Yangjae and Gaepo Areas Designated as 1.58 Million Square Meter ICT Special Development Promotion District

Seocho District Establishes an Industrial Belt Connected to the AI Special Zone

Seocho District in Seoul (District Mayor Jeon Seong-su) announced on January 22 that, as a result of the Seoul City Urban Planning Committee review held on the 21st, the areas of Yangjae-dong in Seocho District and Gaepo-dong in Gangnam District have been integrated and designated as the "Yangjae·Gaepo ICT Special Development Promotion District."

The total area covers 1,578,710 square meters, consisting of 1,114,662 square meters in the Yangjae area and 464,048 square meters in the Gaepo area. Although the administrative districts are different, this is the first case where areas with similar industrial characteristics and adjacent residential and work zones have been integrated and designated as a single promotion district, reflecting their regional features.

Location map of Yangjae and Gaepo ICT Specific Development Promotion District. Provided by Seocho District.

With this designation, a large-scale Artificial Intelligence and Information and Communication Technology (AI·ICT) industrial belt has been established, organically connecting the existing "Yangjae AI Future Convergence Innovation Zone" (390,000 square meters) in the Yangjae and Umyeon areas. The Yangjae 1-dong and 2-dong areas are home to over 350 small and medium-sized enterprises (SMEs) related to AI·ICT, and can be linked with the nearby Yangjae AI Zone. As a result, the area met the requirements for designation in terms of industrial concentration, growth potential, and strategic value.

This achievement comes a decade after the announcement of the "Yangjae Tech+city Development Plan" in 2016, and is the result of four years of preparation and procedures following the "Yangjae AI Innovation District Revitalization Plan" announced by Seoul City in December 2021.

The Special Development Promotion District is designated by Seoul City for areas with a high concentration of specific industries or those that require the fostering of strategic industries. Various incentives are provided to companies operating in the recommended industries within the district, including tax reductions, loan financing, and the easing of urban planning restrictions.

The recommended industries consist of 29 sectors, mainly focused on AI·ICT-related fields such as game software development and supply, and system software development and supply. Companies operating in these recommended industries are eligible for SME loan support, with access to up to 10 billion won in construction funds, up to 800 million won in move-in funds, and up to 500 million won in management stabilization funds through Seoul City's SME Development Fund.

In addition, Seocho District will provide further support through the "Seocho District SME Development Fund Loan Support Program," offering ultra-low interest loans (variable rate) at an annual rate of 0.8% for up to 50 million won per company, or through the "Seocho District Small Business Express Loan Support Program," which offers loans of up to 50 million won at a rate of CD interest rate plus 0.15%.

Furthermore, a basis has been established for granting a maximum 120% floor area ratio relaxation benefit depending on the proportion of recommended industries attracted. Grounds have also been laid for promoting local tax reductions, such as acquisition tax and property tax.

The district is also pursuing the establishment of a (tentatively named) "Artificial Intelligence Development Center" to support AI·ICT companies within the Special Development Promotion District. The project is currently in the design phase with the goal of completion in 2027. The center will provide affordable office space for companies and run programs supporting the full range of corporate activities, including technology development, commercialization, management, and marketing.

Seocho District Mayor Jeon Seong-su stated, "The designation of the Yangjae·Gaepo ICT Special Development Promotion District is the result of Seocho District's consistent policies to foster the AI·ICT industry," adding, "We will not stop at designation but will continue to provide tangible support in terms of space, infrastructure, and systems, ensuring that Seocho grows into a leading AI·ICT industry hub representing Korea."