Chungnam to Promote Creation of Economic Free Zone... "Application for Designation in the Second Half of This Year"

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province is promoting the establishment of an economic free zone.

On the 14th, the province announced that it held a kickoff meeting for the "Feasibility Study and Development Plan Establishment Research Service for the Designation of Chungnam Economic Free Zone" at the provincial government’s main conference room.

The research service will analyze the necessity, conditions, and development potential for the designation of the economic free zone, and review the future direction and expected effects.

Based on the results of the service, the province plans to establish a development plan and apply for the designation of the economic free zone to the Ministry of Trade, Industry and Energy in the second half of this year.

The establishment of the Chungnam Economic Free Zone is being promoted as one of the detailed projects for the Bay Valley Mega City construction, which Governor Kim Tae-heum approved for the first time after taking office.

An economic free zone is a complex development area for industry, commerce, residence, and tourism that actively attracts foreign investment by improving the management environment and living conditions for foreign-invested companies and relaxing various regulations to guarantee the autonomy of economic activities.

Once designated as an economic free zone, developers of the project receive benefits such as tax reductions on corporate tax, income tax, property tax, and exemptions or reductions on various charges including development charges and farmland preservation charges.

Currently, nine economic free zones are designated across 12 cities and provinces nationwide. As of 2021, 7,124 companies have settled in these economic free zones. Employment numbers total 210,023, sales amount to 135.1863 trillion KRW, and export value is 29.1206 trillion KRW, respectively.

Chungnam had the Hwanghae Economic Free Zone designated in 2008, but it was lifted in 2014 due to difficulties in attracting investment amid the global economic crisis.

Jeon Hyung-sik, Deputy Governor for Political Affairs of the province, emphasized the importance of establishing the economic free zone, stating, "To take Chungnam’s industry to the next level, it is necessary to attract foreign capital and technology through the designation of an economic free zone."