Busan, South Korea – As YK Steel prepares for its relocation to Dangjin in 2023, there is growing interest in the future of the company’s current Busan plant site. With the existing ownership structure, in which Daehan Steel acquired YK Steel through a spin-off, inheriting only the steel manufacturing facilities and sales business, while the Yamato Kogyo Group maintains ownership of the land for the Busan plant, it has been speculated that the site could be repurposed for residential use.
The potential for property development is supported by the rise in residential complexes surrounding the area. Six apartment buildings have been constructed within a 500-meter radius of the Busan plant, with three of them welcoming new residents since 2013. As a result, the local population of Gupyeong-dong has increased significantly, rising from 6,615 in 2013 to 11,583 in 2018. This growth is marked by a considerable influx of residents in their 30s and 40s with young children.
Additionally, with 12 knowledge industry centers planned to be built in the Sinpyeong-Jangnim General Industrial Complex, residential development in the underdeveloped Gupyeong-dong area is expected to attract new residents in line with the development of the knowledge industry complex. The redevelopment of YK Steel’s Gupyeong-dong site into a residential apartment complex could further contribute to the rapid revitalization of the old industry area, offering additional housing options for the expanding population.
Several parties are showing interest in the valuable Busan plant site, which could be repurposed for residential use. The potential property development could have a significant impact on both the local economy and the South Korean real estate market, making it an essential story for those interested in urban development and property investment in the region.
As the October 2023 deadline for YK Steel’s relocation to Dangjin draws near, attention is focused on the decision regarding the future of the valuable Busan plant site, as well as the potential buyers and their plans for the property.