Industry ministry approves 392 billion won in regional investments to create 429 jobs

The industry ministry said Monday it has approved 392 billion won in new private investments across South Korea's provincial regions, a move expected to generate 429 jobs. Officials selected 10 companies to receive a total of 81.6 billion won in government support, including 56 billion won in national funds, during the third quarterly review of the Local Investment Promotion Subsidy program.

The ten firms plan to establish or expand facilities in six local governments, including Gangwon, North Jeolla and South Gyeongsang provinces. All selected projects are located in areas distant from the Seoul metropolitan area.

Bio and pharmaceutical companies will drive much of the high-tech growth, with two firms investing 96.3 billion won in Gangneung and Jeju to hire 80 staff. A semiconductor materials manufacturer in Seongju, North Gyeongsang Province, was also included in the lineup.

The food sector accounted for a significant share of employment, as three companies committed to investing 188 billion won in Gwangyang, Iksan and Yangsan. These projects will create 241 positions.

Investment volumes under the program have risen steadily throughout the year, climbing from 257 billion won in the first round to 304 billion won in the second, before reaching 392 billion won in this third review. The cumulative total for the year has reached 953 billion won. Ministry officials attributed this steady increase to recent revisions of the subsidy system and the full-scale launch of initiatives to foster five major hubs and three special regional growth engines.

"We plan to improve the system so that subsidy limits and ratios increase the farther a location is from Seoul," an industry ministry official said. "We will also expand support for industries that regions want to attract, such as the five hubs and three special growth engines, and strengthen post-investment management to ensure companies fulfill their planned investment and employment commitments and settle successfully in the regions."

The final subsidy review of the year is scheduled for November. Companies planning to relocate to provincial areas or build new facilities there can apply by contacting their respective local governments.