'Sewoon Comprehensive Measures' Released... Creation of Public Industrial Hub and 'Sunset Zone' Lifted and Regenerated (Comprehensive)

Sunwoo Redevelopment Promotion District's 152 Expired Redevelopment Zones Transition to Regeneration
Eight New Public Industrial Hubs Established... Over 700 Public Rental Stores Provided for Relocated Merchants
11 Redevelopment Projects in Seun District and Supyo Area to Implement Tenant Measures Before Circular Redevelopment
Administrative Procedures for Expiry to Complete by April... Urban Regeneration Activation Plan to Be Established Within the Year

[Asia Economy Reporter Kim Yuri] The Seoul Metropolitan Government is shifting the future management direction of the Sewoon Shopping Complex area, which had been focused on 'development and maintenance,' to 'preservation and regeneration.' The ultimate goal is to transform it into a hub for urban manufacturing industries that harmonizes the preservation and innovation of the existing industrial ecosystem. Previously, the Sewoon Shopping Complex group (seven buildings from Sewoon to Jinyang Shopping Complex) successfully settled as a regeneration case, fueled by the influx of youth and the 'Hipjiro' trend, and the plan is to revitalize the stagnant area through industrial regeneration.

The plan aims to preserve the existing industrial ecosystem by revitalizing urban manufacturing industries in the Sewoon Shopping Complex area, which holds the region's history and identity, while simultaneously striving for innovation in existing industries through fostering new industries. The public sector will invest resources and utilize available sites to support industrial hub spaces and programs for the resettlement of existing small business owners and the cultivation of new industries.

To this end, among the 171 maintenance zones in the entire Sewoon Redevelopment Promotion District, 152 zones where projects have not been pursued past their sunset date will have their maintenance zone status lifted according to the Urban and Residential Environment Maintenance Act. These zones will transition to a regeneration-style management approach through resident consultations.

The 11 zones in the Sewoon District where maintenance projects are underway and the nearby Supyo maintenance zone, where tool shops are concentrated, will protect the industrial ecosystem through 'gradual and cyclical' maintenance projects. Maintenance projects will commence after preparing tenant relocation measures.

Eight new industrial hub spaces will also be created. Public rental complex facilities and smart anchor facilities reflecting the industrial site characteristics of each zone, such as machinery and precision, industrial materials, and printing, will be established. A significant portion of these spaces will be public rental shops (over 700 units) offered at rents lower than the surrounding market rates to ensure stable business bases for small business owners relocating due to maintenance projects. The remainder will be developed as spaces for fostering new industries, such as youth startup support facilities.

On the 4th, the Seoul Metropolitan Government announced the 'Sewoon Shopping Complex Area Urban Industry Preservation and Revitalization Measures,' marking one year and one month since the review announcement of the Sewoon Redevelopment Promotion District maintenance project in January last year. The city explained that it completed the measures after more than 80 discussions, surveys, and interviews with merchants, landowners, project implementers, and experts.

The city changed the Sewoon Redevelopment Promotion Plan (2009), which initially planned to demolish the Sewoon Shopping Complex group and conduct large-scale integrated development of eight surrounding zones, to a plan dividing the 171 medium and small zones for segmented development. The intent was to preserve and regenerate the architecturally and regionally valuable Sewoon Shopping Complex group while inducing gradual development of the deteriorated surrounding areas considering the existing urban structure. However, as maintenance projects proceeded in earnest under the revised Sewoon Redevelopment Promotion Plan (2014), criticisms arose that the preservation of the urban industrial ecosystem within the area was insufficiently considered. Accordingly, the city reviewed the plan to supplement its shortcomings and re-examine the area's historical characteristics and future potential.

The comprehensive measures are promoted under the vision of 'innovating the Sewoon Shopping Complex area's industrial ecosystem and creating a 24-hour enjoyable urban industry innovation hub,' focusing on three main points: ▲Protecting existing industries·Industrial regeneration through innovation and fostering new industries ▲Lifting maintenance zone status for 152 zones where projects were not pursued and promoting regeneration projects ▲Implementing maintenance projects after establishing effective tenant measures (11 zones in Sewoon District, Supyo zone), among others.

◆ Establishment of 8 new public industrial hubs for industrial preservation and revitalization... Over 700 public rental shops to be supplied = To promote industrial regeneration, eight new public industrial hubs will be created, supporting programs such as one-stop prototype development services and Meister Schools for technology transfer. In the deregulated areas within Sewoon 5 Zone, a pilot project for 'Industrial Alley Regeneration' will be implemented, simultaneously improving the aging environment and expanding living SOC (social overhead capital). The designation of the Ministry of SMEs and Startups' 'Urban-type Small Business Cluster District,' which can receive various special supports including financial aid, will also be pursued by selecting appropriate target sites.

The eight public industrial hubs will be developed jointly by the Seoul Metropolitan Government, Jung-gu District, Seoul Housing and Communities Corporation (SH), and Korea Land and Housing Corporation (LH), utilizing public land and donated land to create hub facilities suited to the characteristics of each zone. Public rental shops for existing tenants, youth startup support facilities, living SOC such as restrooms and shower rooms, and shared workshops will be established. The public rental shops will offer rents lower than market rates to resolve the gentrification (tenant displacement) issue.

