Government Funding Cap for Regeneration of Aging Industrial Complexes Raised from 35 Billion to 50 Billion Won

Ministry of Land to Invite Local Governments
to Apply for Regeneration and Revitalization Zone Projects

The Ministry of Land, Infrastructure and Transport announced on September 22 that it will accept applications from local governments this year for the regeneration of aging industrial complexes and for projects to designate revitalization zones.

The regeneration project targets complexes that have been in operation for more than 20 years since construction, and includes upgrading and expanding infrastructure as well as revising land use plans. Previously, the cap on government funding was set at 35 billion won, but this year it has been increased to 50 billion won. The ministry also plans to strengthen the evaluation of industry restructuring and land use plans, enabling local governments to devise plans for upgrading old industrial complexes to meet the needs of advanced industries. Proposals from local governments will be accepted until October 15, and up to five sites will be selected through assessments by private-sector experts and other evaluation processes.

The revitalization zone project aims to expand not only infrastructure but also convenience and support functions. Starting with this year’s call for proposals, new criteria for introducing residential functions have been established to enhance the viability of projects. The ministry will review the necessity and suitability of housing supply within aging industrial complexes, special and rental housing for workers, and minimum requirements for industrial and work-related functions.

Proceeds from the sale of buildings must be contributed to the public in accordance with regulations. To encourage greater private sector participation this year, the land acquisition requirement for proposals has been lowered from the previous 66% to 50% at the project proposal stage. Proposals will be accepted until the end of November, and selections will be made following a comprehensive evaluation by the review committee.

View of Changwon National Industrial Complex

As of this year, there are 520 aging industrial complexes that have been in operation for more than 20 years, accounting for 38% of all industrial complexes. By 2030, this number is expected to reach 757, or 50%, and by 2035, it is projected to rise to 995. This is why regeneration and revitalization are considered necessary. Lee Sangjoo, Director General for Land and Urban Policy at the Ministry of Land, Infrastructure and Transport, stated, "In order to achieve balanced regional development and the 5 Major Axes and 3 Special Zones strategy, it is important not only to create new industrial complexes but also to ensure the sustainability of aging complexes, which requires the attention and efforts of local governments."

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