Jeonbuk Province and Saemangeum Authority Announce Bold 'U-Turn Enterprise Incentive Support Plan'

Designation of Saemangeum U-turn Exclusive Complex, 10% Additional Support for Advanced Industries
Accelerating Attraction of U-turn Companies with Jeonbuk-style Incentive Comprehensive Package

[Jeonju = Asia Economy Honam Reporting Headquarters Reporter Kim Tae-in] Jeollabuk-do and the Saemangeum Development Agency announced on the 23rd an active and aggressive support policy for returning companies to leap forward as a leading region for corporate return.

The main contents of the "Jeonbuk-type Return Company Incentive Package" include the designation of a Saemangeum return company exclusive complex, strengthening investment subsidy support for advanced industries, expanding employment subsidy support, and establishing a close support system for relocation and stable settlement support. The plan is to provide customized support tailored to corporate demand throughout the entire process from preparation for return to post-settlement.

So far, obstacles to domestic return of overseas expansion companies have included relatively high labor costs, excessive initial costs such as securing sites for factory relocation or new establishment, and difficulties in securing funds.

This support plan, in addition to government support for domestic return companies, is an additional measure presented by Jeollabuk-do and the Saemangeum Agency. It is expected that Jeonbuk, including Saemangeum, will become an attractive option for companies considering domestic return due to COVID-19 and the reorganization of the global value chain.

1. Designation of Saemangeum Return Company Exclusive Complex

A return company exclusive complex (total 330,000㎡) will be designated within the Saemangeum Industrial Complex, and long-term rental land in Saemangeum, available for up to 100 years, will be preferentially supplied to domestic return companies at a low rent (about 1,300 KRW per 1㎡ per year). To this end, the "Saemangeum Industrial Complex Development and Implementation Plan" will reflect a total of 330,000㎡ as an exclusive complex for domestic return companies, including 165,000㎡ of rental land.

Additionally, the Saemangeum Agency will grant incentives such as floating solar power generation project rights to domestic return companies making large-scale investments in advanced industry fields. Specific conditions for granting project rights will be further reviewed.

2. High value-added industrialization through return of advanced industries and R&D centers

For companies selected for return support, an additional investment subsidy of 5% of facility investment amount (10% for exclusive complexes), 10% for relocation of advanced industries and R&D centers, and 1% for collective relocation of two or more related companies will be provided. Up to 30 billion KRW will be supported for simultaneous relocation of large company headquarters.

Furthermore, support for factory relocation and consulting costs will be expanded up to 400 million KRW per company within 20% of the costs for return companies in the province.

Incentive Enhancement

● Relocation and consulting support: within 20% for liquidation and relocation of overseas business sites (up to 400 million KRW)

● Collective relocation support: additional 1% of facility investment amount (up to 500 million KRW)

● Simultaneous relocation of large company headquarters: 30% of facility investment amount support (up to 30 billion KRW)

● Relocation of advanced industries and R&D centers: additional 10% of facility investment amount support (up to 10 billion KRW)

● Return subsidy: additional 5?10% of facility investment amount support (up to 5 billion KRW)

3. Expansion of job creation through employment support

To promote employment by return companies, in addition to government employment subsidy support, an additional support of up to 1 billion KRW for 2 years with different periods will be provided. To stabilize workers' housing, support for employee dormitory construction costs will be expanded up to 30% (maximum 1 billion KRW), or accommodation rent will be supported up to 100 million KRW per year, with a maximum of 500 million KRW over 5 years, aiming to improve worker welfare and residential conditions to strengthen investment attraction.

The establishment and expansion of this return company subsidy is expected to serve as a catalyst to promote the return of overseas expansion companies to Jeonbuk by enhancing the effectiveness of incentives for attracting high value-added industries and expanding employment of local residents.

4. Effective and customized support for stable relocation and settlement

For early relocation of companies, consulting for liquidation of overseas business sites and restructuring upon domestic return will be provided. A close cooperation system among private, public, and academic sectors will be established to support customized manpower training and supply according to corporate demand.

After return, to strengthen corporate competitiveness, support for technology development and market expansion will be linked with related organizations (dedicated support teams, additional points, etc.) to create a business-friendly environment and promise continuous support for stable settlement.

Along with this, the province and Saemangeum Agency plan to strengthen cooperation with related organizations, select target companies such as overseas expansion companies with local ties and companies related to advanced and key industries, and actively promote differentiated incentives and investment attraction activities compared to other regions.

Na Seok-hoon, Head of Jeollabuk-do Job Economy Headquarters, said, "We expect that effective support measures considering the situation and needs of companies will play a significant role in revitalizing the regional economy through customized job creation, early settlement of return companies, and strengthening competitiveness," and added, "We will speedily proceed with follow-up measures such as revising related regulations and ordinances and establishing cooperation systems to ensure that the establishment and expansion of incentives are implemented without delay."