Audit Office Allows Public Institutions to Occupy Unsold Knowledge Industry Centers

The Audit Office has indicated that public institutions engaged in business support can occupy public knowledge industry centers that are experiencing significant unsold units.
 
On September 10, the Audit Office publicly announced its proactive administrative consulting case titled 'Allowing Public Institutions to Occupy Unsold Public Knowledge Industry Centers.'
 
In Gwangju, Gyeonggi Province, a knowledge industry center is being developed near Gwangju Station, but it has struggled to attract tenants, with 393 out of 453 units (86.8%) remaining unsold.
 
In response, four institutions, including the Korea Local Tax Research Institute, Gyeonggi Economic Science Promotion Agency, Gyeonggi Credit Guarantee Foundation, and Youth Startup Support Center, sought to occupy the center. However, the legal framework regarding occupancy was unclear, prompting them to request prior consulting from the Audit Office.
 
The Audit Office determined that the function of knowledge industry centers has expanded from a manufacturing focus to a complex space encompassing business support and management ecosystems. It concluded that the activities of these institutions align with the center's original purpose, as they provide support in taxation, technology, market access, finance, and entrepreneurship.
 
Consequently, the Audit Office has informed Gwangju City that it recognizes the projects of these institutions as legitimate and will allow their occupancy, provided that measures for post-occupancy management and oversight are established to ensure alignment with the original objectives.
 
Meanwhile, a government survey revealed that the average unsold rate for knowledge industry centers completed in the past three years is 27%, with vacancy rates reaching 44%. In some areas with poor location conditions, vacancy rates exceed 70%, raising concerns about the aftereffects of a surge in supply during a low-interest period.