Table of Contents
Significance of the Centum 2 District Groundbreaking
The Centum 2 District's urban advanced industrial complex in Busan has taken its first step in transforming the future industrial landscape of the city. The groundbreaking ceremony held on February 25th in Bansong-dong, Haeundae, marked an important moment signaling the official start of the global innovation hub establishment for the Centum 2 Urban Convergence Special Zone.
The Centum 2 District project is planned to cover an area of approximately 1.91 million square meters, with a total cost estimated at 2.41 trillion won. The project commenced in 2020 following the lifting of development restrictions, received industrial complex plan approval in 2022, and is expected to be designated as an Urban Convergence Special Zone by 2024.
In particular, resolving issues related to the relocation of the Seyang logistics site and the large parking lot through sufficient consultation with residents will greatly aid in the future progress of the project. Such cooperation will strengthen relationships with the local community and form a solid foundation for the project's success.
Urban Convergence Special Zone Strategy
The Centum 2 Urban Convergence Special Zone aims to be an X-Nomics hub that 'restructures the next 100 years.' Here, X represents Digital Transformation (DX), AI Transformation (AX), and Ecological Transformation (GX).
The core strategies of this special zone include spatial innovation to build an urban-centered future industrial platform that integrates residential, commercial, cultural, and advanced industries, industrial innovation by concentrating on attracting industries such as AI, robotics, big data, and convergence parts and materials, and talent innovation to encourage the influx and settlement of young talent.
In particular, Centum 2 aims to be a global innovation hub that surpasses 'the second Pangyo,' and is currently considering attracting a Public Algorithm Center, Quantum Cluster, and Quantum Data Center. These strategies are expected to play a leading role in future industries.
A new business council has been established to strengthen partnerships with global anchor companies. This is a strategic approach aimed at innovating beyond the mere establishment of an industrial complex and revolutionizing the entire industrial ecosystem.
Phase 2 Poongsan Relocation Variables
The Centum 2 district is set to be developed in three phases.
The first phase involves an area of 170,000 square meters, with construction already underway.
The second phase includes the Poongsan area covering 1.31 million square meters,
while the third phase consists of the area of the Banyeo Agricultural Wholesale Market totaling 430,000 square meters.
The main variable is the relocation of the Poongsan plant. Due to the nature of the defense industry, new site selection and community acceptance are crucial elements. While discussions are ongoing for relocation to Gijang-gun, there is considerable opposition from the region. Busan Urban Corporation plans to complete the compensation negotiations and relocation procedures sequentially, with substantial construction expected to commence after 2026.
If the Poongsan relocation is delayed, it may affect the entire project timeline. Therefore, the Phase 2 project must consider not just administrative procedures but also community consensus and industrial strategies simultaneously.
Phase 3 Wholesale Market Relocation and Future Prospects
The relocation of the Banyeo Agricultural Wholesale Market is considered an essential task. However, this process is complicated by various interests from merchants and the distribution industry, making swift progress difficult. Despite this, the land development plan is expected to proceed simultaneously after 2026.
When the Centum 2 District is completed, it is expected to generate economic effects amounting to about 6.5 trillion won and create 77,000 jobs. This indicates that it is a significant project that will transform Busan's economic structure beyond just an industrial complex.
However, the groundbreaking of the urban advanced industrial complex in Centum 2 is merely the beginning. The second phase, Poongsan relocation, and the third phase, relocation of the Banyeo Agricultural Wholesale Market, involve complex interests, and community acceptance issues may cause considerable delays. Particularly, the relocation of the defense contractor may take time through processes involving alternative site determination, compensation negotiations, and addressing community opposition, while the wholesale market relocation will also require negotiations with merchants and the distribution industry, making it inevitable to regulate the pace of progress.
If relocation negotiations do not proceed smoothly, the development schedules for Phases 2 and 3 may be disrupted. This would increase the likelihood of delays in the overall completion time of the Centum 2 Urban Convergence Special Zone beyond expectations. Therefore, careful consideration is needed regarding the approach, as it is anticipated that visible progress will take time following the groundbreaking in the coming years.
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Frequently Asked Questions (FAQ)
Q. What does the Centum 2 District groundbreaking ceremony signify?
The Centum 2 District groundbreaking ceremony is an important event that marks the beginning of the establishment of a global innovation hub.
The Centum 2 District urban advanced industrial complex's groundbreaking ceremony held on February 25, 2024 in Bansong-dong, Haeundae is significant as it represents the official start of establishing a global innovation hub for Busan's Centum 2 Urban Convergence Special Zone. This is a crucial turning point for transforming Busan's future industrial landscape, expected to bring significant changes to the local economy and industrial ecosystem.
Q. What are the core strategies of the Centum 2 District Urban Convergence Special Zone?
Building an urban future industrial platform through spatial, industrial, and talent innovation.
The Centum 2 Urban Convergence Special Zone aims to be an X-Nomics hub, representing digital, AI, and ecological transformations. The core strategy summarizes spatial innovation to create a future-focused industrial platform integrating living, commerce, culture, and advanced industries, industrial innovation focusing on attracting AI, robotics, big data, and materials industries, and talent innovation to support the influx and settlement of young professionals. Additionally, the attraction of a Public Algorithm Center and Quantum Cluster is under review as well.
Q. How is the Centum 2 District project divided into three phases?
Phase 1 construction begins, followed by the Poongsan relocation in Phase 2, and the wholesale market relocation in Phase 3.
The Centum 2 District development will occur in three phases. The first phase involves an area of 170,000 square meters, for which construction has already started. The second phase includes the relocation project for the Poongsan area spanning 1.31 million square meters. The third phase entails the relocation of the Banyeo Agricultural Wholesale Market occupying 430,000 square meters. Phases 2 and 3 involve several interests with resident acceptance issues, presenting challenges for progress.
Q. What is the impact of Poongsan's relocation on the Centum 2 District development?
Delays in Poongsan's relocation may disrupt the overall project timeline.
Due to the nature of the defense contractor and community acceptance issues, the selection of an alternative site and compensation negotiations for Poongsan's relocation are complicated. There are opposing voices concerning the discussion of moving to Gijang-gun, and construction is expected to proceed after 2026 once procedures are completed. If the relocation is delayed, not only the Phase 2 project but also the overall Centum 2 District development schedule may be affected, leading to a higher likelihood of postponing the completion time.
Q. What is the current situation and challenges regarding the relocation of the Banyeo Agricultural Wholesale Market?
While relocation is essential, swift progress is difficult due to various interests.
The relocation of the Banyeo Agricultural Wholesale Market is a core task for the third phase of Centum 2 District development. Due to the complex interests of merchants and the distribution sector, negotiations are challenging, resulting in a slow progress rate. Nevertheless, the land development plan alongside the relocation project is expected to be pursued after 2026. If negotiations do not proceed smoothly, there may be additional delays in the entire project schedule.