Daejeon Daedeok-gu and Gyeongbuk Yeongcheon-si Selected for 4 Billion Won Support 'Smart Innovation District' Project

Smart Innovation District Project in Pyeongchon Industrial Area, Daedeok-gu, Daejeon [Source=Ministry of SMEs and Startups]

[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups announced on the 27th that Daejeon Daedeok-gu and Gyeongbuk Yeongcheon-si were finally selected as the target sites for the 'Public-Private Partnership SME Smart Innovation District Creation Project.'

The newly established Smart Innovation District project this year is a project that creates an environment necessary for corporate innovation, such as smart manufacturing joint platforms, joint logistics platforms, and eco-friendly infrastructure, based on investment by private (anchor) companies in underdeveloped areas densely populated with small and medium-sized enterprises.

The Ministry of SMEs and Startups announced the project from May 7 to June 25 and received applications from two local governments, followed by a business eligibility evaluation of the applicant areas.

The selection evaluation was conducted through on-site, comprehensive document, and presentation evaluations. The comprehensive document evaluation was conducted after on-site verification of the actual candidate areas. The final score was derived by combining the scores of the comprehensive document evaluation and the presentation evaluation.

Aerial View of the Shared Use Center and Eco-friendly Infrastructure in Donam Industrial Complex, Yeongcheon, Gyeongbuk

Daejeon plans to establish the project in the Pyeongchon Industrial Area of Daedeok-gu, where more than 200 machinery and metal-related companies are concentrated, and Gyeongbuk plans to develop the Donam Industrial Complex area in Yeongcheon-si, where about 50 companies related to automobile parts, machinery, and metal are concentrated.

The Pyeongchon Industrial Area in Daedeok-gu, Daejeon, was formed by the individual relocation of residents submerged due to the construction of the Daecheong Multipurpose Dam in 1975. It is an underdeveloped area densely populated with 214 small-scale companies mainly engaged in machinery and metal manufacturing and subcontracting. By participating in this project and establishing a smart joint platform, it is expected that the industrial structure will be advanced through manufacturing innovation, parts development, and strengthening of non-face-to-face networks.

The Donam Industrial Complex in Yeongcheon, Gyeongbuk, was established in 1991 and is an industrial area over 30 years old. By establishing a smart joint platform to focus on fostering next-generation materials and parts aimed at eco-friendly automobiles through this project, it is expected that a supply chain for future-type automobile parts will be built through process and material innovation and development of high value-added parts.

The Ministry of SMEs and Startups plans to support the selected areas with a total of 4 billion KRW in national funds over two years, 2 billion KRW per year, and local governments will invest matching funds exceeding the national support funds.

Kim Seong-seop, Director of Regional Enterprise Policy at the Ministry of SMEs and Startups, stated, "We will closely cooperate with related local governments to ensure that the Smart Innovation District plays an important role in strengthening the competitiveness of regional companies and revitalizing the local economy through green smartization of underdeveloped SME-dense areas."