Hampyeong County Raises Factory Complex Building Coverage Ratio to 80%

"Improved Land Utilization and Investment Conditions Expected"

Aerial view of Haebo Industrial Complex, Hampyeong County, Jeonnam.

Hampyeong County in Jeollanam-do announced on the 3rd that the Ministry of Land, Infrastructure and Transport has decided to raise the building coverage ratio in local agricultural and industrial complexes from 70% to 80%.

This increase in the building coverage ratio is a regulatory reform that Hampyeong County has continuously requested since discovering the issue during a company site visit in 2023.

Previously, during a company site visit in February 2023, the county received a request from SC Co., Ltd. (CEO Kim Kapyoung), a tenant of the Haebo Agricultural and Industrial Complex in Hampyeong, to ease the building coverage ratio (70%) to match that of other industrial complexes in industrial areas, such as national, general, and urban high-tech complexes (80%).

SC Co., Ltd. moved into the Haebo Agricultural and Industrial Complex in 2018 and focused on R&D investment, successfully developing two types of compressed conductors for automotive lightweight wiring in 2020. In line with the increasing demand for electric vehicles, the company experienced rapid growth, recording approximately 100 billion KRW in annual sales last year compared to 69.2 billion KRW in 2023.

However, despite the surging demand for wires, the company has struggled to meet demand due to a lack of warehouse space, and the building coverage ratio restriction has made it impossible to expand storage facilities.

In response, Hampyeong County submitted a total of four regulatory reform requests over the past two years: once to Jeollanam-do, twice to the Ministry of the Interior and Safety, and once to the Small and Medium Business Ombudsman, to ease the building coverage ratio in agricultural and industrial complexes.

Additionally, together with Jeollanam-do, the county held two on-site meetings at SC Co., Ltd. with the central regulatory officer and head of the regional economy bureau from the Ministry of the Interior and Safety, directly conveying the difficulties faced by companies in agricultural and industrial complexes.

Last year, the county, together with Jeollanam-do, submitted an agenda to the Local Regulatory Innovation Committee and attended the 15th and 17th committee meetings, emphasizing the challenges of local companies and the need to ease the building coverage ratio. As a result, the Ministry of Land, Infrastructure and Transport actively accepted the proposal and decided to raise the building coverage ratio for agricultural and industrial complexes.

The eased building coverage ratio for agricultural and industrial complexes is expected to take effect in the first half of this year after the Ministry of the Interior and Safety and the Ministry of Land, Infrastructure and Transport revise the Enforcement Decree of the National Land Planning and Utilization Act, benefiting 7,672 companies nationwide.

The county expects that the eased building coverage ratio will improve land utilization and investment conditions for companies in agricultural and industrial complexes, resolve local business difficulties, revitalize the complexes, boost the local economy, and help alleviate population decline.

Lee Sangik, Mayor of Hampyeong County, said, "This regulatory improvement will provide an opportunity for companies in agricultural and industrial complexes to expand facility investment and enhance management efficiency," adding, "We will continue to take the lead in regulatory reform to revitalize businesses and the local economy."