Government Announces Plans to Boost Corporate and Regional Investment
– The government has shortened the administrative procedures for the Yongin Industrial Complex by three months, and will provide tax benefits to companies investing in the Yeosu LNG terminal.
– Choi Sang-mok stated, “We are concerned that domestic political situations may cause companies to shrink their investment plans. We will support corporate investment.”
The government has decided to accelerate the approval for the Yongin Advanced System Semiconductor National Industrial Complex, aiming to complete it within this year, three months earlier than planned. Tax incentives will be provided to companies investing in the Yeosu LNG terminal by adding LNG supply to the list of tax-exempt industries. Measures will also be explored to bring sports stadiums up to the standard of developed countries. Due to increasing uncertainties from domestic and international factors such as martial law situations and the inauguration of the Trump administration’s second term, the government has stepped in to ensure companies can proceed with their planned investments without hesitation.
On the morning of the 18th, the Ministry of Economy and Finance announced a “Corporate and Regional Investment Activation Plan” at an Economic Ministers’ and Investment Activation Ministers’ meeting. Deputy Prime Minister and Minister of Economy and Finance, Choi Sang-mok, emphasized that despite growing uncertainties surrounding the Korean economy and a looming sense of crisis in the industry, the breakthrough to overcome internal and external challenges ultimately lies in “corporate investment.” He added, “To survive the global industrial war, we need to develop advanced technology and have facilities to produce enough products. However, there is concern that companies’ investment plans may shrink due to the impact of recent domestic political situations. The government promises to actively support so that our companies can continue their investment activities without disruption.”
Additionally, Choi promised government support to ensure seven projects worth approximately 9.3 trillion won could commence construction next year. For the Yongin System Semiconductor National Industrial Complex, environmental, traffic, and disaster impact assessments will be shortened by about three months, with plans to bring forward the industrial complex plan approval, initially aimed for the first quarter next year, to within this year. The construction of the Gubongsan tourism complex in Gwangyang will expedite administrative procedures by over six months to facilitate an early start next year. Incentives for companies investing in the Yeosu Myodo LNG hub terminal, designated as an Opportunity Development Zone, will also be strengthened.
To achieve this, the government plans to revise the Tax Reduction and Exemption Control Act by the first quarter next year, adding LNG and other clean fuel supplies to the tax reduction target industries within Opportunity Development Zones. Infrastructure essential for corporate activities will also be expedited. In the Blue Valley Second Battery Specialized Complex in Pohang, solutions to secure water supply before the completion of new water facilities will be prepared, and the completion of these facilities will be expedited from 2031 to 2030. The Ochang Technopolis Industrial Complex will see early construction of power facilities from early next year, considering the mass production plans for cathode materials, shortening the initial power supply timeline by seven months to June next year.
Regulatory improvements will also strengthen support for promising field investments. Through a regulatory sandbox, a pilot project for trackless trams in Daejeon, which is emerging as a new transportation method, will be introduced next year. Research to enhance the investment and operation methods of professional sports stadiums, such as baseball and soccer, to international standards will begin in the first half of next year. Most professional sports stadiums are currently built, owned, and operated by local governments, but investment is stagnant and facilities are aging due to budget shortages.
Plans will also be pursued to add ‘design, development, and operation of eco-friendly data centers’ technology to the target high-tech fields qualifying for foreign investment cash support to attract eco-friendly data centers to the region. The Climate Response Fund’s loan limit per company will be increased from the current 1 trillion won to 2 trillion won, supporting funding for eco-friendly investments by companies.
At the meeting, strategies for innovation in agriculture and rural areas were also discussed. Choi stated, “We will grant regulatory exemptions akin to Opportunity Development Zones to rural areas at risk of extinction, fostering specialized industries corresponding to regional characteristics. We will establish a stable agricultural production base that is not swayed by weather conditions and enhance location and industrial regulations to activate smart agriculture.”
He added, “We will thoroughly implement the measures prepared today to ensure companies and local governments can continue their planned investment activities. We will also promptly prepare measures to supplement construction investment, including realistic public construction cost measures.”