Goyang City Designated as First Venture Promotion Zone in Northern Gyeonggi... Accelerating Advanced Industry Development

Up to 50% Reduction in Acquisition and Property Taxes for Venture Companies in Venture Promotion Zones with Exemptions on Five Types of Charges
Fostering Advanced 4th Industrial Revolution Sectors: ICT, Bio Precision Medicine, Media Content, Next-Generation Mobility
Establishing Growth Foundations for Venture Startups through Startup Support Facilities, Venture Funds, and IR Day Operations
Mayor Lee Dong-hwan: “Building an Industrial Ecosystem Where Global Core Companies and Venture Firms Collaborate and Thrive”

Lee Dong-hwan, Mayor of Goyang Special City, is delivering a congratulatory speech at the '2024 Korea Advanced Technology Expo.'

Goyang Special City in Gyeonggi Province (Mayor Lee Dong-hwan) is accelerating support for venture startups and fostering advanced industries based on its designation as the first Venture Promotion Zone in northern Gyeonggi.

According to Goyang Special City on the 25th, on the 11th, the Ministry of SMEs and Startups designated eight administrative neighborhoods in Goyang?Janghang, Beopgot, Siksa, Baekseok, Hwajeon, Dongsan, and Wonheung-dong?covering an area of 1.25 million square meters (approximately 378,000 pyeong) as a Venture Promotion Zone.

The city plans to support venture startups and growth through startup support facilities, venture funds, and investor relations (IR) days, and to focus on fostering the advanced 4th industry by establishing advanced manufacturing and research facilities in connection with Ilsan Technovalley and the Goyang Free Economic Zone. Additionally, it will collaborate with six general hospitals in the area to create a bio-precision medical cluster and foster next-generation mobility industries such as media and content broadcasting video valley, drones, and UAM.

Mayor Lee Dong-hwan of Goyang Special City stated, “We will attract world-class core companies to the Free Economic Zone to form the industrial core, support the startup and growth of technologically advanced venture companies, and build an industrial ecosystem where large corporations and small and medium enterprises cooperate and develop together.”

Up to 50% Reduction in Acquisition and Property Taxes and Exemptions on Five Types of Charges for Venture Companies within the Venture Promotion Zone

2024 Korea Advanced Technology Exhibition.

The Venture Promotion Zone is a location support system designed to revitalize venture companies by clustering venture companies, universities, research institutions, and support organizations in a specific area to enhance efficiency in technology development, investment attraction, and corporate support through collective and mutual cooperation. Since its introduction in 2000, 30 zones have been designated across 16 provinces and cities, and as of September, about 12% (approximately 4,800 companies) of all venture companies (around 40,000 companies) are located within these zones. In Gyeonggi Province, zones had only been designated in southern areas such as Anyang, Bucheon, Ansan, Seongnam, Suwon, and Hwaseong, but this time Goyang was designated as the first in northern Gyeonggi.

When designated as a Venture Promotion Zone, venture companies within the zone can receive up to a 50% reduction in acquisition and property taxes, exemptions on five types of charges including development charges, and exemption from the obligation to install artistic decorations on buildings. To be designated as a Venture Promotion Zone, the proportion of venture companies among small and medium enterprises in the area must be at least 10%, and infrastructure such as universities, research institutions, transportation, communication, and finance must be in place.

Goyang is a typical bedroom community with insufficient industrial facilities relative to its population. As of 2021, the total number of businesses in Goyang was 110,660, with manufacturing accounting for only 7.4%. Wholesale and retail trade make up 30.2%, reflecting a consumer city industrial structure, and the proportion of industrial workers ranks 26th among cities and counties in Gyeonggi Province at 35.4%, which is low.

Aerial view of Goyang Ilsan Technovalley.

The city is promoting the designation of Ilsan Technovalley and the Free Economic Zone to foster advanced industries and increase quality jobs. It plans to create hubs for advanced industry by leveraging regional characteristics and maximize synergy effects with Ilsan Technovalley and the Free Economic Zone. The designation as a Venture Promotion Zone is expected to accelerate support for new startups and the fostering of advanced industries.

Fostering Advanced 4th Industry: ICT, Bio-Precision Medicine, Media Content, Next-Generation Mobility

Looking at the regions, Daehwa, Janghang, and Beopgot-dong areas are promoting the establishment of the Goyang Free Economic Zone, Ilsan Technovalley, and Goyang Broadcasting Video Valley. Ilsan Technovalley plans to complete construction by 2026 and will begin land sales in the second half of this year. It aims to develop into an advanced 4th industry cluster integrating ICT, bio-medical, and media content industries. This area is important for technological innovation through collaboration (open innovation) between large corporations and venture startups. Through the Free Economic Zone initiative, the city plans to attract global companies to activate global expansion and cooperation of venture startups and foster future industries as an urban industrial platform.

The Siksa-dong and Baekseok-dong areas plan to develop an international bio-precision medical cluster in cooperation with six general hospitals including the National Cancer Center, National Health Insurance Ilsan Hospital, and Dongguk University Biomedical Campus, focusing on 21st-century medicine, life sciences, healthcare, cell therapy, and gene therapy. The city will establish infrastructure and joint research facilities that support corporate activities such as the Goyang Middle-aged and Senior Technology Startup Center and knowledge industry centers to create a venture and startup hub.

Goyang Drone Anchor Center.

The Hwajeon area will foster next-generation mobility and advanced manufacturing industries such as drones and UAM, centered around Korea Aerospace University, the Aerospace Industry Technology Research Institute, Korea Aerospace University Startup Incubation Center, Drone Anchor Center, and drone airfield. Additionally, by linking with the nearby Dongsan-dong and Wonheung-dong knowledge industry center clusters and the Changneung 3rd New Town, the city aims to secure excellent young talent and create jobs close to residential areas (proximity of work and residence).

Startup Support Facilities, Venture Funds, IR-Day Operations... Laying the Foundation for Startup Growth

2023 Goyang IR-Day Startup Audition.

Goyang operates eight startup support facilities including the Smart Construction Support Center, Bitmaru Broadcasting Video Support Center, and Dongguk University Startup Incubation Center, most of which provide startup support programs ranging from education to marketing. In addition, it supports counseling, promotion, and investment attraction through facilities such as the 28 Youth Startup Center for young entrepreneurs, the Tomorrow Dream Workshop in youth company spaces, and a one-stop startup platform.

To activate investment in startups needing initial funding, Goyang has established Goyang Venture Funds 1, 2, and 3 with a total scale of 80 billion KRW and operates the Goyang Youth Startup Fund with a scale of 10 billion KRW. The Goyang IR-Day investment briefing connects entrepreneurs and investors, discovers outstanding startups and venture companies, and provides a growth foundation for early-stage startups.

Groundbreaking ceremony at Ilsan Technovalley.

The city plans to create advanced manufacturing facilities, knowledge-based facilities, and research facilities centered on the Ilsan Technovalley advanced industrial complex, maximizing synergy effects by simultaneously attracting global companies and supporting venture startups. It will establish a global convergence startup center to attract foreign investment using incentives and support the overseas expansion of domestic ventures and startups. The city aims to create an innovative ecosystem where large corporations serving as anchor companies and newly growing venture and startup companies cooperate and develop together to strengthen corporate competitiveness.