President Yoon Suk-yeol's Visit, Boost to Local Economy
Promotion of National Projects Such as Semiconductors and Defense Industry
Leading Efforts to Discover Policy Projects for People's Livelihood Economy
[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Gumi City is concentrating all its capabilities on discovering policies across all administrative fields to achieve a second leap in the Gumi economy in 2023 and to become the economic center of the Republic of Korea.
To proactively respond to the rapidly changing environment and create a future advanced industry ecosystem, the city plans to foster future industries such as semiconductors, defense industry, and metaverse, and improve residential conditions through designation as an opportunity development special zone to attract large-scale corporate investments, laying the foundation for the regional economy's resurgence.
Since the launch of the 8th elected administration, a signal of change was fired with consecutive visits from central government ministries and key political figures to the region. Recently, President Yoon Seok-yeol visited Gumi, announced an educational policy innovation plan for nurturing talent in advanced fields, and attended the SK Siltron investment agreement ceremony, demonstrating a strong will to foster the semiconductor industry. Gumi is now ready to leap forward as the economic center of Korea.
Welcoming a new era of local governance, Gumi City plans to fully commit to economic revitalization so that the new hopeful era of Gumi can continue to sail smoothly by transforming into a global economic city through change and innovation.
◆ Transition from a Manufacturing-Centered to an Advanced Industry-Centered City
To break away from the image of the manufacturing-centered Gumi National Industrial Complex and transition to sustainable advanced industries, the city is accelerating efforts to foster future advanced industries such as semiconductors, secondary batteries, and metaverse to regain its reputation as a leading industrial city in Korea.
Gumi is promoting the designation of an ‘Advanced Semiconductor Materials and Components Specialized Complex’ to maintain Korea’s semiconductor industry’s technological lead.
As global competition to secure semiconductor dominance intensifies, the need for a domestic semiconductor specialized complex is increasing. Gumi City has sufficient grounds and justification for this designation, with △ locations capable of rapid large-scale investment, ▲ abundant industrial water essential for semiconductor production, ▲ stable power supply, and as a hinterland of the integrated new airport, ▲ export logistics competitiveness, and globally competitive semiconductor-related companies such as SK Siltron, LG Innotek, and KEC, totaling 359 companies densely clustered within the Gumi Industrial Complex.
With the acceleration of digital transformation (DX), the city is swiftly moving to discover future growth engines through various national projects such as ▲ 5G-based metaverse industrial complex demonstration projects, ▲ establishment of the Korean Wave Metaverse Hall, ▲ creation of a global metaverse innovation special zone, and ▲ support projects for building a digital transformation (DX) growth foundation to foster future new technologies as regional economic drivers.
◆ Revamping Gumi Industrial Complex, Undergoing a Major Transformation into a Premium Space
The city is fully committed to attracting the ‘Defense Industry Innovation Cluster,’ a regional specialized cluster project based on the five major new defense industries.
Gumi City is fully prepared to succeed in attracting the cluster. It has formed a dedicated task force, the ‘Defense Innovation Cluster TF Team,’ and organized the ‘Defense Industry Corporate Council’ centered on defense companies, as well as the ‘Defense Industry Development Council,’ a regional public-private-academic-research-government-military consultative body, to promote comprehensive activities for fostering the defense industry ecosystem.
The National Pilot District for Industrial Complex Urban Regeneration Innovation Zone, initiated as a Ministry of Land, Infrastructure and Transport public project, is scheduled to start this year. Additionally, the seven core projects of the Smart Green Industrial Complex, including ▲ establishment of a materials and components convergence alliance and ▲ construction of process innovation simulation, are progressing smoothly. These efforts aim to upgrade the Gumi Industrial Complex by improving corporate capabilities through process automation, energy efficiency enhancement, and creation of future growth engines.
◆ Growth Catalyst through Customized Support Projects for Companies
Amid the prolonged COVID-19 pandemic and the global economic crisis triggered by the Russia-Ukraine war, Gumi City plans to provide tailored support by sector according to the growth cycle of companies to realize their innovation capabilities.
To alleviate financial difficulties faced by small and medium enterprises (SMEs) due to rising raw material prices and high interest rates, the city is expanding the interest subsidy project for SME working capital and facility funds compared to last year. In 2023, it is implementing the ‘New Growth Engine Fund’ project for fostering advanced industries (semiconductors and defense industry) for the first time nationwide, striving to support corporate growth.
