[Abandoned Industrial Complex]③ Ministry of Land Invested 900 Billion Won in Remodeling... Green Spaces Decrease and No Place to Rest

24 Years of Old Industrial Complex Remodeling: 47 Projects
920 Billion Won Spent, Mostly on Road Infrastructure Expansion
Zero Projects for Culture, Welfare, Convenience Facilities, or Residential Conditions

Since 2004, Industrial Complex Green Spaces Reduced by 34%
Among 83 Old Complexes, 51.8% Have No Restaurants
Budget for Cultural Facility Expansion Used for Special Sales Outlets

"Cannot Stop Industrial Complex Aging, Need Practical Measures"

As the government and local governments focus on building new industrial complexes, existing industrial complexes are rapidly declining. Old factories, insufficient green spaces, poor living conditions, and almost nonexistent convenience and cultural facilities have driven companies and workers away. Although regeneration projects were hastily initiated, most were limited to improving roads and transportation infrastructure. Critics argue that policies that increased industrial zones by reducing green spaces and commercial areas have accelerated the aging of industrial complexes.

On the 12th, Asia Economy obtained the Ministry of Land, Infrastructure and Transport’s “Status of Remodeling and Regeneration Projects for Aged Industrial Complexes” through Kim Tae-seon, a member of the National Assembly’s Budget and Accounts Special Committee from the Democratic Party. This document clearly reflected such issues. According to the data, since 2000, the government has carried out remodeling and regeneration projects targeting a total of 47 aged industrial complexes. The total budget invested amounts to 925.55 billion KRW.

A total of 118 detailed projects were promoted by industrial complex. Among them, the most common project was “building parking lots,” accounting for 39 projects (33%). The next most promoted project was “road expansion,” with 38 projects (32.2%). When combined with various intersection maintenance and expansion projects, about 70% were road and parking infrastructure projects. There were even seven places where only road and parking projects were carried out. Daegu 3rd General Industrial Complex spent the most among aged industrial complexes, 112.64 billion KRW, all of which was used for the construction and expansion of roads totaling 17.7 km.

On the other hand, there were no projects to expand convenience facilities, cultural and welfare facilities, or improve living conditions. Although 32 park projects were carried out, there were only three green space creation projects. While infrastructure expansion desired by companies was faithfully implemented, the “work-friendly environment” hoped for by youth and workers was not created. This explains why, despite improvements in aged industrial complex infrastructure, the perceived effect is low and it has been difficult to prevent worker outflow.

The regeneration project of Banwol Industrial Complex, which started in 2014, is a representative failure case. Banwol Industrial Complex, built in 1987 in Hwaseong City, Gyeonggi Province, is the largest industrial complex in the country. As facilities aged and declined, making it difficult to secure workers, a regeneration project was carried out for 10 years from 2014 with a budget of 7.39 billion KRW. However, since the regeneration project only resulted in the creation of four parking lots and two parks, it failed to prevent worker outflow. Currently, the number of workers at Banwol Industrial Complex is 108,939, a decrease of 33,000 over the past 12 years.

Green spaces in industrial complexes down 34% over 20 years... Many places lack convenience facilitiesRuk

Expansion of green facilities remains distant. According to the Industrial Location Information System, as of last September, the area of industrial complexes is 1,455.2 million square meters. Among these, industrial zones account for 911.02 million square meters (62.6%). Green spaces cover 183.92 million square meters, accounting for only 12.6%. Although green spaces have slightly increased in recent years, compared to 20 years ago, they have decreased by about one-third. In 2004, green spaces in industrial complexes were 278.96 million square meters, decreasing by 95.03 million square meters (34.1%) over 20 years. Meanwhile, during the same period, the total area increased by 263.07 million square meters (22.1%), and industrial zones increased by 390.98 million square meters (75.2%).

Even under the pretext of strengthening industrial complex competitiveness, environmental regulations were relaxed, making green space acquisition difficult. For example, Yeosu City announced in 2013 that petrochemical plants were experiencing difficulties and included 708,600 square meters of green space within Yeosu Industrial Complex as “areas that can be deregulated.” This means green spaces were removed to expand industrial zones. The government has also abolished green space regulations in industrial complexes. In 2015, the government announced the relaxation of buffer green space standards (minimum width of 10 meters) in industrial complexes. If the green space ratio in the complex is between 7.5% and 13% and certain distance criteria are met, green spaces narrower than 10 meters are allowed.

Living and convenience facilities remain poor. Among 83 aged industrial complexes managed by the Korea Industrial Complex Corporation, 43 (51.8%) have no restaurants on site. Fifty complexes (60.2%) have no cafes at all. Fifty-one complexes (61.4%) have no convenience stores, and 73 complexes (87.9%) have no hospitals. Forty-three complexes lack all four convenience facilities, of which 33 (76.7%) are located in local general or agricultural-industrial complexes.

There are no separate statistics on cultural facilities. To address these issues, the Ministry of Trade, Industry and Energy spent 190.86 billion KRW from 2019 to this year on building youth cultural centers. However, many projects are unrelated to cultural facilities. For example, Daedeok Industrial Complex is promoting the construction of a cultural center, but according to the project plan, a significant portion of the building is unrelated to enhancing cultural conditions. The first floor houses infant care facilities, the second to fourth floors are leased to youth venture companies, and the fifth floor is used as the management corporation’s office. Gunsan City included a civil service office and business support office in its cultural center, and Yeosu City included a specialty product sales center and offices.

Experts advise that practical measures are needed to improve the industrial complex environment as experienced by workers. Assemblyman Kim Tae-seon said, “To revitalize aged industrial complexes, the key is to create an environment where workers can continue to work.” He pointed out, “Despite pouring in public funds amounting to 1 trillion KRW, living conditions such as housing, medical care, welfare, and culture are almost nonexistent, which has rather accelerated the aging of industrial complexes.” He criticized, “It is urgent to correct policy failures caused by irresponsible desk-bound discussions and to prepare practical measures to create industrial complexes where people and companies gather.”

Editor's NoteThere is abandoned land in Korea. It covers an area of 24.49 million square meters, which is 5.44 times the size of Yeouido. Nothing is done on this land. It is simply left unattended. This is the story of “industrial complexes.” Industrial complexes have been the driving force behind Korea’s rapid economic growth since the development of the Ulsan Industrial Complex in the 1960s. However, due to their haphazard construction, they now suffer from chronic unsold properties. While focusing only on building new industrial complexes, existing complexes face serious aging problems. Through the “Abandoned Industrial Complex” series, Asia Economy examines the current status of domestic industrial complexes and explores development directions for Korean industrial complexes through overseas cases.

This project was supported by the Press Promotion Fund, funded by government advertising fees.