Creating a 'Local Era' with Bold Support... First Integrated Plan for Central and Local Governments

Government Announces '1st Comprehensive Plan for the Local Era'
First Integrated Plan Covering Local Decentralization and Balanced Development

The Yoon Suk-yeol administration has announced the 'Comprehensive 5-Year Plan for the Local Era' promised at the time of its inauguration. This plan is a mid-term plan established every five years. Through this plan, the government aims to prevent regional extinction and promote balanced development by creating four major special zones led by local areas: opportunity development, educational development, urban convergence, and culture. Unprecedented benefits will be provided in these four special zones.

The Presidential Commission on the Local Era announced the '1st Comprehensive Plan for the Local Era (2023-2027)' containing these details on the 1st.

Woo Dong-gi, Chairman of the Presidential Committee on the Local Era, is conducting a joint pre-briefing with related ministries on the vision and strategy for the Local Era at the Government Seoul Office in Jongno-gu, Seoul on the 12th. Photo by Jo Yong-jun jun21@

The five major strategies of the Local Era are ▲bold local 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.

Along with this, the so-called four major special zones?opportunity development, educational development, urban convergence, and culture?will be actively promoted to create momentum for regional future growth.

In the Opportunity Development Special Zone, various unprecedented incentives such as tax benefits will be provided to promote corporate relocation and investment to local areas, creating high-quality new jobs and inducing an influx of local population.

When companies dispose of real estate and relocate to the special zone, capital gains tax will be deferred, and income and corporate taxes for startups and newly established businesses will be reduced by 100% for five years and by 50% for the following two years. Acquisition tax for newly acquired real estate (outside the metropolitan area) by companies relocating to or starting up in the special zone will be reduced by 100%, property tax will be reduced by 100% for five years and by 50% for the following five years. Development charges for special zone companies will be reduced by 100%, and the post-management requirements for business inheritance deductions will be significantly relaxed.

The Educational Freedom Special Zone allows local governments, education offices, universities, regional companies, and public institutions to collaborate upon selection to autonomously establish and propose public education development strategies reflecting regional conditions and special exceptions applicable within the zone.

The Ministry of Education plans to announce the basic plan for the pilot operation of the Educational Development Special Zone later this month after further collecting opinions from local sites, and will start the pilot project contest from December this year.

The Urban Convergence Special Zone aims to create spaces like 'Pangyo Techno Valley' in local areas. Local governments, which best understand regional characteristics, are allowed to directly design the basic direction and industrial promotion plans of the special zone. The government expects that after the Urban Convergence Special Zone Special Act is enforced in April next year, metropolitan local governments selected as leading project sites (Busan, Daegu, Gwangju, Daejeon, Ulsan) will request approval of the basic plan from the Ministry of Land, Infrastructure and Transport in the first half of the year.

Regional cultural and content promotion projects will also be intensified. Thirteen cultural special zones leading balanced development, called 'Korea Cultural Cities,' will be designated and supported with up to 20 billion KRW per city over three years (with 50% local funding).

By 2030, more than five 'Digital Innovation Districts' will be established in places such as Busan Centum City, Daegu Suseong Alpha City, and Gwangju AI Industry Convergence Complex, fostering regionally specialized advanced industrial hubs such as national high-tech industrial complexes.

The regional medical system will be improved by reorganizing and expanding the emergency medical system by 2027 and pursuing a cooperative system within the region.

Woo Dong-gi, chairman of the Local Era Commission, stated, "With the Educational Freedom Special Zone, local universities will gain competitiveness, attracting young people, and with the Opportunity Development Special Zone and public sector job creation securing quality jobs, young people can continue to live in local areas," adding, "The four zones?Educational Freedom Special Zone, Opportunity Development Special Zone, Urban Convergence Special Zone, and Cultural Special Zone?will operate in synergy."

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