– Raising the limit of financial support per business two-fold to \20 billion

The Gyeonggi Province Office plans to raise the limit of financial support for businesses building apartment-type factories that are not subject to the upper limit of land annually allocated for construction of factories designed to keep overcrowding of manufacturing facilities in the Seoul in check.

The limit of financial support for them will be raised to \20 billion from \10 billion. Businesses’ financial contribution to lower administrative units for area will also be lowered to 5-10% from the current 25%, effective in the second half of 2003.

As well, the Office intends to make a recommendation to the Ministry of Construction and Transportation that land lots for industrial purpose in the urban housing development zones be sold on conditions more favorable to businesses.

It was also reported that on June 10 the Province Office gave an instruction to the cities and guns in the province that regulations concerning the required floor space ratio be applied in a more favorable way to the businesses building new apartment-type factories along wide roads.

At present, urban-type factories and knowledge-based businesses find it hard to secure their business spaces in the province which offers much more favorable conditions than other provinces due to its geographical proximity to Seoul. Under the circumstances, the Province Office judges that securing of urban-type industrial facilities including apartment-type factories is urgently required.

Especially, the northern part of the province is subject to dual regulations under the need for protection of military facilities and control of overcrowding of the Seoul area and thus requires special measures taken for attraction of businesses.

The Province Office plans to push ahead with apartment-type factories in consideration of the suggestion made by the KID (Korea Industrial Development Institute) as a result of its research.

As part of its effort to help businesses build more apartment-type factories in the province, the Office plans to offer conditions more favorable to businesses, including allocation of land lots at a lower unit price, allowing a higher floor space ratio, partial financial support concerning expense for installation of utility lines for those built in the northern area of the province, and exemption of imposition of value added tax in cooperation with the Ministry of Finance and Economy.

In addition to giving an instruction that the cities and guns in the province reduce the amount of required financial contribution for development of areas to be borne by businesses, the Office plans to raise the limit for financial support for newly built apartment-type businesses. It also made recommendation to the Ministry of Commerce, Industry and Energy (MOCIE) that steps be taken for protection of apartment-type factories in the province through integrated guideline concerning establishment of and operation of factories and granting collateral rights.

The Office will strongly encourage newly-built apartment-type factories that have more than 300 female employees to install child-care facilities, in addition to parking lots and dormitories, giving additional points to those with these facilities when selecting those eligible for financial support.

It will also make recommendation to the MOCIE that the Korea Industrial Complex Corporation (KICOX) and the Small and Medium Industry Promotion Corporation build low-priced rental factories.

A Province Office official said that consideration of such a variety of measures for invigoration of apartment-type factories is part of its strategy to attract many businesses engaged in knowledge-based sectors with high added value amid the ongoing transfer of paradigm in industry.