Gwangju Businesses Call for National Fiscal Support to Ease Energy Cost Burden

Companies in the Gwangju region have called for the injection of national fiscal resources, rather than relying solely on public enterprise-led investments, to ease the burden of energy costs ahead of the 9th local elections.

The exterior view of the Gwangju Chamber of Commerce and Industry.

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According to the Gwangju Chamber of Commerce and Industry on the 21st, the chamber recently conducted a survey titled "Business Leaders' Opinions for the Gwangju-Jeonnam Integrated Special Mayor" ahead of the 9th local elections.

A total of 106 companies in the region participated in the survey. The chamber suggested that, since power transmission and transformation facilities are "national key infrastructure," there is a need for national fiscal spending rather than an investment structure centered on public enterprises.

This suggestion is rooted in the urgent demand from companies to reduce energy costs. In this survey, when asked about the most pressing tasks for revitalizing business management, "alleviating the burden of energy costs (47.2%)" ranked very high, following "expansion of financial and funding support (59.4%)."

Furthermore, when asked about effective measures for attracting companies, "establishing a low-cost power supply system (26.4%)" tied for first place with "attracting global big tech companies (26.4%)," drawing attention. These results were higher than the traditional measures such as "expanding investment subsidies and reducing corporate and local taxes (23.6%)," indicating that companies view practical reductions in operational costs, such as electricity bills, as the strongest incentive for investment, rather than one-off cash support.

Additionally, local companies cited "isolation of the industrial ecosystem due to the absence of large corporations and anchor companies (58.5%)" and "outflow of the young population and difficulties in securing top talent (53.8%)" as the biggest structural factors hindering economic development.

As for the top policy priorities for the 9th local administration, "attracting and expanding investments from large and global anchor companies (48.1%)" and "fostering advanced new industries (44.3%)" received the highest support.

The Gwangju Chamber of Commerce and Industry emphasized, "Currently, the domestic power system does not properly reflect the enormous costs of building power grids and energy losses due to long-distance transmission in the rates, resulting in unfair disadvantages for companies located in power-generating regions (outside the metropolitan area). Establishing the principle of 'local production for local consumption' according to proximity to power plants and introducing a differentiated rate system that reasonably reflects transmission and distribution costs are essential for attracting energy-intensive companies and achieving balanced regional development."

Han Sangwon, Chairman of the Gwangju Chamber of Commerce and Industry, stated, "This survey clearly demonstrates the business burdens and strong desire for administrative innovation among companies ahead of the launch of the Integrated Special City. In particular, it is noteworthy that companies have chosen 'low-cost power supply' as a more effective investment attraction measure than temporary tax incentives."

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