Gumi 1st National Industrial Complex Transformed into a Hub for Advanced Industries

Gumi City in Gyeongbuk is focusing on reorganizing the Gumi Industrial Complex to build an industrial ecosystem capable of sustainable growth and to transform into a hub of advanced industries.

Gumi 1st National Industrial Complex.

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▲ Gumi National Industrial Complex, Establishing the Foundation for ‘Industrial Complex Innovation’

Starting with the textile and electronics industries in the 1970s and extending to semiconductors and defense industries today, the Gumi National Industrial Complex has faithfully played a pivotal role in national economic development and industrialization, growing into the largest inland industrial complex (a total of 5 national industrial complexes, covering 29.63 million square meters).

However, the Gumi National Industrial Complex has also faced various challenges common to regional industrial complexes, such as the relocation of large corporations overseas or to the metropolitan area, the concentration of simple manufacturing functions, lack and aging of infrastructure and support facilities, and shortage of young workforce.

Since entering the 8th term of the elected mayor, Mayor Kim Jang-ho has prioritized establishing a foundation for fostering strategic industries, attracting large-scale national projects such as the ‘Defense Innovation Cluster’ and the ‘Semiconductor Materials and Components Specialized Complex.’

A large-scale investment agreement worth 1.2 trillion KRW was signed related to SK Siltron’s semiconductor wafer production facility, and investments totaling 2.1 trillion KRW from 217 companies in various industries including secondary batteries, automotive parts, and advanced new materials were attracted. The Gumi National Industrial Complex has taken a successful first step in transitioning from a textile and electronics industry structure centered on large corporations to an advanced industry outpost.

Last year, Gumi City focused on discovering and laying the foundation for next-generation strategic industries such as semiconductors and defense that will lead the next 50 years, and this year it is preparing for another leap forward to establish a new foundation for ‘industrial complex innovation.’

▲ Project Momentum Gained with Approval of ‘Gumi Industrial Complex Urban Regeneration Innovation District’ Implementation Plan

The Gumi National Industrial Complex was developed mainly as a production space, limiting the expansion of worker convenience and welfare facilities, thus restricting improvements in residential conditions. There is an urgent need to respond to rapidly changing industrial environments.

Since the Ministry of Land, Infrastructure and Transport (MOLIT) introduced the ‘Urban Regeneration Innovation District’ system in 2019, Gumi was designated as a national pilot district along with Yongsan in Seoul, Goyang in Gyeonggi, and Cheonan in Chungnam. After more than five years, the ‘Gumi Gongdan-dong Urban Regeneration Innovation District National Pilot District Development Project’ implementation plan received final approval from MOLIT and Gyeongbuk Province on December 27 last year.

The city plans to supply land for lacking support facilities within the industrial complex, build regeneration infrastructure for industrial upgrading, and plan various facilities within the innovation district to restore the industrial ecosystem, moving away from the existing large corporation-dependent industrial structure.

Within Gongdan-dong lot 237, an industrial convergence innovation district (Enterprise Growth Center, Innovation Support Center) and a worker coexistence complex district (integrated public rental housing) will be established. Within Gongdan-dong lot 249, an industrial and cultural convergence district (Industrial Rakibium, Industrial Complex Harmony Center, office facilities, etc.) and a medical and health convergence district (Industrial Complex Healthcare, Medical and Health Research Center, shared officetel, etc.) will be developed. Gumi City and LH will jointly implement the project with a total investment of 217.2 billion KRW by 2025.

Rakibium is a term combining Library, Archives, and Museum.

The city plans to complete the selection process by the first half of this year, starting with a bidding announcement through LH next month and holding on-site briefings, then finalize the construction company and simultaneously begin detailed design, aiming to start full-scale construction in the second half of 2024.

Along with the groundbreaking of the industrial complex innovation district, the city will also proceed with the final approval process from MOLIT for the innovation district area, which was designated last September as the first ‘Aged Industrial Complex Regeneration Project Activation Zone’ candidate site for national industrial complexes. This will solidify the foundation for private investment in the Gumi Industrial Complex.

▲ Accelerated Transition to Advanced Industrial Complex Expected with Amendment of the Industrial Cluster Act

On January 2, the amendment to the ‘Act on the Activation of Industrial Clusters and Factory Establishment’ was approved at the Cabinet meeting.

The main points include ▲ introduction of a system to re-examine existing tenant industries to relax rigid restrictions on tenant industries ▲ allowing asset securitization of factories within non-metropolitan industrial complexes to diversify financing methods for tenant companies ▲ simplification of industrial complex redevelopment procedures and expansion of convenience and support facilities through improved conditions for private investment, totaling 16 regulations related to industrial complexes.

This amendment is expected to improve killer regulations that have hindered industrial complex development, promoting private company investment in aged industrial complexes. By delegating industrial complex management authority from the central government to local governments (mayors and governors), local governments can proactively lead the transition and differentiated development strategies of industrial complexes.

The city plans to establish the foundation for a ‘brand industrial complex’ development strategy unique to Gumi through industrial restructuring based on promising growth industries and spatial reorganization, in cooperation with Gyeongbuk Province and the Korea Industrial Complex Corporation (Gyeongbuk Regional Headquarters), so that the Gumi National Industrial Complex can become a hub of advanced industries.

Mayor Kim Jang-ho said, “Gumi City, which has developed based on the industrial complex, is facing an important moment to transition into an advanced industrial city. We expect that the creation of the Industrial Complex Urban Regeneration Innovation District will serve as a catalyst for the Gumi Industrial Complex to transform into an advanced industrial complex.” He added, “We will focus administrative capabilities on establishing differentiated development strategies unique to Gumi so that the Gumi National Industrial Complex can stand at the center of industrial innovation growth leading the future.”

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