Jeonnam Province Designated as the Most 'Special Support Areas for Local Small and Medium Enterprises' Nationwide

[Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Six industrial complexes for which Jeonnam Province requested designation as ‘Local Small and Medium Enterprise Special Support Areas’ from the Ministry of SMEs and Startups have been newly designated or re-designated.

According to Jeonnam Province on the 27th, in the designation review of the Ministry of SMEs and Startups for ‘Local Small and Medium Enterprise Special Support Areas,’ two sites, Donghampyeong General Industrial Complex and Sepung General Industrial Complex, were newly designated, and four sites?Naju General Industrial Complex, Naju Innovation Industrial Complex, Jangheung Bio Food Industrial Complex, and Gangjin Industrial Complex?whose designation period expires on the 12th of next month, were re-designated until 2025.

In particular, the four re-designated sites had considered postponing investment decisions or relocation due to concerns about losing various benefits, but this re-designation is expected to provide hope for promoting new or expanded factories and corporate management.

The ‘Local Small and Medium Enterprise Special Support Area’ system designates industrial complexes with low industrial production where local governments have a strong will to revitalize, supporting corporate attraction and growth of resident companies through special tax, funding, and sales channel support.

Small and medium enterprises residing in special support areas can receive a 50% reduction in national taxes such as corporate tax or income tax for five years from the first taxable year, and local taxes such as acquisition and property tax are also reduced.

Additionally, local governments, Korea Electric Power Corporation (KEPCO), and other public institutions can purchase goods directly produced by resident companies in the industrial complexes through restricted competitive bidding and negotiated contracts.

Furthermore, advantages such as increased policy fund loan limits, preferential credit guarantees, designation as military service companies, and extra points for research and development (R&D) projects are granted.

Through the operation of this system, a total of 386 companies newly moved into seven industrial complexes?including the four re-designated sites and three previously designated sites: Mokpo Daeyang Industrial Complex, Yeonggwang Daema Industrial Complex, and Damyang Industrial Complex?receiving benefits worth 516.1 billion KRW through tax and sales channel support.

The province has played a significant role as a catalyst for regional economic revitalization, with about 2,000 new jobs and an annual production increase of 800 billion KRW.

Ahn Sanghyun, Director of the Economic Energy Bureau of Jeonnam Province, said, “Among the 13 industrial complexes nationwide designated as Local Small and Medium Enterprise Special Support Areas, our province has the most with nine, including the two newly designated this time. This is welcome news like rain for the industrial complexes and companies in the region suffering greatly from COVID-19, and we will actively utilize the support benefits to help revitalize the local economy.”

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