Seoul Yangjae 1·2-dong Area Selected as 'Specific Development Promotion District'... Designation Planned for Next Year

Selection of Yangjae-dong Area as ICT Special Development Promotion Zone → Securing Industrial Sites to Support Corporate Competitiveness
Anchor Facility Construction, Up to 10 Billion KRW Construction Loan Support, Incentives Including Floor Area Ratio and Building Regulation Relaxation

Yangjae ICT Specific Development Promotion District Target Area

[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 30th that it has selected the area of Yangjae 1-dong and Yangjae 2-dong as the "Yangjae ICT Specific Development Promotion District" through the review and resolution of the Industrial and Specific Development Promotion District Deliberation Committee. If this area is finally designated as an ICT Specific Development Promotion District next year, it will become Seoul's 9th 'Industrial and Specific Development Promotion District.'

The Industrial and Specific Development Promotion District is a system introduced by Seoul City in 2007 to create an environment where future strategic industries can be located and to induce the agglomeration of recommended industries through institutional support, thereby developing into an industrial cluster. Once selected as a target area, it undergoes a review by the 'Seoul City Urban Planning Committee' and is finally designated as an Industrial and Specific Development Promotion District.

The Yangjae-dong area has organically formed a startup ecosystem and is also called 'Poi Valley.' It is located as an intermediate linkage point between 'Teheran Valley' and 'Pangyo Techno Valley' via Gangnam-daero and the Gyeongbu Expressway, providing excellent market accessibility.

In particular, the Yangjae 1-dong and Yangjae 2-dong areas are densely populated with over 330 ICT-related small and medium-sized enterprises engaged in telecommunications, machinery manufacturing and engineering, system software, and more. It is expected to serve as a hinterland for innovative technology development and industrial convergence, as it can connect with personnel, technology, and various data nurtured and produced in the nearby Yangjae AI Innovation District.

If this area is designated as a Specific Development Promotion District, a comprehensive support center will be established to attract and revitalize recommended industries, and various support programs such as technology development, management, and marketing will be operated. For SMEs engaged in recommended industries, loans will be provided for construction funds (up to 10 billion KRW), occupancy funds (up to 800 million KRW), and business stabilization funds (up to 500 million KRW).

Additionally, industrial facilities for recommended industry uses within the district will benefit from relaxed building regulations, with a maximum floor area ratio of 120% and building height limits increased by up to 120%. Local taxes can also be reduced. Roads, public parking lots, parks, and other infrastructure will be developed to improve the district's environment and expand basic facilities, along with the creation of resident convenience facilities.

Meanwhile, following the selection of the Yangjae-dong area as a promotion district candidate, Seocho-gu plans to supplement the opinions of the Promotion District Deliberation Committee and officially begin preliminary procedures such as establishing a promotion plan, aiming for final designation of the promotion district in the second half of next year.

Hwang Bo-yeon, Director of Seoul City's Economic Policy Office, stated, "We will actively support the final designation as a promotion district," and added, "Seoul City will strive to strengthen industrial competitiveness by inducing the agglomeration of AI and ICT-related companies and supporting corporate growth promotion."

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