Daejeon Ansan and Wonchon Districts Designated as Opportunity Development Zones... Tax Benefits and Regulatory Exceptions

Ansan Advanced Defense Convergence District, Specialized in Defense Industry
Wonnchon Advanced Biomedical Innovation District, Specialized in New Drug Development

Location map of Opportunity Development Special Zone in Daejeon / Daejeon City

Daejeon City announced that Ansan Advanced Defense Convergence District and Wonchon Advanced Biomedical Innovation District have been designated as Opportunity Development Zones.

Opportunity Development Zones are systems designed to attract large-scale investments to local areas by providing a package of exceptional tax benefits, regulatory exemptions, financial support, and improvements in living conditions, aiming to create jobs and stimulate regional economic development.

In March this year, the city applied for Ansan Advanced Defense Convergence District and Wonchon Biomedical Innovation District as ‘Daejeon-type Opportunity Development Zones,’ with Ansan Advanced Defense Convergence District being selected on the condition of Greenbelt removal.

Ansan Advanced Defense Convergence District spans 1,591,000㎡ (480,000 pyeong) and will be developed as an Opportunity Development Zone specialized in the defense industry, leveraging its strengths as the location of numerous defense-related institutions such as the Defense Acquisition Program Administration and the Agency for Defense Development (ADD), as well as government-funded and private research institutes. The city has signed investment agreements worth 651.5 billion KRW with 39 defense companies possessing excellent defense-related technologies, including Setrec Eye, a regional small and medium-sized enterprise in the aerospace field, and Dongin Optical, which has promised to relocate from the metropolitan area.

Wonchon Advanced Biomedical Innovation District covers 404,000㎡ (120,000 pyeong) and will be developed as an Opportunity Development Zone specialized in new drug development by concentrating Daejeon’s innovation resources such as infrastructure, workforce, companies, and research and development (R&D). The city has signed investment agreements worth 6.2 trillion KRW with 36 bio companies, including Ligand Chem Biosciences, which possesses world-class ADC (antibody-drug conjugate) technology.

Lee Jang-woo, Mayor of Daejeon, said, “I am confident that Ansan Advanced Defense Convergence District and Wonchon Biomedical Innovation District will stand tall as representative models leading balanced development in South Korea as Daejeon-type Opportunity Development Zones based on advanced technology.” He added, “We will do our best to create effective zones so that Daejeon can lead regional economic innovation through the designation of Opportunity Development Zones.”

The city is currently working on revising ordinances to reduce property tax and acquisition tax to support resident companies within the Opportunity Development Zones and has established Daejeon Investment Finance, the nation’s first public venture capital.

Additionally, to improve living conditions for employees of relocating companies, the city plans to expand the special supply of private housing from 5% to 10%, and will continue to discover various support policies to aid corporate activities and improve the investment environment.

Meanwhile, at the Opportunity Development Zone designation ceremony hosted by the Local Era Committee held on the 20th in Pohang, Gyeongbuk, President Yoon Suk-yeol, Mayor Lee Jang-woo of Daejeon, governors of eight other cities and provinces, and representatives of Daejeon companies including Ligand Chem Biosciences and Dongin Optical attended.

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