# South Korean knowledge industry center vacancy crisis

> Live situation record from CLSTR: https://clstr.news/situations/south-korean-knowledge-industry-center-vacancy-crisis
> Updated: 2026-09-28T07:50:19.000Z. Sources: 6. Developments: 2.

South Korea is addressing high vacancy and unsold rates in knowledge industry centers, which have seen average vacancy rates of 43.5% and unsold rates of 26.9% for centers completed within the last three years. The market has faced challenges due to centers being used for speculative real estate investment, leading to a record high of 3,876 auction cases last year.

To mitigate these issues, the government is implementing a ‘negative regulation’ system to allow a broader range of businesses, such as AI software and urban logistics, to occupy the spaces. Additional measures include converting vacant centers in the Seoul metropolitan area into public rental housing for youth and newlyweds, and allowing conversions into residential officetels in industrial areas through tax and parking exemptions.

Local authorities are also adjusting land use plans, such as in Incheon’s Gyeyang Industrial Complex, where plots are being converted into multi-industry zones to support sectors like telecommunications and automotive manufacturing. To prevent future oversupply, the government is establishing a supply-demand control system requiring local governments to assess market impact before approving new construction.

## Timeline

### 2026-09-28: South Korea adjusts industrial land use amid knowledge industry center vacancies

South Korea faces high vacancy and unsold rates in knowledge industry centers due to oversupply and speculation. Authorities are adjusting land use and pushing for AI-driven industrial transformation.

2 sources. https://clstr.news/cluster/south-korea-adjusts-industrial-land-use-amid-knowledge-industry-center-vacancies

### 2026-09-09: South Korea to ease regulations on knowledge industry centers

South Korea will ease regulations on knowledge industry centers, adopting a negative regulation system to combat high vacancy rates and converting vacant spaces into public housing.

4 sources. https://clstr.news/cluster/south-korea-to-ease-regulations-on-knowledge-industry-centers

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Cite as: South Korean knowledge industry center vacancy crisis. CLSTR, https://clstr.news/situations/south-korean-knowledge-industry-center-vacancy-crisis