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Daegu to Become Hub of Economic Vitalization

(DAEGU = Newsis) The city of Daegu expects that sweeping changes will take place in its industrial map of 2014.

In particular, the Daegu National Industrial Complex, which will commence its full-scale development, is expected to become the “land of opportunities” to the companies in Masan, Changwon and Ulsan.

According to an announcement by the city on January 13, it will make a sweeping change in its industrial development road-map including the full-scale development of the Daegu National Industrial Complex and operation of Daegu Technopolis.

Dalseong region is expected to become the driving force of accelerated developments thanks to industrial complexes including Daegu Technopolis, Daegu National Industrial Complex and Seongseo 5th Industrial Complex.

The city expected that the local economy would be vitalized as the size of its industrial park has nearly doubled to 45,120,000m2 compared to July in 2006.

Since 2006, the city has established 8 new industrial complexes including Seongseo 5th Industrial Complex, Esiapolis, Technopolis, Daegu National Industrial Complex, Daegu Medi City and others.

As a result, the size of the industrial park was expanded by 23,660,000 m2 from 21,460,000 m2 in 2006 to 45,120,000 m2 in January this year.

The number of companies in the industrial park rose by 72 percent, with the number of employee 22 percent, exports 60 percent and gross product 88 percent.

Gross product of the industrial park has increased from KRW 7.93 trillion in 2006 to 14.9742 trillion in January of 2014, and exports from KRW 2.6 trillion to KRW 4.1734 trillion during the same period.

Industrial structure of the city is also being reorganized based on its regional characteristics and the industries of new growth engines. The city plans to develop water cluster, foreigners-only complex and “Ppury industry” cluster in a bid to make Daegu National Industrial Complex as the core industrial complex of the Yeongnam region.

Daegu also plans to begin the sales of lands to domestic and international companies this year.

Daegu National Industrial Complex offers its industrial land at a lower price compared to other nearby industrial complexes. It offers around KRW 900,000 per 3.3m2, while the price of land in Changwon and Masan is about KRW four million per 3.3m2.

The complex also has a great number of high-quality human resources and low wage system.

Stable labor-management relation is also a great advantage of the complex. The level of tension in the labor-management relations in Changwon and Masan is high due to strong unions.

The city is also famous for its educational and cultural infrastructure, so it can offer a more competitive business environment to companies compared with the other cities.

If the city becomes successful in attracting companies to the complex, it will generate production of KRW 34 trillion, added value of KRW 10 trillion and 140,000 employment opportunities.

The development of the industrial complex will also stimulate the local economic growth. Constructions of residential buildings, commercial facilities and supporting facilities and others will largely contribute to the vitalization of the local economy.

“We will focus on attracting foreign companies in Technopolis and anchor companies in Daegu National Industrial Complex to provide the local companies an opportunity to grow and create jobs,” said an official of Daegu.

Source Text

Source: Newsis (Jan. 13, 2014)

** This article was translated from the Korean.