Chungnam Sees Increase in 'Corporate Attraction' Despite COVID-19 Spread

[Asia Economy (Hongseong) Reporter Jeong Il-woong] The number of companies attracted by Chungnam Province last year reached the highest level in the past five years. This achievement is significant as it was made during the spread of the novel coronavirus infection (COVID-19).

According to the province on the 21st, the total number of companies that completed construction of factories and started operations in the region last year was 752. This is an increase of 3 companies compared to 749 companies in 2019, marking the largest scale of attraction since 770 companies were attracted in 2015.

The regional distribution of companies newly completed and operational last year was 275 in Cheonan, 193 in Asan, 71 in Dangjin, 54 in Geumsan, and 32 in Yesan, among others. By industry, there were 195 in assembled metal machinery, 126 in electrical, electronics, and telecommunications, 80 in food, 55 in petrochemicals, and 54 in non-metallic sectors.

Last year was a period when COVID-19 was rapidly spreading. Despite this, the increase in companies completing construction and starting operations in Chungnam is analyzed to have been largely due to improved investment conditions and the province’s strengthened incentives for relocating companies.

In fact, to revitalize corporate attraction and minimize outflow outside the province, the province provided additional incentives within 10% of the facility investment amount when companies located outside the province relocated their factories and headquarters.

Also, by supporting 1.5 million KRW per relocating employee and 10 million KRW per household for companies relocating from the metropolitan area, it is interpreted that this had a positive effect on decisions to relocate within the region.

However, the total employment of the 752 companies was 13,148 people, the investment amount was 3.2247 trillion KRW, and the number of companies relocating from the metropolitan area was 15, showing a slight decrease compared to the previous year.

A provincial official said, “It is true that companies faced more difficulties than usual as the domestic and international economies contracted due to COVID-19,” but added, “However, the attracted companies seem to have responded to the future development potential of Chungnam and policies such as expanded incentives, rather than immediate benefits.”