LH to Supply 190,000㎡ of Rental Industrial Complex... Rental Fee Reduction Also Extended

Aerial View of Seokmun National Industrial Complex

Korea Land and Housing Corporation (LH) announced on the 13th that it will supply 28 lots totaling 190,000㎡ in four nationwide rental industrial complexes, including Seokmun National Industrial Complex, in the second half of this year, and extend the rent reduction for tenant companies until the end of the year.

Rental industrial complexes are industrial complexes leased at low rent for a long period to reduce location costs for small and medium-sized enterprises, foreign-invested companies, and overseas returnee companies, enabling stable growth of businesses.

LH operates rental industrial complexes in more than 30 locations nationwide, and since the annual rent is set at 1-3% of the construction cost, companies can lease for up to 50 years in 5-year increments, making it highly preferred by businesses.

The land to be supplied in the second half of the year includes ▲17 lots (124,000㎡) in Seokmun National Industrial Complex ▲6 lots (39,000㎡) in Jeongeup Advanced Industrial Complex ▲4 lots (14,000㎡) in Pohang Blue Valley Industrial Complex ▲1 lot (13,000㎡) in Miryang Sapo Industrial Complex.

The annual rent ranges from 2,034 KRW to 8,224 KRW per square meter, varying depending on the industrial complex and the location of the lots. Eligible tenant companies also differ by industrial complex. Except for Miryang Sapo Industrial Complex (available after September), the other industrial complexes are available for contract and move-in anytime during the second half of this year.

In particular, Seokmun National Industrial Complex, which has the largest supply volume, offers an affordable annual rent of about 6,530 KRW per square meter. It is located 102 km from Seoul, near the metropolitan area boundary (15 km from Songak IC on the Seohaean Expressway, 20 km from Pyeongtaek Port), and has good transportation connectivity via the Daejeon-Dangjin Expressway.

Meanwhile, considering the accumulating economic burden on small business owners such as self-employed individuals due to COVID-19, LH has extended the rent reduction period, which was scheduled to end in June, until the end of this year.

Since May 2020, LH has reduced rents by 25%, and since last year, it has shortened the rent charging period for tenant companies from six months to three months to reduce their burden. So far, rent reductions have supported a total of 201 tenant companies with 8.07 billion KRW, and this measure is expected to provide an additional rent reduction of 1.44 billion KRW to 167 tenant companies.

Park Dong-seon, head of LH's Regional Balanced Development Headquarters, said, "We will continue to provide customized support for companies according to the COVID-19 damage situation."

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