Gyeongsangnam-do(경상남도) Emerges as Prime Investment Destination: Designation of Jinju and Sacheon Investment Promotion Zones

Significant Improvement in Investment Environment Expected in Jinju(진주) and Sacheon(사천) Areas

Gyeongsangnam-do (Governor Park Wan-su 박완수) announced that the amendment to the Space Development Promotion Act, which includes the designation of investment promotion zones, passed the National Assembly on September 26. This is expected to significantly improve the investment environment in the Jinju and Sacheon areas, boosting the construction of an aerospace complex city.

The amendment was proposed by National Assembly member Kang Min-guk (강민구) as the first bill of the 22nd National Assembly. Gyeongsangnam-do actively supported the bill by visiting the National Assembly’s Science, ICT, Broadcasting, and Communications Committee multiple times to explain its necessity and request support.

With the passage of this amendment, it is now possible to designate investment promotion zones to attract aerospace companies to the Jinju and Sacheon areas. This is expected to invigorate the attraction of companies to the ongoing aviation national industrial complex in these regions.

The designation of investment promotion zones has proven effective in other areas, such as Saemangeum, where investment attraction performance increased more than sixfold within a year of designation in 2022.

The amended law includes provisions for designating investment promotion zones within the space industry clusters (Gyeongnam, Jeonnam, Daejeon) and specialized aerospace industry complexes (Sacheon). It also includes measures to improve living conditions in these zones, such as special provisions for school and educational program operations, support for related research institutions, international organizations, general hospitals, and universities.

To ensure the effectiveness of tax support provisions, additional amendments to the Restriction of Special Taxation Act and the Local Tax Special Act have been proposed by National Assembly member Kang Min-guk and are currently under review by the relevant standing committees, aiming for passage by the end of the year.

Additionally, Gyeongsangnam-do is working on passing the Special Act on the Construction of an Aerospace Complex City, which includes the establishment of a government-led organization, exemption from preliminary feasibility studies, the creation of a special account, and support for tax and funding for companies moving into the investment promotion zones.

Ryu Myung-hyun, Director of the Gyeongsangnam-do Industrial Bureau, stated, “Based on the designation of investment promotion zones, we will attract excellent companies and rapidly promote the creation of an industry-academia-research cluster centered on the Aerospace Agency, making Gyeongnam the Toulouse of Asia.”