Yoon: "We Will Not Follow the Previous Government's Mistakes... Tax Benefits for Local Opportunity Development Zones"

Yoon Attends Presidential Committee on Local Era 'Local Era Proclamation Ceremony'
"Regional Competitiveness is National Competitiveness"... Promises Comprehensive Benefits Including Tax Reductions
Designates Four Special Zones Including Opportunity Development Zones, Focuses on Nine Key Policies

President Yoon Suk-yeol stated on the 14th, "We will boldly pursue tax support for attracting regional businesses, improvement of living conditions, and the transfer of land regulation authority." This marks the full-scale central government support for the 'Local Era Where Anywhere in the Republic of Korea is a Good Place to Live,' one of the Yoon administration's core national agenda items. He warned that "unlike the previous administration, which held all authority centrally and only paid lip service to local autonomy, we will not follow that path," signaling comprehensive support including tax reductions.

On the same day, President Yoon attended the 'Local Era Proclamation Ceremony' of the Presidential Commission on the Local Era held at the Busan International Finance Center (BIFC), saying, "The competitiveness of regions is the competitiveness of the nation. To open a true local era, we will work closely with both the central and local governments as well as with the people."

This event was organized to share the government's vision for the local era and to discuss strategies for regional development. It was also the occasion where the government's detailed support plans, prepared through three Central-Local Cooperation Meetings since President Yoon took office and making the local era a key national goal, were unveiled.

In his proclamation message, President Yoon said, "For the overall development and growth of the Republic of Korea, two axes, Seoul and Busan, must operate." He added, "Only then can Yeongnam and Honam develop together, allowing the entire nation to rise." This implies creating special zones centered on regional hubs and pouring in various support measures.

President Yoon Suk-yeol is delivering a message proclaiming the Local Era at the 'Local Era Proclamation Ceremony' of the Presidential Committee on the Local Era held on the 14th at the Busan International Finance Center (BIFC) in Nam-gu, Busan. [Image source=Yonhap News]

He particularly criticized the local development policies of the previous Moon Jae-in administration. President Yoon stated, "Our government will not hold all authority centrally and only pay lip service to local autonomy, nor will we ever follow such a path of the past," adding, "the absurd political situation where not even a decent shopping mall can be built in the regions will no longer be tolerated by the people."

The government's five major strategies centered on four special zones reflect this stance. The five strategies are: ▲bold decentralization to enhance autonomy ▲bold educational reform to nurture talent ▲creative innovative growth to increase jobs ▲leading specialized development to preserve individuality ▲customized welfare to improve quality of life. The core plans include ▲designation of Opportunity Development Zones ▲creation of Education Freedom Zones ▲promotion of local advanced strategic industries ▲establishment of local new industry ecosystems ▲development of attractive rural fishing villages ▲creation of regional culture and content ecosystems ▲formation of urban convergence special zones ▲comprehensive elimination of local killer regulations ▲transition to a decentralized national system.

First, to promote corporate relocation to regions, regional investment, and creation of quality new jobs, Opportunity Development Zones will be designated starting next year. In these zones, local governments will select an area equivalent to the size of Yeouido and apply for designation to the Minister of Trade, Industry and Energy. Once designated as a special zone, they will receive more than 10 types of incentives differentiated from existing special zones, including ▲tax reductions ▲regulatory exemptions ▲financial support ▲improvements in living conditions.

President Yoon Suk-yeol is delivering closing remarks at the 'Local Era Proclamation Ceremony' of the Presidential Committee on the Local Era held on the 14th at the Busan International Finance Center (BIFC) in Nam-gu, Busan.
[Image source=Yonhap News]

Generous benefits will also be provided for corporate taxes, capital gains taxes, and inheritance taxes on family businesses, which have been obstacles to the relocation and investment expansion of metropolitan companies. This will establish a foundation where businesspeople can operate freely in the regions without worrying about taxes. The government plans to allow local governments to directly plan and drastically improve regulatory exemption measures for businesses.

The designation of 'Education Freedom Zones' to promote local talent development through innovation in local public education and nurturing of local universities is another notable point. The central government, local governments, education offices, universities, local businesses, and regional public institutions will cooperate to comprehensively provide ▲innovation in local public education ▲local talent development ▲residential support. Additionally, the government will significantly expand local governments' authority and responsibility over regional education and support the resolution of educational regulations so that city/provincial education offices and local governments can lead customized regional educational development. In connection with this, by 2030, more than five digital innovation districts will be established, and by 2027, two AI gifted high schools affiliated with science and technology institutes (such as KAIST and GIST) will be newly established to strengthen local new industry innovation capabilities based on digital infrastructure.

Furthermore, the 'localism' policy, which nurtures local tourism resources and culture as assets, will be actively promoted. The goal is to designate 13 'Korea Cultural Cities' across seven regions by December. Up to 20 billion KRW will be supported, likely to be invested in creating cultural spaces and projects related to regional cultural content production.

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