Venture Companies Receive Up to 50% Reduction in Acquisition and Property Taxes
Goyang is a Metropolitan City in the Seoul Capital Area with Over 1 Million Population
Hwaseong Ranks First Nationwide in GRDP Among Basic Local Governments
The Ministry of SMEs and Startups announced on the 10th that the areas of Goyang and Hwaseong in Gyeonggi Province will be designated as 'Venture Business Promotion Districts.'
The Venture Promotion District is a system to support the establishment of venture companies. It started in 2000 to promote the concentration of venture companies or to create Korean-style venture districts in areas with a high density of venture companies by clustering universities, research institutes, and others. Currently, 28 regions nationwide are designated as Venture Promotion Districts, and as of last month, about 4,800 venture companies are located within these districts. When designated as a Venture Promotion District, venture companies within the district receive benefits such as up to a 50% reduction in acquisition tax and property tax, as well as exemptions from development charges.
Goyang, a metropolitan city in the Seoul metropolitan area with a population of over one million, plans to promote regional development by expanding the base of venture company growth hubs and advanced technology startup ecosystems, based on facilities such as Ilsan Techno Valley, KINTEX, SBS broadcasting and media facilities, six general hospitals including the National Cancer Center, and universities such as Korea Aerospace University and Dongguk University. The Venture Promotion District covers an area of 1.25 km² across eight administrative neighborhoods including Daehwa-dong.
The areas of Daehwa-dong, Janghang-dong, and Beopgot-dong have well-established venture and startup ecosystems including the planned Goyang Free Economic Zone, Ilsan Techno Valley, Goyang Broadcasting and Video Valley, and KINTEX, and are preparing for the opening of the GTX-A metropolitan transportation network. Siksa-dong and Baekseok-dong host Dongguk University Biomedical Campus and National Health Insurance Ilsan Hospital, leading in 21st-century medicine, life sciences, healthcare, cell therapy, gene therapy, and bio fields. Hwajeon-dong, Dongsan-dong, and Wonheung-dong areas have facilities such as Korea Aerospace University Startup Incubation Center, Aerospace Industry Technology Research Institute, Drone Anchor Center, drone airfield, and clusters of knowledge industry centers, which can be utilized as startup hubs for drone, mobility, and advanced manufacturing industries.
After the designation as a Venture Promotion District, Goyang plans to use the 24.4 billion KRW 'Goyang Venture Fund' and the 10 billion KRW 'Goyang Startup Fund' to serve as a growth platform for early-stage startups and young entrepreneurs, and actively utilize regional hubs such as the 28 Youth Business Office, Tomorrow Dream Workshop, and One-Stop Startup Platform to support consulting, marketing, and investment attraction.
Hwaseong is a region with the nation's top-level infrastructure for venture and startup concentration and development, ranking first nationwide in gross regional domestic product (GRDP) among basic local governments, first in the number of manufacturers in Gyeonggi Province, and second in the number of venture companies in Gyeonggi Province.
The Dongtan Techno Valley District is the largest industrial cluster in the metropolitan area, equipped with optimal infrastructure including an urban high-tech industrial complex, small business support center, incubating center, and 38 knowledge industry centers within the district. The Dongtan General Industrial Complex District is a venture company cluster with many advanced companies in research institutes, semiconductors, knowledge-based manufacturing, and knowledge-based services. The Seokwoo-dong IT district, located between Samsung Electronics Hwaseong Campus and Giheung Campus, is a semiconductor-related materials, parts, and equipment cluster with many global semiconductor companies (ASML, Tokyo Electron), advanced research institutes, and venture company cluster facilities.
After being designated as a Venture Promotion District, Hwaseong plans to expand the 'Startup Venture Investment Fund' from 70 billion KRW to 200 billion KRW, promote Venture Promotion District support projects, establish small business support centers, and expand startup incubation centers to resolve difficulties faced by venture and startup companies.
Kim Woo-jung, Director of Regional Enterprise Policy at the Ministry of SMEs and Startups, said, "Through the new designation of Venture Promotion Districts, we hope to revitalize the regional economy by actively supporting venture companies and increasing focused investment by local governments."
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