Suwon Logistics Center to Increase Building Coverage Ratio

Suwon City is proposing amendments to relevant laws to the Ministry of Land, Infrastructure and Transport (now the Ministry of Land, Infrastructure and Transport) to expand the building coverage ratio for logistics centers in natural green areas from the current 20% to 40%, with the aim of increasing site utilization for small and medium-sized distribution joint wholesale logistics centers and enhancing competitiveness in the small and medium-sized distribution sector.

At the 13th meeting of the Gyeonggi Province Mayors and County Governors Council held at 4 p.m. on the 8th at the Pyeongtaek Port Marine Center in Pyeongtaek City, Suwon City submitted a "proposal for expanding the building coverage ratio of small and medium-sized distribution joint wholesale logistics centers (hereinafter referred to as small and medium-sized logistics centers)."

According to the city, the Suwon Small and Medium-Sized Distribution Joint Wholesale Logistics Center opened in January 2006 in Seodun-dong, Gwonseon-gu (near Suwon Station) to shorten the distribution structure of small and medium-sized distribution businesses and reduce logistics costs.

The logistics center is built on a site area of 4,621㎡ with a basement level and two above-ground floors, with a total floor area of 1,144.69㎡, and is currently operated by the Gyeonggi Southern Supermarket Cooperative.

However, the Suwon small and medium-sized logistics center is located in a natural green area, and according to the enforcement ordinance of the 'Act on the Planning and Use of National Territory,' the building coverage ratio is restricted to 20% or less, leading to difficulties in site utilization.

Building coverage ratio refers to the proportion of building area to site area. For example, in a natural green area, a building can occupy up to 20㎡ out of a 100㎡ site area.

As a result, compared to large discount stores and enterprise-type supermarkets (SSM), the building area is small, making it difficult to store and supply distribution products, and the city explained this has become a major factor in declining competitiveness of small and medium-sized distribution businesses.

Moreover, among 18 small and medium-sized logistics centers nationwide, including those in Suwon, Mungyeong, Yeongju, and Jeju, four are located in natural green areas due to high land prices, and there are limitations in efficient building use, new construction, and expansion due to the 20% building coverage ratio restriction.

In response, the city decided to propose amendments to the 'Act on the Planning and Use of National Territory' to the Ministry of Land, Infrastructure and Transport in order to protect small and medium-sized business owners and strengthen the competitiveness of small and medium-sized logistics centers by reducing logistics costs, in response to the recent controversy over SSM.

According to the content of Suwon City's proposal, it includes provisions to expand the building coverage ratio of small and medium-sized distribution joint wholesale logistics centers established in natural green areas to up to 40%.

A city official stated, "In fact, there was a case in July of this year where the building coverage ratio of recreational areas in natural green areas was adjusted from 20% to 30%," and added, "it is necessary to expand the building coverage ratio of small and medium-sized logistics centers, for which site utilization is critical for handling distribution products."