Industrial regeneration programs will also be introduced. Various collaborative projects will be attempted to inject new vitality through cooperation between existing industries and advanced technologies such as IoT and 3D printers, as well as young designers. To support the work activities of small business owners, youth newly settling in the Euljiro area, and cultural and artistic workers, vacant spaces will be utilized for shared workspaces and equipment rental. For existing industry innovation, prototype development support services will be established, and Meister Schools for technology transfer will be newly created. Educational programs will also be introduced to help existing small business owners learn new fields such as management and new technologies.

In the deregulated areas within Sewoon 5 Zone, the Industrial Alley Regeneration pilot project will be promoted. SH Corporation will purchase small vacant lots such as empty houses to implement the project. Street environments will be improved through road paving and expansion of fire safety facilities, and hazardous aging facilities will be demolished. Living SOC such as restrooms and shower rooms will be expanded. Vacant shops will be converted into shared workshops to serve as hub spaces within the alleys.

The designation of Urban-type Small Business Cluster Districts will also be pursued. These districts are designated by the Minister of SMEs and Startups upon request from city or provincial governors when the number of urban-type small businesses in the same industry exceeds the administrative district standard (more than 50 per neighborhood). Designation allows access to special funds for technology development and market expansion, and infrastructure such as joint exhibition halls, sales venues, workshops, and logistics warehouses is supported. On-site Small Business Specialized Support Centers provide services such as management and technical education, new technology consulting, joint projects, and market development.

◆ Lifting of maintenance zone status and regeneration for 152 zones past sunset date within Sewoon Redevelopment Promotion District = Among the 171 zones in the Sewoon Redevelopment Promotion District, 152 zones will have their maintenance zone status lifted according to the Urban Maintenance Act and transition to regeneration projects. These are zones where five years have passed since the designation in March 2014 without project implementation approval applications. The 152 zones include ▲35 zones in Sewoon 2 Zone ▲2 zones in Sewoon 3 Zone ▲9 zones in Sewoon 5 Zone ▲106 zones in Sewoon 6-1, 6-2, 6-3, and 6-4 Zones. The final decision on lifting will be made through the Seoul City Urban Redevelopment Committee's review.

The deregulated areas will be managed through regeneration methods such as urban regeneration activation projects. The city will reinforce poor basic infrastructure such as restrooms and fire safety facilities and support parking lot expansion, road, and pedestrian environment improvements. It plans to induce individual building activities through relaxed building regulations and building agreements to enable facility improvements.

◆ Cyclical maintenance for 11 zones in Sewoon District and Supyo maintenance project zones = For zones where maintenance projects are underway, the principle is to proceed with maintenance projects after establishing effective tenant measures. This reflects the voices of merchants gathered through surveys and interviews during the comprehensive plan development. Merchants cited 'ease of material and resource procurement' and 'public transportation accessibility' as advantages of the Sewoon area, while 'relocation or closure of related businesses' and 'high rents' were noted as disadvantages. Tenants in zones with ongoing maintenance projects expressed a desire for measures such as relocation expenses or temporary business sites.

The city plans to accommodate relocation demand resulting from maintenance projects by supplying public rental shops in each zone through the establishment of eight industrial hubs and actively respond to demand changes by converting public land into industrial facility sites and constructing public rental complex facilities. The city will discuss various alternatives with project implementers in each zone, considering actual relocation demand, to prepare measures. During project execution stages such as project implementation approval and management disposition approval, a prior consultative body will be formed to discuss more specific provisions for tenant spaces.

For Sewoon 3 Zone (3-6,7), which is approaching management disposition, the project implementer plans to provide tenants with temporary business sites and then relocate them next year to a knowledge industry center (about 100 units) jointly developed by the Seoul Metropolitan Government and LH in Sewoon 5-2 Zone. Temporary business sites will be created by installing alternative business sites within existing buildings and along roads in the zone. For Sewoon 5-1 and 5-3 Zones, where project implementation approval has been applied for, the project implementer will donate the project site and buildings, and in the Supyo zone, public rental shops will be established on donated land to accommodate tenants.

Other zones with project implementation approval applications must secure sufficient temporary business sites for tenants during the maintenance project period and establish and implement tenant measures considering the industrial characteristics of each zone, such as industrial specialized spaces and public contribution plans that can accommodate existing industries. The city plans to support public brokerage services such as vacant shop mediation for businesses that do not wish to move into public rental shops.

Meanwhile, Eulji Myeonok in Sewoon 3-2 Zone has maintained a principle against forced demolition and has consulted with owners and project implementers on preservation measures, but due to differing opinions among parties, continuous consultation will be conducted during the maintenance project process to decide.

The Seoul Metropolitan Government plans to complete administrative procedures related to the sunset date by April and proceed with the Sewoon Redevelopment Promotion Plan amendment process, aiming to finalize it by October. To stably implement the comprehensive measures, the city plans to establish the 'Sewoon Shopping Complex Area Urban Regeneration Activation Plan' within the year, incorporating related content. In the future, a public-private governance system will be built to continuously discuss with local merchants, organizations, project implementers, and related institutions during the project plan concretization process to enhance resident participation and project execution capability.

Mayor Park Won-soon said, "With these comprehensive measures, we expect to induce maintenance projects with strengthened public interest and equip ourselves with the execution power to preserve the urban industrial ecosystem that was at risk of collapse. We will promote regeneration projects to protect the existing industrial ecosystem such as small business owners while creating new high value-added content combined with the region through the influx of youth and new industries."

This content was produced with the assistance of AI translation services.