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TITLE Trends & Challenges of Supply & Demand for Industrial Complexes
Volume vol.582 DATE 2016-09-09 HIT 8544

파일첨부 582.eng.pdf

Trends & Challenges of Supply & Demand for Industrial Complexes
Chang Cheol-soon, Managing Director, KRIHS National Territorial and Regional Research Division


□ Korea has 1,137 designated industrial complexes covering 1,391㎢, or 1.4 percent of national territory (as of June 2016).
  ■ Among the complexes, 41 were national (3.6 percent), 609 regular (53.5 percent), 19 urban high tech (1.7 percent) and 468 agricultural (41.2 percent). In designated area, national complexes occupied 790㎢ (56.8 percent), regular 519㎢ (37.4 percent), urban high-tech 6㎢ (0.4 percent) and agricultural 76㎢ (5.4 percent),


□ The rate of industrial complex development continued to rise to 78.2 percent, with a high sale ratio of 95 percent.
  ■ But the rates for urban high-tech (26.3 percent) and complexes in Gyeonggi Province (62.5 percent) were considerably lower.


□ In recent years, the number of new designations has continually declined but sales are smooth and the supply and demand of industrial complexes have reached a stable stage.
  ■ The 96 designated industrial complexes in 2008 were downsized to 53 parks in 2013 and further to 52 in 2015; their combined area plummeted from 86.8㎢ in 2008 to 25㎢ in 2013 and further down to 20.3㎢ in 2015.
  ■ The area of sold units within the complexes, however, continued to rise from 12.1㎢ in 2008 to 17.3㎢ in 2013 and 22.7㎢ in 2015; the latter figure was bigger than the designated complex area of 20.3 the same year.


□ The decline of available land supply requires optimal supply to meet the locational demand of companies.
  ■ The area of available land supply (undeveloped + unsold) declined from 233.5㎢ in 2010 to 170.7㎢ in 2015.
  ■ Because the available land supply (170.7㎢) minus that of troubled complexes (97.7㎢) comes out to just 73 ㎢, a supply shortage could ensue in that the supply period after designation is just three years as the yearly designated area is 20㎢.



Issues & Tasks
①  Recent stabilization trends showed short-term results from 2011-15 as showing sluggish new investment by manufacturers, and considering this, the drive to stabilize supply and demand is shaky and requires continued management.
② To continue the stabilization of industrial complex supply and demand over the long term, institutional plans are needed to resolve problematic complexes, designate small-scale complexes and boost the verification system for new designation.
③ To prepare for a sudden but temporary spike in corporate demand for complexes, the stockpiling concept for industrial complexes by the public sector is needed.