‘Create a fund and give subsidies’… Gyeonggi local government struggles to attract corporate investment

Some local governments in Gyeonggi Province are making efforts to attract investment by preparing various special projects ranging from raising funds for companies to expanding subsidies.

Investment support measures are being strengthened with the goal of creating new jobs by attracting companies, revitalizing the local economy, and increasing tax revenues.

According to Yonhap News coverage on the 14th, Pyeongtaek City is seeking to create a fund worth 12 billion won to provide emergency support to small and medium-sized businesses suffering from a surge in oil prices or disasters.

We plan to save 3 billion won every year for four years starting next year.

The purpose is to secure stable financial resources in advance to quickly support companies suffering from a surge in oil prices, tariff friction between countries, and various disasters due to international situations such as the war in the Middle East.

Currently, in order to provide funds to companies in need of emergency support, procedures such as allocating a relevant budget and obtaining approval from the city council are required, which limits rapid response.

Ansan City revised the 'Investment Attraction Promotion Ordinance', increased the subsidy limit for investment attraction companies from 200 million won to 500 million won, and specified designation requirements.

According to the revised ordinance, the city designates high-tech companies in the jurisdiction as investment attraction companies if they invest more than 10 billion won in new or expanded factories or hire more than 50 full-time employees and provide subsidies of up to 500 million won. The criteria for designation as an outside company are an investment of 5 billion won or more or a number of employees of 30 or more.

Recently, Entegris Korea, a semiconductor materials company located in Ansan Science Valley (ASV), was designated as the first investment attraction company and received a subsidy of 500 million won from the city.

Integris Korea invested 50 billion won in Hanyang University's Erica Campus Innovation Park to build a 6-story comprehensive research center and has been operating it since July of last year.

In accordance with the implementation of the 'Investment Attraction Promotion Ordinance', which was fully revised last month, Siheung City provides a total subsidy of up to 600 million won per company for facility investment, business lease, and new hiring of local residents.

The facility investment subsidy is up to 500 million won, and the rent and job creation subsidies are up to 100 million won each.

The job creation subsidy is paid when investment-inducing companies hire new Korean nationals registered as residents of Siheung City. The amount of support is 700,000 won per month per person for up to one year, and the total limit is 100 million won per company.

Companies with an investment amount of more than 100 billion won or full-time employment of more than 300 people can receive 'unlimited' special support within the budget with the consent of the city council.

An official from Siheung City said, "Our goal is to improve the residential conditions of residents through a virtuous cycle of attracting companies to the region and creating new jobs. We are concentrating our administrative power on creating a business-friendly environment with the idea that our city will survive only when companies come to the city."