Gyeongju Oedong Aging Industrial Complex Transforms into 'Culture-Leading Industrial Complex'

## Gyeongju Oedong: From 20-year Aging Industrial Complex to Culture Complex

Gyeongju City's Oedong aging industrial complex culture-leading industrial complex transformation project officially launched through 2026 competition applications. Target areas include 7 industrial complexes: Oedong 2, Seokgye 2, Munsan 2, and Mohwa 1, all over 20 years old, scheduled to be reborn as 'Culture & Mobility Valley.'

This project is a core government policy jointly promoted by Ministry of Trade, Industry and Energy, Ministry of Culture, Sports and Tourism, and Ministry of Land, Infrastructure and Transport, with only 3 locations selected nationally, making competition intense. Gyeongju City completed competition applications last month on the 6th, with final selection results announced by February 6.

### KRW 83 Billion Large-scale Regeneration Project

If Gyeongju City is selected in the competition, total project investment will be KRW 83 billion, with additional city funding of KRW 20 billion to create 'culture-infused brand industrial complex (landmark).' This goes beyond simple infrastructure improvement to a comprehensive industrial complex innovation project combining cultural, design, and youth-friendly elements.

📊 Gyeongju Oedong Aging Industrial Complex Status Target Complex|Year Established|Main Characteristics Oedong 2 Industrial Complex|20+ years passed|Machinery, automotive parts focus Seokgye 2 Industrial Complex|20+ years passed|Textile, chemical manufacturing Munsan 2 Industrial Complex|20+ years passed|General manufacturing Mohwa 1 Industrial Complex|20+ years passed|Small-scale manufacturing concentration

Currently, 379 companies employ 5,487 workers in the 7 industrial complexes, representing considerable ripple effects on regional employment and economy. These industrial complexes mostly suffer from infrastructure aging and difficulty recruiting young workers due to youth avoidance, making systematic regeneration projects urgent.

## Oedong Leaps as Electric Vehicle Parts Hub

The core driver accelerating Oedong area industrial ecosystem innovation is TS Automotive's KRW 35.2 billion electric vehicle parts factory investment. TS Automotive, which signed an MOU with Gyeongju City in January 2026, plans to build new production lines by September 2028 across 10,960㎡ floor area on 14,468㎡ site in Oedong-eup Naengcheon-ri.

This factory will produce core safety parts including front engine room panels and rear underbody components for Hyundai's Kona EV and Genesis GV70, G80, and GV80 EV. Particularly with rapid electric vehicle market growth, demand for these parts is expected to increase continuously, providing new growth momentum for the regional industrial ecosystem.

💡 Key Point TS Automotive's investment is their second major investment following KRW 20 billion in 2019, showing Oedong area is establishing itself as a core electric vehicle parts production hub. This investment focuses on machinery equipment and mold line construction, accompanied by 15 new hires.

### Ulsan-Pohang Living Area Connection Strategy

Gyeongju Oedong-eup geographically shares living areas with Ulsan Metropolitan City Buk-gu. Effective demand within 10km of Buk Ulsan Station reaches 450,000 people, and when Jungang Line and Donghae Line are completed, KTX-eum and ITX-Saemaeul will stop, significantly improving capital region accessibility.

Transportation infrastructure also secures accessibility to Ulsan and Pohang through Gyeongbu Expressway and Donghae Expressway, holding advantageous positions for logistics and workforce supply. These locational advantages can play key roles in building wide-area networks covering capital and Yeongnam regions when transitioning to culture-leading industrial complexes.

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## Aging Industrial Complex Regeneration Success Models

Domestically, 18 industrial complex regeneration project districts have been selected and promoted through 3 phases since 2013. Daegu (Districts 3 and Seo Daegu), Jeonju, and Daejeon were selected in the first phase, Gumi and Ansan in the second phase, and Daegu (Seongso and Dyeing) and Incheon (Namdong) in the third phase.

Particularly, Daejeon Districts 1 and 2 Industrial Complexes are evaluated as representative success cases of aging industrial complex regeneration policy. They innovated regional manufacturing ecosystems through infrastructure improvements including roads and parking, plus transformation to high-tech industrial complexes.

📊 Aging Industrial Complex Regeneration Project Status (2013-2015) Selection Round|Target Cities|Major Achievements 1st Round (2013)|Daegu, Jeonju, Daejeon, Busan|Infrastructure improvement, high-tech advancement 2nd Round (2014)|Ansan, Gumi, Chuncheon, Jinju|Smart factory introduction 3rd Round (2015)|Incheon, Seongnam, Gwangju, Cheongju, etc.|Cultural and youth-friendly element integration

Recently, Daebu National Industrial Complex, Myeongji Noksan National Industrial Complex, and Osong Bio-Science Industrial Complex were selected as new regeneration project targets, showing government aging industrial complex regeneration policy is continuously expanding.

### Culture-Leading Industrial Complex Differentiation Points

While existing aging industrial complex regeneration projects mainly focused on infrastructure improvement and high-tech advancement, culture-leading industrial complex projects adopt differentiated approaches with 'culture' as core keywords. The key is transforming into 'workplaces people want to work in' by integrating cultural and design elements preferred by young people into industrial complexes.

💡 Key Point The government promotes culture-leading industrial complex projects with the goal of 'creating industrial complexes where young people want to stay.' This is evaluated as an innovative approach to solving manufacturing industry workforce aging and youth avoidance.

Gyeongju's 'Culture & Mobility Valley' concept has unique competitiveness combining thousand-year ancient capital cultural assets with future mobility industries including electric vehicles, differentiating from other regions.

## Impact on Tenant Companies and Regional Economy

If transformation to culture-leading industrial complex succeeds, current 379 tenant companies are expected to receive significant help in workforce recruitment and retention through improved working environments and cultural facilities. Particularly for manufacturers struggling to attract young workers, this could be a new turning point.

KRW 83 billion large-scale investment will also bring considerable ripple effects to related industries including construction and services. Increased construction demand during project periods and post-completion operations and management service activation are expected to positively impact the overall regional economy.

📊 Expected Economic Effects Category|Direct Effects|Indirect Effects Construction investment|KRW 83 billion|KRW 124.5 billion (1.5 multiplier effect) Job creation|Approx. 300 people|Approx. 450 people Tax increase|Local tax approx. KRW 1.5 billion|Income/corporate tax approx. KRW 2.5 billion

Additionally, linked with TS Automotive's KRW 35.2 billion investment, additional investments from automotive parts related partner companies are also expected. Considering electric vehicle industry growth trends, Oedong area has high potential to grow as Gyeongbuk southeastern electric vehicle parts industry hub.

### Challenges and Success Conditions

For successful culture-leading industrial complex transformation, several key challenges must be resolved. First, smooth operations continuity of existing tenant companies and attracting their participation in new investments are needed. Second, harmonious arrangement of cultural and industrial facilities must achieve practical working environment improvement effects.

Third, wide-area workforce pool utilization strategies through connections with Ulsan-Pohang living areas are important. Particularly, developing business models that can create synergies with Ulsan's Hyundai Motor Group ecosystem and Pohang's steel and materials industries is necessary.

💡 Key Point To increase competition selection probability, Gyeongju City announced it would invest additional city funds of KRW 20 billion for 'culture-infused brand industrial complex' development. This demonstrates local government's active will beyond central government support, expected to be a positive factor in competition evaluation.

Ultimately, success of Gyeongju Oedong aging industrial complex culture-leading industrial complex transformation depends on how effectively regional historical and cultural assets, electric vehicle industry ecosystems, and wide-area transportation network connections are combined. The 2026 competition results announcement draws attention for this reason.