[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will significantly strengthen support for underdeveloped agricultural and fishing village industrial complexes (nonggongdanji) and transform 20 such complexes into future-oriented industrial complexes over the next five years. To this end, it plans to provide integrated support for local governments and central government projects, focusing on key areas such as research and development (R&D) and remodeling.
On the 22nd, the government announced the "Nonggongdanji Revitalization Plan" at the current issue coordination and inspection meeting chaired by Prime Minister Kim Boo-kyum.
Nonggongdanji are industrial complexes located in rural agricultural and fishing areas. As of last year, 474 complexes were designated, employing about 153,000 workers across 7,679 companies. Established in 1984 to promote rural industry development and regional balanced growth, these complexes recorded a total production of 57 trillion won and exports of 11.2 billion dollars (approximately 12.9 trillion won) last year, accounting for 7.2% and 6% of all industrial complexes, respectively. However, competitiveness continues to decline due to an increase in aging complexes, population outflow from rural areas, and their location in underdeveloped regions. According to the Ministry of Trade, Industry and Energy’s survey, only 24% of the 7,679 resident companies benefited from government policies, while 75% expressed a desire to participate in government R&D projects.
Accordingly, the government selected five core projects necessary for revitalizing nonggongdanji and decided to operate customized programs by adjusting project scale and purposes to fit the complexes.
Specifically, these include ▲allocating more than 10% of R&D to nonggongdanji to strengthen industrial cluster competitiveness ▲construction of complex cultural centers ▲establishment of innovation support centers ▲remodeling of closed or idle factories for use as specialty product sales and cultural spaces ▲creating beautiful streets by permitting fence repair and parking lot maintenance.
In particular, the government plans to select revitalization plans formulated by local governments and provide integrated support by packaging the five core projects with related ministries’ projects. Through this, it aims to create 20 "signature complexes" transformed into future-oriented industrial complexes, starting with four complexes annually from next year for five years.
Support projects for surrounding areas, such as the Rural Living Area Regeneration Support Project by the Ministry of Agriculture, Food and Rural Affairs and the Residential Platform Creation by the Ministry of Land, Infrastructure and Transport, will also be linked to enhance synergy.
Support for resident companies in nonggongdanji will also be expanded. Companies applying for related ministries’ projects?such as on-site R&D and consulting support (Ministry of SMEs and Startups), renewable energy dissemination support (Ministry of Trade, Industry and Energy), odor emission reduction technology support (Ministry of Environment), and fisheries company loan support (Ministry of Oceans and Fisheries)?will receive preferential treatment through additional points.
To alleviate labor shortages in nonggongdanji, the government will promote the use of employment incentives and implement education and training tailored to on-site demand (Ministry of Employment and Labor), as well as provide recruitment information for resident companies (Ministry of Trade, Industry and Energy).
Furthermore, the government plans to expand the entry of new industries such as smart farms and support the development of promising nonggongdanji by relaxing area ceiling requirements. To improve the negative image associated with the name "nonggongdanji," it will consider legally changing the name and strengthen local governments’ management responsibilities by establishing ordinances as a basis for support.
Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy said, "If we actively utilize nonggongdanji established in underdeveloped areas such as rural and fishing villages, the effects of regional balanced development policies can be maximized. We will continue to support so that competitive nonggongdanji develop into future-oriented industrial complexes where industry and culture coexist, and less competitive complexes regain vitality to help revitalize the local economy."
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