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South Gyeongsang Designates Two More Investment Promotion Zones
According to Yonhap News, 

16 of 18 existing zones in South Gyeongsang complete leasing, sites designation as major cause of enthusiasm

(CHANGWON=Yonhap News) South Gyeogsang Province announced May 3 that it has designated 2 additional Investment Promotion Zones to attract businesses to industrial complexes suffering from low tenant occupancy.

The two zones are Hamyang General Industrial Complex and Geochang Elevator Agro-industrial Complex.

The designations passed through deliberation late last month, and will be officially announced on May 4.

The General Industrial Complex in Wonpyeong-ri, Sudong-myeon, Hamyang County, sits on a site of 228,154 square meters, and is open to companies involved in non-metallic minerals and machinery and equipment manufacturing firms, etc.

Public announcements were made starting last September, but only only 41.8 percent of the entire area is currently occupied.

Located in Daesan-ri, Namsang-myeonn, Geochang County, the Elevator Agro-industrial Complex covers 134,317 square meters of land, and is recruiting tenants that make electronic parts, computers, or electric equipment.

A total of 5 public announcements were made since last May, but the occupancy rate remains at 6.2 percent.

The province expects the recent designation will boost interest in the two locations.

Industrial and agro-industial complexes with a vacancy rate of 30 percent or higher, or with 33,058 square meters (10,000 pyeong) or more still unoccupied, are eligible for the designation.

To achieve balanced regional development, companies from outside the province or those that are looking for a site to build a new factory are ideal candidates for designated investment promotion zones.

Tenants that move in from other provinces or build new factories, or expand existing ones in a designated zone, will receive a maximum KRW 1.3 billion in subsidies.

Shin Jong-u, head of the province's Future Industry Department, said, "the additional designations were made at a time when South Gyeongsang's key industries such as machine manufacturing and shipbuilding are struggling," adding, "they are expected to encourage businesses in emerging industries to to expand their investments and create more jobs, and thereby help the province overcome the ongoing economic crisis.

Previously, the province has designated 18 complexes, including the agro-industrial complex in Sabong-myeon, as investment promotion zones since 1999.

Of the 2 still looking for tenants, the Jangam Agro-dustrial Complex in Daesan-myeon, Haman County expects to sign MoUs with 3 companies by June, while the Maechon General Industrial Complex in Sancheong-eup, Sancheong County only has one more lot left to lease out.

Attracting a total investment of KRW 21.5 billion from 108 cases, KRW 15 billion of which comes as support for paying leases, KRW 4.8 billion for moving expenses, and KRW 1.7 million for paying wages, the province believes the designation played a significant role in attracting some 600 companies to the zones.

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Source Text

Source: Yonhap News (May. 3, 2017)

** This article was translated from the Korean.
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