Jeonnam Province Accelerates Realization of Jeonnam Happiness Era by Attracting Advanced Strategic Industry Companies

Achievement of attracting over 20 trillion won in investment after 2 years

Jeonnam Province, in line with the restructuring of its industrial structure centered on advanced technology during the 8th local government administration, has made "30 trillion won advanced and strategic industry investment attraction" its top priority core task, and the concentrated efforts are bearing fruit.

The province announced on the 18th that it has achieved investment attraction results exceeding 20 trillion won in just two years.

This achievement is even more valuable as it was accomplished under difficult investment attraction conditions due to the 'three highs'?high inflation, high interest rates, and high exchange rates?intensified US-China trade conflicts, and global economic recession and uncertainties caused by the Middle East and Ukraine wars.

Jeonnam Province established a differentiated investment attraction strategy by linking advanced industry promotion strategies such as secondary batteries, aerospace, and offshore wind power, which have high technological levels and growth potential, with bold incentives and customized site provision, and carried out rapid investment attraction activities.

As a result, as of December, it attracted 294 domestic and foreign companies, leading to investment agreements totaling 20.54 trillion won. The creation of 16,750 new jobs is expected.

In particular, the relaxation of site regulations in the Dongho area of POSCO Gwangyang Steelworks was achieved through close cooperation among the government, local governments, and companies, improving the system, and is regarded as a case of dismantling three major killer regulations in industrial complexes.

This resulted in a twofold achievement of large-scale investment exceeding 4.4 trillion won in new industries such as secondary batteries and hydrogen energy, and resolving the shortage of industrial sites.

The strategy and direction of the "30 trillion won advanced strategic industry investment attraction" goal were also effective. Investments of 11.81 trillion won poured into advanced and new growth industries such as secondary battery cathode materials and lithium core materials, data centers, and hydrogen, accounting for 57.5% of total investment attraction.

Jeonnam Province plans to intensively promote its differentiated investment environment, advantages, and support systems, and to thoroughly carry out investment attraction activities (IR) and the resolution of key regulations.

It will devote all efforts to designating a "Opportunity Development Special Zone" that provides bold tax support and regulatory exemptions for advanced industries such as secondary batteries, advanced bio, and data centers, and through this, activate regional investment by key anchor companies in the special zone areas.

Also, leveraging its status as having the highest level of renewable energy potential nationwide as an opportunity factor, it plans to lead investment attraction targeting domestic and foreign potential investment companies in offshore wind power, hydrogen, data centers, etc., in connection with policies to expand energy decentralization.

The steel, chemical, and shipbuilding industries, which have driven regional growth as main industries, will induce corporate new and expanded investments in connection with the restructuring into future growth industries such as hydrogen reduction steelmaking, functional chemical materials, and LNG/ammonia ships, following the transition to a decarbonized economy and carbon neutrality implementation.

Currently, investment in local advanced companies is increasing, but the industrial complex occupancy rate is 98%, resulting in a shortage of sites available to resident companies.

To overcome this, advanced and new industry industrial complexes will be established in areas with high demand and development feasibility, such as the Naju Energy and Goheung Aerospace National Industrial Complex, and the Gwangyang Sepung, Suncheon Haeryong, and Muan K-Food general industrial complexes.

Starting in 2024, Jeonnam Province will raise investment attraction subsidies to the highest level nationwide. Location subsidies will be 20% of the sale price, and facility subsidies will be 10% of investment exceeding 2 billion won, each supporting up to 5 billion won for a maximum of 10 billion won. For new growth and advanced companies, the support rate for location and facility subsidies will be increased by 10 percentage points each to accelerate investment.

Wi Gwang-hwan, Director of the Jeonnam Province Job and Investment Attraction Bureau, said, "Although uncertainty in corporate investment is increasing due to difficult management environments, we will do our best to revitalize investment attraction through Jeonnam's unique comparative advantage industrial supply chains and infrastructure, strategic sales investment attraction activities, and strengthened differentiated incentives."

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