Daegu Metropolitan City is the most innovative city in the country to actively respond to the President's promise to 'create a national digital innovation base for Suseong Alpha City in the eastern region and reorganize industries centered on mobility and robots in the southwestern region' at the Daegu region public livelihood debate held on Monday, March 3th. We quickly applied for designation as a special opportunity development zone.

〈Daegu Special Opportunity Development Zone Conceptual Map〉
Daegu Opportunity Development Special Zone Conceptual Map

Special Opportunity Development Zones are a system that provides a package of tax breaks and regulatory special treatment to companies that have signed an investment agreement with local governments in order to promote large-scale investments in local areas.

The government is accepting applications for special zones as soon as they are prepared in local areas without a separate competition period through the 'Guidelines for Designation and Operation of Special Opportunity Development Zones' notice ('24.3.4.), and Daegu Metropolitan City held the Daegu Local Times Committee and announced the 'Daegu City After reviewing the 'Basic Plan for Opportunity Development Zone', we applied for the first special zone in the country on Friday, March 3nd.

Daegu Metropolitan City is focusing on Suseong Alpha City (digital) and National Industrial Complex and Kumho Waterpolis (advanced manufacturing) to increase the region's digital competitiveness and quickly transition to future industries in a situation where the digital transformation of the overall economy and industry is accelerating. Apply for a special car zone. Metropolitan cities can apply for division within the total area of ​​1 million pyeong, and the total application area is 150 m2,734 (83 pyeong), and the investment size is about 4 trillion won.

Looking at the details by district,
First, Suseong Alpha City is the largest ICT/SW corporate complex in the non-metropolitan area, with 243 ICT/SW companies, 4,525 residents, and 13 corporate support infrastructures, and was selected as a ‘regional digital innovation hub’ last year. This is where the ‘National Digital Innovation District Creation Project’ is being promoted.

The major investment companies are six companies, including SK REITs Management Co., Ltd. and SK C&C Consortium, which are planning to build an AI data center, and the total investment size is approximately KRW 6 trillion.

Suseong Alpha City is capable of various cooperation with the high-tech medical complex located in a nearby innovation city, the Korea Intelligence Information Society Agency (NIA), and industrial complexes in the region. It was designated as a free economic zone in 2008 and is also pursuing designation as a special research and development zone, providing future opportunities. It is expected that there will be significant synergy resulting from the designation of a special power generation zone.

The national industrial complex is the region's largest industrial-academia-research complex, with over 200 companies related to advanced manufacturing such as Hyundai Robotics and Daedong Mobility, as well as the Korea Automobile Research Institute, Intelligent Automotive Parts Agency, DGIST, Keimyung University, and Kyungpook National University campuses.

〈Opportunity Development Zone Area Map〉
Special opportunity development zone area map

In particular, following its designation as a specialized complex for motor materials and equipment last year, a national robot test field and a secondary battery circulation park are also being built nearby, so it is expected to serve as an outpost for the expansion of future industries when designated as a special opportunity development zone in the future.

Daegu Metropolitan City applied for special zones first, focusing on the second-stage site where new investment is active, and for the first-stage site, companies scheduled to make new investments among participating companies in the motor/materials/manager specialized complex and robot companies were targeted.

The major investment companies are six companies, including L&F, which is preparing to take a leap forward as a comprehensive secondary battery materials company, and Core Automotive, a company participating in the motor materials and equipment specialized complex, and the total investment size is about KRW 6 trillion.
※ Tax benefits are granted for relocating to the metropolitan area, new or expanded business sites, or starting a business during the period designated as a special opportunity development zone (acquisition tax, property tax, corporate tax reduction, etc.: details attached)

Kumho Waterpolis is an intermediate base that connects the manufacturing industrial complex, which is concentrated in the southwestern region, with the digital integrated complex in the eastern region, and is a key hub in the urban area that is essential for completing the region's 'manufacturing-digital belt'.

The main investment areas are electric vehicle and robot parts, secondary battery modules, etc., and when designated as a special zone, it is expected to create synergy with the national industrial complex and contribute to even industrial development across regions.

According to an analysis by the Daegu Policy Institute, the direct employment effect due to corporate investment due to designation as a special opportunity development zone is expected to be about 4,355 people, and the employment inducement due to financial investment is expected to be about 2,454 people. In addition, by attracting digital and advanced manufacturing anchor companies, it is expected to greatly contribute to revitalizing the digital convergence ecosystem in the region as well as spreading a virtuous cycle of corporate investment, job creation, and talent inflow.

Jeong Jang-soo, Deputy Mayor of Daegu Metropolitan City, said, “Daegu City’s application for the first Opportunity Development Special Zone in the country is an expression of Daegu City’s will to fill Daegu’s economic territory, which will grow with the construction of Daegu Gyeongbuk New Airport, with cutting-edge industries and companies.” He added, “In the future, the second national industrial complex will be established. “We will expand the special zone to future industrial spaces in Daegu, such as Gunwi New Airport Industrial Complex, and do our best to create the best environment for companies to move in by linking it with urban convergence, education, and cultural special zones in the future.”


Source: Daegu Metropolitan City