Gaepo 4-dong 'Poe Valley' Designated as ICT Specific Development Promotion District

Gangnam-gu to Establish a Future Industry Corridor Connecting Suseo, Gaepo, Samseong, and Teheran-ro

Gangnam-gu, Seoul (Mayor Cho Sungmyung) announced on January 22 that the proposal to designate the 'Gaepo 4-dong ICT Specific Development Promotion District' passed the final review by the Seoul City Urban Planning Committee on January 21, paving the way for the full-fledged revitalization of 'Poe Valley,' which was once a cradle for venture businesses.

This designation is the result of an integrated strategy for the 'Yangjae-Gaepo ICT Specific Development Promotion District,' which spans a total area of 1.58 million square meters, covering Seocho-gu (1.114 million square meters) and Gangnam-gu (464,000 square meters). After Yangjae was selected as a target area in December 2021, the Gaepo 4-dong area was added in February 2023. Following the decision in April 2024 to pursue a unified designation for the Yangjae-Gaepo district, the two districts completed the development plan, transportation and landscape reviews, and a strategic environmental impact assessment, successfully passing the urban planning review process.

Location map of Gaepo ICT Specific Development Promotion District (yellow). Provided by Gangnam-gu.

Gaepo 4-dong was known as 'Poe Valley' in the 1990s and 2000s, where Korea's first venture town emerged organically. Its strengths include high accessibility to Teheran-ro and relatively affordable rental prices.

Gangnam-gu is home to 4,069 businesses related to artificial intelligence and information and communication technology (AI·ICT), employing 123,187 people. The district accounts for 25% of all such employees in Seoul, the highest among the city's 25 districts. Currently, Gangnam-gu has a concentration of startup support infrastructure, such as the Employment and Startup Hub Center, Tipstown, and Maru360, mainly in the Teheran Valley area, and is also promoting the creation of a robotics cluster in the Suseo and Segok districts.

Synergy with neighboring areas is also anticipated. The Yangjae and Umyeon areas are home to clusters of major corporate R&D centers, while the Yangjae AI Hub hosts more than 100 startups. Gaepo-dong is strategically located between Teheran Valley and the Yangjae AI Innovation District, making it an ideal spot to connect talent, space, and programs.

Following the district designation, the process of establishing a district unit plan will proceed. Once this stage is completed, urban planning regulations such as building coverage ratio, floor area ratio, and building height will be eased for industrial facilities in recommended sectors like AI and ICT. Additional support measures, such as tax benefits and financial loans, are also expected to be specified.

The district plans to support business activities by integrating the establishment of an operations support center, financial and management assistance, investment attraction, talent development, employment and startup support programs, and network and collaboration support. It will also upgrade urban infrastructure, including sidewalks and parking, to foster a growth-friendly environment. Furthermore, the district aims to create a growth corridor connecting Suseo, Gaepo, Samseong, and Teheran-ro (AI, R&D, robotics, and MICE industries).

Mayor Cho Sungmyung of Gangnam-gu stated, "The designation of the Gaepo 4-dong ICT Specific Development Promotion District marks the starting point for reconnecting Poe Valley's potential with the industrial ecosystem," adding, "By simultaneously supporting business growth and upgrading infrastructure, we will gradually establish a future industry corridor linking Suseo, Gaepo, Samseong, and Teheran-ro."