Urban Logistics Adrift for 10 Years

1.6275 trillion won. This is the appraised value as of last year for the land involved in the 'Yangjae High-Tech Urban Logistics Complex (Yangjae Logistics Complex)' development project, which Harim Group is pursuing in the 225 Yangjae-dong area of Seoul. This amount is nearly four times higher than the 452.5 billion won purchase price paid by Harim in May 2016. Disputes over permits and approvals for developing the last prime site in Seoul have continued for a decade, fueled by policy misalignment between central and local governments and the risk of massive development profits being labeled as preferential treatment. There are growing calls for institutional mechanisms to ensure fair distribution of public development gains. According to the Financial Supervisory Service's Electronic Disclosure System on May 12, it has been revealed that Korea Biotech, a subsidiary of Allpum—a private company wholly owned by Kim Junyoung, the eldest son of Harim Group Chairman Kim Hongkuk—has been co

It has been revealed that Harim Industrial, the company responsible for the development of the "Yangjae City Advanced Logistics Complex (Yangjae Logistics Complex)" promoted by Harim Group, borrowed close to 1 trillion won using the site as collateral. As the approval process for the Yangjae Logistics Complex development has failed to progress for ten years, the company entered the food business, such as launching "Themisik Ramen," and poured massive investment funds into it. With the maturity of over 900 billion won in short-term loans concentrated at a single financial institution imminent, delays in the groundbreaking are further increasing the financial burden. According to the Financial Supervisory Service's electronic disclosure system on May 11, Harim Industrial, a subsidiary of Harim Holdings, raised a total of 939.2 billion won in short-term borrowings from KB Kookmin Bank, using the land in 225 Yangjae-dong, Seocho-gu, Seoul, as collateral. This consists of a 636.5 billion wo

The “Yangjae Urban High-tech Logistics Complex” (Yangjae Logistics Complex) development project, which is being promoted by Harim Group, received requests for changes on 66 items during the Seoul City architectural review process. This review is a pre-approval procedure in which experts comprehensively evaluate building layout, landscape, structural safety, environment, and more in order to enhance urban aesthetics and public value. Such a large number of revision requests is considered unusual. The conflict between the two sides over the logistics complex’s permits has now dragged on for a decade. According to The Asia Business Daily’s investigation as of May 8, the Seoul Architectural Committee decided on a “re-deliberation resolution” for the Yangjae Logistics Complex development project submitted by Harim Industry on March 17. A re-deliberation resolution is adopted when the review identifies issues that require a significant redesign. Harim Industry must revise the pointed-out ite

The site of the "Urban High-Tech Logistics Complex" in Yangjae-dong, Seocho-gu, Seoul, often referred to as "the last golden land in Gangnam," stands as a story of ill-fated development reflecting the shadows of Korean real estate. After the Yongsan Intercity Bus Terminal relocated to Seocho-dong in the 1980s, the freight functions were moved to Yangjae-dong, and the site was used as a cargo terminal starting in 1989. Later, when Jinro Group, the operator, went bankrupt, the land was auctioned off by the court, and in 2004, Pi City, the developer, won the bid and began pushing forward with development plans. By 2006, Pi City had completed the site acquisition and embarked on a major integrated distribution facility project. The mega-project was planned to have six underground and 35 above-ground floors, with a total floor area of 750,000 square meters and a total project cost exceeding 3 trillion won. However, the project was unstable from the outset due to the longer-than-expected adm

Editor's Note The former Korea Freight Terminal site at 225 Yangjae-dong, Seocho-gu, Seoul, spanning 83,629 square meters, remains vacant even today. Once serving as a key logistics gateway for the Seoul metropolitan area, this site was expected to be reborn as an urban high-tech logistics complex in response to the rapid growth of e-commerce, but has stood idle for a decade. This is due to administrative and capital power struggles over the development of Seoul's last prime real estate. Meanwhile, major e-commerce platforms like Coupang have established logistics centers at key locations near Seoul, ushering in the era of dawn delivery. Contrary to the original policy goal of strengthening logistics competitiveness, soaring real estate prices have turned this symbol of innovative logistics into an outlet for the desire to believe in the "myth of invincible real estate." Harim Group's long-awaited project, the "Yangjae Urban High-Tech Logistics Complex" (Yangjae Logistics Complex), ha