Goyang City Confirmed as the First Venture Business Promotion District Designated in Northern Gyeonggi Province

Tax Benefits and Burden Reductions for Venture Companies... Expected to Boost Startups and Investments
Mayor Donghwan Lee: "A Turning Point for Job Creation and Building an Innovative Ecosystem"

Goyang City Hall exterior.

Goyang Special City, Gyeonggi Province (Mayor Lee Dong-hwan) announced on the 11th that it has been designated as a Venture Business Promotion District by the Ministry of SMEs and Startups, the first in northern Gyeonggi.

The area designated as the Venture Business Promotion District includes Daehwa-dong, Janghang-dong, Beopgot-dong, Siksa-dong, Baekseok-dong, Hwajeon-dong, Dongsan-dong, and Wonheung-dong, covering a total of 1.25 million square meters (approximately 378,000 pyeong). This area is densely populated with Goyang City's specialized industries such as bio, drone & mobility, and advanced manufacturing, allowing local venture companies to receive various tax benefits.

Venture companies located in the designated district will receive a 50% reduction in property tax and acquisition tax when acquiring or using real estate within the district. They will also be exempt from five types of development charges and receive management and technical support from the government to revitalize the promotion district.

Legally, the basic property tax reduction is 35%, but Goyang Special City proactively amended its ordinance to allow an additional 15% reduction. The city plans to first promote support projects for companies to create an environment where venture companies can grow stably.

The city expects that the designation of the Venture Business Promotion District will give momentum to the promotion of advanced knowledge industry projects such as the Goyang Free Economic Zone, Ilsan Techno Valley, and Broadcasting and Video Valley.

Additionally, by establishing venture and startup funds, the city plans to enhance global competitiveness and nurture future talents by supporting investment attraction, corporate management, overseas expansion of SMEs, and step-by-step growth of startup companies.

To overcome the economic difficulties of ventures and startups and support a dynamic investment ecosystem, the city has formed the Goyang Venture Fund and Goyang Youth Startup Fund. The Goyang Venture Fund, combining government and private resources, has raised about 80 billion KRW, including 42 billion KRW from the Korea Fund of Funds and 38 billion KRW from private capital. The investment sectors include ▲bio & medical ▲media & content ▲4th industry, with a mandatory investment of at least 4 billion KRW, twice the city's contribution, in companies within these industries located in or relocated to the city.

The 10 billion KRW Goyang Youth Startup Fund aims to nurture startups by discovering early-stage companies with high growth potential and providing customized initial investments. It will actively utilize the 28 Youth Business Office, One-Stop Startup Platform, and Goyang IR Day to support startups in tax, consulting, marketing, and investment attraction.

Although Goyang City is known to be in an overconcentration control zone, making it difficult for companies to establish locations, about 210 industries including consumer goods, agricultural, fishery, livestock, and forestry product processing industries, as well as advanced industries, can establish new or expanded factories individually. Urban-type factories are also offered benefits such as exemption from acquisition tax and property tax surcharges. The city plans to support companies to overcome location limitations and grow.

Mayor Lee Dong-hwan of Goyang Special City stated, “The designation of this Venture Business Promotion District will be an important turning point that promotes venture company startups and investments, advanced technology R&D, leading to quality job creation and the establishment of an innovative ecosystem.” He added, “It is expected to have a positive effect on the future designation of the Goyang Free Economic Zone, enabling it to leap forward as an innovative economic hub preferred by domestic and international companies.”