Gyeongbuk Industrial Complex 20% Expansion: Gyeongju Factory Establishment Golden Time

Gyeongbuk Industrial Sites: Era of Historic Expansion

Gyeongsangbuk-do's total industrial complex area that can be developed over 10 years from 2026 to 2035 is confirmed at 21.31 million ㎡ (6.46 million pyeong). This represents a 3.55 million ㎡ (1.08 million pyeong) increase from the existing 17.76 million ㎡ (5.38 million pyeong), an expansion of about 20%.

According to the 'Fifth Industrial Site Supply and Demand Plan (2026-2035)' confirmed and announced by the Ministry of Land, Infrastructure and Transport, Gyeongbuk's annual average industrial site demand area is 2.13 million ㎡, a 20% increase from before. This is preemptive supply expansion in preparation for the AI and green industry era, creating opportunities for all of Gyeongbuk including Gyeongju to emerge as new industrial hubs.

Why Gyeongju Is Drawing Attention

Gyeongju City is one of the biggest beneficiaries of this industrial complex expansion policy. Particularly, the Gyeongju SMR (Small Modular Reactor) National Industrial Complex is scheduled for completion by 2030 with a KRW 396.6 billion investment across 1.5 million ㎡ in Munmu Daewang-myeon near Dong Gyeongju IC, positioning as a next-generation nuclear industry hub.

New National Industrial Complex Development Status

These new national industrial complexes aim for concentrated development of future new industries, with Gyeongju particularly being developed as a core hub for securing global competitiveness in Small Modular Reactor (SMR) fields. SMRs are next-generation nuclear technology gaining worldwide attention for shorter construction periods and higher safety compared to existing large nuclear plants.

Existing Industrial Complex Advancement Also Concurrent

Alongside new development, conversion of existing industrial complexes to culture-leading industrial complexes is also active. Seven aging industrial complexes over 20 years old in Gyeongju Oedong area were selected for 'Culture-infused Industrial Complex' pilot projects, scheduled to transform into innovative industrial spaces where industry and culture coexist.

Investment Attractiveness Through Tax Benefits

Companies entering Gyeongbuk industrial complexes can receive dramatic tax benefits. The new reduction system starting 2026 significantly strengthened non-capital region competitiveness through regional differentiation.

Tax Benefits Simulation

Example: For 10,000 pyeong (33,058㎡) site + building investment with land acquisition cost of KRW 3 million per pyeong × 10,000 pyeong = KRW 30 billion, construction cost of KRW 2 million per pyeong × 10,000 pyeong = KRW 20 billion, total investment of KRW 50 billion, Gyeongbuk industrial complex entry provides acquisition tax savings of approximately KRW 1.725 billion, property tax savings of approximately KRW 5.625 billion, for total tax savings of approximately KRW 7.35 billion (14.7% of investment cost).

This represents additional tax savings of approximately KRW 3 billion compared to capital region, meaning Gyeongbuk industrial complex investment attractiveness has significantly increased.

Gyeongbuk Economic Fundamentals Analysis

Gyeongbuk's economy shows solid growth momentum. Q2 2025 real Gross Regional Domestic Product (GRDP) grew 1.9% year-over-year, recording the third-highest growth rate nationally.

Particularly, mining and manufacturing surged 7.2%, driving Gyeongbuk economic growth. The strength of electronic components and metalworking industries, plus growth in electric vehicle parts industries, are major drivers.

Investment Priority Analysis by Location

Gyeongju achieved the highest score due to excellent transportation accessibility including Dong Gyeongju IC, potential for utilizing existing nuclear infrastructure, future value of SMR National Industrial Complex, and synergies with electric vehicle parts industries.

Optimal Factory Establishment Timing Strategy

Current Gyeongbuk, particularly Gyeongju factory establishment, is a golden time with multiple favorable factors converging. Industrial complex supply expansion, dramatic tax benefits, new national industrial complex development, and regional economic growth momentum are all working simultaneously.

Phased Entry Strategy

Phase 1 (2026): Secure existing industrial complex sites + maximize tax benefits. Phase 2 (2027-2028): Participate in SMR National Industrial Complex priority sales + early entry into electric vehicle parts ecosystem. Phase 3 (2029-2030): Maximize network effects in completed industrial cluster.

Caution: Tax reduction benefits have a 3+ year direct use condition, so actual business operation plans must be established, not for short-term speculation purposes.

Successful Entry with Isang Group

Professional consulting is essential for complex permit procedures and optimal site selection for Gyeongju factory establishment. Isang Group provides zoning analysis, environmental impact assessment, one-stop permit services, and tax benefit optimization strategies.

Particularly, SMR National Industrial Complex related permits apply special nuclear-related regulations, making partnerships with experts having Gyeongju regional expertise crucial for success. Isang Group supports customers' rapid and safe factory establishment through close cooperation networks with Gyeongju City Hall and Gyeongbuk Provincial Government.