[Yoon Administration Economy] Expanded Tax Support for Companies Relocating to Underdeveloped Regions... Creation of Ultra-Wide Megacity

[Asia Economy Sejong=Reporter Kim Hyewon] The government will expand tax support for companies relocating to underdeveloped local areas to alleviate concentration in the metropolitan area. Subsidy projects that align with balanced development policies will be converted to the National Balanced Development Special Account (Gyunteuk Account), promoting self-sustaining balanced development through tax and fiscal support.

The government announced the new administration's economic policy direction containing these details on the 16th.

First, to strengthen local competitiveness through expanded inter-regional cooperation, the government plans to actively support the creation of region-led super metropolitan mega cities. For example, customized regulatory exemptions in higher education necessary for cooperation between local governments and universities will be supported for up to six years.

Along with this, to alleviate concentration in the metropolitan area, tax support for companies relocating to underdeveloped local areas will be expanded. Subsidy projects that align with balanced development policies will be converted to the Gyunteuk Account and improved to be more allocated to underdeveloped areas. When calculating the scale of comprehensive subsidy support, the weight of underdevelopment will be increased, and the subsidy rate for comprehensive subsidy projects in population-declining areas will be raised.

Support for childcare, education, medical care, and housing in population-declining areas will be expanded to respond to regional extinction. Based on the 'Special Act on Support for Population-Declining Areas,' full support will begin next year, including prioritizing the installation of national and public daycare centers, integrated operation of teachers and facilities in kindergartens, elementary, middle, and high schools, support for home-visit medical services for managing chronic diseases, and priority supply of public rental housing for migrants to population-declining areas.

Using the Regional Extinction Response Fund as seed money, improvements to local living infrastructure linked with other national and local government projects will also be promoted. The fund will support 1 trillion won annually until 2031, focusing on 89 population-declining areas and 18 areas of interest.

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