Gumi 1st National Industrial Complex Designated as Candidate for Regeneration Activation Zone ... Total Project Cost 287.5 Billion KRW

Designation of the First Regeneration Project Activation Zone Candidate Site in National Industrial Complex

Fostering New Industries and Creating Green Networks, Linking Existing Innovation Projects

The 1st National Industrial Complex in Gumi-si, Gyeongbuk, was finally selected as a project candidate site on the 22nd through the Ministry of Land, Infrastructure and Transport's ad hoc designation process for the activation zone of the aged industrial complex regeneration project in the second half of 2023.

Gumi 1st National Industrial Complex Regeneration Project Activation Zone.

Once designated as an activation zone, exemptions from reinvestment of development profits (25% of land sale proceeds), which were applied to existing regeneration project districts, will be granted, along with allowances for building coverage ratio and floor area ratio within the maximum limits by land use zone as stipulated in the "National Land Planning and Utilization Act." Additionally, various special measures will be applied within the industrial complex, such as priority support from the government for infrastructure installation costs.

The scale of the newly selected "Gumi 1st National Industrial Complex Regeneration Project Activation Zone" is 29,058㎡, with a project cost of 287.5 billion KRW. The project implementer is Gumi City, which plans to include the already underway Urban Regeneration Innovation District aimed at creating a venture startup ecosystem through the establishment and support of all stages of manufacturing startup infrastructure within the activation zone.

The city will establish an activation plan by adding to the existing innovation district project ▲a new industry promotion base (such as a demonstration manufacturing complex) and ▲a green network creation plan (including cultural parks and plazas). After feasibility verification, consultations with related agencies, and approval by the Minister of Land, Infrastructure and Transport, the area will be officially designated and announced as an activation zone.

The designation of the activation zone candidate site in the 1st National Industrial Complex is symbolically significant as it is the 'first' activation zone in a national industrial complex since the activation zone system was introduced in 2015. It marks a shift from the local government's role limited to maintaining infrastructure in the industrial complex to taking a proactive lead in driving change in the stagnant complex.

This also actively responds to the central government's policy direction to drastically reform the rigid industrial complex management system. Gumi, which has five national industrial complexes, is opening the first chapter toward transforming into a "local government-led industrial complex."

The city expects that the designation of the "Gumi 1st National Industrial Complex Regeneration Project Activation Zone" will serve as a catalyst for industrial complex regeneration, laying the investment foundation to encourage private participation. Through expanding support facilities for companies and workers and creating a pleasant industrial complex environment, it aims to transform into an industrial complex where "youth want to return and stay," thereby attracting young talent and creating youth jobs.

Mayor Kim Jang-ho stated, "The designation of the activation zone candidate site will act as a catalyst to attract private investment within the Gumi National Industrial Complex. For Gumi to lead not only as a hinterland city of the new airport but also in the new era of local governance, this activation zone designation must be expanded into phase 2 and phase 3 projects," showing strong determination for industrial complex restructuring.

The aged industrial complex regeneration project activation zone is a project designed to enable high-density and mixed-use development of industrial, cultural, and convenience functions within urban aged industrial complexes in regeneration project districts, transforming them into hubs for regional balanced development and economic growth, thereby promoting the complexification and three-dimensional development of industrial complexes.

Since 2016, a total of six industrial complexes have been designated, including one completed complex (Seodaegu Industrial Complex) and five ongoing projects (Busan Sasang, Seongnam, Daejeon, etc.). This year, a public contest was held to select new project sites, and the Daejeon General Industrial Complex was selected as a project candidate site in the first half of the year.