Seoul Yangjae Area to Fully Develop 'Global AI Industry Innovation Hub'... Special Zone and District Designation Underway

Announcement of the 'Yangjae AI Innovation District Activation Plan'... Ushering in the Yangjae Era as Korea's Leading AI Industry
Promotion of AI Special Zones and ICT District Designation... Incentives Including Floor Area Ratio Relaxation and Tax Benefits

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government is set to actively develop the Yangjae area into a global innovation hub for the artificial intelligence (AI) industry, based on the Fourth Industrial Revolution. With the confirmed relocation of the long-stalled 'Yangkok Wholesale Market' site, the city plans to accelerate the creation of an AI industry-academia-research ecosystem, including the construction of public anchor facilities.

On the 21st, Seoul announced the 'Yangjae AI Innovation District Activation Plan,' which focuses on ▲ revitalizing the AI industry through special zone and district designations ▲ creating an AI industry ecosystem by establishing infrastructure such as public anchor facilities ▲ enhancing the efficiency of proximity between residences and workplaces for research institutes and companies through residential environment improvements.

Seoul aims to establish the Yangjae area, where major corporate research centers such as Samsung, Hyundai, LG, KT, and over 280 small and medium-sized enterprise-affiliated research centers are concentrated, as the definitive 'Yangjae era' representing Korea's AI industry by building public anchor facilities and designating special zones and districts.

Yangjae AI·R&D Campus Space Plan (Draft)

Following the establishment of the ‘AI Yangjae Hub,’ an AI technology startup incubation institution, in 2017, 2023 will see the opening of the ‘KAIST AI Graduate School’ for AI talent development and the ‘AI Support Center’ for startup incubation. In 2027, the ‘AI·R&D Campus,’ the core public anchor facility, will open on the relocated Yangkok Wholesale Market site, simultaneously housing 540 AI companies. Additionally, 300 public housing units will be supplied to create an environment where AI professionals can live and work.

In particular, Seoul is also pushing for the designation of the Yangjae area as a ‘Regional Specialized Development Special Zone’ and a ‘Specific Development Promotion District’ to attract competitive companies, research institutes, and talent. If designated as a special zone, floor area ratio relaxations will be granted when expanding AI and R&D facilities, and if designated as a district, incentives such as tax benefits will be provided.

Meanwhile, the city plans to prepare detailed functions and linkage plans for infrastructure such as public anchor facilities and private R&D facilities within the ‘Yangjae AI Innovation District’ to encourage the expansion of R&D facilities during large-scale private land developments in the Yangjae area. The related study will be conducted by the Seoul Institute next year.

Hwang Bo-yeon, Director of Seoul’s Economic Policy Office, said, “We have so far laid the groundwork for creating an AI innovation hub and established a foundation for nurturing innovative companies and talent. Over the next five years, we will focus on building core anchor facilities for the AI industry and fostering a competitive industry-academia-research ecosystem.” He added, “We will support the entire industrial cycle?from AI talent development to attracting competitive research institutes and corporate growth?so that Yangjae can become the focal point of Korea’s AI industry and a global innovation hub, creating a ‘Seoul-style AI industry ecosystem’ that competes in the global market.”

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