Table of Contents
- Defense Industry Company Poongsan Confirms Relocation to Gijang Jang-an-eup... Centum 2 District Urban High-Tech Industrial Complex Accelerates
- Increased Feasibility of 'Busan-type Techno Valley'
- However, Local Residents' Opposition... 'Relocation Conflict' is a New Challenge
- Conclusion: Securing the Driving Force for Industrial Complex Promotion, but Local Consensus is the 'Key to Success'
- Frequently Asked Questions (FAQ)
Defense Industry Company Poongsan Confirms Relocation to Gijang Jang-an-eup... Centum 2 District Urban High-Tech Industrial Complex Accelerates
Busan City has officially accepted Poongsan Corporation's intention to move, further accelerating the establishment project of the urban high-tech industrial complex in the Centum 2 district of Haeundae-gu. Poongsan's factory in Busan is planned to relocate to a site of 636,555㎡ in Jang-an-eup, Gijang-gun by 2030, with a total investment of 363.4 billion won for this project.
This represents a significant progress after approximately 2 years and 6 months since the industrial complex plan was approved in November 2022. Last year, Jang-an-eup in Gijang was mentioned as a strong candidate for the relocation of Poongsan, and now this possibility is becoming a reality.
Busan City has planned to develop the Centum 2 district into a hub for smart ships, robots, and IT-based high-tech industries. However, the project has been delayed as the relocation site for the Poongsan factory was not determined. With this decision, the second phase of developing Centum 2 district is expected to progress in earnest.
Increased Feasibility of 'Busan-type Techno Valley'
The relocation of Poongsan goes beyond just the move of a company; it lays a crucial foundation for establishing a 'Busan-type Techno Valley'. This is also the first step in Busan City's strategic industrial hub development plan.
Busan Mayor Park Hyung-jun emphasized, “We will create a differentiated industrial ecosystem with industrial competitiveness that surpasses the metropolitan area.” Through this relocation, the Centum 2 district will acquire favorable conditions to attract core industries such as ICT, knowledge services, film and content industries.
The development of the industrial complex will be divided into several phases. The first phase, the construction of section 1-1, is set to commence in November 2024, followed by the planned development of the second phase (Poongsan site) and the third phase (Banyeo agricultural products site).
However, Local Residents' Opposition... 'Relocation Conflict' is a New Challenge
Local residents are showing strong opposition to the decision to relocate Poongsan to Jang-an-eup, Gijang-gun. Residents of Daeryong Village are threatening group action, stating, “Our livelihoods are threatened due to the acquisition of agricultural land.” The village chief expressed concerns, saying, “Most of the compensation is for outsiders' agricultural land ownership, and the compensation amounts received by residents who actually farm are extremely low.”
The area surrounding Daeryong Village is primarily based on agriculture for living, and there are fears that once the industrial complex is established, it could lead to crop loss, relocation, and job losses. In response, Busan City has expressed its intent to minimize residents' inconveniences by providing various communication channels, including traffic and environmental impact assessments and resident listening meetings. There is hope that discussions will proceed in a direction that can alleviate residents' concerns.
Local politicians are also responding sensitively to the change in public sentiment. A member of the Gijang County Council mentioned, “Compared to the scale of Poongsan, the employment generation and tax contribution in the region may be low.” He further warned, “Actual employment in the region may be limited to simple roles such as cleaning and security,” criticizing the lack of cooperation strategies with the local community. These issues could significantly impact regional development.
Conclusion: Securing the Driving Force for Industrial Complex Promotion, but Local Consensus is the 'Key to Success'
Poongsan's relocation to Jang-an-eup serves as a significant milestone in establishing the urban high-tech industrial complex of Centum 2 district. However, if the conflict with local residents is not resolved, it could pose a burden for long-term promotion. Therefore, the city should leverage this situation as an opportunity to design a model for industrial policy and coexistence with residents.
The most important consideration going forward is how to realize coexistence with the community during the industrial complex creation process. To ensure that the Busan-type Techno Valley grows into a true hub for future industries, gaining the trust and convincing local residents is the top priority. It is necessary to achieve sustainable development through this.
Personally, I think that during this prosperous time for the defense industry, creating a new cutting-edge defense industrial complex in the area of Jang-an-eup, Gijang-gun along with the relocation of Poongsan could be a good idea.
When a company comes in, it also helps the surrounding commercial area and provides another opportunity for local residents.
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Frequently Asked Questions (FAQ)
Q. What is the reason for Poongsan's relocation to Jang-an-eup in Gijang, Busan?
Poongsan's relocation is a strategic decision for the establishment of the urban high-tech industrial complex in Centum 2 district and the construction of a Busan-type Techno Valley.
Busan City plans to develop the Centum 2 district as a hub for smart ships, robots, and IT-based high-tech industries, and Poongsan's relocation is a core driving force for this urban high-tech complex establishment project. Poongsan will relocate its factory to a site of 636,555㎡ in Jang-an-eup, Gijang-gun by 2030, with a total investment of 363.4 billion won. This decision is seen as an important first step in executing Busan City's strategic industrial hub development plan.
Q. How is the development phase of the Centum 2 district urban high-tech industrial complex progressing?
The Centum 2 district plans to develop phases 2 (Poongsan site) and 3 (Banyeo agricultural products site) after the commencement of section 1-1.
The construction of section 1-1 is set to start in November 2024, followed by the development of the second phase, which is the Poongsan relocation site, and the third phase, which is the Banyeo agricultural products site development. With the decision for Poongsan's relocation, the development of phase 2 is expected to accelerate the establishment of the high-tech industrial complex.
Q. What reactions are local residents showing regarding the relocation of Poongsan?
Local residents in Daeryong Village and others are threatening group action in response to the acquisition of agricultural land and threats to their livelihood.
The area around Jang-an-eup, Gijang-gun, which is the relocation site for Poongsan, is primarily based on agriculture for living, and residents are opposed to the relocation project, fearing agricultural land acquisition, crop loss, and job losses. They are raising concerns about compensation issues and a lack of countermeasures, calling for the need for transportation and environmental impact assessments and residents' listening meetings from Busan City.
Q. What concerns have local politicians expressed regarding the relocation of Poongsan?
Local politicians have expressed concerns that employment generation and tax contributions may be low and have called for coexistence strategies.
A member of the Gijang County Council pointed out that employment in the region, compared to the scale of Poongsan, is likely to be limited to simple positions such as cleaning and security, criticizing the lack of coexistence measures with the local community. These issues could negatively impact regional development, highlighting the need for cooperation with residents and appropriate policy measures.
Q. What is the most important task for the success of Poongsan's relocation and the development of Centum 2 district?
Building trust with residents and realizing coexistence is key to the success of the Busan-type Techno Valley.
It is essential to create a coexistence model that addresses conflicts and anxieties arising during the industrial complex establishment process while protecting residents' living conditions and promoting industry development together. Busan City needs to earn trust through continuous communication and cooperation with residents and build a sustainable industrial ecosystem based on that trust. Only then can Centum 2 district and the Busan-type Techno Valley successfully establish themselves as hubs for future industries.
