Chungnam Province Sets Ambitious Goal for 3.0% GRDP Growth This Year

Domestic Investment Target Set at 7.1 Trillion Won, Foreign Investment at 700 Billion Won

Chungnam Provincial Government Office Building Exterior

Chungnam Province and the Chungnam Economic Promotion Agency presented a GRDP growth rate of 3.0% for this year on the 6th.

This figure is higher than the government's forecast, which projected a 1.8% GDP growth for this year in its economic policy direction announcement on the 2nd.

Despite high exchange rates, weakened consumer sentiment, and uncertainties in supply chains and trade, Chungnam Province set a GRDP growth target of around 3.0% for 2025. This is attributed to increased manufacturing production and exports driven by rising global demand for IT products, stable price management, and expanded investments in next-generation displays and advanced semiconductors.

Since the start of the 8th popularly elected administration, the province has attracted a total of 32.2 trillion won in domestic and foreign investments as of last year. This year, it aims to revitalize the economy by attracting 7.1 trillion won in domestic corporate investment and 700 billion won in foreign investment, totaling 40 trillion won.

To achieve this, plans include: signing an MOA for over 1 trillion won investment by Celltrion in the Naepo Agro-Bio Cluster; establishing a Free Economic Zone Authority (in the second half of 2025); and designating Opportunity Development Zones (five cities/counties, 1.43 million pyeong).

The province will also significantly expand policy funds for SMEs and small business owners from the existing 885 billion won to 1.2 trillion won, an increase of 315 billion won.

Additionally, through sales exhibitions and export consultations, the province will support 5,589 local SMEs in developing domestic and overseas sales channels, and expand support for entry into TV home shopping and social commerce platforms from 254 to 307 companies.

In particular, a 100 billion won fund will be created this year to operate a 591.4 billion won venture fund to invest in promising local venture companies and boost venture investment.

Furthermore, to reduce the management costs for small business owners, the province will lower delivery app brokerage fees to the 2% range, significantly lower than existing rates, and increase the public procurement rate of SME products from the current 84% to 90%.

For the petrochemical industry, the province will support the establishment of a Sustainable Aviation Fuel (SAF) full-cycle center (311 billion won), the completion of a CCU (Carbon Capture Utilization) demonstration support center, and the transformation of the Daesan Petrochemical Complex into a national and smart green industrial complex.

The petrochemical industry is currently facing difficulties due to market contraction caused by global carbon regulations and weakened price competitiveness resulting from oversupply due to large-scale new and expanded petrochemical plants in China and the Middle East.

Governor Kim Tae-heum stated, "2025 will be an important year for a greater leap forward in Chungnam's economy," and added, "We will make every effort to strengthen corporate competitiveness and stimulate domestic demand to achieve tangible economic results that residents can feel."

Meanwhile, according to the 2023 regional income estimates released by Statistics Korea on December 20 last year, Chungnam's GRDP was 143 trillion won, ranking third nationwide after Gyeonggi and Seoul, and its per capita GRDP was 64.71 million won, ranking second nationwide after Ulsan.

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