Gyeonggi-do Launches Effort to Attract 100 Trillion Won in Investment

Gyeonggi Provincial Government Gwanggyo New Office Building

Gyeonggi Province is preparing and implementing various incentives, including attracting excellent companies, to respond to the economic bloc formation worldwide triggered by the United States' 'reshoring' policy (bringing manufacturing back to the home country).

First, the province will provide up to 200 million KRW in funding to companies relocating back to Gyeonggi Province from overseas. Additionally, if advanced technology is transferred from excellent overseas companies, up to 50 million KRW will be supported to assist with prototype development, and up to 100 million KRW will be provided when supplying parts to global companies.

According to Gyeonggi Province on the 9th, following last year, the province supports 'reshoring' companies returning from overseas with funds necessary for smart factory upgrades such as robot adoption. The maximum support per company is 200 million KRW, and applications have been accepted since the 27th of last month.

Since 2020, the province has been helping returning companies settle stably by supporting smart factory and robot-utilized manufacturing, new product development, and prototype production.

Yujin LED Co., Ltd., which returned to Goyang City in 2015, introduced robot automation equipment over the past three years for robot-utilized manufacturing, prototype production, and marketing activities, resulting in a reduction in LED lamp assembly defect rates and a 20% increase in production volume.

Remote Solution Co., Ltd., which returned to Gunpo City in 2020, established a 100% robot-automated TV remote control manufacturing line through robot automation. This company reported a 13% increase in sales compared to the previous year due to labor cost reduction and productivity improvement.

The province also provides additional support of up to 70 million KRW per company to enhance the capabilities of returning companies in Gyeonggi Province, including patent applications for new technology development, testing and analysis for domestic and international certification, prototype production, and management environment improvement.

In cooperation with the Korea Trade-Investment Promotion Agency, the province is conducting a survey to understand the status of overseas expansion companies and their intention to return domestically, aiming to discover excellent companies in advanced fields.

The province is also actively supporting parts order companies and suppliers.

It provides up to 100 million KRW for prototype production and other necessary costs to companies that secure parts orders from global companies. If a local company succeeds in securing parts orders from a global company, it is expected to be registered as a partner company of that global company, enabling supply to overseas branches.

Furthermore, the province supports up to 50 million KRW when companies introduce excellent technology from overseas. This project was newly introduced this year as part of the '2023 Global Business Company Matching Project.'

When excellent overseas technologies related to Gyeonggi Province’s key industries such as semiconductors and bio, and fourth industrial revolution fields like autonomous vehicles and artificial intelligence (AI) are introduced, the costs are supported to help companies increase sales and employment and establish a foundation for attracting investment.

Lee Min-woo, Director of the Investment Promotion Division of the province, said, "Recently, many countries worldwide are providing enormous subsidies to reshoring companies. Gyeonggi Province also plans to actively implement support policies for attracting companies, supplying global companies, and introducing excellent technologies to enhance the competitiveness of Korean companies."

Meanwhile, Governor Kim Dong-yeon announced in last month’s Gyeonggi Provincial Assembly policy speech that he will promote investment attraction of 100 trillion KRW during his term, focusing on future industries such as semiconductors, bio, advanced mobility, artificial intelligence, and big data.