Construction of a metropolitan rail network connecting Bucheon Daejang, a third-generation new town, to Hongdae in western Seoul is now in full swing. The district is also seeing major corporations including SK hynix and Korean Air move forward with plans to build research and development facilities, laying the groundwork for what observers call a "compact city."
Bucheon Daejang, located adjacent to Seoul, recorded competition ratios of several hundred to one in general subscription offerings earlier this year, raising expectations that the upcoming sales of approximately 18,000 housing units will generate similar enthusiasm.
Korea Land and Housing Corporation (LH) signed land sale contracts worth 410 billion won ($300 million) with Korean Air, SK Innovation, SK hynix (000660.KS), and DN Solutions on Wednesday. The 130,000-square-meter land sold represents 35% of the 380,000 square meters designated for industrial use in Bucheon Daejang's advanced industrial complex.
The companies plan to invest 2.6 trillion won by 2030 to develop research complexes within the district. Korean Air will build unmanned aerial vehicle research facilities and flight training centers spanning 72,000 square meters, with investment totaling 1.2 trillion won. SK hynix and SK Innovation will each invest a combined 1.2 trillion won to establish R&D centers of 19,000 and 26,000 square meters respectively. More than 1,000 research personnel are expected to work at these facilities.
DN Solutions, Korea's largest machine tool and automation solutions manufacturer, will invest 240 billion won to establish a research center focused on artificial intelligence, robotics, and automation.
"These companies will break ground on major facilities at the advanced industrial complex in 2027 and begin full operations from 2030," an LH official said. "This effectively secures 3,000 high-tech industry jobs for Bucheon Daejang New Town."
The Ministry of Land, Infrastructure and Transport held a groundbreaking ceremony for the Daejang-Hongdae metropolitan rail line at Bucheon Ojeong Daegowon on Wednesday. The 20-kilometer rail line will connect Daejang Station in the new town to Hongdae Station via Wonjung Station on the Seohae Line, Hwagok and Gayang in Seoul's Gangseo District, and Sangam in Mapo District.
The project carries a total budget of 2.1 trillion won. Upon completion in late 2031, travel time from the Daejang district to Hongdae Station will be reduced to 27 minutes, compared to more than one hour currently required by metropolitan bus due to the absence of rail connections.
"I urge all parties to spare no effort in advancing this project so that residents of the western metropolitan area can enjoy comfortable and relaxed commutes as soon as possible," Minister of Land, Infrastructure and Transport Kim Yun-deok said at the ceremony.
Observers note that Bucheon Daejang New Town is accelerating its development as a compact city, benefiting from proximity between work and residence and improved metropolitan transportation. A compact city is an urban design approach that integrates housing, jobs, and living facilities to enhance spatial efficiency and address social problems including environmental degradation.
The district is scheduled to supply 20,119 housing units across 35 blocks by 2031. With 1,964 units already sold, subscriptions for the remaining 18,155 units are expected to draw strong interest.
Earlier offerings this year demonstrated high demand. Blocks A7 and A8, which opened for subscription in April, recorded competition ratios of 121 to 1 and 137 to 1 respectively in general supply. Blocks A5 and A6, offered as public-private partnership housing restricted to newlyweds and other eligible groups, still exceeded competition ratios of 20 to 1.
LH plans to accelerate construction schedules for upcoming housing units to meet the backlog of subscription demand.
The development is also expected to help disperse housing demand from central Seoul. According to LH, 40% of general subscription applicants for the four blocks offered this year listed Seoul addresses.
"Bucheon Daejang New Town can be expected to substitute for housing demand in central Seoul," an LH official said. "With major corporate investments confirmed and the Daejang-Hongdae line breaking ground, the city is taking shape as a complete urban center."
