Will the Sampyo Remicon Factory in Seongsu-dong, Seongdong-gu Relocate After 45 Years?

Seoul City to Proceed with Investment Review and Project for Relocation of Sampo Remicon Factory in Seongsu-dong by June Next Year... Since 2017-10-18, Seoul City, Seongdong-gu, Hyundai Steel, and Sampo Industry Four-Party Agreement Initiates Full-Scale Relocation Work of Sampo Remicon Factory in Seongsu-dong

[Asia Economy Reporter Park Jong-il] The Sampyo Remicon factory near Seoul Forest in Seongsu-dong, a long-standing wish of Seongdong-gu residents, is expected to relocate after 45 years of operation (photo).

Residents of Haengdang-dong and Seongsu-dong across the street have continuously raised issues citing environmental problems since the remicon factory began operations next to Seoul Forest in 1977.

Accordingly, on October 18, 2017, four parties ? Seoul City (Mayor Park Won-soon), Seongdong-gu (District Mayor Jung Won-oh), Hyundai Steel, and Sampyo Industrial ? signed the ‘Agreement on the Relocation of Sampyo Remicon Factory in Seongsu-dong,’ agreeing to relocate the factory by June 2022.

However, following the sudden death of former Mayor Park and the election of Mayor Oh Se-hoon through the April 7 by-election, concerns arose that the relocation of the Sampyo Remicon factory in Seongsu-dong might be abandoned.

Nevertheless, Seoul City has been receiving positive evaluations for actively promoting the project in the interest of consistency.

On the 19th, Kim Hee-geol, Chair of the Urban Planning and Management Committee of the Seoul Metropolitan Council, told reporters, “I recently received a report from the responsible Seoul City department on investment review plans as a measure to promote the project,” adding, “I believe it will go well.”

Currently, the Sampyo Remicon factory site is owned by Hyundai Steel, and the compensation cost is estimated to exceed 450 billion KRW.

Accordingly, Seoul City is reportedly considering upgrading the zoning of the current parking lot area in Seoul Forest to quasi-residential to raise funds for compensation by selling the land.

However, Booyoung, which is promoting the construction of a hotel and residential-commercial complex directly across this site, has expressed opposition citing concerns over the view, making coordination a point of interest.

Booyoung appears to be worried that if another apartment building is constructed in front, the value of the residential-commercial complex will decline, despite having agreed to donate a performance hall and other facilities to Seongdong-gu Office.

If the Sampyo Remicon factory in Seongsu-dong relocates, a world-class cultural park integrating culture and green space is expected to be created on the site.

Meanwhile, Hyundai Motor Group had planned to build a supertall global center exceeding 100 floors on the Sampyo Remicon site before Mayor Oh Se-hoon resigned over the free school meals issue during the 5th local government term. However, the plan was canceled after Mayor Park Won-soon took office and prohibited the construction of supertall buildings along the Han River.

At that time, despite persistent persuasion by Ko Jae-deuk, Seongdong-gu Mayor, the plan failed, and Hyundai Motor Group purchased the Korea Electric Power Corporation (KEPCO) headquarters relocation site with over 10 trillion KRW and is currently constructing its headquarters there.

A Seongdong-gu official said, “If former Mayor Park had allowed Hyundai Motor to build its headquarters at that time, the land acquisition cost would have been saved, and with about 3 trillion KRW in construction costs, a world-class automotive group landmark could have been established along the Han River. It is regrettable.”

Criticism was directed at Hyundai Motor for spending over 10 trillion KRW to purchase the KEPCO headquarters relocation site. It was argued that if such land acquisition costs had been invested in technology development, Hyundai could have quickly risen to become a world-class automaker, but the prohibition on building supertall buildings along the Han River led to the plan’s failure.

In particular, Seongsu-dong is lined with foreign automobile service factories, and the failure to establish Hyundai Motor’s headquarters there is interpreted as a missed opportunity to create an automotive cluster in the area.

- For the Completion of Seoul Forest -

Draft Agreement on the Relocation of Sampyo Industrial Seongsu Factory

The Seoul Metropolitan Government (hereinafter referred to as “Seoul City”), Seongdong-gu, Seoul Metropolitan Government (hereinafter referred to as “Seongdong-gu”), Hyundai Steel Co., Ltd. (hereinafter referred to as “Hyundai Steel”), and Sampyo Industrial Co., Ltd. (hereinafter referred to as “Sampyo Industrial”) agree as follows regarding the relocation and demolition of Sampyo Industrial’s Seongsu Factory (hereinafter referred to as “Seongsu Factory”) and the creation of a park for the completion of Seoul Forest.

Article 1 (Purpose) This agreement aims to stipulate all matters related to the smooth relocation and demolition of the Seongsu Factory and the creation of a park based on mutual trust and sincerity among Seoul City, Seongdong-gu, Hyundai Steel, and Sampyo Industrial.

Article 2 (Basic Principles) Hyundai Steel and Sampyo Industrial shall complete the relocation and demolition of the Seongsu Factory, and Seoul City and Seongdong-gu shall develop the Seongsu Factory site into a park.

Article 3 (Scope of Cooperation) Each party shall cooperate mutually on the following matters to ensure the successful promotion of this project.

1. Seoul City’s cooperation includes the following:

a. Application of reasonable appraisal prices when acquiring or exchanging land for the Seongsu Factory site

b. Implementation of administrative procedures related to park creation

2. Seongdong-gu’s cooperation includes the following:

a. Cooperation and support for administrative procedures related to the relocation and demolition of the Seongsu Factory

b. Cooperation and support for administrative procedures related to park creation

3. Hyundai Steel’s cooperation includes the following:

a. Cooperation and support for the relocation and demolition of the Seongsu Factory and park creation

b. Submission to Seoul City of detailed plans for the disposal of the Seongsu Factory site promptly so as not to hinder the conclusion of subsequent agreements

4. Sampyo Industrial’s cooperation includes the following:

a. Completion of the relocation and demolition of the Seongsu Factory by June 30, 2022

b. Submission to Seoul City of detailed plans for the relocation and demolition of the Seongsu Factory promptly so as not to hinder the conclusion of subsequent agreements

Article 4 (Conclusion of Subsequent Agreements) Each party shall conclude additional agreements by January 31, 2018, on specific matters such as the relocation and demolition of the Seongsu Factory, land appraisal, and performance guarantees. Additionally, Hyundai Steel and Sampyo Industrial shall conclude separate additional agreements on compensation related to the relocation and demolition of the Seongsu Factory within the above period.

Article 5 (Amendment of Agreement) Each party may amend the contents of this agreement through mutual consultation if necessary.

Article 6 (Confidentiality) Each party shall not provide or disclose confidential matters obtained through this agreement to third parties without the consent of the other parties.

Article 7 (Effectiveness, etc.) This agreement shall take effect from the date the representatives of each party sign it. To certify the conclusion of the agreement, four original copies of this agreement shall be prepared, and one copy each shall be kept by “Seoul City,” “Seongdong-gu,” “Hyundai Steel,” and “Sampyo Industrial” after signing and sealing.

October 18, 2017

Seoul Metropolitan Government

Mayor Park Won-soon

Seongdong-gu

District Mayor Jung Won-oh

Hyundai Steel Co., Ltd.

CEO Kang Hak-seo

Sampyo Industrial Co., Ltd.

CEO Hong Sung-won

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