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According to Yonhap News,
(DAEJEON=Yonhap News) Daejeon City successfully obtained large-scale investments, and it's having a positive ripple effect in improving the system for enterprise attraction.
On April 29, Daejeon City announced it had signed an investment promotion and support agreement with 4 domestic companies 2 days prior, on April 27.
The investment is made up of KRW 98.9 billion for the site and equipment and over KRW 100 billion to build a dormitory.
The city expects 233 new jobs will be created for the project.
Hydraulic valve manufacturer Sanwon Tech promised an investment of KRW 20.7 billion and lithium secondary battery anode material producer Tera Technos promised KRW 68 billion in investments.
The two companies will build facilities in Daedeok Research and Development Zone by 2021, and the other two companies will build their facilities in Munji District and Haso Industrial Complex.
A key factor in the successful attraction of investment by the city was the recent amendment of the "business promotion and investment promotion ordinance."
Recently, the city lowered the requirement for investing companies and increased subsidies and eligible candidates to attract more enterprises.
The investment requirements went from KRW 10 billion to KRW 2 billion for investing companies and from KRW 20 billion to KRW 500 million for startups.
The city also introduced a regulation that allows a research institute to be subsidized upon a KRW 500 million investment.
On the other hand, the facility investment subsidy will increase to 14% of investment, up to KRW 6 billion, and employment subsidy will increase to up to 1 year with payments of KRW 1 million every month.
Acting Daejeon City Major Lee Jae-kwan stated, "Tera Technos has target sales close to KRW 800 billion by 2021, and additional global companies with more than KRW 1 trillion in sales could come out of our city," he added, "We will provide various forms of support such as subsidies for investment promotion, loans for operating funds, administrative licenses, etc., so that investing companies can settle down in Daejeon smoothly."
youngs@yna.co.kr
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** This article was translated from Korean.
Source: Yonhap News (Apr. 29, 2018)