Chungnam Research Institute proposes strategy to induce individually located companies into industrial complexes
(Daejeon = Yonhap News) Reporter Park Joo-young = A suggestion has been made that the strategy for attracting industrial complexes for companies in South Chungcheong Province should be shifted from the existing subsidy support method to creating an industrial ecosystem.
On the 3rd, Kim Yang-jung, senior research fellow at the Chungnam Research Institute, presented a strategy for inducing planned location for individually located companies through a report titled โIndustrial Complex Induction Strategy for Individually Located Companies Based on Chungnam Industrial Ecosystemโ.
According to the report, over the past 10 years (2015-2024), industrial locations in South Chungcheong Province have increased by approximately 15.41 million m2. Of these, 60% (9.28 million ใก) were planned sites, and the remaining 40% were individual sites (6.12 million ใก).
Individual locations allow companies to autonomously select locations and enable rapid occupancy, but the spatial dispersion of companies limits inter-industry linkages and integration effects, and increases environmental management costs due to the overlapping supply of infrastructure such as roads, water, and power.
In order to encourage individually located companies to move into industrial complexes, support is provided mainly through economic incentives such as relocation subsidies, tax reductions, and sale price discounts. However, this has the limitation of intensifying competition among local governments to attract companies and determining a company's location selection based on the scale of support rather than industrial connectivity.
Senior Research Fellow Kim emphasized that the core incentive of the industrial location guidance policy for individually located companies should be changed from 'incentives' to 'industrial ecosystem' in line with the characteristics of the five major industrial zones in South Chungcheong Province.
We need to move away from the approach of โmoving into an industrial complex will reduce costsโ to the approach of โmoving into an industrial complex will increase a companyโs productivity and growth potential.โ
Senior Research Fellow Kim suggested establishing a differentiated strategy based on two criteria: similarity to the planned location industry and possibility of moving into an industrial complex.
First of all, the South Chungcheong Innovation City region has the highest possibility of connection with the existing industrial ecosystem among the five major regions, with an industry similarity of 60% and an industrial complex occupancy probability of 80%, so it was emphasized that individually located companies with high trade and supply chain connectivity with existing industrial complex companies should be actively discovered and concentrated in industrial complexes.
The northern smart industrial zone and the defense well-being industrial zone, which have an industrial similarity of 50%, which is lower than the innovative city zone, but have a high possibility of moving into an industrial complex (80%), proposed a strategy of selectively inducing companies with a high level of connection with existing key industries and supply chains rather than en masse relocation.
It was found that the marine new industrial zone and K-bio industrial zone, which have industrial similarity and low possibility of moving into an industrial complex, require a 'specialized management type' strategy to build an industrial ecosystem centered on regional specialized industries such as fisheries, marine equipment, bio, food, and fine chemicals.
Researcher Kim said, โInstead of only supporting the relocation of companies already located in individual locations, South Chungcheong Province and cities and counties should provide industrial ecosystem information and guide suitable industrial complexes from the initial stage of finding new factory sites, thereby reducing the dispersed locations of companies in advance.โ
