Yongsan Electronics Market Breaks Ground... Building the "Silicon Valley of Asia" Gets Underway

First Construction to Begin This Month in Special Planning Zone 5
Seoul to Strengthen Administrative Support for Remaining Zones
"A Space Where Jobs, Industry, and Green Spaces Come Together"

Aerial view of the Yongsan Electronics Market Special Planning Zone (Photo provided by the Seoul Metropolitan Government)

Construction to transform the Yongsan Electronics Market into the "Silicon Valley of Asia" is now getting underway in earnest.

The Seoul Metropolitan Government announced on the 12th that construction will begin this month in Special Planning Zone 5, which covers Buildings 12 and 13 of Najin Market, one of 11 special planning zones in the Yongsan Electronics Market area.

The Yongsan Electronics Market thrived in the 1990s as the country's largest distribution hub for electronic goods, but its commercial district lost much of its vitality after the 2000s as online shopping expanded. At one point, the average vacancy rate exceeded 60%.

In 2021, Seoul Mayor Oh Se-hoon unveiled a vision to develop Yongsan into the "Silicon Valley of Asia." In June 2023, the Seoul Metropolitan Government announced its "Integrated Strategy for the Yongsan International Business District and the Yongsan Electronics Market Area" and has since pursued development projects to transform the area into a hub for emerging industries such as artificial intelligence (AI) and information and communications technology (ICT).

The Yongsan Electronics Market area was divided into 11 special planning zones for phased development. Regulations on existing distribution and business facilities were also revised to allow mixed-use development for business, commercial, and residential purposes.

Development projects are currently underway in 8 of the 11 zones. Building permits have been granted for 4 zones—Special Planning Zones 4, 5, 7, and 10. Zone 8 has completed architectural review, Zone 6 has completed the public notice of its detailed development plan, and Zones 1 and 2 have completed public inspection of their detailed development plans.

The 8 zones with projects underway will have a combined gross floor area of approximately 800,000 square meters. Each zone is expected to feature advanced business facilities based on AI and ICT, as well as retail, cultural, assembly, and sports facilities.

Progress on Special Planning Districts in Yongsan Electronics Market by Area (Data provided by the Seoul Metropolitan Government)

The urban landscape will also change. The area, which has been cut off by individual commercial buildings and roads, will be connected by pedestrian paths and green spaces and reshaped into an open urban space where everyone can move around and spend time with ease.

Public facilities for local residents and citizens will also be expanded. The city plans to establish a startup support center and an operations center for the AI and ICT Content Industry Special Development Promotion District to support businesses and startups. It will also improve everyday convenience by providing facilities including a support center for single-person households and public parking lots.

The city will also secure approximately 247 billion won in cash contributions for public benefit and use the funds to promote balanced development across Seoul.

The city said it would strengthen administrative support to ensure that projects in the remaining zones proceed smoothly, starting with the launch of construction in Zone 5.

Kim Chang-gyu, head of the Seoul Metropolitan Government's Urban Space Headquarters, said, "With construction beginning in the first zone, we will actively support development in each zone so that it leads to change across the entire area. In connection with the Yongsan International Business District, we will create a future-oriented urban space where jobs, industry, green spaces, and culture come together."

This content was produced with the assistance of AI translation services.