Industry ministry presses regional investment with Daedong visit

The industry ministry said Thursday its trade and investment director visited Daedong in Daegu, where the agricultural machinery maker has decided to invest about 80 billion won ($56.5 million) after closing overseas operations.

Daedong, selected as the third return-investment company this year, plans to expand its Daegu factory and build a dedicated plant for artificial intelligence-based autonomous tractors. The visit was part of discussions on encouraging investments by returning companies and foreign-invested businesses outside the capital region.

At a meeting with returning companies in the Daegu and North Gyeongsang region, businesses asked for government support, citing uncertainty from changes in global supply chains and intensifying protectionism.

The Ministry of Trade, Industry and Energy published proposed revisions to the enforcement decree for the return-investment law for public comment on July 6 and is targeting implementation as early as October. It also plans to overhaul its subsidy system next year to support large-scale and advanced-industry investments in regional areas. The changes would introduce a negotiation process for large-scale and strategic-sector investments, vary support based on factors including non-capital-region locations, youth employment and advanced strategic technologies, and replace fixed subsidy limits with maximum subsidy rates.

Kang Gam-chan also visited Valeo Mobility Korea, a foreign-invested company with a production plant in Daegu and a research and development center in Gyeongsan. The company produces and develops advanced driver-assistance system parts, including ultrasonic sensors, radar and cameras, as well as control systems. The ministry said the accelerating transition to autonomous and other future vehicles has increased the importance of stable supply chains for key components. Valeo Mobility Korea said it plans to develop South Korea into a core Asian production base for advanced driver-assistance systems and continue expanding exports.

"Strategic corporate investment has become more important in responding to the spread of AI and external uncertainties, and regional areas must become the center of that investment for the country and companies to achieve sustained growth," Kang, the ministry's trade and investment director, said. "We will provide comprehensive support so capable companies can invest and grow in regional areas."