Government Supports Growth Hubs in Three Aging Industrial Complexes Including Gwangyang National Industrial Complex in Jeonnam
by Roh Kyungjo
Published 20 Apr.2023 08:45(KST)
The Ministry of Land, Infrastructure and Transport and the Ministry of Trade, Industry and Energy announced on the 20th that they have selected three sites as candidates for the 'Competitiveness Enhancement Project for Aging Core Industrial Complexes,' which will be implemented from next year: Gwangyang National Industrial Complex in Jeonnam, Sinpyeong and Jangnim General Industrial Complexes in Busan, and Bupyeong and Juan areas of the Korea Export Industrial Complex in Incheon.
This project is a measure to address the issues of aging industrial complexes, such as the "three olds" phenomenon affecting industry, infrastructure, and workforce, along with slowing growth and difficulties in securing talent due to youth avoidance. The number of aging industrial complexes increased from 38 in 2000 to 258 in 2010, and 454 in 2020. It is expected to reach 526 by 2025.
The government aims to help aging industrial complexes grow into hubs for strengthening regional industries and creating jobs by responding to rapidly changing industrial environments such as digital transformation, carbon neutrality, and Environmental, Social, and Governance (ESG) management demands. Metropolitan local governments designate core industrial complexes within their regions as hubs and link related industrial complexes to establish region-led plans to enhance industrial complex competitiveness, which are then selected through evaluations by private experts conducted by the central government. Subsequently, through inter-ministerial collaboration, national resources are concentrated for development and support.
This year, among the candidate sites, Jeonnam Province plans to use Gwangyang National Industrial Complex as a hub, linking it with Yulchon 1st General Industrial Complex, Suncheon General Industrial Complex, and Haeryong General Industrial Complex. They presented the vision of a "Future Steel Industrial Complex Taking Off Again" through low-carbon process innovation and digital transformation. To achieve this, projects such as low-carbon technology development for the steel industry, establishment of a smart industrial complex manufacturing innovation base, infrastructure refurbishment and creation of beautiful streets, and construction of a smart logistics platform will be promoted.
Busan City designated Sinpyeong and Jangnim General Industrial Complexes as advanced manufacturing hubs where industry, environment, and people coexist and drive regional development. The goals include increasing production value, export volume, and employment through projects such as establishing a process innovation simulation center, training advanced smart manufacturing personnel, building energy self-sufficient infrastructure, refurbishing aging industrial complexes, reducing non-point source pollution, and creating climate-responsive urban forests.
Incheon City plans to use the Bupyeong and Juan areas within the Korea Export Industrial Complex as a hub, linking Incheon Machinery Industrial Complex, Incheon Local Industrial Complex, and Beautiful Park Industrial Complex. They aim to promote a major transformation into an innovative region where companies grow and people visit. The goals include increasing production value, creating jobs, and reducing greenhouse gas emissions. To this end, they will implement projects such as establishing a manufacturing digital transformation anchor base, innovating design manufacturing companies, supporting eco-friendly facility infrastructure in industrial complexes, creating vibrant and beautiful streets, and supporting the establishment of clean workplaces.
The core industrial complexes in each region are also expected to be designated as Smart Green Industrial Complexes under the jurisdiction of the Ministry of Trade, Industry and Energy. The government plans to supplement the competitiveness enhancement plans of the three candidate sites through expert consulting, finalize the designation and announcement by the end of the year, secure the necessary budget, and ensure the project proceeds smoothly from next year.
Lee Won-jae, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, said, "To respond to the rapidly changing industrial environment, the approaching 4th Industrial Revolution, and workforce shortages, sustainable growth of the national economy requires cooperation among ministries, local governments, and related agencies to realize competitiveness enhancement plans on the ground." He added, "Strengthening the competitiveness of industrial complexes within regions will drive the overall growth of our manufacturing industry, job creation, fostering of future advanced industries, carbon reduction, and balanced regional development, and support the realization of the local era."
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