This study examines the effects of industrial complex development on surrounding land prices, with a focus on how these effects differ by development type. Under the Industrial Sites and Development Act, industrial complexes in Korea are classified in...
This study examines the effects of industrial complex development on surrounding land prices, with a focus on how these effects differ by development type. Under the Industrial Sites and Development Act, industrial complexes in Korea are classified into four types: national industrial complexes, general industrial complexes, urban high-tech industrial complexes, and agricultural and industrial complexes. These types differ in the characteristics of their tenant firms, their locations, and their levels of infrastructure. Accordingly, this study empirically analyzes how the effects on surrounding land prices vary by development type.
The analysis uses officially announced prices of representative land data from 1996 to 2025. Because the designation timing of industrial complexes varies across complexes, this study applies the staggered difference-in-differences method proposed by Callaway and Sant'Anna (2021). Areas within 0–2 km of a complex boundary are defined as the treatment group and those within 2–5 km as the comparison group, and the average treatment effect is estimated using not-yet-treated units as the baseline.
The results show that industrial complex development raises surrounding land prices by 12.42% on average. By type, national industrial complexes show the largest effect at 17.43%, followed by agricultural and industrial complexes at 8.86% and general industrial complexes at 3.42%, while no statistically significant effect is found for urban high-tech industrial complexes. These differences in the magnitude of the effects appear to reflect the development scale and locational characteristics of each type.
The dynamic patterns of the effects also differ by type. The effect of national industrial complexes accumulates and grows over time, whereas that of agricultural and industrial complexes emerges immediately after development and persists over the long term. Differences also appear in distance decay: the effect of national industrial complexes is concentrated at close range, while that of agricultural and industrial complexes extends over a relatively wide area.
These findings indicate that the effects of industrial complexes on surrounding land prices differ in magnitude, dynamic pattern, and spatial extent across development types. In particular, agricultural and industrial complexes exert influence over a wide area despite their small project size. This suggests that, in managing development gains, uniform criteria based on project size or administrative boundaries may not adequately capture such effects. The type-specific ranges of influence presented in this study can serve as basic data for monitoring land price changes in areas surrounding industrial complex development.