Government to Provide 96.1 Billion Won in Support to 16 Local Investment Companies

Aiming to Create 771 Local Jobs

The government has decided to provide 96.1 billion won (with 58.7 billion won from the national budget) in support to 16 local investment companies. Through this initiative, the government aims to attract a total of 612.1 billion won in local investment and create 771 jobs.

The Ministry of Trade, Industry and Energy held the third quarter Local Investment Promotion Subsidy Review Committee on September 24 and made this decision.

The Local Investment Promotion Subsidy is a system that supports a certain percentage (4-50%) of the investment amount, together with local governments, for companies relocating from the Seoul metropolitan area to other regions or for companies establishing new or expanded facilities in local areas. The goal is to promote balanced national development and encourage corporate investment in local areas, thereby increasing employment and revitalizing regional economies.

In this review, taking into account investment scale and employment effects, a total of 16 companies were selected for support across nine cities and provinces, including Busan, Gwangju, Daejeon, North Gyeongsang, South Gyeongsang, Daegu, North Chungcheong, South Chungcheong, and North Jeolla. The selected companies consist of six in the automobile sector, two in electrical and electronics, three in food, two in pharmaceuticals, two in chemicals, and one in other industries. By industry, the national budget support amounts were highest for food at 22.162 billion won, followed by automobiles at 15.716 billion won, and chemicals at 11.765 billion won.

By the first half of this year, the government had supported a total of 23 local investment companies with 143.8 billion won (including 88.9 billion won from the national budget), attracting 708 billion won in private investment and creating over 1,010 jobs.

An official from the Ministry of Trade, Industry and Energy stated, "Starting in 2026, we plan to expand support to include companies relocating from the Seoul metropolitan area to local regions, with a focus on areas with lower levels of regional development," adding, "We will actively encourage investment linked to regional development strategies."

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