Mayor Donghwan Lee: "Supporting the Revitalization of Knowledge Industry Centers... Establishing Sustainable Industrial Models"

Goyang City to Expand Knowledge Industry Centers to 2.26 Million Square Meters by 2026
17 New Business Types Added, Including Broadcasting Industry and Smart Farms
Increased Occupancy in Hyangdong and Deokeun Districts
Pre-approval Consultations to Attract Promising Companies by Enhancing Convenience for Tenants

Goyang Special City, Gyeonggi Province (Mayor Lee Dong-hwan) is actively utilizing knowledge industry centers that can attract companies even under metropolitan area regulations to foster advanced industry venture companies. According to Goyang Special City on the 20th, the city plans to continuously expand the types of businesses allowed to move into knowledge industry centers, including the Venture Business Promotion District, and create a resident-friendly environment to maximize job creation in advanced industries.

Lee Dong-hwan, Mayor of Goyang Special City, visiting tenant companies at Baekseok-dong Knowledge Industry Center. Provided by Goyang Special City

Goyang City falls within the overconcentration control zone under the Metropolitan Area Readjustment Planning Act, making it difficult to attract companies. The overconcentration control zone, established to prevent excessive population and industrial facility concentration, currently includes 16 local governments such as Goyang, Seongnam, Bucheon, and Uijeongbu. In these areas, the establishment or expansion of population-concentrating facilities such as factories and schools is prohibited, industrial zones cannot be designated, and acquisition tax and registration license tax are tripled when establishing or relocating corporations.

In particular, Goyang City has seen a rapid population increase due to large-scale housing supply through government-led land development projects including Ilsan New Town, but its industrial base remains insufficient due to metropolitan area regulations. Currently, Goyang’s industrial capacity consists only of 100,000㎡ allocated to the Ilsan Techno Valley urban high-tech industrial complex and 66,000㎡ planned for allocation in the Daegok Station area.

In this situation, knowledge industry centers, where manufacturing, knowledge industry, information and communication industry, and venture business operators can move in complexly, are gaining attention as key facilities for attracting companies amid overlapping regulations. Knowledge industry centers are exempt from the factory total volume system that limits factory construction area in the metropolitan area, allowing construction even in overconcentration control zones, and individual factory occupancy is relatively easy. Acquisition tax and property tax are also reduced by up to 35% each.

Exterior view of Hyangdong District Knowledge Industry Center (GL Metrocity Hyangdong). Provided by Goyang Special City

Currently, Goyang City operates about 10,000 industrial facilities in 25 knowledge industry centers with a total floor area of approximately 1.79 million㎡ (540,000 pyeong), showing an occupancy rate of 82% as of 2023 (18 centers). Seven knowledge industry centers that began occupancy last year have about 26% occupancy. By next year, six additional knowledge industry centers with a total floor area of 470,000㎡ (140,000 pyeong) are scheduled to be established.

Within the Venture Business Promotion District, designated for the first time in northern Gyeonggi in October last year, 10 knowledge industry centers in Baekseok-dong, Dongsan-dong, and Wonheung-dong are included. Venture companies acquiring or using knowledge industry centers within the promotion district can receive up to 50% reduction in acquisition tax and property tax, and various charges are also exempted, anticipating the influx of excellent companies.

Goyang City is expanding the types of businesses allowed to move into knowledge industry centers so that companies from various industrial sectors can settle and create synergy effects with the local economy. In May last year, the city became the first nationwide to relax regulations on business types in knowledge industry centers, expanding the allowed types from 97 to 114.

Originally, the allowed business types for knowledge industry centers were limited to manufacturing, knowledge industry, and information and communication industries. Although the Ministry of Trade, Industry and Energy relaxed the allowed business types in knowledge industry centers within industrial complexes last year to include most industries except gambling and housing supply, knowledge industry centers outside industrial complexes are under the authority of local governments, resulting in varying allowed business types by municipality.

Lee Dong-hwan, Mayor of Goyang Special City, inspecting the construction site of Deok-eun Knowledge Industry Center. Photo by Goyang Special City

The 17 newly added business types include legal, accounting, and tax-related services necessary for company management, as well as broadcasting, video, and audio industries that the city is focusing on fostering, smart farm vertical farms, and original equipment manufacturing (OEM) industries. Since the expansion of allowed business types, the occupancy rate of the Hyangdong District knowledge industry center increased by 25%, from 18% to 43%, and the Deok-eun District occupancy rate rose about 10%, from 78% to 88%, as of the end of last year.

The city plans to further expand about 12 business types in the first half of this year, reflecting on-site opinions from companies and buyers wishing to move into knowledge industry centers and considering the characteristics of each area such as the Ilsan Techno Valley and Goyang Changneung Public Housing District currently under development.

To create an environment where excellent companies can move into knowledge industry centers, the city is actively incorporating companies’ opinions on auxiliary and convenience facilities before approval of knowledge industry center establishment.

Previously, the city visited resident companies, management groups, and management offices of operating knowledge industry centers to listen to their difficulties. Companies expressed concerns about low ceiling heights in individual units, making it difficult to install manufacturing equipment and store goods, and also pointed out insufficient parking spaces.

Drive-in system bird's-eye view. Provided by Goyang Special City

Accordingly, during the initial consultation stages of traffic impact assessment and architectural review, the city held meetings with knowledge industry center developers to reflect companies’ opinions. Ceiling heights of manufacturing-type units were set higher to accommodate large manufacturing equipment, and industrial shelves were installed to facilitate easy storage of products. Additionally, freight elevators were installed, and a drive-in system allowing logistics vehicles to enter the building was introduced.

Furthermore, for the convenience of resident companies, common rest areas and meeting rooms were installed, and parking for more than one vehicle per minimum unit area was made possible. Starting with Deok-eun Riverwalk, which opened in 2023, these changes are being applied to newly established knowledge industry centers, and the city plans to continue incorporating companies’ opinions into future knowledge industry centers.

Lee Dong-hwan, Mayor of Goyang Special City, said, “We plan to expand the types of businesses allowed in knowledge industry centers to include industries with strong synergy with the city’s key industrial complexes such as Ilsan Techno Valley and Broadcasting Video Valley. We will continue to reflect companies’ voices in newly established knowledge industry centers to ensure stable settlement of industries.”