Jeonbuk Gunsan, Extension of Designation Period as Special Industrial Crisis Response Area

Incentives Continue Including Employment Retention Subsidies, Tax Support for New Investment Companies, and Expansion of Local Investment Promotion Grants

[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] Jeonbuk Province announced on the 31st that the designation period for Gunsan as a Special Industrial Crisis Response Area has been extended for an additional year ahead of its expiration.

The designation period for a Special Industrial Crisis Response Area can be set within a total of 5 years according to the "Regional Industrial Crisis Response Act."

In the case of Gunsan, it was first designated in 2018 (April 5, 2018 ? April 4, 2020, 2 years) and then extended once (April 5, 2020 ? April 4, 2022, 2 years), making it a crisis area for a total of 4 years.

With this additional extension, the total designation period reaches 5 years, and incentives related to the extension of the crisis area designation will be provided to companies for one more year.

So far, the Ministry of Trade, Industry and Energy has conducted an in-depth review of the necessity of the designation period for the Special Industrial Crisis Response Area through on-site inspections based on the application submitted by Jeonbuk Province.

For quantitative evaluation, indicators such as the Business Survey Index (BSI) measuring companies' sentiment, manufacturing production index, and employment rate are analyzed, while qualitative evaluation scores are calculated based on group interviews with companies and on-site visits conducted during the inspections.

Regarding Gunsan's economic indicators, after the closure of Hyundai Heavy Industries Gunsan Shipyard and GM, which showed a continuous decline, most indicators have gradually improved as a result of strong efforts to overcome the crisis following the designation as a crisis area.

Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr

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