Located at the gateway of western part of Seoul, the Magok Industrial City is a knowledge-based advanced industrial complex combined with international business complex in the Seoul metropolitan region. The future-oriented eco-friendly industrial and business complex project is designed as part of the Seoul City government’s strategy of sharpening its competitive edge as the core city in Northeast Asia. With total space of over 3.66 million square meters in a green region adjacent to the Han River, the ecological zone will consist of eco-friendly advanced industrial complex, business and commercial complex, and residence complex, as well as educational, medical and welfare facilities. The industrial complex, which constitutes the central part of the zone with a space of 1.11 million square meters, is designed to comprise 5 advanced technological and industrial clusters, including core cluster, information and nano technology (InT) cluster, bio information technology (BiT) cluster, eco-friendly and renewable energy technology (GeT) cluster, and medical service and medicine technology (BmT) cluster. Projecting to accommodate about 32,000 citizens, Seoul SH Corporation, a public company established by the Seoul City government in 1989, plans to construct apartment complexes and detached houses with more than 11,400 households in the residence complex.
While it is building infrastructure in the zone aiming to complete the infrastructure construction project by the end of this year, Seoul SH Corporation is selling lots in industrial and business complexes. The construction project is being successfully pushed forward on schedule. Despite stagnation in overall real estate market, the industrial and business complexes in Magok zone are so popular that more than 53% of the available area is already sold as of July 2014. And 55 companies concluded contracts with Seoul SH Corporation to build their facilities in the complex. They include leading companies, such as LG Group affiliates, S-Oil, Kolon, DSME, Lotte, E-Land, and Nexen Tire, as well as many other small and mid-sized companies. Among these, LG Group affiliates plan to construct the Magok LG Science Park in space of about 170,000 square meters, starting in August 2014. Eleven affiliates of LG Group, including LG Electronics, LG Display, LG Innotek, LG Chem, LG Hausys LG Life Sciences, will operate their R&D facilities in this park. These companies will invest a total of 3 trillion won (approximately $2.92 billion) by 2017, and LG Innotek and LG Life Sciences will initially invest 301.7 billion won (approximately $294.6 million) and 132.1 billion won (approximately $129 million), respectively.
In relation to high popularity among businessmen and investors, a study report recently carried by ‘Endeavor Insight’ journal is noteworthy. In a poll conducted by the journal with founders of 150 companies, asking them “conditions of a city desired by top entrepreneurs”, respondents cited several conditions that most affect selection of business location, such as talented human resource pool, ideal living environment for workers, convenient public transportation network and easy access to consumers and suppliers. In this regard, the Magok Industrial City is evaluated as a region that can perfectly satisfy these conditions preferred by top businessmen.
Above all, the Magok zone is an optimal region for employing excellent R&D manpower. It is located in the region where hundreds of thousands of companies, including head offices of large companies, and 61 universities and colleges are concentrated. Most of top-tier local and multinational research facilities are located in the Seoul metropolitan area around Magok zone. This is the reason why leading companies, including LG Electronics and DSME, plan to establish their R&D centers in this region. The zone will provide the most pleasant research and work environments incomparable with other industrial complexes in the country. As a wide park with space of 490,000 square meters is designed to be built at the center of the industrial complex, researchers and office workers will be able to approach it within 5 minutes from their offices. And many smaller parks will be constructed between buildings, connecting entire region with green networks.
It will provide convenience for business activities and daily life by building a hotel, convention center, department store, large marts, hospitals and schools. In addition to these convenience facilities, some companies will also establish culture centers, welfare facilities and business support centers. The zone is conveniently connected with transportation networks, including 2 beltways around Seoul, 2 subway lines and 3 railways connecting with airports. Using airport railroads, citizens can reach the Gimpo International Airport, Seoul Railway Station and Incheon International Airport in 5 minutes, 15 minutes and 35 minutes, respectively.
The Seoul City authority is offering lands for industrial and building sites for affordable price of slightly over 10 million won (approximately $9,760) per 3.3 square meters, which is much lower than land prices in neighboring regions. It is selling lands on consecutive basis. Increasing number of companies, both local and multinational ones, show deep interest in investing in the complex. In particular, multinational technology companies, including semiconductor and consumer electronics, are interested in installing research facilities to make use of excellent manpower in the region.
When the industrial and business complex is completed, it is expected to play the role of developing next generation growth engines for regional and national economic development. It is also anticipated to generate synergy effects through collaboration between different industries and convergence of advance technologies. Yet, the Magok Industrial City will grow as a balanced eco-friendly and energy-efficient town, eventually relying on its own energy sources with rich green spaces and water resource.
With the goal of developing a future global industrial and business zone in Magok as an integral part of the vision of establishing the foundation for economic hub in Northeast Asia, the Seoul City government will expand international trade, create strategic business areas, high-tech cultural space and eco-friendly residential area. To achieve that goal, it will develop multi-cultural trading market that can provide end-to-end business platform, and concentrate efforts on attracting foreigners’ investments. For the convenience of investors, especially foreign investors, the city authority will provide one-stop support services, including administrative formalities and tax benefits. It will also offer quality housing and multi-language medical services.
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