Hamyang-gun Preparing for a New Leap... Foreseeing Regional Economic Revival

Investment Leading District Planned Site [Image Source=Hamyang-gun]

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Hamyang-gun, Gyeongnam Province is preparing for a new leap forward by not only revitalizing the local economy amid the COVID-19 crisis but also discovering new growth engines.

The county is making efforts to become a growth city by attracting companies to a logistics distribution hub and an automobile parts industry cluster utilizing the well-connected transportation network, following the attraction of the Coupang logistics center. At the same time, it is promoting multifaceted policies including various support measures for small business owners who are the core of the local economy and the creation of public jobs that will serve as a pillar for the working-class economy.

We take a look at the growth potential of Hamyang-gun, which is preparing solutions to overcome the risk of regional extinction and revive the local economy.

▲ Beyond population extinction toward sustainable Hamyang

Although Hamyang-gun is classified as a region at risk of extinction, it is showing concrete results by establishing a rural utopia leading project model to create a sustainable Hamyang beyond this regional extinction crisis.

In particular, the transportation network, which is Hamyang’s greatest strength, shows the potential for Hamyang to grow as a logistics distribution hub.

Currently, the Daejeon-Tongyeong Expressway and Gwangju-Daegu Expressway intersect here, and construction is underway for the newly opening Hamyang-Ulsan Expressway.

In addition, the Gwangju-Daegu high-speed railway, which is reflected in the national railway network plan, is also being prepared, making Hamyang truly emerge as a key hub for southern inland transportation.

The Coupang logistics center, which is steadily progressing, and the selection as an investment leading district are opening up the possibility for Hamyang-gun to develop into a logistics distribution hub.

First, Coupang will invest 72 billion KRW to build a smart logistics center on a site of 183,682㎡, and in connection with this, a total of 84.1 billion KRW will be invested over five years, including 10 billion KRW in national funds and 49 billion KRW in private capital, to create an e-commerce strategic industry logistics complex on a site of 432,997㎡.

This investment leading district selection is expected to create about 1,200 jobs during the construction and operation phases, and by 2036, ten years after completion, the number of companies in the county is expected to increase by more than 700, greatly contributing to the population growth of Hamyang-gun.

▲ Attraction of investment in agricultural product logistics facilities

A large-scale agricultural product logistics facility with an investment amount of 41 billion KRW has been attracted to the Hamyang General Industrial Complex in Sudong-myeon. The agricultural product logistics company is Seha F&S, a subsidiary of Seha Logistics, which operates food distribution and agricultural and livestock product storage businesses with major companies such as CJ in Gyeonggi Province. Administrative procedures have been completed, and full-scale construction is underway.

The logistics facility to be built this time will cover a total area of 37,625㎡ within the Hamyang General Industrial Complex, including 45 cold storage warehouses and two agricultural product logistics buildings, scheduled for completion by May next year.

Seha F&S will play an intermediary role in supplying agricultural and specialty products such as onions and garlic produced in Hamyang-gun to large corporate logistics centers. Once the logistics facility is completed, it is expected to supply 20,000 tons of onions annually from within the county, helping to support the sales channels of onion-producing farmers.

In addition, the business scope is planned to be expanded to include mountain ginseng, dried persimmons, apples, potatoes, and other products, which is expected to play a significant role in revitalizing the local economy by not only expanding sales channels for local agricultural specialties but also creating more than 50 new jobs.

▲ Creation of quality jobs to serve as an economic pillar for the working-class economy

Hamyang-gun is also focusing on creating quality jobs for the working-class economy, which has been struggling due to the prolonged COVID-19 pandemic.

To guarantee minimum income and minimize gaps for vulnerable employment groups and low-income people without regular income, the county has been steadily promoting public job support projects, investing about 36.8 billion KRW in budget, and creating 3,710 jobs in 166 public job sectors (as of the end of November), serving as an economic pillar for residents on the brink.

The job creation goal of the 7th elected Hamyang-gun administration is to create 12,000 jobs and achieve a 75% employment rate. As of November 2021, about 10,000 jobs have been secured, achieving 83% of the goal. Especially this year, despite very difficult financial conditions due to COVID-19, more than 4,610 jobs were created.

The county smoothly achieved the target of 3,916 jobs set by the Hamyang-gun job disclosure system. Next year, it plans to actively discover private sector job projects to provide sustainable jobs.

▲ Customized support measures for local small business owners

The scale of sales of the Hamyang Love Gift Certificates, which contribute to preventing capital outflow from the region and revitalizing the local economy, increased significantly from 8.2 billion KRW in 2020 to 9.5 billion KRW this year, and it is planned to operate at 10 billion KRW next year.

In addition, to activate gift certificate distribution, the county increased the monthly individual discount purchase limit from 700,000 KRW to 800,000 KRW through an ordinance amendment in the fourth quarter of this year and extended the special discount period (10%) until the end of the year, further strengthening the virtuous cycle structure to ensure consumption within the region, yielding significant effects.

Moreover, the small-scale business environment improvement project, which supports outdoor signage and interior improvements for small business owners’ workplaces, has supported 90 locations with positive responses and plans to continue support.

In particular, anticipating that infectious diseases such as COVID-19 will continue to coexist with daily life, the county signed a business agreement with a local smart solution company and produced the ‘Hamyang Safe QR Code,’ which has been attached to all shopping districts, traditional markets, and government offices, further strengthening the quarantine system.

Additionally, having been selected by the government as a ‘Digital Pilot Shopping District,’ the county is attempting technological innovation to enable non-face-to-face payments, which is expected to provide various benefits to both small business owners and consumers, greatly aiding the local economy.

To strengthen employment capabilities, the county is expanding support for education expenses for obtaining drone and heavy equipment (forklift, excavator) certifications, providing advanced entrepreneurship education for successful entrepreneurs, and supporting initial startup funds up to 10 million KRW per person to connect education to actual startups.