A Study on The Local Economy Ripple Effect due to General Industrial Estate Regeneration Project

Today, the interest in the old industrial complex's regeneration project is heightened. That's because the existing industrial complex leading Korea's growth period has declined by external factor including economic recession and industrial structure change and because the need of regeneration project has been largely increased to convert the industrial complex in other use or to activate the industrial complex. Jinju City's Sangpyeong General Industrial Complex was classified actually as the old industrial complex created in 1981, with the regeneration project plan of government and local government progressed. Created as general industrial complex, it has displayed a main role for economic activation of the West Gyeongnam as an industrial complex based on the West Gyeongnam, but began to fall behind due to those factories to be closed and ceased by economic downturn and to the increased facility location with a wrong use. As the urban expansion is continuously realized, Sangpyeong General Industrial Complex, located actually in town and visited by people, needs more regeneration projects. In the beginning of 2000, Sangpyeong General Industrial Complex has been transferred to the city outskirts with the plan of convention center established, but with no evident result by 2010, it was selected recently as a target of the old industrial complex remodeling project, which allowed to induce new growth power industry associated with innovative urban development and the existing town away from the simple industrial site or the repair level of town, and to promote the regeneration project to modify a wrong use of facility to cultural service facility. Accordingly, this research has as its object in looking into the ripple effect of local economy by the regeneration project of Sangpyeong General Industrial Complex preparing the second renaissance. The research was made from Sangpyeong General Industrial Complex according to the historical background in progress of regeneration project. Its analysis method included the basic theory research and literature search, and the Keynesian multiplier theory models were used to analyze the ripple effect of multiplier of business area's land acquisition cost to local economy, and input output model was executed to look into socio-economic effect through the cost invested in industrial complex project.