Pohang Blue Valley National Industrial Complex, Additional 300,000㎡ Designated for Lease Only

Rent is affordable at about 1% of development cost
Mandatory 5-year lease period, but up to 50 years possible

Location map of the Pohang Blue Valley National Industrial Complex Rental-only Industrial Complex (Phase 2) (Source: Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 16th that it has designated a 300,000㎡ rental-only industrial complex in the Pohang Blue Valley National Industrial Complex.

According to the status of the first rental applications last month, a total of 13 companies applied for 25 lots, covering 198,000㎡. The resident companies are mainly startups and small and medium-sized enterprises in the steel, metal materials, and battery sectors. Once the companies move in, it is expected to create 565 new jobs, generate sales of 273 billion KRW, and result in construction facility investments of 121.1 billion KRW, producing significant economic effects.

The newly designated complex targets small and startup companies, foreign-invested companies, and overseas returnee companies. The resident industries will primarily reflect regionally specialized related industries such as steel parts, machinery parts, and automobile parts, based on demand.

The rent is about 1% of the cost of development, which is cheaper than other rental-only industrial complexes. The rental period is mandatory for 5 years but can be extended up to a maximum of 50 years.

The government allocated 21 billion KRW in this year’s budget, which is 40% of the land price (sale price) of the rental-only industrial complex, to enable the Korea Land and Housing Corporation (LH), the project operator, to set the rent at about 1% of the cost of development. Subsidies will be provided to LH within this month.

Kim Geun-oh, Director of Industrial Location Policy at the Ministry of Land, Infrastructure and Transport, explained, "Since the Pohang Blue Valley rental-only industrial complex designated this time is a long-term, low-interest rental-only industrial complex, it is expected that small and medium-sized enterprises with insufficient funds will move in first." He added, "Through this, we hope to establish a foundation for technology development and the independence of small and medium-sized enterprises, and create a virtuous economic ecosystem where companies with excellent technology and talented individuals revitalize the regional economy."

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