Muan-gun Opens New Renaissance Era for Local Economy

Published 28 Jan.2022 16:43(KST)

Creating New Jobs Through Corporate Attraction... Promoting Regional Economic Revitalization

Laying the Foundation for the Region's New Growth Engine Industry, the '100-Year Future Food Source'

Forming the Nation's Largest Living Ceramics Cluster as a Specialized Ceramic Industry Zone

Muan-gun Opens New Renaissance Era for Local Economy

[Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo] Muan-gun, Jeollanam-do, has put its life on revitalizing the local economy.

The county announced on the 28th that it will invest a budget of 19.6 billion KRW this year, aiming to strengthen support for the core of local economic revitalization, the ‘3 PLUS (Enterprises, Small Business Owners, Local Love Gift Certificates)’.

Based on this, the plan is to make every effort to promote a virtuous cycle of local economic revitalization that leads to regional development, job creation, and population inflow.

Since 2021, the county has been carrying out activities such as issuing 90 billion KRW worth of Muan Love Gift Certificates, providing disaster relief funds to all residents (9 billion KRW), and attracting the Mongtan Specialized Agricultural and Industrial Complex to revitalize the stagnant local commercial district.

Through these efforts, the county achieved ▲attraction of 3 companies (5.3 billion KRW investment, 27 employees) ▲support for startup and business stabilization funds for small business owners (457 places, 8.5 billion KRW) ▲support for management improvement of small and medium enterprises (SMEs) (support for SME development fund contributions to 37 companies, 8.3 billion KRW) ▲support for 2 leading companies in Jeollanam-do’s root industry ▲customized specialized support for 7 companies in the agricultural and industrial complex ▲smart factory dissemination support of 800 million KRW (support for 8 companies at domestic exhibitions) ▲new renewable energy convergence support projects ▲installation of Muan Provincial Small Business Specialized Support Center ▲promotion of the aviation industrial complex project, and other proactive responses to the weakened economy.

As a result, it was selected as an excellent institution in the ‘Local Economic Revitalization’ category by Jeollanam-do and in the ‘Job Creation’ category by the Ministry of the Interior and Safety.

◆ Establishment of Future Food Industry Base and Strengthening Investment Attraction

The county judged that attracting investment in strategic industries that will create future food sources is essential to leap forward as an economic city.

It plans to focus on strategic projects that will lead Muan-gun’s growth for the next 100 years by establishing a regional industrial base, aiming for balanced regional development and creating about 20,000 large-scale jobs.

Especially this year, the county will focus on ▲completion of the Muan Aviation Specialized Industrial Complex, an advanced aviation industrial facility providing aircraft maintenance, aviation logistics, and flight services ▲designation approval of the K-Food Convergence Industrial Complex, a base for fresh agricultural product exports and data industry development ▲construction of an advanced aviation industry cluster linking the national aviation specialized industrial complex centered on Muan International Airport and the air cargo logistics industry ▲completion of sales for the Mongtan Specialized Agricultural and Industrial Complex producing eco-friendly agricultural specialty processed products ▲promotion of the establishment of the National Allium Vegetable Research Institute, an R&D base for representative crops such as onions and garlic (national budget of 34.5 billion KRW) ▲attraction of excellent companies, among other key initiatives.

Although investment attraction activities are challenging due to the depressed investment sentiment caused by COVID-19, the county plans to develop strategic investment attraction activities by establishing an organic cooperative system with the central government.

◆ Support for SME Growth…Coexistence of Local Economy

Due to COVID-19, SMEs are facing serious management and labor shortages, so the county plans to create a business-friendly Muan by expanding employment safety nets through stable management support for SMEs.

It will actively resolve labor shortages by matching local talent with SMEs.

Specifically, it includes youth job matching for 105 people (digital jobs, agricultural and fishery distribution experts, etc.), ▲SME regular employee project (900,000 KRW per person) ▲support for middle-aged work experience in SMEs ▲incentives for employment succession workplaces (up to 9 million KRW for converting non-regular to regular employees) ▲strengthening promotion of Muan Employment Welfare Center ▲operation of visiting recruitment counseling offices ▲4050 incentive support (up to 8 million KRW for companies and workers) ▲youth retention allowance (up to 20 million KRW for companies and youth) ▲Youth Hope Stepping Stone (166 people, 1.2 million KRW annually), among others.

