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The Banwol National Industrial Complex was established from 1977 to 1987 in an area close to Seoul with easy access to water and power supply as part of an effort to disperse the manpower and industrial facilities concentrated in the Seoul metropolitan area. At the time of construction, the authorities grouped related sectors and allocated non-polluting industries such as food, clothing, and textiles adjacent to residential areas, polluting industries such as chemicals, metals, and non-metal manufacturing in coastal areas, and companies likely to generate air pollution in the southwestern part of the complex by considering the area’s residential, natural, and working environments. Since its construction, the Banwol National Industrial Complex has grown rapidly to the point that the government had to introduce measures to restrict speculators, and the complex grew into a highly competitive national industrial complex, with production increasing even when the economy slowed or oil prices surged.

The great success of the Banwol National Industrial Complex led to the establishment of the Sihwa National Industrial Complex, which was created by reclaiming the shared water surface and salt ponds on the west side of the Banwol National Industrial Complex. Afterwards in 2002, the authorities begun building the Sihwa MTV National Industrial Complex as a high-tech industrial complex that bring together nature and high-tech industries. The complex is celebrated as the country’s first eco-friendly national development project conducted by engaging the government, local governments, and environmental organizations for dialogue and reaching consensus. In August 2011, the Korea Industrial Complex Corporation decided to name the Banwol National Industrial Complex, Sihwa National Industrial Complex, and Sihwa MTV National Industrial Complex collectively as the Smart Hub as part of the Quality of Working Life (QWL) project aimed at attracting young workers to the complexes.

As of 2022, more than 8,500 companies are operating in the Banwol National Industrial Complex, employing more than 110,000 people. The complex accounts for annual production of about KRW 37 trillion and exports of more than USD 7.1 billion. Sihwa and Sihwa MTV National Industrial Complexes have 11,946 companies and 10,000 employees, with annual production of about KRW 40 trillion and exports of about USD 6.2 billion.

In 2009, Banwol and Sihwa Complexes were selected in the country’s first pilot project of upgrading the structures of aged complexes and transforming them into high-tech manufacturing industrial bases, followed by their selection as Smart Green Industrial Complexes in 2019. Despite always staying one step ahead in innovation, the companies operating in the complexes are facing difficulties brought on by recent economic slowdown and changes in the industrial environment. More specifically, digital innovation and reducing carbon emissions are urgent challenges for Banwol and Sihwa Industrial Complexes as they specialize in materials, parts, and equipment industries and fundamental industries.

The Gyeonggi Regional Headquarters of the Korea Industrial Complex Corporation felt the need to introduce innovative projects and supporting measures tailored to each industrial complex to help them overcome the crisis. To that end, it strengthened the on-site support system with the goal of digitally transforming the entire manufacturing cycle, from planning, design, and testing to manufacturing, sales, and service. A case in point is the Business Diversification Support Platform Project designed to optimize the manufacturing environment by running data-based diagnostics and providing more opportunities for companies to discover new businesses and transform their current businesses. Participating companies enjoyed clear results, including an average sales growth of 7%, a 2% decrease in development costs, and a 6% increase in patents and applications.

The Korea Industrial Complex Corporation, the private sector, and local governments are running various projects to reduce carbon emissions. Among them, the Energy Independence Model, which began in 2021, helped generate 6.8 MW of renewable energy by adding renewable energy facilities. In addition, a high-speed electric vehicle recharging system and an integrated energy supply and demand management system were developed. By introducing an LCA-based carbon reporting system to help companies prepare carbon reports, the project participants are also working to build an energy self-sufficient infrastructure by helping businesses pursue carbon-neutral management.

The structural upgrade project launched in 2009 at the industrial complexes in Banwol and Sihwa successfully attracted private investment, especially in projects aimed at adding new industrial spaces. In an effort to attract start-ups and high-tech companies, facilities such as knowledge industry centers, data centers, and re-factories are under construction. These facilities are contributing to the digital innovation of companies and attracting young entrepreneurs. As a result, facilities such as Smart Square, Global Meta, and Sihwa Refactory were introduced.

In addition, facilities that save energy by forming a cluster of similar businesses and collectively treating their waste heat and wastewater were introduced, in addition to a multi-purpose research center for joint research. The complexes are witnessing a constant increase in smart logistics facilities and vehicle-related facilities. Hotels, residential buildings, houses as well as a multi-purpose cultural center were built in the industrial complexes in Banwol and Sihwa to enable workers to enjoy culture and better living conditions.

Although the industrial complex is large in size, companies are located far from subway stations and the area lacks parking spaces, leading to frequent complaints about illegal parking. To address the problem, the Korea Industrial Complex Corporation and local governments are operating free shuttle buses during commuting hours. The Banwol and Sihwa Industrial Complexes continue to make new challenges and changes to fulfill its role as the largest industrial complex in the Seoul metropolitan area.