Government Announces "Opportunity Development Zones Applications Open Starting Today"

Government Holds Public Livelihood Forum with Citizens
Ministry of Industry's Regional Development Special Zone Guidelines Effective from the 4th

President Yoon Suk-yeol is speaking at the 16th Public Discussion on Livelihoods held under the theme "Daegu Rising with Advanced New Industries" at Kyungpook National University in Buk-gu, Daegu on March 4, 2024. Photo by Yonhap News.

The government announced on the 4th at the 'Public Livelihood Discussion' held at Kyungpook National University under the theme of 'Daegu Rising as an Advanced New Industry' that the guidelines (notice) regarding the designation and operation of Opportunity Development Zones will be implemented from today after consultations with related ministries and administrative notice.

Opportunity Development Zones refer to areas designated based on consultations between local governments and companies to promote investment outside the metropolitan area. Companies relocating from the metropolitan area to designated Opportunity Development Zones will receive tax incentives across corporate activities, including corporate tax, acquisition tax, property tax, capital gains tax, and inheritance tax. The government resolved the 'Opportunity Development Zone Promotion Plan' at the 5th Central-Local Cooperation Meeting held in October last year.

Subsequently, preparations for designation were completed as amendments to laws related to tax and financial support for Opportunity Development Zones (such as the Restriction of Special Taxation Act, Enforcement Decree of the Inheritance and Gift Tax Act, and notices related to local investment promotion subsidies) were finalized.

Regional Development Zones can apply for designation as soon as local governments are ready, rather than following the central government's public announcement schedule. Local governments (mayors and governors) consult with prospective investment companies, select locations, and establish zone plans before applying for designation to the Ministry of Trade, Industry and Energy.

Currently, each local government is accelerating preparations for designation applications by attracting investment companies and establishing Opportunity Development Zone plans (including companies' investment plans, industrial promotion strategies, support plans for investment companies, and necessary regulatory exemptions).

The Ministry of Trade, Industry and Energy stated that it plans to receive applications from local governments that have completed preparations for Opportunity Development Zone designation and designate zones after review and resolution by the Local Era Committee.

A government official said, "We plan to actively support and closely communicate with local governments, including Daegu Metropolitan City, so that Opportunity Development Zones can establish themselves as key hubs for local investment."

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