Contribution... FAR Over 1000% Possible if Energy Standards Are Met

For Yongsan Meta Valley, Seoul has prepared four key detailed strategies: ① Establishing new industry innovation and startup spaces ② Creating an open green network ③ Supplying urban-type mixed-use housing ④ Providing floor area ratio incentives.

Seoul plans to build the Yongsan Electronics Market area into an AI·ICT-based new industry innovation and startup space. Keeping pace with the shift from an IT-based digital era to an AI+VR (Virtual Reality)+XR (Extended Reality) and big data-based metaverse era, Seoul intends to introduce and nurture new industry uses such as AI·ICT-based software and digital content in addition to the existing information and communication industry base of Yongsan Electronics Market.

The city will mandate that new industry uses occupy at least 30% of the total floor area, and in return, it will reduce public contributions related to the abolition of urban planning facilities by 30%. Consequently, the public contribution standard for development in the electronics market area will be relaxed from an average of 27% to 18%, easing the burden on developers. Additional FAR incentives will be provided if new industry uses exceed the mandatory threshold.

An open green network will be created through the establishment of green spaces and connections at lower building levels. The upper part of the detention basin will be converted into a park to secure public green space, and FAR incentives will be offered to encourage the creation of publicly accessible spaces and three-dimensional greenery at building lower levels, aiming to make the Yongsan Electronics Market area a space with over 50% green coverage. Additionally, buildings within the electronics market area will be connected by three-dimensional pedestrian pathways, and pedestrian decks and walkways will link the International Business District, Electronics Market, Najin Market, and Yongsan Station to strengthen connectivity throughout the area.

To realize a live-work mixed environment, the city plans to supply urban-type mixed-use housing. Residential construction will be permitted (up to 50% of the FAR), with a portion of the housing units designed as small to medium-sized units and some specially allocated as startup support housing.

Finally, to develop the electronics market area into a creative and eco-friendly city, FAR incentives will be provided. If the development complies with Seoul’s Creative Innovation Design Guidelines and energy-related eco-friendly standards such as Zero Energy Building (ZEB), construction with a FAR exceeding 1000% will be possible.

Jo Nam-jun, Director of the Seoul Metropolitan Government’s Urban Planning Bureau, said, “Although the surrounding area declined due to the past downturn of Yongsan Electronics Market centered on electrical and electronics industries, the relocation of the presidential office, the development plan for Yongsan Maintenance Depot, and the opening of Yongsan Park have created conditions with sufficient growth potential.” He added, “We expect the Yongsan Electronics Market area to be reborn as a future innovation district that enhances Seoul’s urban competitiveness as a hub for AI·ICT-based new industries.”