Establishment of Corporate Innovation Park in Dangjin... Chungnam's Leap to Leading Mobility Region

Second Corporate Innovation Park Leading District... SK Rent-a-Car Proposal
Government Expands Support for Corporate Innovation Parks Including National Subsidies

Dangjin, Chungnam has been selected as the second leading site for the Corporate Innovation Park project following Geoje. A mobility-specialized national industrial complex will be established in Cheonan and Hongseong, and a defense national industrial complex will be built in Nonsan. Demand-responsive transportation, robot and drone delivery systems will be introduced in the smart cities of Taean and Asan.

On the afternoon of the 26th, the Ministry of Land, Infrastructure and Transport announced the "Support Plan for Fostering Defense and Mobility Industry Hubs," designating the Chungnam region as a leading mobility area at the 15th Presidential Livelihood Discussion held in Seosan, Chungnam.

Dangjin Corporate Innovation Park Led by SK Rent-a-Car

Perspective rendering of Dangjin Corporate Innovation Park proposal / Image provided by Ministry of Land, Infrastructure and Transport

The Dangjin Corporate Innovation Park pilot project was solely proposed by SK Rent-a-Car, aiming to create a mobility innovation park that can cluster companies across the automotive industry value chain. The project site covers 501,664㎡ in Songak-eup, Dangjin City, with plans to proceed until 2030. The project budget is expected to be 298 billion KRW. SK Rent-a-Car and Dangjin City plan to consolidate 10 logistics centers nationwide into the Corporate Innovation Park. It is reported that 35 companies have submitted letters of intent to move in.

Nearby the project site are national transportation infrastructure facilities such as Dangjin and Pyeongtaek ports and the West Coast Expressway. The old downtown of Dangjin City, Asan National Industrial Complex, and Songsan 2 General Industrial Complex are also located nearby. The government evaluated that the site is strategically located to utilize transportation, education, and medical infrastructure.

At the discussion, the government also announced plans to improve the business feasibility of the Corporate Innovation Park pilot project and provide cross-government support for development and tenant companies. First, in line with past corporate city cases, 50% of the cost for access roads necessary for the pilot project will be subsidized by the central government, and 70% of the cost for public wastewater treatment facilities will be supported at the same level as industrial complexes.

To facilitate smooth financing, if the private sector and local governments jointly form a Special Purpose Company (SPC), they will be able to utilize a 300 billion KRW regional revitalization investment fund. Additionally, the Corporate Innovation Park can be linked with Opportunity Development Zones to allow simultaneous district designation applications when establishing development plans.

'State-led' Nonsan, Cheonan, and Hongseong Industrial Complexes to Proceed Swiftly

Ministry of Land, Infrastructure and Transport / Photo by Hyunmin Kim kimhyun81@

The government plans to steadily advance the establishment of state-led national industrial complexes. The Nonsan Defense National Industrial Complex, officially designated last month, is Korea’s first defense-specialized national industrial complex, focusing on a cluster for power support producing equipment and supplies excluding weapons. Site development design will begin immediately, followed by land compensation procedures in the second half of this year based on the results. The government intends to start construction within the current administration’s term to actively support timely investment by defense companies.

Among the 15 new national industrial complex candidate sites announced in March last year, the Cheonan and Hongseong national industrial complexes specialized in future mobility will also accelerate. The plan is to complete the preliminary feasibility study by public institutions within the year and establish the foundation for construction during the administration by approving and designating the industrial complex plan by 2026.

Furthermore, for companies requiring rapid investment decisions, even if the site development is not completed after passing the public institution’s preliminary feasibility study, they will be allowed to secure land in advance. The government plans to review and prepare institutional conditions that enable immediate factory construction and other investments upon supply.

From the planning stage of the industrial complexes, research and development (R&D) facilities, legal, accounting, and financial service industries will be clustered near production facilities for companies, and sufficient cultural, sports, and convenience facilities for young people will be provided.

In addition, the Ministry of Land, Infrastructure and Transport will focus on creating "small and strong smart cities" that support ICT-based smart solutions. This is to help small and medium-sized cities respond to environmental changes such as the climate crisis and regional extinction.

In Chungnam, Taean County and Asan City were selected for the small and strong smart city project last May and are preparing for the project. Taean County will address regional extinction issues by applying smart solutions that allow experiencing future advanced mobility such as demand-responsive buses and drone delivery, along with tourism resources. Asan City plans to utilize idle facilities and campgrounds within the city to create spaces and promote regional economic revitalization through electronic citizen IDs and smart offices.

Lee Sang-joo, Director of the Land and Urban Office at the Ministry of Land, Infrastructure and Transport, said, “Industry and jobs are very important for sustainable regional growth. We will promptly advance projects to invigorate local areas through Corporate Innovation Parks and national industrial complexes, and actively cooperate with companies and regions to devise comprehensive support measures throughout the process.”

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