This report aims two main purposes. First of all, this report defines supply problems and advises a feasible solution. Secondly, NABO emphasizes the importance to strengthen the supply-network between central and local government with careful consideration of possible oversupply at industrial park. To address two points, fol-lowing three aspects of problems are defined and suggestions are provided.
At first, Administration department should renovate existing industrial parks rather than developing new industrial parks on the ground of the demand on in-dustrial parks in advance. According to the supply-plan, an oversupply is expected: the area designated as industrial parks in 2008(78.5㎢) is larger than the total des-ignated area(70.2㎢) in the previous three years(2005-2007). On the basis of the current supply plan of industrial parks including renovation of existing areas and development of new complexes, 268.8㎢ of industrial area will be provided for three years, 2010 to 2012. Due to the low development (Developed area/area for sale), NABO recommends to focus on renovating existing industrial parks instead of planning new industrial parks (Development rate of each industrial park(name, rate): National industrial park 25 percent, general industrial park 46 percent, urban high technology industrial complex 67 percent, agricultural industrial complex 11 percent).
Second, Administration department should provide a stimulus plan to improve occupancy level. In 2008, 13 Newbiz Parks areas(2.32 million ㎡) have been in-stalled, yet occupancy level of 13 Newbiz parks was only 45 percent. Moreover, the occupancy level of 14 Newbiz parks(2.50 million ㎡) in 2009 is merely about 5 per-cent. In other words, reviewing location and timeliness is required in order to im-prove occupancy level.
Lastly, fiscal problem and processing system needs to be improved. Korean Government estimates budget of one trillion Korean won (KRW) to build entrance roads for boosting a prime cost reduction and transportation to cause evokes inef-ficiency issues. In addition, instead of arbitrary execution of a regeneration plan for deteriorated industrial parks, unification plan containing regeneration project.
At first, Administration department should renovate existing industrial parks rather than developing new industrial parks on the ground of the demand on in-dustrial parks in advance. According to the supply-plan, an oversupply is expected: the area designated as industrial parks in 2008(78.5㎢) is larger than the total des-ignated area(70.2㎢) in the previous three years(2005-2007). On the basis of the current supply plan of industrial parks including renovation of existing areas and development of new complexes, 268.8㎢ of industrial area will be provided for three years, 2010 to 2012. Due to the low development (Developed area/area for sale), NABO recommends to focus on renovating existing industrial parks instead of planning new industrial parks (Development rate of each industrial park(name, rate): National industrial park 25 percent, general industrial park 46 percent, urban high technology industrial complex 67 percent, agricultural industrial complex 11 percent).
Second, Administration department should provide a stimulus plan to improve occupancy level. In 2008, 13 Newbiz Parks areas(2.32 million ㎡) have been in-stalled, yet occupancy level of 13 Newbiz parks was only 45 percent. Moreover, the occupancy level of 14 Newbiz parks(2.50 million ㎡) in 2009 is merely about 5 per-cent. In other words, reviewing location and timeliness is required in order to im-prove occupancy level.
Lastly, fiscal problem and processing system needs to be improved. Korean Government estimates budget of one trillion Korean won (KRW) to build entrance roads for boosting a prime cost reduction and transportation to cause evokes inef-ficiency issues. In addition, instead of arbitrary execution of a regeneration plan for deteriorated industrial parks, unification plan containing regeneration project.