Yoon Designates 8 Areas Including Gyeongbuk as 'Opportunity Development Zones'... "Full Corporate Tax Exemption for 5 Years"

President Yoon Suk-yeol is speaking at the 9th Local Era Committee meeting and Opportunity Development Zone investment agreement ceremony held on the 20th at the Secondary Battery Integrated Management Center in Blue Valley Industrial Complex, Pohang-si, Gyeongbuk.
[Image source=Yonhap News]

President Yoon Suk-yeol designated eight cities and provinces, including Gyeongbuk, as Opportunity Development Zones for the first time, aiming to use them as a catalyst to usher in an "era of livable local regions." To ensure that these Opportunity Development Zones lead the revival of local industries, the government plans to significantly increase corporate inheritance tax deductions to 1 trillion won and provide unprecedented benefits such as a full five-year corporate tax exemption for newly established businesses.

On the afternoon of the 20th, President Yoon presided over the 9th Local Era Committee meeting at the Secondary Battery Integrated Management Center in Pohang Blue Valley Industrial Complex, where he announced these plans. The meeting was held to designate eight cities and provinces?Gyeongbuk, Jeonnam, Jeonbuk, Daegu, Daejeon, Gyeongnam, Busan, and Jeju?as Opportunity Development Zones.

President Yoon introduced the story of the late Park Tae-joon, founder of POSCO, who built Pohang Steelworks with the spirit of "fight or die," emphasizing the urgent need to unite efforts with the determination to "change everything that can be changed" to overcome national emergencies such as low birth rates, population cliff, concentration in the metropolitan area, and local extinction.

He described the Opportunity Development Zones and Education Development Zones as measures that can fundamentally transform the paradigm of local policies. By successfully establishing these zones, the goal is to create a virtuous cycle where local talent finds good jobs locally, works in their regions, and contributes to regional growth.

President Yoon stated, "Based on cooperation between the central and local governments, these are the first locally led zones designed and driven directly by localities, which will dramatically enhance regional competitiveness and serve as a new springboard to open an era of livable local regions."

He promised to provide necessary support to ensure that the Opportunity Development Zones become a flagship brand for fostering local industries.

To this end, for companies relocating to local Opportunity Development Zones, the scope of corporate inheritance tax deductions will be expanded from annual sales under 500 billion won to under 1 trillion won, and the deduction limit will be increased from a maximum of 60 billion won to 100 billion won.

Additionally, newly established or startup businesses within the Opportunity Development Zones will receive a full corporate tax exemption for five years, followed by a 50% exemption for two more years. For business-use real estate such as land and buildings, property tax will be fully exempted for five years and then reduced by 50% for another five years, providing exceptional incentives.

President Yoon noted that the total investment scale proposed by the eight local governments applying for the Opportunity Development Zones reaches 40 trillion won, emphasizing that "all sectors are key growth engines that will determine our future."

He pledged to personally oversee the progress of the Opportunity Development Zones, monitor for any regulations hindering investment, and promptly resolve any issues.

On the same day, Woo Dong-gi, chairman of the Local Era Committee, approved the first designation plan for the eight cities and provinces as Opportunity Development Zones. After the committee meeting, President Yoon attended the investment agreement ceremony for the Opportunity Development Zones, which was attended by governors of the eight cities and provinces and representatives of "anchor companies," encouraging the successful launch of the zones.

The event was attended by Chairman Woo, Minister of Trade, Industry and Energy Ahn Deok-geun, Minister of the Interior and Safety Lee Sang-min, Governor of Gyeongsangbuk-do Lee Cheol-woo, governors of the eight cities and provinces, Presidential Office Policy Chief Sung Tae-yoon, and Senior Secretary for Economic Affairs Park Chun-seop, among others.

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