The Best Regions for Business Nationwide Are 'Mokpo' and 'Namyangju'

Jeonnam Mokpo-si, Ranked No.1 in Corporate Sentiment, Attracts Numerous SMEs by Improving Industrial Complex Regulations and Establishing Ship Repair Support Center
Gyeonggi Namyangju-si, No.1 in Economic Activity Friendliness, Minimizes Regulations in 48 out of 50 Items and Provides Focused Support for Factory Areas

[Asia Economy Reporter Changhwan Lee] This year, Mokpo City in Jeollanam-do was ranked first in corporate satisfaction among local governments nationwide, while Namyangju City in Gyeonggi Province was recognized as the most business-friendly in terms of economic activity-related policies.

The Korea Chamber of Commerce and Industry announced the results of the "2020 Excellent Business Environment Region Evaluation" on the 16th, based on a survey of 228 local governments and about 6,000 local companies nationwide.

The Excellent Business Environment Region Evaluation is divided into two parts: "Corporate Perception," which asks companies about their subjective satisfaction with local government administration, and "Economic Activity Friendliness," which analyzes local government ordinances. Rankings from 1st to 228th are assigned based on scores, and five grades (S-A-B-C-D) are given. Local governments rated S or A are considered excellent regions.

Mokpo City, aligned with corporate demand, ranks first overall in Corporate Perception... Biggest improvement by Gimhae City, Gyeongnam

Mokpo City in Jeollanam-do scored 79.3 out of 100 in the "Corporate Perception" evaluation, securing first place. This was thanks to support tailored to corporate demand and regulatory improvements.

The Daeyang Industrial Complex located in Mokpo had difficulties for companies to move in due to restrictions on resident industries and large sales areas. Mokpo City changed the industrial complex plan by adding about 10 industries with high corporate demand, such as food products and manufacturing, and subdividing the sales area. As a result, the industrial complex sales rate, which was only 45% until the year before last, rose to 86% this year, allowing many companies to benefit.

Additionally, the region faced a problem where companies had to travel far to the Yeongnam area due to a lack of ship repair infrastructure. This year, Mokpo City established a "Ship Repair Support Center" at Mokpo Maritime University, providing small and medium shipbuilding companies with facilities and equipment for repairs, as well as various services necessary for ship repair, including technology development and workforce training.

Following Mokpo City, Gumi City in Gyeongbuk (79.0 points), which scored well in "Regulatory Officer Responsiveness and Expertise," Yeongju City in Gyeongbuk (78.1 points), recognized for strong "Regulatory Improvement Will," Nonsan City in Chungnam (77.0 points), positively evaluated in the "Administrative Behavior" category, and Gochang County in Jeonbuk (76.7 points), competitive in the "Civil Complaint Processing System" field, ranked 2nd to 5th respectively.

The city with the largest rise in perception ranking compared to last year was Gimhae City in Gyeongnam (224th → 20th). Gimhae City lifted regulations restricting the installation of wholesale markets within development areas by "item associations" such as floriculture, restarting the "Yeongnam Region Floriculture Comprehensive Distribution Center" construction project that was nearly canceled. Additionally, through proactive administration, it succeeded in attracting NHN's "Data Center" and "R&D Center," achieving an investment of about 500 billion KRW.

The national average score for corporate perception in 2020 was 71.3 points, up from 70.7 points last year. By grade, 136 local governments were rated in the top grades (S and A), an increase of 29 from the previous year, while the lower grades (C and D) increased by 4. A Korea Chamber of Commerce official said, "The rise in perception seems to be the result of many local governments supporting companies to overcome the recession."

Namyangju City, Gyeonggi Province ranks first overall in Economic Activity Friendliness for 3 consecutive years... Biggest improvement by Gyeongju City, Gyeongbuk

In the "Economic Activity Friendliness" category, jointly surveyed with the Korea Society for Regulatory Studies, Namyangju City in Gyeonggi Province scored 98.0 out of 100 and took first place for the third consecutive year.

Namyangju City applied the lowest level of regulation in 48 out of 50 items, receiving perfect scores in 7 out of 9 evaluation fields. This year, Namyangju City also amended ordinances to relax factory parking lot installation standards from "1 space per 350㎡" to "1 space per 400㎡."

They also actively addressed corporate difficulties. Namyangju City supported export companies suffering from the recession by providing buyer matching and consulting for online market development, enabling local export companies to conclude export contracts worth 1.29 million USD (about 1.4 billion KRW). In factory-dense areas where water supply was insufficient due to low water pressure, pressure pumps were installed to resolve corporate difficulties.

Following Namyangju City, Hadong County in Gyeongnam (97.5 points), Icheon City in Gyeonggi (95.9 points), Iksan City in Jeonbuk (95.2 points), and Namwon City in Jeonbuk (94.6 points) ranked 2nd to 5th respectively.

The largest improvement in economic activity friendliness ranking compared to last year was Gyeongju City in Gyeongbuk (218th → 6th). Gyeongju City amended 12 ordinance items related to corporate administration, such as public contracts and environment, jumping from the bottom ranks last year to the top ranks. They operated a "Visiting Corporate Grievance Resolution Team," resolving about 100 corporate difficulties, and closely supported individual factory site development, approving 290 cases including new factory establishment and registration.

The national average score for economic activity friendliness this year was 86.3 points, a significant increase from 81.2 points last year. All 228 local governments received top grades (S and A), with 224 receiving S grade and 4 receiving A grade. This is interpreted as local governments that received A grade last year improving ordinances this year to enter the S grade.

Jung Beomsik, head of the Regulatory Innovation Team at the Korea Chamber of Commerce, said, "The rise in both perception and friendliness scores despite the recession shows that local governments are actively working to recover the regional economy, and companies are positively evaluating this," adding, "We expect grassroots local governments at the forefront of local administration to make even greater efforts."

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