Naju-si, Innovation Industrial Complex and General Industrial Complex Re-designated as 'Special Support Areas for Local SMEs'

[Asia Economy Honam Reporting Headquarters Reporter Lee Han-hyuk] Naju City, Jeollanam-do (Mayor Kang In-gyu) announced on the 28th that the Naju Innovation Industrial Complex and General Industrial Complex have been re-designated as ‘Special Support Areas for Local Small and Medium Enterprises’ by the Ministry of SMEs and Startups.

With the two complexes, whose designation expires on the 12th of next month, being re-designated as special support areas, it is expected that the local economy will gain momentum through revitalization of new investments, factory establishment and expansion, activation of industrial production operations, and promotion of job creation, which had been quiet for some time.

The ‘Special Support Area Designation System for Small and Medium Enterprises’ is a system that designates industrial complexes with underdeveloped industrial production and supports them with special benefits such as tax, funding, and market access to promote corporate attraction and growth of resident companies.

The Naju Innovation Industrial Complex and General Industrial Complex were first designated as special support areas on March 13, 2015.

Mayor Kang has actively requested the Ministry of SMEs and Startups several times since last year for the re-designation of the special support areas to create stable investment conditions and alleviate management concerns of resident companies ahead of the expiration of the designation.

In particular, as a critical issue determining the survival of resident companies in the Innovation Industrial Complex, which is the heart of the Bitgaram Energy Valley aimed at creating the nation’s future growth engines, a full-scale effort was made by mobilizing human infrastructure from the government, National Assembly, Jeollanam-do, Korea Electric Power Corporation (KEPCO), and others.

With the re-designation of the special support areas, resident companies in the Innovation and General Industrial Complexes will receive a 50% reduction in national taxes such as corporate tax and income tax for five years, as well as reductions in local taxes such as acquisition tax and property tax.

Additionally, local governments, KEPCO, and other public institutions can purchase goods produced by resident companies through restricted competitive bidding and negotiated contracts.

Furthermore, benefits such as preferential credit guarantees, designation as military service companies, and additional points for research and development projects, including policy fund loan limits, will be granted.

Mayor Kang said, “I am pleased that the re-designation of the special support areas has created the optimal management environment for resident companies in the local industrial complexes to confidently realize continuous investment,” and added, “We will do our best to attract new investments and create jobs to serve as a catalyst to revitalize the local economy, which is facing a great crisis due to COVID-19.”

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