Theme: Responsibility of the Industrial Complex for the Future,
Environmental Improvement Project for Industrial Complex:
The Industrial Complex Structure Improvement Project

Serving as the core of major manufacturing industries and job creation, the industrial complex has led Korea’s industrialization and economic growth for the past 50 years. It has been the backbone of the Korean economy until today, accounting for 63.2% of domestic manufacturing production, 65.6% of exports, and 47.4% of employment.

Recently, however, the industrial complex is facing new environmental changes such as global economic recession, the slowdown of main industries, a youth worker/job mismatch, and the fourth industrial revolution.

Consensus has been formed that the current industrial complex, which was built in the period of industrialization decades ago, has become superannuated and cannot actively respond to these challenges as the future driving force. As of June 2022, the number of older industrial complexes constructed more than 20 years ago totals 465, accounting for 37% of 1,262 industrial complexes nationwide. There have also been growing demands that the environments of obsolete industrial complexes should be improved by the joint effort of the public and private sectors, and the complexes themselves should be changed into innovative new venues.

Accordingly, the government has been pursuing the “Industrial Complex Structure Improvement Project” to improve the environments of industrial complexes since 2009. The Ministry of Trade, Energy and Industry and the Korea Industrial Complex Corporation have made an effort to transform industrial complexes into innovative centers for new industries and manufacturing. This effort should not end up with making a simple cluster of production facilities.

The government has strengthened support for companies by supporting R&D and the inception of their new business by establishing the innovation support center and by remodeling closed factories as well as providing rental spaces at a reasonable price.

Furthermore, in order to revitalize the local economy and attract young people to industrial complexes, the government has advanced the sophistication of the type of businesses in the complexes and has expanded welfare and convenience facilities for workers and companies by establishing cultural complexes in industrial complexes.

Over the last 10 years, the Industrial Complex Structure Improvement Project, led by the government and the Korea Industrial Complex Corporation, has made tangible progress.

The Industrial Complex Structure Improvement Project has guided the changes in industrial complexes consistent with policies of balanced regional development, support for companies in the complexes, and by making industrial complexes smart and eco friendly.

The project is largely divided into three sub-projects:
· The “agent project for the private sector” utilizing creative ideas from the private sector and institutional support from the government.
· The “fund project to improve the environment of industrial complexes”
providing government funds to businesses with high public nature or those who would have great ripple effects.
· The “government-funded project” jointly promoted by the central and local governments in areas with low demand for private investment.

So far, the Industrial Complex Structure Improvement Project has supported 96 industrial complexes and 233 projects with a fund of 12.9 trillion KRW. The government continues to support industrial complexes to create a new growth engine for the future and to drive the local economies.

The government and the corporation will make every effort to transform industrial complexes into a future-leading industrial base that attracts young job-seekers, enabling it to swiftly cope with a changing industrial environment.