Seoul to Restructure 'Promotion Districts' in Response to Strategic Industries

Promotion Districts 2.0: Adapting to Shifts in Strategic Industries
Yangjae-Gaepo ICT and Seongsu Culture Contents Promotion Districts
Responding to Industrial Structure Changes Toward Advanced Industries

The Seoul Metropolitan Government is reorganizing its promotion districts to respond to changes in the industrial structure. The system was introduced to foster industries concentrated in specific regions, but the shift toward strategic sectors such as artificial intelligence (AI) and biotechnology has prompted the need for change.

To this end, on January 22, the Seoul Metropolitan Government newly designated the Yangjae·Gaepo ICT (Information and Communication Technology) Specific Development Promotion District and expanded the Seongsu IT Industry and Distribution Development Promotion District to cover the entire quasi-industrial zone. The city approved this plan at the 1st Urban Planning Committee meeting held the previous day.

Location map of Yangjae·Gaepo ICT Specific Development Promotion District (left) and Seongsu IT Culture Contents Industry and Distribution Development Promotion District. Seoul City

The 'Industrial and Specific Development Promotion District' system, introduced in 2007, has established itself as a unique industrial policy platform for Seoul, as it allows the city to directly designate and support strategic industries regardless of the government's special zone system or regulatory restrictions in the Seoul metropolitan area.

However, out of the 2,330 national industrial clusters designated and operated by the government, only 26 are located in Seoul, such as the Hongneung Advanced Research and Development Special Zone and the Yangjae AI Future Convergence Innovation Special Zone. This has led to ongoing calls for Seoul to utilize its own industrial location system. Moreover, the city has not been able to respond in a timely manner to changes in the industrial structure of areas such as Jongno (precious metals), Mapo (design and publishing), Myeonmok (fashion and sewing), Dongdaemun (oriental medicine), Seongsu (IT), and Yeouido (finance).

The newly designated Yangjae·Gaepo ICT Specific Development Promotion District is a joint initiative between the Yangjae ICT Promotion District, which serves as a hinterland for the Yangjae AI Future Convergence Innovation Special Zone, and the Gaepo ICT Promotion District, formerly known as "Poe Valley," which led the venture boom in the 2000s. Together, they have been designated as a promotion district.

The Seongsu IT·Culture Contents Industry and Distribution Development Promotion District reflects the increase in design, media, and fashion companies in the area from Ttukseom to Seongsu Station. The project will be pursued in a way that expands the local industrial ecosystem by combining the existing IT industry with the culture contents industry.

Going forward, the city plans to conduct a fact-finding survey on the currently operating promotion districts. Based on the results, it will commission policy research and establish a direction for institutional reform within the first half of the year. The city also intends to conduct a survey of companies and stakeholders within the promotion districts regarding awareness of the districts, the need to improve designated and recommended industries, the effectiveness of industrial revitalization projects, and possible incentives and other policy support measures.

Lee Sooyeon, Director General of Economic Policy at the Seoul Metropolitan Government, stated, "The Industrial and Specific Development Promotion District system is a policy tool that enables Seoul to foster promising industries in regions with high growth potential, thereby promoting balanced development between the Gangnam and Gangbuk areas. We will actively support the growth of specialized industries in each district to further enhance Seoul's industrial competitiveness."