Following the first designation, the opportunity development special zones were established in all 1 non-metropolitan areas nationwide.
Total investment size of 1st and 2nd phases: 74 trillion won… Laying the foundation for a new growth base in the local era
Following the first designation of the Opportunity Development Special Zone in June, six more cities and provinces were designated, resulting in the creation of Opportunity Development Special Zones in all 6 cities and provinces across the country.
The Ministry of Trade, Industry and Energy announced on the 6th that it had additionally designated six cities and provinces as opportunity development special zones: Ulsan, Sejong, Gwangju, South Chungcheong, North Chungcheong, and Gangwon.
Following the designation of eight cities and provinces (Daegu, Busan, Jeonnam, Gyeongbuk, Jeonbuk, Gyeongnam, Daejeon, and Jeju) in June, with the additional designation of opportunity development special zones this time, the scale of local investment in 6 cities and provinces nationwide has reached 8 trillion won, laying the foundation for a new growth base in the local era.
The 2nd Opportunity Development Special Zone Designation Area. (Source: MOTIE press release)
Special opportunity development zones are designated to attract large-scale corporate investment to local areas in accordance with the Special Act on Local Autonomy and Balanced Regional Development, and provide package support necessary for corporate investment, including tax and financial support and improvement of living conditions.
In the six newly designated city/province opportunity development special zones, approximately 6 companies are planning new investments of approximately KRW 150 trillion, and including the KRW 16 trillion that has already begun, the total investment is expected to reach KRW 4000 trillion.
The six cities and provinces are Ulsan Metropolitan City (Nam-gu, Buk-gu, and Ulju-gun, 6 pyeong), Sejong Special Self-Governing City (Jiphyeon-dong, Yeonsu-myeon, and Jeondong-myeon, 126 pyeong), Gwangju Metropolitan City (Gwangsan-gu and Buk-gu, 9000 pyeong), South Chungcheong Province (Yesan, Boryeong, Seosan, Nonsan, and Buyeo, 56 pyeong), North Chungcheong Province (Jecheon, Boeun, Eumseong, and Jincheon, 3000 pyeong), and Gangwon Special Self-Governing Province (Hongcheon, Wonju, Gangneung, Donghae, Samcheok, and Yeongwol, 36 pyeong).
Not only cutting-edge industries such as secondary batteries, robots, and biopharmaceuticals, but also companies in various industries suited to each regional environment, including petrochemicals, automobiles (parts), energy, minerals, and defense industries, were attracted, and there were also cases where companies considering overseas investment were turned to domestic investment by utilizing various incentives of the opportunity development special zone, or headquarters and factories in the metropolitan area were relocated or attracted to local areas.
Meanwhile, at the 'Local City Expo' held in Chuncheon, Gangwon-do on the 6th, the six cities and provinces that were newly designated as opportunity development special zones and investment companies from each city and province came together and signed an agreement to make mutual efforts for the successful promotion of the opportunity development special zones.
This signing ceremony is evaluated as an opportunity to join forces to revitalize the local economy by pledging that companies will faithfully carry out their promised investments and that local governments will provide administrative and financial support for this purpose.
Key investment contents of the Opportunity Development Special Zone investment company. (Source = MOTIE press release)
MOTIE plans to strengthen its post-management efforts, such as periodically checking for investment obstacles in designated opportunity development special zones to ensure that planned investments are made in a timely manner.
In addition, we plan to continue to expand support for opportunity development special zones. The plan to expand the inheritance tax deduction for companies relocating and starting up in opportunity development special zones, reflected in the 2024 tax law revision, has currently been submitted to the National Assembly as a related amendment, and we plan to actively respond to the review of the bill.
In addition, in order to provide a channel to remove irrational and uniform regulations that hinder investment attraction in local areas, we plan to introduce a system of 'special regulations for opportunity development special zones' and to improve living conditions, such as special supply of private housing for employees of companies in opportunity development special zones.
Currently, a bill containing provisions for regulatory exceptions and special supplies is pending in the National Assembly Standing Committee. In addition, in order to support the supply of manpower for companies investing in the Opportunity Development Special Zone, a new customized manpower training program tailored to corporate demand will be launched starting next year.
Inquiries: Ministry of Trade, Industry and Energy, Regional Economic Policy Bureau, Regional Economic Promotion Division (044-203-4405), Local Government Committee, Science and Industry Policy Division (044-251-3139)