Daegu City "Free Land Supply for 50 Years to U-Turn Large Corporations + 50% Investment Support"

Emergency Economic Measures Meeting on the 25th Confirms 'Daegu-style Reshoring'
Bold Corporate Attraction to Promote Job Creation and Employment Support

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Dong-wook] On the afternoon of the 25th, Daegu City held the 4th Emergency Economic Measures Meeting (co-chaired by Kwon Young-jin, Mayor of Daegu, and Lee Jae-ha, Chairman of Daegu Chamber of Commerce and Industry) at the main auditorium of the city hall annex.

At the meeting, the follow-up results of the 3rd meeting held on the 21st of last month were shared, and the difficulties faced by local companies discovered through the corporate briefing session chaired by Deputy Mayor for Economic Affairs Lee Seung-ho, as well as the main agenda items raised in the subcommittee meetings, were discussed.

The emergency measures meeting finalized the 'Daegu-type Reshoring Incentive Package (draft)' which provides unprecedented support for companies wishing to return to Korea, and decided to concentrate all efforts on attracting reshoring companies. Reshoring refers to policies that attract domestic companies back from overseas by offering various tax benefits and deregulations.

Accordingly, for large-scale investment companies, a generous subsidy of up to 50% of the total investment amount will be provided, including government U-turn subsidies and free supply of rental land for 50 years by the city. For small and medium-sized enterprises, in addition to government U-turn subsidies, effective incentives such as free supply of rental land for 10 years will be additionally supported. Furthermore, employment creation incentives covering labor costs for a total of 4 years (2 years from the government + 2 years from the city) will be provided, along with support for employee residence costs up to 1 billion KRW per company within 30% of expenses for dormitory construction or accommodation rental.

Up to 500 million KRW will be supported for smart factory establishment and robot distribution projects, and within the scope of laws, local taxes such as acquisition tax will be reduced by applying the maximum exemption rate through ordinance amendments. A customized dedicated task force will be formed for each company to provide integrated consulting services.

Separately, the emergency measures meeting will promote the 'Industrial Complex Linked Employment Service Activation Project' by connecting the One-Stop Job Support Center with industrial complexes to share information on recruiting companies and match suitable job seekers. This policy aims to link information between industrial complex employment service agencies and the One-Stop Job Center, which had been conducted separately, and to connect detailed projects of Daegu's innovation projects. Daegu City expects this to alleviate the recruitment difficulties in industrial complexes and significantly contribute to improving the employment rate.

The city will also promote 'Customized Consulting Support for Employment Stability.' This involves selecting retired professional experts to form a 'Visiting Corporate Customized Consulting Support Team' to assist companies with consulting and applications for various employment stability support policies, helping companies struggling with complicated and difficult application procedures for employment retention subsidies and emergency employment stabilization funds.

In addition, the meeting decided to promote ▲ the formation and operation of a financial support consultative body for mid-sized companies ▲ support for operating funds secured by textile (yarn) collateral ▲ improvement plans for traditional market festivals ▲ and measures to revitalize the local economy by promoting consumption of excellent local products.

Kwon Young-jin, Mayor of Daegu, pledged, "In addition to strategies to keep companies alive, we will devote all of Daegu City's capabilities to attracting companies with unprecedented incentives and supporting employment to protect citizens' jobs, and we will request maximum support from the government as well."

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