Gov't offers huge tax incentives to stimulate regional growth

President Yoon Suk Yeol speaks during a proclamation ceremony to promote balanced regional development held in Busan on Thursday. [JOINT PRESS CORP]

The government aims to lure companies to cities outside the greater Seoul area with strong tax incentives and administrative benefits.

The goal is to lessen regional disparities in Korea by distributing the resources and job opportunities concentrated in the greater Seoul area, which encompasses the capital city and the surrounding Gyeonggi region.

The plan was announced Thursday during a proclamation ceremony to promote regional development, attended by President Yoon Suk Yeol in Busan.

The government will designate special areas in order to incentivize companies to move their offices to, or start new businesses, in the regional cities.

The companies that relocate to the special areas will receive a 100 percent reduction in corporate tax for five years and pay only 50 percent corporate tax for an additional two years.

Moreover, the government hopes to foster “the next Pangyo Techno Valley” packed with commercial and leisure facilities in five cities — Busan, Ulsan, Daegu, Gwangju and Daejeon — by lifting regulations in downtown areas.

Special areas for education and culture will also be designated to promote balanced regional growth.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]