Six Areas Including Busan Geumsa Industrial Zone Designated as Special Support Zones for Small and Medium Enterprises

[Asia Economy Reporter Choi Dong-hyun] The Ministry of SMEs and Startups announced on the 2nd that, after a joint public-private field investigation and review by the Special Support Area Deliberation Committee for SMEs, six areas including the Geumsa Industrial Area in Geumjeong-gu, Busan, have been designated as ‘Special Support Areas for SMEs’ for two years.

The Special Support Area for SMEs system is based on Article 23 of the 'Act on Fostering and Promoting Innovation of Local SMEs,' which was enacted in January last year. It supports the rapid business normalization of industrial complexes and industrial areas densely populated with SMEs where the management of local SMEs is deteriorating or at risk of deterioration.

The areas designated as Special Support Areas for SMEs this time are six locations including the Geumsa Industrial Area in Geumjeong-gu, Busan; Pohang Steel Complex 1, 2, and 3 in Gyeongbuk; Pohang 4 General Industrial Complex; and the Jenaeri Industrial Area in Daesong-myeon, Pohang City. These areas applied to the Ministry of SMEs and Startups for designation as Special Support Areas for SMEs due to concerns over worsening economic conditions such as flooding damage to the Pohang Steel Complex caused by Typhoon Hinnamnor, and increases in sales decline, employment reduction, and business closures in the Geumsa Industrial Area.

Local SMEs located in the Special Support Areas for SMEs can participate in public bids through restricted competitive bidding and negotiated contracts for goods they produce directly. They can also receive various systematic and customized support such as emergency business stabilization funds, dedicated research and development (R&D), consulting, and marketing.

Minister Lee Young of the Ministry of SMEs and Startups stated, “This designation of Special Support Areas for SMEs is the first case of designating an industrial area rather than an industrial complex,” adding, “It is a step forward as a system for thorough and inclusive support for local SMEs.”