Gwangju City to Convert Gwangyong Industry Cluster Complex to Sale... Announcement in May

Resolving a Decade-Long Wish of Resident Companies... Expecting a New Leap in the Optical Industry through Strengthened Self-Reliance

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 12th that it will initiate related procedures to allow tenant companies to purchase leased land within the Optical Convergence Industry Cluster Complex if they wish.

The Optical Convergence Industry Cluster Complex was established to foster the optical industry as a key regional industry by purchasing part of the industrial complex within the Advanced Science Complex 1 from the Korea Land and Housing Corporation between 2000 and 2008. The goal was to make Gwangju the center of advanced industries in South Korea with this site as a hub.

Until now, Gwangju City converted the Optical Convergence Industry Cluster Complex to sale once and leased the remaining land to tenant companies. However, the tenant companies have complained about difficulties in securing funds for facility investment and technology development due to the lack of land ownership.

Accordingly, during the 7th local government administration, a channel was established to resolve citizen inconveniences and listen to the suggestions of businesspeople. As a result, there was consensus on the importance of investment to adapt to the rapidly changing industrial structure and the urgent need for funding for tenant companies facing crises due to COVID-19. Therefore, it was decided to sell the leased land in the Optical Convergence Industry Cluster Complex. This has also been a long-standing wish of tenant companies over the past decade.

Gwangju City plans to promote sales targeting tenant companies that have fulfilled the five-year mandatory lease period as of the end of October, after going through the Shared Property Deliberation Committee and the Gwangju City Council’s Shared Property Management Plan review.

The sales announcement is scheduled to be posted in the city’s notice and announcement section in May.

The sales price will be the arithmetic average of the appraised values evaluated by two appraisal agencies, averaging about 330,000 KRW per square meter.

Tenant companies that meet the qualifications, such as completion of the mandatory lease period, engagement in optical convergence industries, and full payment of rent, will be eligible to apply for the purchase of the respective land.

Son Kyung-jong, Director of the City’s Artificial Intelligence Industry Bureau, said, “If the sales procedures are completed as planned by the end of December 2021, Gwangju City will secure 35 billion KRW in revenue, which can be effectively invested in related industries. The 37 companies that purchase the land will have financial relief for investment, providing an opportunity to further strengthen their corporate competitiveness.”

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