[2022 Economic Policy] Prevent Local Extinction... Discovering and Nurturing 100 Regional Innovation Leading Companies

Government Announces 2022 Economic Policy Directions... Responding to Demographic Changes and Regional Disappearance

[Sejong=Asia Economy Reporter Kim Hyunjung] To respond to the accelerating regional extinction, the government will support local small and medium-sized enterprises (SMEs) and small business owners, and discover and nurture 100 regional innovation leading companies. Additionally, as part of supporting return-to-farming and return-to-village initiatives, the areas eligible for the "Experience Rural Living" program will be expanded, and the target areas for the Saemangeum New Deal 300 project will also be increased.

On the 20th, the Ministry of Economy and Finance announced the '2022 Economic Policy Direction' containing these measures. The government plans to promote economic revitalization measures to strengthen the economic self-sustainability of regions facing extinction risks, while also generating regional innovation outcomes centered on various special zones.

First, along with the planned enactment of the 'Special Act on Support for Population Declining Areas' in the first half of next year, a response system focused on areas densely populated with SMEs and small business owners will be established, and 3.3 billion KRW will be provided next year through designation as a special support area for SMEs. Furthermore, 100 regional innovation leading companies will be discovered and nurtured next year. Candidates for support include regional star companies and businesses in regulatory special zones, and once selected, they will receive benefits such as collaborative project planning with the government and local governments, research and development (R&D) support, and preferential treatment for various policy funds.

The number of areas eligible for the "Experience Rural Living" program, planned at around 88 this year, will be expanded to 95 cities and counties, and the target areas for the "Saemangeum New Deal 300 project," which was about 250 last year, will be increased to 300.

Regarding regulatory free special zones, the government will revise the laws for 25 projects in the 3rd and 4th special zones scheduled to end demonstration next year, and promote stabilization measures such as conversion to temporary permits and extension of special cases. The 3rd and 4th special zone projects consist of 7 special zones with 21 projects and 3 special zones with 4 projects, respectively, both scheduled to end in November and December next year. The government plans to select and focus support on economic zones with excellent performance in attracting investment and job creation.

In addition, to strengthen adaptability to demographic changes such as low birthrate and aging, the government will launch the Population Policy Task Force (TF) team again next year to review improvements to the population-related response system. While periodically checking the tasks announced in the previous 1st to 3rd phases, the government will foster social consensus through meetings and discussions on structural tasks focused on expanding and reinforcing the productive population (3rd phase), including ▲establishing a system for utilizing foreign workers ▲measures for continued employment of the elderly ▲comprehensive protection systems for various employment types ▲linking lifelong education and vocational training integrated platforms.

To respond to on-site labor shortages in SMEs and others, the government will expand the countries eligible for foreign workers under the Employment Permit System (E9) and abolish the cap on the number of workers introduced. Depending on the quarantine situation, if the introduction of foreign workers is not smooth, the government will also consider expanding the scope of those eligible for a one-year extension of stay and employment activity periods.

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