Daegu Suseong Alpha City Designated as Opportunity Development Zone for 76,700 Pyeong... Six Companies to Invest 1 Trillion Won

Suseong Alpha City, the largest ICT cluster in a non-capital region where 243 IT/SW companies and over 4,500 employees are based, has drawn significant attention from related businesses after being officially designated as an Opportunity Development Zone by the Presidential Committee for Balanced National Development on the 20th.

The Opportunity Development Zone is one of the key measures for balanced regional development under the “Special Act on Decentralization and Balanced Regional Development.” The system provides incentives such as tax reductions and regulatory exemptions to companies investing in designated zones, aiming to promote large-scale investments in local areas.

Daegu Suseong Alpha City Panorama

Within the Suseong Alpha City district, which is part of the Daegu-Gyeongbuk Free Economic Zone, an area of 76,728 pyeong (253,647 square meters) has been designated as an Opportunity Development Zone. Six companies, including the SK REITs Management-SK C&C Consortium (hereafter referred to as the SK Consortium), Focus H&S Co., Ltd., and LVIS Korea Co., Ltd., plan to invest a total of 1.0396 trillion KRW in Suseong Alpha City.

In particular, the AI Data Center to be established by the SK Consortium is expected to play a pivotal role in the distribution of digital solutions, thereby accelerating digital transformation (DX) in manufacturing and solidifying Suseong Alpha City’s position as a true hub for digital innovation.

Designated as a Free Economic Zone in 2008, Suseong Alpha City has been attracting both domestic and foreign investments in knowledge-based industries such as ICT and software. With its designation as a “Digital Innovation Hub,” the creation of the “Second Suseong Alpha City,” and now the Opportunity Development Zone status, the city is expected to gain further momentum in attracting new investments.

Meanwhile, companies investing in the Opportunity Development Zone will be offered various incentives, including reductions in income and corporate taxes, as well as acquisition and property taxes, among other financial supports.

Kim Byungsam, Commissioner of the Daegu-Gyeongbuk Free Economic Zone Authority, stated, “With the designation of the Opportunity Development Zone, we expect to revitalize the local economy and achieve balanced regional development through a virtuous cycle of corporate investment, job creation, and talent inflow. We will spare no effort in attracting new investments and supporting businesses to ensure that Suseong Alpha City’s designation serves as a solid foundation for building a major southern economic bloc.”