Approximately 400,000㎡ Area in Yangjae and Umyeon-dong
Promotion of Specialized Projects Including AI Talent Development and Startup Support
Seocho-gu, Seoul is poised to become a global artificial intelligence (AI) hub. On the 1st, Seocho-gu announced that the Yangjae and Umyeon-dong areas were officially approved as the ‘Yangjae AI Future Convergence Innovation Special Zone’ (Yangjae AI Special Zone) on the 28th of last month, marking its growth into an innovative base city leading global AI.
This is the first time nationwide that a regional specialized development zone has been designated in the AI field. Regional specialized development zones are designated by the Ministry of SMEs and Startups under the ‘Regulatory Special Act on Regulatory Free Zones and Regional Specialized Development Zones,’ granting special exceptions to specific areas to foster specialized industries and revitalize the local economy.
The Yangjae and Umyeon-dong areas, designated as the ‘Yangjae AI Special Zone,’ have excellent transportation networks such as the Gyeongbu Expressway and a metropolitan location, making them ideal for research and development (R&D) industries. Over 500 AI and ICT companies and research institutes, including Hyundai Kia Motors, LG Electronics, KT, Samsung Electronics R&D Campus, and startups, are gathered here. Due to these outstanding geographical and industrial advantages, the Yangjae and Umyeon-dong areas have been highly evaluated as the optimal place to develop convergence industries such as AI and nurture future growth industries for South Korea.
Following the special zone designation, Seocho-gu will implement four specialized projects and 15 detailed sub-projects over approximately 400,000㎡ in the Yangjae and Umyeon-dong areas for five years until 2029. The four specialized projects include AI talent cultivation and capacity building, support for AI startup creation and growth, support for AI research and development and industrial activation, and expansion of AI base and support infrastructure establishment.
The district office serves as the overall specialized project operator, with Seoul National University Industry-Academic Cooperation Foundation, KAIST, and Electronics and Telecommunications Research Institute (ETRI) participating as unit specialized project operators. Additionally, to continuously enhance innovation capabilities, a ‘Special Zone Steering Committee’ composed of various institutions within the zone will be organized, and a dedicated institution for special zone development will be established for systematic management.
In the ‘Yangjae AI Special Zone,’ six regulatory exceptions, including those related to the Patent Act and Immigration Control Act, will be applied to support corporate growth. Priority examination of patent applications will accelerate technology commercialization, and easing visa issuance procedures and extending the stay period (from 3 years to 5 years) will secure outstanding overseas talent. Furthermore, exceptions will be applied to laws such as the Local Finance Act, Urban Parks Act, Road Traffic Act, and Road Act related to hosting the ‘Seocho Smart City Festival’ to expand the AI base and promote the special zone.
With the promotion of these specialized projects and tailored regulatory exceptions, the Yangjae and Umyeon-dong areas will accelerate the concentration of AI startups, research institutions, and educational institutions, fostering an innovation cluster alongside the naturally gathered AI and R&D companies. In particular, there are many large-scale development sites around Yangjae IC, which is advantageous for securing space to meet future advanced industry demands.
By 2030, with the completion of developments such as the Urban High-tech Logistics Complex, The-K Hotel, and AI Seoul Tech City, it is expected to become an overwhelmingly large AI innovation hub nationwide, gathering over 1,000 companies.
The designation of the ‘Yangjae AI Special Zone’ has also turned on a green light for Seocho-gu’s economic map. According to a feasibility study conducted by the district for the special zone designation, an investment of approximately 135.2 billion KRW is expected to create over 1,000 jobs and generate production inducement effects of 220.3 billion KRW, value-added inducement effects of 119.5 billion KRW, and income inducement effects of 71 billion KRW over five years (2025?2029).
Since the launch of the 8th local government in 2022, Seocho-gu established a dedicated task force team to promote the designation of the ‘Yangjae AI Special Zone,’ drawing up a concrete blueprint including the establishment of a basic plan, specialized projects, and regulatory exceptions. Through continuous consultations with related organizations such as the Ministry of SMEs and Startups, Seoul City, and KAIST, the possibility of designation has been significantly increased. Seoul City has also supported this effort by announcing plans to create public anchor facilities in the Yangjae area through the 2016 ‘Yangjae Tech+ City Development Plan’ and the 2021 ‘Yangjae AI Innovation District Revitalization Plan.’
As a result, the ‘Seoul AI Hub’ opened in May this year, and within it, the ‘National AI Research Hub,’ where prestigious domestic and international universities such as KAIST and Stanford University, as well as major domestic companies like Naver and LG, will collaborate on projects, opened last October.
Meanwhile, the district is also promoting the designation of the ‘Yangjae-Gaepo ICT Specific Development Promotion District’ (designated by Seoul City) alongside the ‘Yangjae AI Special Zone’ (designated by the Ministry of SMEs and Startups). Aiming for designation by the end of next year, it is expected to create synergy by serving as a hinterland and fostering related industries for the ‘Yangjae AI Special Zone.’ The Specific Development Promotion District includes incentives such as easing urban planning restrictions on recommended business facilities in the area, SME loan support, and local tax reductions, which are expected to attract ICT-related companies and establish a foundation for strengthening industrial competitiveness.
District Mayor Jeon Seong-su stated, “The Yangjae AI Special Zone is an area with the optimal foundation to be nurtured into a world-class innovation cluster like Silicon Valley in the U.S. and Zhongguancun in China,” adding, “Through this special zone designation, Seocho-gu will play a key role in Seoul’s leap to become a ‘global AI central city’ and lead the future AI industry proactively.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
