Enhancing SME Competitiveness and Revitalizing the Local Economy Expected
The Gwangyang Bay Area Free Economic Zone Authority (Commissioner Koo Chung-gon) announced on the 24th that the Gwangyang Sepung Industrial Complex has been designated as a Special Support Zone for Small and Medium Enterprises (SMEs) for an additional two years.
This measure was implemented to support the continued growth of resident companies, following the expiration of the initial five-year support period after its first designation in 2020.
Aerial view of Sepung Industrial Complex. Provided by Gwangyang Bay Area Free Economic Zone Authority.
The Special Support Zone for SMEs is a system designated by the Ministry of SMEs and Startups for industrial complexes or areas densely populated with SMEs experiencing management difficulties. Companies within the designated area receive various benefits, including reductions in corporate and income taxes, limited competitive bidding, and the ability to conclude private contracts.
Accordingly, during the initial five-year designation, resident companies received benefits such as 600 million KRW for exclusive local government projects, 100 million KRW in tax reductions, and 22 million KRW through the private contract system.
The Sepung Industrial Complex is an industrial park under development in Sepung-ri, Gwangyang-eup, Gwangyang-si, Jeollanam-do, with a total project cost of 560 billion KRW. Covering approximately 2.42 km², it is home to various companies in fields such as secondary battery materials, machinery and metal, and logistics.
To enhance the competitiveness of resident companies and boost sales in the early stages of the complex's development, it was first designated as a Special Support Zone for SMEs in 2020, with the designated area covering 472,382 m² in the first phase development zone.
After the five-year designation period expired, the Gwangyang Bay Area Free Economic Zone Authority actively proposed the necessity for an extension to the Ministry of SMEs and Startups, based on the Sepung Industrial Complex’s development strategy, plans to attract companies, and the establishment of the Gwangyang Bay Area secondary battery cluster.
Through on-site inspections and a review committee resolution, final approval was obtained, allowing resident companies in Sepung Industrial Complex to continue receiving the same tax benefits and support for market development until February 2027.
Koo Chung-gon, Commissioner of the Gwangyang Bay Area Free Economic Zone Authority, stated, "We plan to implement differentiated strategies to achieve a 100% occupancy rate in Sepung Industrial Complex and will spare no effort in providing various support for SMEs facing difficulties due to the downturn in the steel and chemical industries. The extension of this special support zone will help stabilize the management of resident companies and serve as an opportunity to revitalize the local economy."
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