Chairperson Kim Kyungsoo of the Local Era Committee Holds Meeting at Gyeongnam Changwon Chamber of Commerce and Industry

Gyeongnam Business Community Proposes
Differentiated Taxation for Non-Capital Regions
and Key Issues Facing Local Companies

The Gyeongnam Chamber of Commerce and Industry Council held a meeting on the morning of January 13 in the main conference room on the second floor of the Changwon Chamber of Commerce and Industry, inviting Kim Kyungsoo, Chairperson of the Local Era Committee.

Group photo of the meeting.

About 100 people attended the meeting, including Choi Jaeho, President of the Gyeongsangnam-do Chamber of Commerce and Industry Council; Heo Seongdu, President of the Jinju Chamber of Commerce and Industry; Hwang Taebu, President of the Sacheon Chamber of Commerce and Industry; Joo Bowon, President of the Miryang Chamber of Commerce and Industry; Kim Jeomsoo, President of the Geoje Chamber of Commerce and Industry; Park Jonghee, President of the Haman Chamber of Commerce and Industry; as well as business representatives and executives from the Gyeongnam region, heads of business support organizations, and related associations.

Before the main discussion began, Chairperson Kim Kyungsoo presented a blueprint for national balanced development centered on the '5 Mega Cities and 3 Special Self-Governing Provinces (5G3S) system.'

Chairperson Kim emphasized the need to realize economies of scale by forming a '5G3S economic bloc' that goes beyond city and provincial boundaries to overcome the crisis of regional extinction. He announced that, to foster regional growth engines, the government would provide an unprecedented package of the 'five growth support measures,' which include talent development, strong deregulation, innovation support, and financial and fund assistance.

He also explained that, to ensure effective support, a 'super-regional special account' would be newly established, and the Local Era Committee's authority to pre-adjust budget allocations would be strengthened, thereby building a robust administrative and financial foundation.

The subsequent meeting focused on practical tasks for overcoming the crisis of regional extinction and revitalizing the Gyeongnam economy.

First, the Changwon Chamber of Commerce and Industry proposed: differentiated application of corporate, earned income, and inheritance taxes for non-capital regions; designation of Masanhappo-gu and Masan Hoewon-gu as population decline areas; early opening of National Road No. 5 between Masan and Geoje; expansion and renaming of the Changwon Immigration Office; establishment of a local government-centered medical delivery system; and abolition of the mandatory periodic auditor designation system for non-capital regions.

The Sacheon Chamber of Commerce and Industry then proposed the establishment of the Aerospace Industry Promotion Agency in Sacheon and the construction and support of an aerospace integrated city. The Miryang Chamber of Commerce and Industry raised issues such as the designation of the Miryang Nano National Industrial Complex as an Opportunity Development Zone and exemption from the emissions trading system for the root industry.

In addition, business representatives from the Gyeongnam region requested financial support for medium-sized shipyards, support for the issuance of refund guarantees for small shipbuilders, measures to expand the participation of local companies in large-scale national construction projects within the province, nurturing of the Changwon AI Specialized Hub, and improvements to the local business development system. They also suggested specific needs and regulatory improvements identified in various industries, urging the government to take an active role in revitalizing corporate investment.

Kim Kyungsoo, Chairperson of the Local Era Committee, stated, "To truly usher in a new era for local regions, it is essential for each region to foster industries in which it has a comparative advantage, and for the central government to boldly support these efforts. I will actively consult with the relevant ministries to ensure that the issues raised by Gyeongnam business leaders today are reflected in policy and serve as a catalyst for balanced regional development."

Choi Jaeho, President of the Gyeongnam Chamber of Commerce and Industry Council, said, "For companies in non-capital regions such as Gyeongnam to compete on an uneven playing field with those in the capital, bold and effective policy changes are desperately needed. I hope that today's meeting will not be a mere formality, but rather serve as a turning point for the Gyeongnam economy to leap forward and become a central pillar of balanced development in Korea."