1.4 Trillion KRW Invested in Non-Capital Region's Key Industries for 'Regional Balanced New Deal'

[Asia Economy Reporter Moon Hyewon] The government and local governments will invest 1.4 trillion won in the 'Regional Balanced New Deal' project, focusing on key industries outside the metropolitan area.

The Ministry of SMEs and Startups announced a regional innovation SME development strategy to promote the Regional Balanced New Deal at the 21st Emergency Economic Central Countermeasures Headquarters meeting on the 26th.

First, 48 key regional industries nurtured by each non-metropolitan city and province will be linked and reorganized with the Regional Balanced New Deal. The scale of the existing 48 industries will be maintained, but the approach will be to replace existing industries or expand their scope.

The Ministry of SMEs and Startups also plans to establish 'Regional New Deal Venture Funds' by region, with voluntary participation from local private and anchor public institutions. Budget support will be provided annually with differentiated amounts (up to 2.4 billion won) based on performance evaluations related to nurturing key regional industries. However, the support goals and methods for companies will be designed and promoted proactively by local governments according to regional characteristics.

Among companies in key regional industries, 100 companies with high growth potential will be selected and provided with package support for technology development and commercialization funds. Regulatory Free Zones, which serve as bases for creating new industries in the region, will also be expanded to New Deal sectors, establishing digital and green innovation hubs. To generate outcomes after the demonstration phase of special zone companies, government support projects such as a dedicated Regulatory Free Zone fund (approximately 35 billion won as of this year), loan funds (50 billion won), and designation of procurement innovation prototypes will be linked.

A collaborative system to promote the Regional Balanced New Deal will also be established. The 19 Creative Economy Innovation Centers by region will nurture innovative startup companies using their specialized functions, and Technoparks will take over by supporting the growth of startups through providing office space, personnel, equipment, and resolving technical difficulties. Based on these initiatives, the plan is to nurture 100 'Regional Innovation Leading Companies,' which are representative anchor companies in the region, and create 80,000 jobs by 2025.

Park Young-sun, Minister of SMEs and Startups, said, "Just as SMEs and venture companies have played a major role in overcoming the COVID-19 crisis, they are also key players in promoting the Regional Balanced New Deal." She added, "At the same time, the Regional Balanced New Deal will act as a new opportunity for SMEs and venture companies facing difficulties in the region."

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