[2020 National Audit] 4,530 Idle Factories After Sale in National Industrial Complex

More than 50% of Companies Inactive in 6 National Industrial Complexes
Industrial Complex Corporation Issues Only 206 Contract Cancellations... Factor in Productivity Decline

Yeosu National Industrial Complex. Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] It has been revealed that a total of 4,530 factories in national industrial complexes have never operated despite having acquired land for sale. There are six industrial complexes where non-operating factories account for more than 50% of the total, confirming the lax management of national industrial complexes.

On the 13th, Choi Seungjae, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee from the People Power Party, announced at the national audit that there are a total of 4,530 companies with completely non-operating factories in industrial complexes, and six complexes where non-operating factories exceed 50% of the total.

Specifically, these complexes include Pohang Blue Valley, Gwangju Bitgreen Industrial Complex, Janghang National Ecological Industrial Complex, and the National Food Cluster. The largest complex, Seoul Digital Industrial Complex, which houses about 12,000 companies, also revealed that over 12%, approximately 1,450 companies, are completely non-operating.

Over the past decade, the operating rate of national industrial complexes has steadily declined. In May, it dropped to 70%, threatening the operating rate. There is also a significant regional disparity in operating rates. Jinhae Industrial Complex has an operating rate of 29%, while Onsan Industrial Complex is at 89%, showing extreme variation. The operating rate of the large and accessible Seoul Digital Industrial Complex was only 58%.

In particular, the Korea Industrial Complex Corporation, which manages the national industrial complexes, has been criticized for neglecting to take action despite the related law (Industrial Direct Activation and Factory Establishment Act) allowing contract termination if a non-operating company does not start factory construction within one year or does not begin business within one year after factory completion.

Looking at the contract termination status by the Industrial Complex Corporation, there has been only one administrative disposition and 205 cancellations by authority. Considering there are a total of 4,530 non-operating companies, this is interpreted as a very passive measure.

Assemblyman Choi said, “The Industrial Complex Corporation is not actively exercising its right to terminate contracts,” adding, “As a result, even healthy companies wishing to enter the industrial complexes are deprived of opportunities, hindering the revitalization and productivity of the complexes.”

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