Behind the 100 Trillion Won Sales of Pangyo 2 Valley Was LH

Establishing Corporate Growth Centers and Continuing 25% Rent Reduction
LH Launches Nationwide Expansion of Pangyo 2 Valley-Type Industrial Ecosystem

The view of Pangyo 2nd Techno Valley Corporate Growth Center.

[Asia Economy Reporter Kangwook Cho] A place where over 1,300 advanced companies and more than 64,000 talents in Information Technology (IT), Biotechnology (BT), Culture Technology (CT), and Nanotechnology (NT) gather. The total sales of companies residing here exceeded 107.2 trillion won (as of 2019), surpassing 100 trillion won by a wide margin. This is the story of Pangyo 2nd Technovalley Urban High-tech Industrial Complex (Pangyo 2 Valley), which has established itself as the "Mecca of Startups."

Korea Land and Housing Corporation (LH) is actively working to expand the Pangyo 2 Valley-type industrial ecosystem.

According to LH on the 1st, LH is planning to build ‘Innovation Growth Centers’ in Daegu and Incheon to spread the Pangyo-type industrial ecosystem nationwide. The ‘Innovation Growth Center’ is a convergence space that provides startups with work, residential, and leisure functions. LH plans to develop the Innovation Growth Centers as public rental startup spaces to attract local youth and talents, and provide resident companies with support programs tailored to the corporate life cycle from ‘startup-growth-leap-rechallenge.’

Along with this, LH has been reducing rents by 25% since April last year for tenant companies in rental industrial complexes facing difficulties in business management such as sales decline and employee employment due to the prolonged COVID-19 pandemic. The rent reduction was originally scheduled to be waived until June this year, but due to the prolonged COVID-19 pandemic, economic recession, and continued decline in manufacturing operating rates, the period has been extended until the end of this year.

LH’s move to expand the Pangyo 2 Valley-type model is based on the judgment that Pangyo 2 Valley is a successful urban high-tech industrial complex that embodies LH’s development know-how accumulated since the 1970s in creating industrial complexes. Urban high-tech industrial complexes provide locations for industries highly dependent on cities such as knowledge industries, cultural industries, and information communication industries, and offer complex functions including production, research, and residential functions.

In fact, the growth of Pangyo 2 Valley is highly evaluated by the industry as being largely due to the ‘Corporate Support Hub’ prepared by LH in this area. Pangyo 2 Valley is a large-scale urban high-tech industrial complex developed in 2014 over 430,000㎡ in the Pangyo New Town area. LH took charge of the site development construction of Pangyo 2 Valley and completed the ‘Corporate Support Hub,’ an 8-story building on a 23,000㎡ site, in 2017. Currently, about 160 startups less than three years old reside here. The following year, LH also established a Corporate Growth Center with an area of 11,000㎡ and 9 floors above ground. This center provides affordable office space to growth companies graduated from startup incubators.

Last year, construction began on three Corporate Growth Center buildings to expand residential and leisure spaces in Pangyo 2 Valley. These include a Smart Work Center (Startup Building) supporting startups, a Restartup Center (Venture Building) for companies in re-challenge and re-startup phases, offering 300 office spaces, and SOHO-type rental housing with leisure and cultural facilities comprising 195 units (Residential Building).

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