Support for specialized technology and market expansion will also be carried out simultaneously. ▲Muan County Star Company Development (3 companies, 100 million KRW) ▲Jeonnam Root Industry Leading Company Development Project (200 million KRW) ▲customized specialized support for 10 companies in the agricultural and industrial complex (80 million KRW) ▲SME e-commerce delivery fee support project (20 companies, 50 million KRW) ▲SME domestic exhibition support project (12 companies, 30 million KRW) ▲TV home shopping broadcast sales support (40 million KRW) ▲SME development fund contribution support (40 companies, 800 million KRW) ▲smart factory dissemination support (6 companies, 200 million KRW), etc.

Additionally, work-life balance support will be strengthened. ▲Idolbom Happiness Plus Project (1,500 households, 150 million KRW) ▲working youth allowance support (100 people, up to 1.8 million KRW) ▲youth transportation support for SMEs in the agricultural and industrial complex (130 people, up to 600,000 KRW annually) ▲support for excellent job-creating companies (20 million KRW per company) ▲maintenance of aging infrastructure in agricultural and industrial complexes (installation of restaurants, fitness facilities, etc.) and more.

◆ ‘Ceramics Industry Specialized Zone’ ? The Nation’s Largest Living Ceramics Cluster

Muan-gun has grown as a regional specialized project with the optimal location having an integrated system for all processes from ceramic raw materials to finished products. Currently, the western region of Jeollanam-do centered on Muan accounts for more than 60% of Korea’s ceramic production, establishing itself as the mecca of the ceramics industry.

In 2020, the county was selected for the Ministry of SMEs and Startups’ Muan Ceramic Small Business Specialized Support Project and established the Muan Ceramic Small Business Specialized Support Center, the first in the province, providing various supports such as government specialized fund application support, century-old small business support, strengthening online marketing and management revitalization education, technology and design consulting, specialized product development, and packaging material production support.

Muan is one of Korea’s three major ceramic origins (Muan Buncheong, Gangjin Celadon, Yeoju Baekja), with its ceramic history already proven. Based on abundant raw materials and advanced technology, 82 ceramic companies are currently operating mainly in the Cheonggye Agricultural and Industrial Complex.

The county plans to promote the excellence of local ceramics domestically and internationally and nurture it as a specialized regional development industry.

Through this, it will conduct a feasibility study for the ‘Muan Ceramics Industry Specialized Zone,’ receive designation as a regional specialized zone from the Ministry of SMEs and Startups, and form the nation’s largest living ceramics cluster by applying regulatory exemptions to specialized projects such as the convergence ceramics support center and ceramics industry promotion institute complex town, thereby enhancing local economic vitality through income and employment creation for residents.

Muan ceramics account for 57 out of 180 ceramic companies in Jeollanam-do (32%) with annual sales of 37.3 billion KRW, which is four times the sales of the Icheon Ceramics Special Zone, indicating that the value of Muan ceramics as a premium brand representing Jeollanam-do is sufficient.

In cooperation with Mokpo National University, the county plans to promote the Ministry of SMEs and Startups’ 2022 public project (regional anchor industry development support, joint infrastructure construction for small business clusters, etc.) to support SMEs in discovering and commercializing business models and establish ordinances supporting the ceramics industry, laying the foundation for the development of the ceramics industry.

◆ Focused Support Policies for Small Business Owners…Leading Muan’s Economic Recovery

With the prolonged COVID-19 pandemic causing continued local economic stagnation, the recovery of small business owners is a prerequisite for Muan’s economic revival, and the county plans to make every effort to stabilize the management of small business owners facing difficulties.

Over the past two years, the county secured a total of 5.6 billion KRW in county funds to support over 4,600 small business owners and prioritized financial input for local economic recovery by providing 8.7 billion KRW in disaster safety support funds to all residents in the form of local gift certificates.

To relieve the urgent financial difficulties of small business owners under financial pressure due to management difficulties, the county will support about 500 small business owners with 200 million KRW through a special guarantee project for small business owners.

In January last year, the county enacted an ordinance and provided emergency funds of up to 30 million KRW per person to 415 small business owners in the jurisdiction. The interest difference was supported within a 2.5% range for two years, allowing small business owners to finance without burden.

