Proactive Response to Industrial Ecosystem Changes... Busan City Significantly Revises Incentive System for Investment Attraction

Busan City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Busan City is announcing a legislative notice regarding partial amendments to the ‘Busan City Enterprise Investment Attraction and Promotion Ordinance’ and its enforcement regulations.

Due to the severe manpower shortage faced by attracted companies caused by the concentration of skilled personnel in the Seoul metropolitan area, and the significant reduction in government subsidies for local investment promotion starting this year, an incentive improvement plan has been prepared to overcome the difficulties in attracting companies, leading to the push for amendments to the ordinance and regulations.

Reviewing the amendments to the ordinance and regulations, explicit grounds have been established to utilize unsold and unused Busan City-owned public property within the downtown area for investment attraction, reflecting the results of a survey conducted last September targeting companies and investment institution officials.

Provisions have been made to flexibly apply some subsidy support conditions, and the subsidy support system has been improved to strategically attract future core growth industries through exceptional cash support.

The scope of improvements will be expanded to allow companies to autonomously select support items such as housing support, employment subsidies, and training expenses as needed to alleviate manpower shortages of relocating companies.

The city has also supplemented the system by granting additional points during subsidy support evaluations for local companies making new or expanded investments within Busan City, to prevent reverse discrimination against local companies contributing to regional economic revitalization.

Lee Jun-seung, Director of the Digital Economy Innovation Office of Busan City, stated, “We will make great efforts to distinguish the quality of attracted companies by expanding subsidy support and strengthening the evaluation system of the subcommittee.”

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