The government will provide 81.6 billion won in local investment promotion subsidies to 10 companies establishing or expanding factories outside the metropolitan area. This initiative is expected to generate 391.8 billion won in corporate investment and create 429 new jobs.
The Ministry of Trade, Industry and Energy announced on the 20th that it had decided to support 10 out of 11 companies that applied through local governments during the third review of the local investment promotion subsidies held on the 16th. Of the total support amount, 56 billion won will come from the national budget.
The selected companies will make new and expanded investments in six regions, including Gangwon, Jeonbuk, Jeonnam-Gwangju, Gyeongbuk, Gyeongnam, and Jeju. The ministry expressed hope that the decision to invest in areas far from the metropolitan region will help reduce the investment gap between the capital and local areas.
By region, Gwangju in Jeonnam has the largest investment at 133.36 billion won (three companies), with plans to create 176 new jobs. Gyeongnam will see two companies invest 97.9 billion won and hire 80 people.
In Gangwon, one company will invest 74.11 billion won and employ 60 people. Jeonbuk will have two companies investing 53.76 billion won and hiring 73. Jeju and Gyeongbuk will each invest 22.18 billion won and 10.52 billion won, respectively, with plans to create 20 new jobs each.
The food industry accounted for a significant portion of the investments. Three food companies investing in Gwangyang, Iksan, and Yangsan plan to invest a total of 188.3 billion won and create 241 new jobs, which represents 56.2% of the new jobs generated by the supported companies. The ministry analyzed that the popularity of K-food is leading to large-scale employment in local areas.
Investments in advanced industries are also included. Two biopharmaceutical companies investing in Gangneung and Jeju will invest a total of 96.3 billion won and hire 80 people. A semiconductor material company in Seongju, Gyeongbuk, was also selected for support. The remaining four companies from other sectors will invest 96.73 billion won and plan to create 88 new jobs.
The scale of investments attracted through the local investment promotion subsidies has been increasing with each round. The first round attracted 256.7 billion won, the second round 304.5 billion won, and this third round has increased to 391.8 billion won. The cumulative investment for this year now stands at 953 billion won, with the third round's investment being approximately 52.6% larger than the first round.
The ministry stated, "As we move further away from the metropolitan area, we will improve the system by raising the support limits and ratios, and we will also expand support for industries that regions wish to attract, such as the five-polar three-special growth engine industries. We will work hard on post-support management to ensure that companies fulfill their planned investments and employment and settle in local areas."
Meanwhile, the final review of the local investment promotion subsidies for this year is scheduled to be held in November.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.