Furthermore, the city is promoting various trade support projects aligned with globalization, such as ▲ SME export insurance premiums and logistics costs, ▲ overseas market development, ▲ SME total solutions, and ▲ ESG management support for small and medium enterprises, seeking to diversify export markets.
For prospective entrepreneurs wishing to start businesses, the city plans to provide diverse startup information and facilitate commercialization of ideas by forming a startup activation network, focusing on nurturing through matching with strong small enterprises and entrepreneurs. It will also launch the New Career Startup Support Project to prevent the outflow of high-tech manufacturing personnel to the metropolitan area and induce technology startups, thereby establishing a startup ecosystem foundation.
Support is provided through ▲ Gumi City Technology Doctor, ▲ operation of the Gumi City Prototype Production Center, and ▲ support from the Gyeongbuk Western Intellectual Property Center for solutions, prototype production, and certification. The Gumi City Startup Incubation Center offers comprehensive support systems, including providing incubation space for startup companies.
◆ Labor Policies Determining Corporate Competitiveness
To support workers’ human rights and stable living, Gumi City plans to operate psychological counseling and healing programs for emotional laborers and establish rest shelters for mobile workers such as substitute drivers and quick service drivers to resolve their difficulties.
To prevent recent serious accidents at workplaces, the city plans to produce and distribute a handbook for preventing major industrial accidents, making complex content easily applicable at workplaces. It is striving to create a safe and healthy labor environment free from major industrial accidents through systematic and efficient industrial accident prevention management at local workplaces.
To help SME workers settle in the local community, the city is expanding the SME dormitory rental support project and promoting a housing rental support project for workers in research and development (R&D) fields to enhance competitiveness in the manufacturing sector.
◆ Prioritizing Livelihoods, Various Support for Small Business Owners
Upon the launch of the 8th elected administration, an emergency economic countermeasure task force was formed to prepare proactive and swift damage response measures for economic recovery.
Through the emergency economic countermeasure task force, the city has prepared response measures to minimize damage to SMEs, small business owners, and vulnerable groups, including ▲ freezing six types of public utility fees for price stabilization, ▲ energy welfare projects such as heating cost support, ▲ youth transportation and monthly rent support for workers in the Gumi Industrial Complex, and ▲ promotion of Gumi rice sales.
Notably, for the first time nationwide, the city is implementing ▲ support for card terminal usage fees to alleviate fixed expenses for local merchants, ▲ expansion of Gumi-type special guarantees, and establishing a ▲ Small Business Support Center where small business owners can receive one-stop guidance on support benefits. To revitalize local economy-based alley markets, the city is promoting a ▲ Local Creator Development Project and collaborating with local arts to improve store designs through the ▲ Our Neighborhood Store Artterior Project, providing effective support that will serve as the foundation for the livelihood economy.
◆ Creating a Favorable Environment for Investment, Economic Green Light
From the corporate attraction stage to move-in, factory permits, and post-management, the city has established a one-stop service support system providing customized services for companies. It operates the Gumi City Pan-Citizen Corporate Attraction Committee to strengthen active investment attraction promotion through public-private cooperation networks. In response to the relocation of Daegu New Airport, it has prepared differentiated support strategies by strengthening cooperation with foreign-invested companies and service industry investment attraction related to the new airport, successfully attracting large-scale investments from major companies such as SK Siltron and LG Innotek.
Additionally, the city is creating a business-friendly environment centered on demanders by operating a demand-based night permit pre-consultation system and innovating permit work processes to provide convenience to investment companies and shorten investment civil complaint processing times.
On February 1st, President Yoon Seok-yeol visited Gumi, chaired the 1st Talent Nurturing Strategy Meeting at Kumoh National Institute of Technology, and attended the SK Siltron investment agreement ceremony within the Gumi National Industrial Complex, delivering messages on customized talent nurturing and semiconductor industry promotion.
Gumi City will establish a close industry-academia-research cooperation system by timely supplying the workforce needed by companies through Kumoh National Institute of Technology, Gumi Electronics Technical High School, and Kumoh Technical High School. It also plans to promote the designation of an opportunity development special zone to revitalize corporate regional investment and improve residential conditions in the area.
Mayor Kim Jang-ho said, “This year, amid global economic instability characterized by low growth and high inflation and various internal and external crises, active roles are required to realize the era of local governance. A new development strategy is needed to actively respond to rapidly changing policy changes. We will raise administrative capabilities to recreate Gumi through economic recovery.”
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