[광화문에서/강유현]Mullae-dong gentrification… Even if we relocate, we must preserve the ‘power of the crowd’ | Dong-A Ilbo

On the 14th, Kang Yoo-hyeon, Deputy Director of Industry 2, visited President Yoo Dae-su (66), a ‘missile sharpening craftsman’ whom I interviewed in 2013. At the time of the interview, CEO Yoo, who established his home at Mullae-dong 1-ga, Yeongdeungpo-gu, Seoul in 1986, personally cut the outer shell of an 8m-long practice missile and delivered it to the military. Now, 11 years later, he no longer makes shells for missiles. Still, they were making machine parts that breathed life into scrap metal. President Yoo said, “We are staying here because the building owner has not raised the rent even once after reducing the rent during the foreign exchange crisis,” adding, “Many people have left Mullae-dong.”

The number of small businesses in Mullae-dong has decreased from about 2,600 in the late 1990s to about 1,260 recently. Some businesses were left behind in the trend of large-scale expansion and automation or were unable to succeed to the family business. The biggest cause is gentrification. As workshops, restaurants, and cafes flock in, rents rise and indigenous people are pushed out. Choi Young-san, president of the Seoul Small Business Association, said, “Three or four years ago, the monthly rent for a 30-pyeong (approximately 99 m2) factory was around 1.5 to 1.8 million won, but now restaurants are paying 2.5 million won for good locations.” .

Gentrification is an unavoidable trend in Seoul, a small area of ​​land. However, this trend does not mean that we can ignore the collapse of the Mullae-dong ironworks complex, the last remaining mechanical metal industry center in Seoul following Cheonggyecheon, Eulji-ro, and Seongsu-dong.

Mullae-dong’s greatest strength is the ‘power of the community’. Thanks to a collaborative ecosystem that includes the entire value chain of mechanical processes such as lathes, molds, casting, welding, and plating, you can quickly produce most prototypes within two or three days by visiting a few local factories. Mullae-dong is a place represented by the saying, ‘If you have a blueprint, you can make a tank.’ The annual production amount is not small at 1.2 trillion won.

Yeongdeungpo-gu is promoting the relocation of the Mullae-dong machinery industry complex. Quite a few small business owners, including President Yoo, are in favor. President Yoo said, “The alley in Mullae-dong was built in the 1960s, and even the traditional toilets are the same.” He added, “It is difficult to bring in new machines due to the low ceiling height of the building, and it is difficult to recruit young employees due to the poor environment.”

The problem is land and cost. Small business owners in Mullae-dong cannot enter apartment-type factories. This is because it is difficult for precision machines to handle vibration when dozens of 30-ton machines start running. Ultimately, a complex where single-story buildings can be gathered is needed. The Korea Institute for Industrial Relations and the Korea Community Research Institute estimated that more than 300,000 square meters of land would be needed for the relocation.

In order to create land in the metropolitan area and raise enormous project costs, not only local governments but also the government must move. Small business owners in Mullae-dong submitted a proposal to three government ministries in June arguing for the need for relocation. The answer that came back was “If Yeongdeungpo-gu requests it, we will discuss it in good faith” (Ministry of Land, Infrastructure and Transport), “Our Ministry is supporting root companies” (Ministry of Trade, Industry and Energy), and “Items to be promoted at the national level” (Ministry of SMEs and Startups). Those were the words.

When small business owners disperse, the power of concentration disappears. If a small business travels to the countryside or China to make a prototype, a product that costs 1,000 won will cost 2,000 won. And the increased prices are passed on to consumers. Relocating to Mullae-dong is not just for small business owners.

From Gwanghwamun >

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Yoo-Hyeon Kang, Deputy Director of Industry 2 Department yhkang@donga.com

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