Government "Expecting Regional Economic Vitality and Job Creation"
[Asia Economy Reporter Moon Chaeseok] The government announced that it will push for additional designations of energy industry convergence complexes in July. In November last year, Jeollabuk-do and Gwangju-Jeonnam were designated.
On the 5th, the Ministry of Trade, Industry and Energy stated that it will send an official letter to local governments on the 6th regarding this year's plan for additional designations of energy industry convergence complexes.
The complexes were created to gather companies, institutions, and research institutes related to regionally specialized energy industries and energy-related industries to achieve convergence effects such as cost reduction and technological innovation.
The government will receive applications from interested local governments by the end of June, evaluate them, and select candidates. After consultations with related ministries, the complexes will be finalized at the Energy Committee review at the end of July.
According to the Energy Convergence Complex Act, a comprehensive review is conducted on the specificity of the business plan (foundation capabilities, strategy), suitability (necessity of complex formation, policy alignment), and execution ability (operation plan, funding procurement).
Especially this year, expert consulting in fields such as industry, location, and economic feasibility will be supported for local governments' formation plans (drafts).
The goal is to enhance local governments' understanding of policies and to guide them in creating effective plans.
The first consulting session will be held on the 13th of next month after receiving materials by the 8th. The second consulting session will be held on June 9th after receiving materials by June 3rd.
In areas designated as complexes, infrastructure such as energy-related foundational facilities will be promoted. Since last year, the government has been promoting a comprehensive support center construction project with 20 billion KRW per local government.
Support will also be provided for designation of specialized research institutions, promotion of commercialization, and training of specialized personnel.
Energy-specialized companies will be designated, and benefits such as local tax reductions for investment companies within the complex, additional points for government research and development (R&D) participation, preferential regional investment subsidies, and priority purchasing by public institutions will be applied.
An official from the Ministry of Industry said, "Since local governments lead the formation plans based on regional energy infrastructure, the complexes will become a new growth engine that revitalizes the local economy. The government will also actively support various aspects such as regionally specialized demonstration research, commercialization, and marketing."
Previously, the "Special Act on the Designation and Promotion of Energy Industry Convergence Complexes" was enacted in December 2017 and has been in effect since June 2018. Afterward, the government established and announced the "Basic Plan for Energy Industry Convergence Complexes" in July last year.
Then, in November last year, Jeonbuk (solar power, wind power) and Gwangju-Jeonnam (smart grid, energy efficiency improvement) were first designated as complexes. At that time, local governments such as Gangwon-do, Gyeongsangnam-do, Gyeongsangbuk-do, Busan-Ulsan, Jeju, and Chungcheongbuk-do also applied.
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