Busan is good

Poongsan Submits Letter of Intent to Relocate, Boosting Momentum for the “Busan-Style Technovalley”

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The Busan Metropolitan City (Mayor Park Heong-joon) announced that it has received a letter of intent from Poongsan Co., Ltd. regarding its plan to relocate within the city.

○ This decision marks the first relocation intent submitted since the Centum 2 High-Tech Industrial Complex in Haeundae-gu received development plan approval in November 2022—two and a half years ago.

○ Poongsan’s Busan plant is a major regional mid-sized enterprise, with sales of KRW 330 billion and around 500 employees. The City of Busan and the Busan Metropolitan Corporation have been in continuous discussions with Poongsan to facilitate the relocation.

As a result of this submission, Poongsan’s Busan plant is scheduled to relocate to Jangan-eup, Gijang-gun by 2030, within the designated area of the Centum 2 High-Tech Industrial Complex.

○ The submitted business plan outlines the company’s relocation to a 636,555㎡ site in Jangan-eup, with the entire project expected to cost KRW 363.4 billion.

Moving forward, the City plans to proceed with required procedures such as industrial complex designation reviews and development plan approvals in accordance with the “Special Act on Streamlining Industrial Complex Development.”

○ The City is committed to minimizing inconvenience to residents during the relocation process and maximizing contributions to local development.

○ To this end, the City will thoroughly review legal and environmental requirements, land use, transportation, and other quality-of-life factors. It aims to minimize any impact on the daily lives of local residents while promoting regional revitalization through community collaboration.

○ Additionally, the City will expand dialogue with stakeholders and provide more opportunities for public hearings and community engagement.

This development is expected to reinvigorate the long-stalled Centum 2 High-Tech Industrial Complex. The City plans to develop the area as a base for strategic industries such as smart ships, robotics and intelligent machinery, and information technology (IT).

○ The relocation of Poongsan, which had delayed progress on the Centum 2 project for years, now provides the much-needed momentum to create a future growth hub for Busan.

Mayor Park Heong-joon stated,
“With Poongsan’s relocation decision, we expect to accelerate the Centum 2 High-Tech Industrial Complex project and begin Phase 2 and 3 construction soon. We will focus all efforts on creating a uniquely differentiated ‘Busan-Style Technovalley’ that surpasses the Seoul capital area in attracting IT and related industries. Through communication and cooperation with residents in Jangan-eup, the relocation site, we will transform the area into a core hub of the Fourth Industrial Revolution in southern Korea.”

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Appendix 1: Location Map and Land Use Plan of Centum 2 High-Tech Industrial Complex
[Note: Visuals omitted in this text version; available in the original PDF]

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Appendix 2: Project Overview of Centum 2 High-Tech Industrial Complex

Project Summary

• ●Location/Scale: Banyeo, Bansong, Seokdae areas in Haeundae-gu
  Total: 1.91 million ㎡ (580,000 pyeong)

- GB release: 1.62 million ㎡

- Phase 1: 170,000㎡

- Phase 2 (Poongsan area): 1.31 million ㎡

- Phase 3 (Banyeo Agricultural Market area): 430,000㎡

• ●Total Project Cost: KRW 2.0411 trillion

• ●Development Method: Public development

- Developer: Busan Metropolitan Corporation

• ●Target Industries: ICT, knowledge services, film & video content, and advanced component materials

Timeline

• ●Apr 2016: Industrial complex designation announced

• ●Mar 2017: Urban management plan submitted (Busan → MOLIT)

• ●Sep 2017–Mar 2020: 5 rounds of GB release deliberations by National Urban Planning Committee

• ●Dec 2020: GB release officially announced

• ●Jun 2021: Industrial complex development plan submitted

• ●Jul 2021–Oct 2022: Public hearings and agency consultations

• ●Nov 2022: Plan approved and announced

• ●Jul 2023: Plan revision approved

• ●Jan 2024–present: Land compensation consultations

• ●Nov 2024: Phase 1-1 construction begins (170,000㎡)

• ●Apr 2025: Temporary fencing and site clearing underway

Future Plans

• ●2025 onward: Construction of Phases 1-1 and 1-2

• ●2025 onward: Site development for Phase 2 (Poongsan area) and Phase 3 (Banyeo Agricultural Market area)