SEOUL, SOUTH KOREA, July 23, 2019 — The Seoul Metropolitan Government unveiled its plan to create an innovative convergence R&D hub especially for small but competitive companies, venture businesses and startups at the unsold plots of land of the Magok Industrial Complex with the participation of the private sectors rather than public resources.
The Seoul Metropolitan Government and the Seoul Housing & Communities Corporation (SH) announced that they will invite private developers in this coming October to build a R&D Center in the Magok Industrial Complex.
According to the plan, the R&D center will be built at D18BL on a total of 21,765 square meters of eight plots of the land including 783 Magok-dong. It will be the first R&D Center that will be built by the private sector out of eight R&D centers in the Magok Industrial Complex. Currently, one center among them is being built by the SH with the public funds.
The Magok Industrial Complex, cut the first sod in 2009, will become an industrial hub centered on cutting-edge R&D facilities. Around 72.6 percent (530,260 square meters) of the total 729,785 square meters of land in the Magok Industrial Complex have been sold to large companies and its foundation as an industrial complex has been set up.
According to the Industrial Sites and Development Act, the remaining lands will be sold at the level of cost price for the Magok City Development Project. The Seoul Metropolitan Government expects that this measure will draw attentions from many small giants, venture businesses and startups that had hard times to have their own business spaces because of high building prices. The price lowered at one-third of its market value will open more doors to those small companies.
For the public promotion of the plan, the Seoul Metropolitan Government will hold a briefing session on August 16 and receive applications on October 30.
Besides, the city government has prepared guideline to secure the R&D Center’s public needs. The guideline says that the private developers should lend spaces to small and medium-sized companies, venture businesses and one-man startups as much as possible, while directly operating neighborhood living and welfare facilities, support facilities for research companies.
The R&D Center in Magok will be built as a knowledge industry center; however, it is not allowed the manufacturing industry to be located. Support facilities include only facilities for business support and welfare of companies in the Magok Industrial Complex and neighborhood living facilities built with less than three percent of the total construction area.