The Seoul Metropolitan Government has unveiled plans to develop an electronics market in the northern part of Seoul to transform the area into a hub for future industries such as artificial intelligence (AI) and information and communication technology (ICT).

The city government has set a policy allowing a floor area ratio of over 1000 percent for redevelopment buildings in order to facilitate the transformation of the Yongsan Electronics Market in conjunction with the Yongsan International Business District.

The strategy focuses on linking the Yongsan International Business District with Yongsan Electronics Market. The market, established in 1985 to foster the electrical and electronic industry, experienced a decline in the 2000s due to the rise of mobile devices and online shopping, resulting in a vacancy rate of 60 percent at the Najin Shopping Center, one of areas at the electronics market.

The future vision for the market is dubbed as the Yongsan Meta-Valley. The city government plans to create a space that aligns with the restructuring of future industries around AI, virtual reality (VR), extended reality (XR) and metaverse. The aim is to foster startups and facilitate collaboration with global companies entering the international business district.

To that end, the city has mandated that at least 30 percent of the space in newly constructed buildings in the redevelopment of the market be dedicated to future industries, which includes electronic components and computers, audio-visual and telecommunications equipment manufacturing, computer programming, information and communication broadcasting and service industries, as well as software and digital content industries.

Buildings with an area of 1,000 square meters must allocate a minimum of 300 square meters for facilities related to the industries, with additional floor area ratio relief available to attract more new industrial facilities.

The development plan also encourages the creation of green spaces on the lower floors of buildings, aiming to increase the green space ratio to over 50 percent in the market and around the Yongsan Station. The plan encompasses various interconnected development initiatives, including developing Yongsan Park and its surrounding area.

The Ministry of Land, Infrastructure, and Transport aims to prepare a comprehensive plan to support the development strategy within the year, covering aspects such as connecting Yongsan Park with surrounding business and commercial districts and establishing a transportation network.

The plan also includes developing tourism clusters, such as Itaewon, and improving the transportation network around Yongsan. The ministry is mulling utilizing three types of spatial innovation zones - urban innovation zone, mixed-use zone and three-dimensional complex zone - to develop Yongsan efficiently.

By Sohn Dong-woo, Lee Hee-soo, and Han Yubin

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