South Korea creates large-scale opportunity development special zone led by local government

The South Korean government has announced that it will create special opportunity development zones of up to 2 million pyong that local governments can freely operate. This special zone provides preferential treatment for taxes and regulations related to business activities.
It will be done. The government aims to improve the phenomenon in which 87% of the top 1,000 companies are concentrated in the metropolitan area and create quality jobs in regional areas.
On the 14th, the Regional Era Committee, which reports directly to the president, announced the vision and strategy for the regional era. During this time, opportunities arise
The criteria for designating special exhibition zones and the content of support have been clarified. Special Opportunity Development Zones are special zones in which local governments, rather than the central government, formulate industrial development strategies and support plans, taking into consideration companies' investment appetite and the living environment of employees.
becomes. For this reason, the legal system will be centered on ordinances rather than enforcement orders, and local governments will be given administrative autonomy. The maximum area for special zones is 1.5 million tsubo for metropolitan cities and 2 million tsubo for roads.
Special zones are offered substantial tax and regulatory incentives. First, in the case of tax support, investment funding (transfer tax), investment implementation (acquisition tax, property tax), management activities (corporate tax), etc.
given to all stages of business activities. The core of the plan is to grant special treatment for transfer tax to relocated companies, reduce or exempt corporate taxes and acquisition taxes for start-up companies, and give preferential treatment to property taxes and local income taxes.
A special system for Special Opportunity and Development Zones, in which local governments directly design regulations, will also be introduced. There are problems with public health, safety, and the environment.
Unless otherwise specified, if a local government applies for a regulation that poses an obstacle to local investment, the application of the relevant regulation will be eliminated after deliberation and resolution by the local committee. Rapid confirmation, special cases for demonstration, temporary permission, etc.
Previous special provisions will also be maintained. Meanwhile, the plan also included measures to stimulate investment. First, the support ratio (3-50%) for "local investment promotion subsidies" will be increased by 5 points. Local pitch
The capital promotion subsidy is a system that supports companies relocating to local areas in order to promote local investment by providing a portion of the investment amount as a subsidy. If you invest in a private financial resource special zone fund for a certain period of time, you will receive preferential tax treatment on interest and dividend income.
Benefits also apply. The government will also place emphasis on revitalizing business startups. ``Startup clusters'' will be created in core areas within regional urban centers, where founders, anchor companies, universities, support organizations, etc. will physically gather.
We will create an environment where people can cooperate with each other. Planned by local governments mainly in areas where business start-up infrastructure is concentrated. It will also encourage local governments and Special Opportunity Development Zones to explore ways to cooperate.
It also plans to intensively construct foundation infrastructure for business start-ups and encourage the relocation of start-up-related institutions. We will also promote differentiated startup support through the Creative Economy Innovation Center, etc.
proceed. We will also promote preferential treatment such as R&D (research and development) and vouchers for super disparate startups relocated to local areas, as well as networking support centered on the private sector.
With this plan, the government expects that the metropolitan area, which accounts for only 12% of the country's land area, will account for more than half of the population and total regional product.
It is hoped that this will alleviate the overcrowding phenomenon caused by the area, and encourage an influx of local people and job creation. The committee said, ``The designation of Special Opportunity Development Zones will encourage businesses to relocate and invest locally, and create new, high-quality jobs that young people want.''
"Providing this service will encourage the influx of people from rural areas."