Aging industrial complexes are Korea's biggest challenge in industrial real estate. According to the Korea Industrial Complex Corporation, the proportion of aging industrial complexes over 20 years old reaches 38% in 2025, projected to exceed 60% by 2035. Aging industrial complexes are the main culprit undermining corporate competitiveness due to deteriorated road, sewage, and power infrastructure.
CBRE's global analysis confirms the same trend. Industrial facilities built before 2000 show negative net absorption, while latest facilities show strong positive absorption. The 'Adaptive Reuse' trend of companies leaving old facilities for new ones is spreading globally.
Gyeongju City is presenting an innovative solution to this problem. The Oedong aging industrial complex was selected for the Ministry of Trade, Industry and Energy's 'Culture-Leading Industrial Complex' public project. This project transforms the industrial complex where 379 companies and 5,487 workers operate in 7 industrial complexes including Oedong 2, Seokgye 2, Munsan 2, and Mohwa 1 into a 'Culture & Mobility Valley'.
Culture-Leading Industrial Complex is differentiated by creating new spaces where industry and culture converge, going beyond simple infrastructure repair. Gyeongju City plans to invest a total of KRW 20 billion in city funds to create youth-friendly spaces, cultural experience facilities, and smart infrastructure.
The government's Smart Green Industrial Complex project is also a core driver of aging industrial complex regeneration. Smart Green Industrial Complexes have been established in 15 locations nationwide by 2025, including renewable energy introduction, waste resource circulation, and digital infrastructure construction. From 2026, it will transition to a performance expansion phase with nationwide expansion planned.
Companies in aging industrial complexes have two strategies. First, actively participate in regeneration projects to modernize facilities with government funding. Second, if regeneration is difficult, relocate to new industrial complexes. Either way, preliminary consultation with permit experts is essential.
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