To alleviate the financial difficulties and stabilize management of small business owners in the region who lack collateral ability due to prolonged recession, the county will compensate part of the interest on loans taken from local financial institutions with a budget of 60 million KRW.

It supports up to 20 million KRW per company with 3% annual interest for two years. Last year, support was provided to 42 places.

Additionally, the county signed a business agreement with the Jeonnam Credit Guarantee Foundation Self-Employment Comprehensive Support Center to provide customized management solutions such as management education and marketing through on-site management by dedicated staff.

To provide livelihood stability and business restart opportunities for small business owners threatened by closure or old age, the county supports ‘Yellow Umbrella Insurance’ subscription incentives (20,000 KRW per month, up to 240,000 KRW, about 100 people), offering various benefits such as retirement pay, lump-sum savings, and insurance payments up to 150 times the highest monthly premium for two years in case of death or disability.

◆ Traditional Market and Alley Commercial District Revival Project

The county aims to accelerate efforts by actively promoting various policies that breathe vitality into traditional markets and alley commercial districts, which are the roots of the local economy and the livelihood base of small business owners, so that they can have competitiveness and sustain themselves.

Last year, the county operated a shopping mall university targeting traditional market stores and stores in the provincial regeneration area to support merchants in coping actively with changing consumption patterns through management innovation, and supported rent reductions for traditional markets (60 million KRW), improvement of aging facilities, modernization facilities such as cooling equipment in the seafood building, etc.

This year, the county plans to support renovation projects such as rain shelters, parking lots, and market stalls in three traditional markets (Muan, Illo, Mangun) to enhance customer convenience.

The county will actively discover traditional market revitalization projects through meetings with representatives of traditional market merchant associations and customer satisfaction surveys and promote market-specific customized projects such as cultural tourism-type specialized market development, market manager support, and reinforcement of aging fire facilities.

Currently, with an increase in closures of alley stores, the county plans to enact an ordinance for alley-type shopping districts within the first half of the year to revitalize the concentrated stores in the Naman area. After registering the shopping district, the county will intensify support such as commercial district diagnosis, environmental improvement, joint marketing, and consulting to inject vitality into the local economy and create a virtuous economic cycle.

◆ Expansion of Local Love Gift Certificates Issuance…Driving Local Economic Revitalization

This year, the county will expand the Muan Love Gift Certificates to 100 billion KRW, a 9% increase compared to last year.

To prevent the outflow of local funds and prepare measures to boost consumption within the region, thereby increasing sales of small business owners and stimulating the economy, the county plans to provide a 10% discount on purchase amounts throughout the year to energize the economic revitalization project.

In June last year, the monthly individual card discount purchase limit was increased from 500,000 KRW to 1 million KRW, and active promotion of the use of Muan Love Gift Certificates and cards led to early achievement of the 90 billion KRW sales target. Currently, there are 3,470 affiliated stores.

In particular, the Muan Love Card, which is convenient for charging and payment, sold 5,235 cards last year. Usage of the Muan Love Card was distributed as follows: retail stores (supermarkets, convenience stores, general merchandise, etc.) 34.5%, restaurants (general restaurants, cafes, etc.) 33.5%, personal services (beauty salons, gas stations, etc.) 13.5%, academies (study rooms, education-related) 7.3%, hospitals and pharmacies (medical supplies stores, etc.) 2%, hobbies, culture, sports 0.9%, lodging 0.5%, others (vehicle repair, parts, electronics, clothing, glasses, accessories, shoes, etc.) 7.8%.

According to the December last year local government policy briefing ‘Analysis of the Effect of Local Love Gift Certificates on Local Economic Revitalization,’ after the introduction of gift certificates, the average monthly sales increased by 3.4% at affiliated stores and decreased by 0.4% at non-affiliated stores.

The county plans to conduct an economic effect analysis and development plan study for local love gift certificates in the first half of the year to establish comprehensive promotion strategies such as appropriate issuance scale, distribution structure improvement, and discount rate adjustment, seeking effective operation of the gift certificates.

Lee Kwang-jin, head of the Regional Economy Division, said, “I hope this year’s support policies will lead to a virtuous cycle of the local economy with rapid management stabilization and substantial sales increase for small business owners and SMEs,” adding, “We will prioritize restoring balance to the overall livelihood economy and the precious daily lives of residents and concentrate all capabilities on a fast and robust local economic recovery.”