Seoul City announced a plan to convert quasi-industrial zones, which are used for factory sites and the like, into new industry uses such as artificial intelligence (AI) and robots to create innovation zones, but it failed to find a single suitable project site. Critics say trial and error followed because the city set application conditions for the pilot project that did not fit reality.
According to the development industry on the 26th, Seoul City did not select a candidate site for the pilot project to designate quasi-industrial zones as industrial innovation zones. The city had invited applications for candidate sites from Nov. 6 last year to on Jan. 5, but failed to find even one suitable candidate. A Seoul City official said, "We plan to review a reannouncement schedule and promptly select a pilot project site."
Seoul City announced last Oct. that it would push this project. The core is to systematically manage quasi-industrial zones in Seoul and offer benefits such as eased floor area ratios if they are converted for new industries like AI or robots. The target area is 16.76 square kilometers of sites classified as all quasi-industrial zones, excluding four industrial complexes (3.21 square kilometers) from Seoul's industrial zones (19.97 square kilometers). Most of the target areas are in six districts: Yeongdeungpo, Geumcheon, Dobong, Guro, Gangseo, and Seongdong.
In inviting applications for candidate sites, Seoul City allowed applications from land parcels of at least 5,000 square meters that met one of four conditions among ▲ sites of large-scale factory transfer ▲ a share of at least 50% of buildings completed more than 20 years ago among all buildings in the zone ▲ sites of public facilities transfer ▲ undeveloped sites within industrial zones. It also limited eligibility to apply to single owners who had secured 100% ownership of the project site land.
However, it is known that there were no sites meeting the application conditions because most land in quasi-industrial zones in Seoul is owned in split shares by multiple individuals and corporations. An official at one district office said, "I understand that there were almost no applications."
A Seoul City official said, "Ownership in quasi-industrial zones is often jointly divided among several people," and noted, "If the equity relationships are this complicated, it is nearly impossible to implement the project later even if a site is selected." The official added, "The application criterion allowing only those with 100% ownership to apply seems to have been too stringent."
Experts advise that designating quasi-industrial zones as industrial innovation zones should allow projects to proceed if landowners agree above a certain threshold, so that the project can move forward. Currently, for redevelopment projects, an association can be established if at least 75% of land and other owners and at least 50% of the land area consent. For reconstruction projects, an association can be established if at least 70% of the entire unit owners in the housing complex agree.
Nam Jin, a professor of urban engineering at the University of Seoul, said, "For redevelopment, if three-fourths or more of land and other owners consent, the right of expropriation can be exercised to proceed with the project, and for reconstruction as well, sites with consent above a certain ratio are secured by using the claim for sale of opposing owners' dwellings," and added, "To convert and develop quasi-industrial zones, introducing this structure would make implementation possible." Lee Chang-moo, a professor of urban engineering at Hanyang University, also said, "If a project to redevelop existing factory sites into innovation districts cannot proceed because there are many landowners, taking it into the framework of a maintenance project would be a realistic alternative."