Chungnam, Strengthened Incentives Boost 'Corporate Attraction and Investment' Scale

[Asia Economy (Naepo) Reporter Jeong Il-woong] There is an analysis that the strengthening of incentives for relocating companies by Chungnam Province has led to an increase in corporate attraction and investment scale.

According to the province on the 14th, in November 2018, the province partially revised and implemented the enforcement rules of the 'Chungnam Domestic Corporate Investment Promotion Ordinance,' thereby strengthening incentives for relocating companies.

The main points include providing additional support within 10% of the facility investment amount when a company located in another region relocates its headquarters and factory to Chungnam, and supporting 1.5 million KRW per employee and 10 million KRW per household for the employees of the company.

The province's analysis indicates that this incentive enhancement has played a positive role in the relocation of domestic companies to Chungnam and the expansion of investment.

In fact, among the companies attracted to the region, a total of 749 companies completed and operated factories last year, an increase of 33 companies compared to 716 in 2018. Additionally, the investment amount of these companies increased by 1.1208 trillion KRW, from 2.6155 trillion KRW in 2018 to 3.7363 trillion KRW last year.

The regional distribution of companies was concentrated in Cheonan (261 companies), Asan (138 companies), Dangjin (87 companies), Seosan (59 companies), and Geumsan (57 companies). By industry, the largest numbers were in assembled metal machinery (200 companies), food (104 companies), non-metal (97 companies), electrical and electronic communications (89 companies), and automobile parts (50 companies).

In particular, last year, the number of employees and factory site area of companies increased significantly compared to the previous year. For example, the number of employees rose by 1,081 from 13,412 in 2018 to 14,493 last year, and the site area increased by 383,969㎡ from 4,873,340㎡ to 5,257,309㎡.

This year, the province plans to enable 750 companies, focusing on regional specialized industries and advanced industries, to complete and operate production facilities, sign investment attraction agreements with 75 companies, and support local investment promotion subsidies for 25 companies.

A provincial official said, “In a situation where corporate investment sentiment is hardly recovering, Chungnam is maximizing corporate attraction and investment expansion through incentive expansion,” adding, “The province will continue to focus its capabilities on attracting excellent companies and concentrate administrative efforts to ensure actual investment is made by the attracted companies.”

This content was produced with the assistance of AI translation services.