The abandoned flour factory site next to Times Square in Yeongdeungpo, Seoul, has been designated an industrial innovation zone and will be reborn as a mixed-use hub focused on new industries such as artificial intelligence (AI) and robotics. The site owned by Daesun Flour Mills was selected as the first candidate. Daesun Flour Mills has also set up a project financing vehicle (PFV) by bringing in investors to develop the land.
According to the development industry and the Seoul city government on the 28th, 18,963 square meters at 9-ji, 3-ga, Mullae-dong, Yeongdeungpo-gu, was selected as a candidate for the "pilot project for industrial innovation zones in quasi-industrial areas." Earlier, Seoul invited applications for candidate sites from Nov. 6 to on Jan. 5 last year, but failed to select a candidate, and chose the first candidate through a new call from Jan. 29 to on the 27th of last month.
The pilot project for industrial innovation zones in quasi-industrial areas is a policy by the Seoul city government to systematically manage quasi-industrial areas in Seoul and provide benefits such as relaxed floor area ratios if they are converted for new industries such as AI and robotics. In 2024, the city announced the "southwestern redevelopment" plan and presented the "comprehensive strategy for innovation in quasi-industrial areas and industrial innovation spaces," aiming to transform the southwestern quasi-industrial areas—where aging industrial zones are concentrated—into future advanced convergence industrial clusters centered on high-tech industries and build new growth hubs. Then, in October last year, as part of this policy, it decided to launch the pilot project for industrial innovation zones within quasi-industrial areas.
The first project site is a representative flour factory in central Seoul that Daesun Flour Mills established in 1936. After Daesun Flour Mills moved the factory to Asan, South Chungcheong Province, in 2013, the site was used for 12 years as a warehouse and silo (a large cylindrical storage tank for solid bulk cargo such as cement, grain, and coal), but saw limited use. When it was selected as a Seoul excellent architectural asset in 2019, some buildings were registered as warehouses.
Daesun Flour Mills was established in 1958 and manufactures and sells wheat flour. The largest shareholder is OTOKI, which holds 32.52% equity, and related parties including Naejeong Trading (12.25% equity) hold 75.6%. Last year's operating profit was 9.2 billion won.
The site faces Times Square and the Yeongdeungpo Shinsegae Department Store near Yeongdeungpo Station on Seoul Subway Line 1 across a single road. According to the Ministry of Land, Infrastructure and Transport, as of Jan. 2025 the officially assessed individual land price for this land is 5,805,000 won per square meter, with a total assessed value of about 110 billion won. Currently, 23 buildings stand with a floor area ratio of 86.36% and a building coverage ratio of 44.71%. The total floor area is 16,622.67 square meters.
Daesun Flour Mills established a project financing vehicle (PFV) for selection as an industrial innovation area and for development. The company invested some funds in the PFV, and other investors formed the PFV through equity investments. However, when supporting the selection of the industrial innovation zone candidate site, it reportedly did not disclose the PFV's shareholder composition in detail to the Seoul city government. As a result, the city has requested disclosure of the detailed shareholder structure and the status of investors.
The Seoul city government and the PFV agreed to hold their first meeting as early as this month to discuss development plans. A city official said, "Because the first candidate has been decided, we plan to move quickly so the pilot project for the industrial innovation zone can proceed." Kim Seung-bae, CEO of Pydes Development, said, "The Yeongdeungpo area, where the Daesun Flour Mills factory is located, is the first gateway where the Gyeongbu Line meets Seoul. It has long had many industrial facilities such as factories, and with good transportation, it is highly valuable for development."