[Interview] Ryoo Kyung-gi, Jungnang-gu Mayor: "SH Headquarters Relocation Will Be an Economic Driving Force for Jungnang-gu"

SH Headquarters Relocation to Sinnae-dong: Economic Engine for Jungnang-gu, Symbol and Vision for Balanced Development between Gangnam and Gangbuk... Knowledge Industry Center, Startup Support Center, Fashion Industry Advancement Complex Expected to Create 1,000 Companies and 10,000 Jobs... Establishing Clusters like Jungnang Fashion Support Center to Foster Fashion Sewing as a High-Value-Added Local Industry

[Asia Economy Reporter Jong-il Park] “To leap forward as an economic city, we are focusing on building infrastructure capable of attracting quality companies, strengthening the competitiveness of the fashion sewing industry, which is a key pillar of the local industry, and expanding the economic base.

Ryu Kyung-gi, Mayor of Jungnang-gu, said this in an interview with our newspaper, emphasizing that strengthening the foundation for economic revitalization has been a priority since the beginning of his term.

Jungnang-gu has been developed mainly as a residential area, with weak industrial functions. Over the past three years of the 7th local government term, Jungnang has been building infrastructure to attract companies for rapid economic growth.

The Sinnae-dong area is developing as a new economic hub, while the Myeonmok-dong area is evolving as an economic engine for local industry. The Sinnae IC area and Yangwon district are places of continuous urban expansion, where economic activity efficiency is high due to convenient access to the adjacent IC, low rent, and industrial agglomeration. Jungnang-gu is developing the available land in this area into a ‘high-tech industrial cluster’ to strengthen the foundation as a vibrant economic city.

The Sinnae IC area, aspiring to become a ‘new economic center,’ is promoting the relocation of the headquarters of SH Seoul Housing Corporation, a large public enterprise. In September last year, SH Corporation, Seoul Metropolitan Government, and Jungnang-gu held a signing ceremony at Seoul City Hall to officially promote the relocation. Currently, SH headquarters located in Gaepo-dong, Gangnam-gu, employs about 1,300 resident staff and receives over 100,000 visitors annually. The relocation is expected to have significant economic effects such as job creation and revitalization of the local economy. The SH headquarters relocation will become an economic driving force for Jungnang-gu and is expected to enhance Seoul’s overall development capacity through balanced development between Gangnam and Gangbuk.

Mayor Ryu said, “With construction starting in 2022 and SH headquarters moving in by 2024, local tax revenue in Jungnang-gu will increase first, and the district’s image and recognition will improve, leading to expanded private company investment. Additionally, the increased potential for private investment, corporate promotion, and symbolic value are expected to create great synergy effects for the development of a high-tech industrial complex and company attraction around Sinnae Station, which is currently a key focus.”

Also, in Sinnae 3 District, the ‘Knowledge Industry Center 1,’ a building with four underground floors and 12 aboveground floors, opened in May last year, and a similar-sized ‘Knowledge Industry Center 2’ opened in July this year. Center 1 currently houses 280 companies and creates about 2,100 jobs, while Center 2 is expected to host 350 companies and create about 3,030 jobs. The Startup Support Center, scheduled for completion in 2025, plans to become a representative startup hub in northeastern Seoul by attracting young entrepreneurs and discovering and nurturing new growth businesses. In the Yangwon district, Modainochip, a specialized mid-sized company manufacturing electronic device parts and operating fashion outlets, has been attracted with a total investment of 137 billion KRW to complete a fashion industry advanced complex and a high-tech R&D center by 2024. Once these projects are completed, about 1,000 companies of various sizes are expected to settle in, creating around 10,000 jobs.

The Myeonmok-dong area is also preparing to take off as the Myeonmok Fashion (Sewing) Special Development Promotion District, aiming to become the mecca of Seoul’s fashion sewing industry. Although Jungnang-gu has been developed mainly as a residential area, it has the largest number of fashion sewing companies in Seoul’s 25 districts, with 2,491 companies and about 11,770 workers according to business surveys. This shows the significant role the fashion sewing industry plays in the local economy. Accordingly, during the 7th local government term, the Myeonmok Fashion District is being developed into a fashion sewing industry cluster by securing a project budget of 20 billion KRW in connection with Seoul’s urban regeneration projects, aiming to become the center of Korea’s fashion sewing industry.

First, within the Myeonmok Fashion District, three key spaces are being established as part of the fashion sewing industry cluster: the Jungnang Fashion Support Center (Smart Anchor), a production and collaboration space; the Fashion Sewing Comprehensive Information Center, which supports information provision, startups, and education; and the Startup and Sales Aggregation Center, equipped with design and planning startup spaces and a joint sales exhibition hall.

Among these, the Jungnang Fashion Support Center, a production collaboration hub, had its winning design selected through a design competition last year. Currently, design services and community briefings are underway, with construction planned to start in March next year. The Fashion Sewing Comprehensive Information Center and the Startup and Sales Aggregation Center are also being developed with residents’ input. Additionally, through the launch of the joint brand ‘Popple,’ created in collaboration between local sewing factories and famous designers, the excellence of local fashion sewing companies is being widely promoted, advancing the industry into a high value-added sector.

Mayor Ryu said, “If the fashion sewing industry is revitalized and established as a foundational industry of the local economy, it will not only become a main pillar driving the overall economy of Jungnang-gu but also significantly contribute to local job creation due to its high employment inducement effect.”

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