A 58-Story 'Logistics Hub' to Be Built in Yangjae-dong... "Realizing a Green Compact City"

Approval Notice for Yangjae Urban High-Tech Logistics Complex Plan
Total Area 86,000㎡, 8 Basement Floors to 58 Above Ground Floors
Public Contribution 560.7 Billion KRW... Construction to Start in First Half of Next Year

A new logistics hub representing the southern region of Seoul is being established. This project involves constructing an urban high-tech logistics complex with 8 basement floors and 58 above-ground floors in the 225 area of Yangjae-dong, Seocho-gu. It is expected to become a landmark that integrates various facilities, including urban logistics expansion, research, and commercial sectors.

On the 29th, the Seoul Metropolitan Government announced that it has approved and publicly notified the plan for the "Yangjae Urban High-Tech Logistics Complex Development Project." This approval marks the second project following the Western Truck Terminal Urban High-Tech Logistics Complex approved last August. The establishment of two key hubs covering the western to southern areas of Seoul is being rapidly advanced within two years.

A bird's-eye view of the 'Yangjae Urban High-tech Logistics Complex Development Project'. [Provided by Seoul City]

The "Urban High-Tech Logistics Complex" was introduced alongside the 2015 amendment of the Logistics Facilities Act to enable the creation of compact cities that combine state-of-the-art logistics complexes with mixed-use functions such as R&D, business offices, retail, lodging, and residential areas. The final pilot project district, the Siheung Distribution Business Complex in Geumcheon-gu, is also expected to accelerate development following the relaxation of the Logistics Act scheduled for February.

The Yangjae-dong logistics complex covers a total area of 86,002.5㎡, with a scale from 8 basement floors to 58 above-ground floors. The core objective is to create a "Smart & Green Compact City" based on R&D and business, integrating advanced logistics, distribution, commercial, and support facilities within Seoul. In particular, the project vision aims to realize various values such as revolutionary improvement of Seoul’s logistics services, industrial growth, eco-friendliness, and regional coexistence. It intends to contribute to enhancing urban competitiveness as a next-generation logistics hub by leading carbon neutrality, establishing a growth foundation for the logistics and distribution industry, and modernizing working conditions for delivery workers.

Transportation networks and accessibility measures are also being prepared simultaneously. Following the "conditional" opinions from the Logistics Complex Planning Review Committee, improvements such as enhanced public transportation accessibility, increased contributions to external traffic improvement measures, and installation of above-ground parking lots have been incorporated. To improve public transit access, active cooperation will be provided for the establishment of a new Sinbundang Line station (tentatively named Mannam-ui Gwangjang Station), with project costs borne under the principle of causation responsibility (initially covering 50 billion KRW). The contribution rate is expected to increase based on future verification results from credible professional institutions.

Reflecting the surrounding traffic conditions, the operator’s contribution rate for external traffic improvement measures (new connection road to Shinyangjae IC, and the flattening of Yangjae IC) has been increased from 20.9% (29.23 billion KRW) to 27.1% (37.96 billion KRW), adding an additional 8.73 billion KRW burden compared to the original plan. Other public contributions include ▲expansion of R&D-related research and office facilities (23,600㎡) ▲supply of 45 public rental housing units through social mix ▲cost-sharing for the restructuring project of the Gyeongbu arterial road and the construction of new ramps for both directions at Shinyangjae IC ▲modernization of the Seocho-gu recycling processing center, and a total investment of 560.7 billion KRW for regional infrastructure expansion.

A Seoul city official stated, "Although the area around Yangjae IC has long been neglected due to chronic traffic congestion and delayed development despite being the southern gateway to Seoul via the Gyeongbu Expressway, it is expected to serve as a new urban function and tourist attraction for Seoul through the attraction of large-scale distribution and logistics complexes and new growth industries in R&D." Meanwhile, the Yangjae Urban High-Tech Logistics Complex is scheduled to begin construction in the first half of 2025 and be completed in 2029, following administrative procedures such as housing construction project plan approval by Seocho District Office.