Kim Du-gwan Visits Gumi, Promises 'Local Companies Corporate Tax Reduction'

Proposal for Differential Application of Corporate Tax

[Asia Economy Reporter Oh Ju-yeon] Democratic Party presidential candidate Congressman Kim Du-gwan visited Gumi High-Tech Valley and the planned LG Chem site in Gyeongbuk on the 12th, promising corporate tax reductions for companies located in provincial areas.

[Image source=Yonhap News]

On the same day, Congressman Kim held a meeting related to the Smart Green Industrial Complex at the Gyeongbuk Headquarters of the Korea Industrial Complex Corporation, stating, "In July, the Ministry of Economy and Finance established a policy through tax law revisions to provide a 100% tax reduction for seven years and a 50% reduction for the following three years to companies relocating their headquarters outside the metropolitan area, but this alone is insufficient."

He proposed a plan to apply differentiated corporate tax rates based on the distance from the metropolitan area or the level of regional underdevelopment. He argued that differentiated corporate taxation is essential for the survival of provincial industrial complexes and the establishment of an industrial ecosystem. He pledged to provide clear incentives through tax benefits to companies located in provincial areas, ensuring that not only headquarters relocation but also R&D moves would firmly establish the foundation of regional industries.

Additionally, on the same morning, he visited the planned LG Chem site investing in the Gumi-type jobs, saying, "Gumi-type jobs need to be designed with the sustainable development potential of the industrial ecosystem in mind, similar to Gwangju-type jobs." LG Chem plans to develop 20,000 pyeong in the Gumi National Industrial Complex for secondary battery cathode material production, investing 500 billion KRW, and aims to start construction as early as the fourth quarter of 2021 after applying for and being selected as a win-win regional job project.

Congressman Kim stated, "Now, instead of concentrated investment in a single industry as in the past, we must build a self-sustaining industrial system suited to regional conditions," adding, "At the government level, support measures related to patents, knowledge manufacturing industries, and high-tech industries that positively affect job employment rates should be prioritized."

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