Korean government has implemented a stringent location restriction policy on the new establishment or expansion of factories in the dense population control areas including Seoul for prevention of excessive concentration of population and industries i...
Korean government has implemented a stringent location restriction policy on the new establishment or expansion of factories in the dense population control areas including Seoul for prevention of excessive concentration of population and industries in the Metropolitan Capital Area and for balanced development between regions. In the case of small and medium sized manufacturers (SMMs), which are relatively in the inferior state, compared to large corporations, they are especially having difficulties in securing factory sites in Seoul and Metropolitan Capital Area. To technology-intensive SMMs that create high added value, they tend to be located in large city areas, due to externalities of large cities; namely, securing of high quality technical manpower, sharing and acquiring of information and association with related firms and industries. For these SMMs, the flatted factory buildings (FFBs) may be a realistic alternative.
While those FFBs have such merits as easy securing of industrial location, savings in management expenses and local environment improvement, according to clustering of SMMs or unregistered factories, some problems like difficulty in expansion of factories, rising factory prices and increase of parking difficulties have been pointed out. A review about whether FFBs can be an appropriate alternative to resolve the location problem of manufacturers in the Metropolitan Capital Area and policy research on the means to activate these FFBs are needed.
The purpose of this study is to analyze the status and situation of FFBs, which have been noted as a means to solve the location acquirement in the manufacturing industry, and is rapidly growing, focused on the Seoul Digital Industrial Complex in Guro, Seoul. And then, it is to review if the FFBs can be an adequate alternative to settle the location problem in the manufacturing, information and knowledge-based industry. Ultimately, this study aims to identify the deriving problems and present a means to activate the FFBs.
From the practical work perspective of FFBs, the interview and questionnaire survey were conducted, targeting persons in charge of management of those FFBs and occupant firms' CEOs or staffs, based on the data and materials of the construction, selling and management of FFBs in Seoul Digital Industrial Complex and related public agencies. Raising problems and improvement policies of the FFBs were concentrated in this study through a fact finding analysis of the Seoul Digital Industrial Complex, focused on status investigation.
The matters to improve for activation of the FFBs via the analysis above are as follows:
As a means for policy improvement;
First, fostering FFBs as a means for activation of local economy
Second, developing FFBs as the base of manufacturing industry within large cities
Third, granting diversity in the use of FFBs.
Last, introduction of supply policy for FFBs
As a means for systematic improvement;
First, consistent and constant policy support through maintenance and unification of related systems
Secondly, making an effort for small scale manufacturers, which sincerely need to move into FFBs, to get actual support through expansion of financial and taxation assistance
Thirdly, enabling necessary supports to be provided by identifying the needs of various firms occupying FFBs with enhancement of efficiency via diversification of supports
Fourthly, coping with a variety of demands through relief of qualification to move into FFBs
Fifthly, system improvement is needed for inferior firms less than a certain company size to get benefits of FFBs by turning around high price selling mode via improvement of FFBs supply form to lessen financial burden of the occupant firms.
As a means to improve through the fact finding analysis;
First, the problems that may be caused under the situation of dense population's occupancy should be actively complemented through the expansion of social infrastructure facilities around FFBs.
Second, institutional supports should be backed up, so production activities in line with the trend of the times can be sincerely implemented, by diversifying the industry types of the FFBs occupants.
Third, the FFBs suitable for the concept of wellbeing, which is taking its place as a current trend, should be developed and supplied by meeting the demand of FFBs in the future through supply of environmentally friendly FFBs. Finally, utilization of FFBs is needed for technology innovation and knowledge creation. We need to enable the occupants of flatted factory buildings to utilize the FFBs as innovative space to build up knowledge and increase innovation competency by promoting interaction among the FFBs occupants and clustering the same type of industries.
In conclusion, the construction of flatted factory buildings is clearly an alternative to resolve the difficulty of location of the manufacturers, as well as to provide various positive ripple effects. To realistically materialize such a policy alternative, the public agencies, such as central and local governments, and private businesses need to actively devise solutions to the improvements with problem consciousness and owner awareness. Through all this, the supply and utilization of FFBs will surely account for large portion in the manufacturing and other base industries.