Third Release of Development Restriction Zone Under the First Pledge of the 8th Local Government Administration
Optimal Location for Electric Vehicle Parts Factories and Partner Companies
The area around Namnok General Industrial Complex in Ulsan City has been selected as the third development restriction zone release under the first pledge of the 8th local government administration and will be developed as a future car hinterland industrial complex.
On February 3rd at 10:30 a.m., the city held the 1st Ulsan Urban Planning Committee meeting in the conference room on the 3rd floor of Annex 1 of City Hall, where it was decided to release 370,000㎡ of the Namnok General Industrial Complex site, located in Seobu-dong, Dong-gu and Yeompo-dong, Buk-gu, from the development restriction zone.
The Namnok General Industrial Complex has been targeted for development restriction zone release since 2022 as the first pledge of the 8th local government administration to facilitate smooth parts supply and the settlement of partner companies for Hyundai Motor Company's electric vehicle-only factory scheduled for completion in 2025.
This area is adjacent to the Mipo National Industrial Complex, has excellent connectivity with existing businesses, and possesses optimal location conditions, so smooth consultations with central government agencies were expected.
However, due to environmental impacts such as Grade 1 and 2 environmental evaluation zones and ecological natural maps, there were significant difficulties in releasing the development restriction zone.
Accordingly, Ulsan City persuaded the Ministry of Land, Infrastructure and Transport and the Ministry of Environment by preparing the necessity of the release and natural environment conservation measures over about two years, ultimately achieving the release of the development restriction zone for the Namnok General Industrial Complex.
In particular, through the expansion of the development restriction zone release authority for non-capital region city and provincial governors (from less than 300,000㎡ to less than 1,000,000㎡), this is the second project directly released by Ulsan City following the Ulsan Sports Park.
The released site will undergo general industrial complex plan approval within the first half of this year, and the project will be actively promoted with a target completion in 2028.
A total project cost of 266 billion KRW will be invested, creating industrial facility sites for manufacturers of electric vehicle parts, hydrogen fuel cells, and support facility sites, along with residential sites for proximity between residence and workplace, and infrastructure such as roads and parks.
Upon completion, the project is expected to generate about 800 billion KRW in production inducement effects and approximately 1,700 jobs. It is anticipated to revitalize the Ulsan economy, including the stagnant Dong-gu area.
An official from Ulsan City stated, “Through this development restriction zone release, the electric vehicle factory hinterland support complex project scheduled for 2028 will gain momentum,” adding, “Once the Namnok Industrial Complex is established, it is expected to contribute to regional balanced development through promotion of electric vehicle investment and job creation.”
Since the 8th local government administration began, Ulsan City had previously released development restriction zones of 189,000㎡ in Daun-dong, Jung-gu in December 2023, and 929,858㎡ in the Ulsan Sports Park area last November.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
