Memories of the Old and Declining Industrial Complex... 'Sasang Smart City' Development Project Sets Sail

Announcement of Regeneration Project District Plan to Promote Seobusan Centum City
Busan's New Future Growth Engine, Innovation Industrial Complex, Officially Launched
Selected as Priority Regeneration Project District by Ministry of Land in 2009

Busan Sasang Smart City Conceptual Image.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The old Sasang Industrial Complex in Busan is undergoing a complete transformation. The development of the ‘Sasang Smart City,’ which will open a new future for the western Busan area, has set sail.

Busan City announced on the 15th that the ‘Sasang Smart City Regeneration Project District Plan’ was approved as originally proposed by the Industrial Complex Planning Deliberation Committee (September 21, 2020) and was finally approved and officially announced (October 14, 2020).

This announcement marks the first action in 11 years since ‘Sasang Smart City’ was selected as a priority regeneration project district by the Ministry of Land, Infrastructure and Transport in 2009.

Unlike the ‘pre-negotiation type district unit planning system,’ the ‘Regeneration Project District Plan’ allows the construction of support facilities immediately after the announcement with the changed land use plan. The land price increase contribution fee arising from the land use plan change must be calculated directly by the landowner at the time of building permit application and paid before construction begins.

Although Busan City faced significant financial difficulties after the Ministry of Strategy and Finance cut 14.9 billion KRW from the total project cost of 164.7 billion KRW in March this year, the collection of land price increase contribution fees estimated at 500 billion KRW has facilitated smooth funding and opened the way for project promotion.

The land price increase contribution fees are planned to be used for compensation costs for four parks (parking lots) that do not receive national funding.

The ‘Sasang Industrial Complex’ was designated as an industrial area in the 1960s and grew into Busan’s largest industrial area with labor-intensive export industries such as footwear and machinery equipment. However, the decline of traditional core industries and aging infrastructure caused serious urban problems such as pollution and noise, making it a representative target area for urban regeneration.

With the announcement of the regeneration project district plan, Busan City plans to develop the ‘Sasang Industrial Complex’ into the ‘Centum City of Western Busan.’

▲ The goals include industrial structure reorganization such as upgrading industries ▲ expansion of support facilities and infrastructure such as roads, subways, parks, and green spaces ▲ and creation of quality jobs.

In December last year, the site purchase and building demolition of the ‘Administrative Complex Town,’ designated as an activation zone within Sasang Smart City, were completed, and after soil contamination surveys, it is scheduled to be completed in 2025.

In July this year, the ‘Industrial Complex Imagination Hub Project,’ which utilizes the ‘closed factory (Daeho PNC)’ within the Sasang Industrial Complex to create a ‘public rental industrial center,’ ‘Hope Shopping Street,’ and ‘Busan Citizen Innovation Park,’ was selected as a Ministry of Land, Infrastructure and Transport public contest project and will be fully implemented from the end of next year.

Once the urban railway between Sasang and Hadan, currently under construction in this area, is completed, accessibility for citizens is expected to improve significantly.

Byun Sung-wan, Acting Mayor of Busan, said, “When the over 60-year-old old industrial complex is reborn as a cutting-edge innovation industrial complex leading the 4th Industrial Revolution, it will become one of the two major pillars driving Busan’s industry alongside the Centum City in eastern Busan.”

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