Building Houses in Semi-Industrial Zones... "Then Factories Have No Choice but to Close"

An industrial complex located in Mullae-dong, Yeongdeungpo-gu, Seoul.

[Asia Economy Reporter Song Seung-seop] "Redevelopment project? Then we have to shut down the factory." (A welding shop owner in Mullae-dong, Seoul)

As the redevelopment project for semi-industrial areas, proposed by Land, Infrastructure and Transport Minister Byeon Chang-heum as part of the plan to expand urban housing supply, is gaining momentum, attention is focused on whether the project will succeed. The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced the day before that they will start a public-private joint contest for the 'Semi-industrial Area Circulation Redevelopment Project' from the 7th. The circulation redevelopment project involves providing relocation options to owners or tenants of buildings to be demolished and constructing new buildings on the site. An 'Anchor' facility that can accommodate industrial facilities will be built nearby, and residential facilities will be constructed on vacant factory sites.

In particular, the circulation redevelopment project being promoted this time involves public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH) participating as joint developers with landowners to create mixed industrial and residential spaces in aging semi-industrial areas. The city has already amended urban planning ordinances to reduce the industrial land ratio from 50% to 40% to expand residential facilities.

Fear of Losing Livelihood... More Concern than Expectation

However, the response on the ground was lukewarm. When the reporter recently visited the semi-industrial area in Mullae-dong, Yeongdeungpo-gu, Seoul, the atmosphere was more concerned than hopeful. This was due to worries that development might cause people to lose their place of livelihood.

Yang Mo (51), who has been doing sheet metal work in Mullae-dong for over 15 years, said, "Factory work mostly generates noise and dust, so it is difficult to harmonize with residential areas," adding, "We have to move to other facilities, but since that is not easy, we will have no choice but to quit work."

In fact, the Yeongdeungpo District Office recently encouraged some old factories to move into nearby knowledge industry centers during redevelopment, but businesses say this is unrealistic. Choi Mo (63), who runs a metalworking shop in the area, criticized, "Many factories use heavy machinery, so moving costs alone would be tens of millions of won," and added, "Because the machines cause noise and vibration when operating, it is difficult to move into buildings above the second floor."

"Premature Changes Cause Loss of Original Function and Side Effects"

The response was similar in the Onsu Industrial Complex in nearby Guro-gu. Mr. B, who runs a hardware store in Onsu Industrial Complex, said, "This place should focus not on how many houses to build but on how to further activate industry," and pointed out, "It is more urgent to ease regulations to allow expansions for modernization of aging industrial facilities." A factory owner in the area also said, "Most factories have large machinery installed, so relocation to knowledge industry centers or anchor facilities is an unrealistic option."

Experts also say that premature changes that convert industrial areas into residential areas may cause side effects such as losing their original functions. Professor Kim Ji-yeop of the Department of Architecture at Sungkyunkwan University mentioned at a public hearing of the National Assembly Land, Infrastructure and Transport Committee held in September last year, "In some cases of industrial area development, knowledge industry centers are built by changing land use zones, but the problem is that the industrial area loses its essential functions," adding, "In the U.S., there are incentives to prevent industrial area building owners from converting their properties into more profitable neighborhood living facilities or residential areas."

Professor Lee Young-sung of Seoul National University Graduate School of Environmental Studies also criticized, "There has been no management or support plan for industrial areas in Korea so far," and pointed out, "Many problems occur during the process of converting industrial areas to other uses."

Current Status of Semi-Industrial Areas in Seoul City

At a factory in Onsu Industrial Complex, Guro-gu, Seoul, various machinery and equipment are being used to stack materials high.

What is a Semi-industrial Area?

A semi-industrial area is a zone within industrial areas that accommodates light industries or factories with low environmental pollution. Unlike exclusive industrial areas and general industrial areas, residential, commercial, and office facilities can be established. Currently, Seoul's semi-industrial areas total 19.98 million square meters, mainly concentrated in the southwestern region, including ▲Yeongdeungpo-gu (5.025 million m²) ▲Guro-gu (4.28 million m²) ▲Geumcheon-gu (4.12 million m²). Seongdong-gu also has 2.05 million m² designated. These areas provided important job bases during the growth period of the 1970s and 1980s but have gradually lost their functions and become aging due to industrial advancement.

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