Foundation for innovative growth to be created by linking former lot of Gyeongsangbuk-do Provincial Government, Kyungpook National University, and Samsung Creative Campus

Daegu Metropolitan City (DMC) announced that the Ministry of Land, Infrastructure and Transport (MOLIT) approved its application on November 7 for the designation of and tentative plan for the Daegu Special Urban Convergence Zone (DSUZ).

<Map of DSUZ>

<Plan for Special Zone layout (tent.)>

It is DMC’s second special zone to be designated in accordance with the Yoon administration’s prioritizing of balanced regional development* (on the heels of an Opportunity Development Special Zone designation in June).

* Daegu’s status on zone designation: Opportunity Development Special Zone (designation completed), Urban Convergence Zone (designation completed), Special Zone for Internationalization of Education (trial designation), Special Culture Zone (to be designated in December)

DMC was the first local government, alongside Gwangju Metropolitan City, to be designated in December 2020 as a Special Urban Convergence Zone candidate site. In 2021, it consigned the task of drawing up the basic plan for the DSUZ to an outside expert.

Initially, progress on the project was minimal due to the lack of a special act on special zones. After the enactment in October 2023 of the Act on Special Cases Concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development and a MOLIT enforcement ordinance in April, however, progress speeded up significantly.

After completing its basic plan (tent.) in August, applying for SUZ status in September, and getting its application screened in October by relevant ministries and MOLIT’s Urban Development Committee, DMC was granted SUZ status along with Busan, Gwangju, Ulsan and Daejeon.

The objective of the DSUZ designation is to create a “Daegu-style Technovalley” similar to the one in Pangyo as an amalgam of industry, living space and culture that attracts corporations and skilled personnel to provincial cities.

One feature that is unique to Daegu is the use of the former lot for Gyeongsangbuk-do Provincial Government as an “Innovative Industry Hub” that will create an inner-city environment that is conducive to industry by utilizing existing facilities (e.g. Kyungpook National University (KNU), Samsung Creative Campus) as much as possible.

KNU’s designation as a hub for personnel cultivation is expected to, through its diverse infrastructures for training skilled workers, produce the workers needed to staff the DSUZ. Samsung Creative Campus will be designated as a Startup Hub to create a virtuous cycle-environment for local entrepreneurship that is linked to incubators (e.g. Daegu Center for Creative Economy & Innovation) as well as cultural facilities (e.g. Daegu Opera House).

The former lot of Gyeongsangbuk-do Provincial Government, which will be turned into the DSUZ’s Industry Innovation Hub, will involve the development of a 140,000-square meter space. It will be comprised of: a Global R&D Zone (21,354 sq. m.) to support corporate R&D efforts; a Corporate Innovation Zone (21,344 sq. m.) for startups and Corporate Support Center; an Anchor Company Zone (23,178 sq. m.) to house medium-sized local companies and those from other regions/provinces; and Culture & Arts Hub (42,604 sq. m.) that will be installed by the Ministry of Culture, Sports and Tourism.

The Innovation Industry Hub’s goals are to establish: 1) a UAM environment linked to the New Daegu-Gyeongbuk Airport; 2) smart robotics-based empirical logistics complex that is linked to the Korea Institute for Robot Industry Advancement and Smart Robotics Special Zone, which are located inside the nearby Daegu 3rd Industrial Complex; and 3) a place for intelligent semiconductor manufacturers to gather and forge connections with facilities housed in KNU (e.g. Joint Semiconductor Research Lab, Telechips Lab Daegu, Infineon Technologis’ IoT Research Center).

Based on its SUZ designation, DMC will be devoting all of its resources starting next year to the project’s implementation (e.g. designation of project operators*, blueprint creation). All project activities are expected to be completed by 2035.

* Eligibility: 1) State, 2) local government, 3) public organization, 4) provincial public corporation, or a company comprised at least 50% by an investment made by 1, 2, 3 or 4

Mayor Hong Joon-pyo said, “We will do our utmost to make the DSUZ an innovative space that blends industry, living spaces and culture. Ultimately, the DSUZ can hopefully serve as a future growth hub where individuals and companies rich in potential can concentrate on R&D.”