Tax Benefits and Incentives for Companies, Large-Scale Mixed-Use Development Possible
Most of the Land Owned by the City and University, Enabling Rapid Development
Ansan Science Valley (ASV), located in Sadong, Sangnok-gu, Ansan City, Gyeonggi Province, is emerging as a new hub for advanced industries in the southwestern region of Gyeonggi. This comes as the Ministry of Trade, Industry and Energy designated the area as the Gyeonggi Free Economic Zone on September 22, making it possible to attract companies through various incentives such as tax benefits.
The designation of ASV as a free economic zone comes three years after it was selected as a candidate site in November 2022. Since the launch of the 8th popularly elected administration, the city has focused on securing this designation to improve the structure of traditional manufacturing industries based around the Banwol and Sihwa National Industrial Complexes. The city has expressed its ambition to develop ASV into a global advanced industrial district on par with Songdo and Pangyo.
"Economic Impact of 2.2 Trillion Won... Expected to Create 18,000 Jobs"
Aerial view of Ansan Science Valley in Sadong, Ansan City, designated as Gyeonggi Free Economic Zone. Provided by Ansan City
A free economic zone is a special economic district designed to foster national strategic industries by attracting foreign investment. To bring in companies, it offers a range of incentives such as location benefits, tax reductions, and streamlined administrative procedures. In addition to establishing international schools and other foreign educational institutions, large-scale mixed-use development is also possible.
The city expects that this designation will generate an economic impact of approximately 2.2229 trillion won and create 11,848 jobs.
The newly designated free economic zone in the ASV area covers 1,660,000 square meters in San 166, Sadong, Sangnok-gu. The area is home to Hanyang University ERICA campus, which serves as a hub, as well as Gyeonggi Technopark, Korea Institute of Industrial Technology, Korea Testing Laboratory, Korea Electrotechnology Research Institute, and numerous small and medium-sized enterprises.
The city plans to leverage these research and innovation capabilities to develop the free economic zone with a focus on advanced industrial research and development (R&D).
Excellent Rail Accessibility... No Land Acquisition Issues as Land is Owned by the City and Hanyang University
Lee Mingeun, mayor of Ansan City, is explaining the development plan for the Ansan Science Valley area during the evaluation by the Gyeonggi Free Economic Zone designation assessment team held in July. Provided by Ansan City
The ASV area is highly regarded for its accessibility to Seoul. Once the new Shinansan Line, currently under construction, opens, it will take only about 25 minutes (via express service) to travel from Hanyang University Station to Yeouido. Its proximity to the Banwol and Sihwa Industrial Complexes, the largest national industrial complexes in Korea, also provides abundant industrial infrastructure.
Another advantage is that the development site is owned by the city and Hanyang University ERICA, allowing for fast and cost-effective development without the need for land acquisition procedures.
Lee Mingeun, mayor of Ansan City, stated, "The designation as a free economic zone will create a significant number of jobs and foster a startup ecosystem focused on future industries such as robotics. We will also actively work to attract international schools and foreign-invested companies."
Starting next year, the city plans to embark on full-scale development procedures, including feasibility studies and detailed design, laying the groundwork to become a global hub for advanced industries in the future.
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