Gov't to spend 87 bln won to support corporate relocation in 2009

SEOUL, Jan. 1 (Yonhap) -- The government said Thursday that it has set aside 87.0
billion won (US$66.4 million) this year to support balanced national growth by
helping companies relocate their operations to rural areas.
The amount is double the 43.4 billion won used last year, with more funds to be
used to purchase land and hire new workers, the Ministry of Knowledge Economy
said.
Relocating companies out of Seoul, Incheon and the surrounding Gyeonggi Province
has been an important policy move by recent South Korean administrations. The
capital city and the surrounding region accounts for the bulk of the country's
economic activities and wealth. This concentration has left provinces relatively
underdeveloped and hurt national cohesiveness.
The ministry said it will support 70-80 percent of land acquisition costs for
companies that relocate, up from a maximum of 50 percent in the past. In
addition, the total that can be provided to each company will be raised to 6
billion won from 5 billion won at present.
It also plans to give 600,000 won of wage support to every new full-time worker
employed, up from 500,000 won at present, with additional money to go to
vocational training programs for up to six months.
In addition, the extra funds will permit 7 billion won to go companies that have
invested more than 100 billion won into factories within four years of relocation
and employ more than 300 people.
The ministry in charge of the country's industrial policies, meanwhile, said the
percentage of funds provided by the central government will go up vis-a-vis
regional administrations that usually do not have enough reserves to offer the
kind of support needed by companies.
In the past, the central government paid half of the total support, with the rest
coming from regional administrations that were hard-pressed to come up with
matching funds.
yonngong@yna.co.kr
(END)