Designation of Hongneung as a Small Giant R&D Special Zone and Development of an Urban Bio-Medical Industry Cluster

Ministry of Science and ICT Holds Research and Development Special Zone Committee Meeting, Announces Selection of 6 Small and Strong Special Zones... Benefits Include R&D Funding Support, Various Development Fee Reductions, National Funding for Infrastructure... National Funding Planned for 'Digital Healthcare' Specialized Field

[Asia Economy Reporter Jongil Park] The area around Hongneung in Seoul (Seongbuk-gu, Dongdaemun-gu, Nowon-gu) has been designated as a Small Giant Research and Development Special Zone (Small Giant Special Zone).

On the 27th, the Ministry of Science and ICT held the 34th Research and Development Special Zone Committee meeting and announced the selection of 6 out of 7 applicant areas for the Small Giant Special Zone.

Through this designation, Seoul City plans to foster small and medium-sized enterprises in the digital healthcare sector centered around key institutions in the Hongneung district, such as the Korea Institute of Science and Technology (KIST), Korea University, and Kyung Hee University.

It will also focus on nurturing subfields such as biomarkers, smart diagnostic medical devices, East-West medical big data platforms, and AI-based medical software.

The designated special zones will receive various benefits, including government research and development (R&D) budget support and regulatory exemptions for new technology demonstrations. For research institute companies and advanced technology companies, national taxes (corporate tax and income tax exempted for 3 years, then 50% reduction) and local taxes (acquisition tax and property tax exempted for 7 years, then 50% reduction) will be reduced, along with reductions in traffic inducement charges and water fees for research institute companies.

Seongbuk-gu is planning a project to develop the Jongam and Wolgok areas into a global development special zone focused on the bio-ICT convergence field, in connection with the Hongneung bio-medical cluster plan.

In the second half of 2020, the ‘BT-IT Convergence Center’ in Wolgok-dong and the ‘Seoul Bio Innovation Community Center’ in Jongam-dong are scheduled for completion.

Additionally, the district plans to operate the ‘Science Station’ at Sangwolgok Station in collaboration with KIST as a space leading the spread of scientific culture.

Seongbuk-gu Mayor Seungro Lee stated, “We welcome the designation of the Hongneung Small Giant Special Zone and will actively consult with Seoul City and related autonomous districts to foster an urban bio and medical industry cluster utilizing Hongneung’s excellent R&D capabilities. We expect this designation to reverse the local economic downturn caused by COVID-19 and to invigorate job creation and local industries.”

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