Investment of 294.2 Billion KRW in 48 Regional Key Industries... Promoting Regional Balanced New Deal

Ministry of SMEs and Startups Regional Economy Committee Meeting, 2021 Regional Industry Promotion Plan Confirmed

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 29th that it held a Regional Economy Committee meeting with 14 non-capital region cities and provinces and finalized the '2021 Regional Industry Promotion Plan,' which includes the 2021 regional industry and enterprise development strategies of the 14 cities and provinces as well as the budget investment plans of the government and local governments.

The '2021 Regional Industry Promotion Plan' focuses on implementing the 'Regional Innovation SME Development Strategy' announced by the Ministry last month and strengthening the strategic support for regional industries. The government provided guidelines, and each city and province established the plan reflecting regional characteristics. The key directions of this promotion plan are fourfold: ▲ restructuring regional key industries to promote regional balanced New Deal ▲focusing on nurturing regional innovation leading companies to lead the spread of regional balanced New Deal ▲strengthening regional autonomy and strategic planning through item-designated project planning ▲enhancing the role of regional base institutions through the establishment of equipment dedicated to regional companies.

Regional key industries were reorganized into a total of 48 industries through the 'Regional Innovation SME Development Strategy,' including 20 digital New Deal-related industries, 19 green New Deal-related industries, and 9 industries for high value-added regional base industries. Through this promotion plan, the 14 cities and provinces finalized mid- to long-term strategies for the reorganized regional key industries and enterprise development, as well as an investment plan totaling 294.2 billion KRW in 2021 (212.9 billion KRW in national funds, 81.3 billion KRW in local funds) and project-specific implementation plans.

The average investment scale by region is about 20.7 billion KRW, and all plans are to invest in regional key industry sectors. It is expected that this will create 12,000 new jobs and 1.2 trillion KRW in commercialization sales over the next five years. Kang Sung-chun, Deputy Minister of the Ministry, said, "The 2021 Regional Industry Promotion Plan, established through regional leadership, is significant as it presents a blueprint for realizing the regional balanced New Deal. The Ministry plans to strengthen support for regional SMEs as a partner in promoting the regional balanced New Deal," adding, "for balanced regional growth, local governments should take active interest and conduct thorough management to ensure continuous results from the regulatory free zone projects being promoted in each region."

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