Kim Du-gwan: "We will provide clear incentives with tax benefits to local companies"

Democratic Party presidential primary candidate Kim Du-gwan (center) visited Gumi City, Gyeongbuk, and held a meeting with Mayor Jang Se-yong (right).
[Image source=Yonhap News]

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Sang-hyun] "We will provide clear incentives with tax benefits to companies located in provincial areas."

On the 12th, Kim Du-gwan, the Democratic Party presidential primary candidate, visited the Korea Industrial Complex Corporation Gyeongbuk Headquarters and proposed measures to alleviate the concentration in the metropolitan area during a meeting on smart green industrial complexes with Gumi Mayor and other officials.

Specifically, the proposal is to apply differentiated corporate tax rates based on the distance from the metropolitan area or the level of regional underdevelopment.

Candidate Kim pointed out, "In July, the Ministry of Economy and Finance established a policy to reduce corporate tax by 100% for 7 years and 50% for the following 3 years for companies relocating their headquarters outside the metropolitan area through tax law amendments, but this alone is insufficient."

As a complementary measure, he argued that differentiated corporate tax rates are essential to ensure the survival of local industrial complexes and the establishment of an industrial ecosystem.

He emphasized that not only relocating company headquarters but also transferring R&D should be encouraged to firmly establish the foundation of regional industries, providing clear incentives with tax benefits to companies located in provincial areas.

Candidate Kim said, "Concentration in the metropolitan area is severe in all aspects, but especially the regional polarization of industries is a fundamental problem, and it is more severe in high-tech industries. This is hindering regional development," adding, "Only Kim Du-gwan's vision of a balanced decentralized nation will achieve regional balanced development and revitalize the provinces."

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