The government has selected regional "growth engines" as part of its initiative to foster industrial development. It plans to identify 3 to 4 growth engines per region, linking local strengths with large-scale corporate investments. This strategy aims to transform local areas into hubs of industrial innovation by combining a seven-part support package with mega-special zones.
On August 26, the Ministry of Trade, Industry and Energy announced this plan during the 10th Central-Local Cooperation Meeting, chaired by President Lee Jae-myung at the Blue House.
Since September of last year, the ministry has been gathering demand from local governments and has held over 100 consultations to select these growth engines. Feedback was collected from more than 600 companies and regional experts, with selection criteria including corporate investment, regional strengths, growth potential, and alignment with national strategies.
In the central region, the growth engines will focus on next-generation displays and semiconductors, high-value-added biopharmaceuticals and materials, advanced batteries, and future defense and transportation systems. The goal is to develop the central region into a "global hub for advanced strategic industries" by leveraging existing high-tech industrial foundations and research and development capabilities.
The southwestern region will focus on future power systems, advanced semiconductor manufacturing, AI autonomous driving, next-generation vaccines, and precision medicine. This area aims to create a "renewable energy-based semiconductor and AI cluster" by combining abundant renewable energy resources with significant semiconductor investments.
The Daegu-Gyeongbuk region will develop advanced materials and components for semiconductors, key materials for secondary batteries, advanced mobility components, and AI robotics, positioning itself as a "center for advanced materials, components, and AI robotics." The southeastern region will establish a "super-gap manufacturing AI hub belt" centered on advanced shipbuilding and shipping, aerospace and defense, innovative manufacturing for future mobility, and next-generation nuclear power and energy.
In Jeonbuk, the growth engines will include a green hydrogen platform, advanced robotics foundry, and agricultural biotechnology. This initiative aims to integrate hydrogen and robotics investments with renewable energy and agricultural biotechnology to create a platform for next-generation life and physical AI manufacturing industries.
Gangwon will focus on smart bio and medical devices, specialty semiconductors and ceramics, and clean resources and tourism, while Jeju will concentrate on renewable energy convergence systems, small satellite systems, and clean bio wellness industries. AI will be applied as a common foundational technology across all regions and industries.
To connect these growth engines to local industrial ecosystems, the government will implement a seven-part support package consisting of financial, fiscal, regulatory, technological, talent, and infrastructure support. A new "growth engine special subsidy" will be established for large-scale local investments, and sufficient financing will be provided through the National Growth Fund and region-specific funds to support corporate investment and growth.
R&D costs and integrated investment and domestic production tax credits will apply regional coefficients, allowing for additional deductions of up to 50%. The government will also significantly ease corporate investment regulations and provide one-on-one support for regional investment challenges. Large-scale R&D projects initiated by local anchor companies and their partners will also be established.
To cultivate talent, the government plans to support local national universities, industry-academia convergence districts, and specialized graduate schools to directly train skilled professionals in the regions. Industrial hubs such as corporate advanced cities, RE100 industrial complexes, and manufacturing AI transition clusters will be developed. Timely supply of electricity and water will also be ensured to enhance competitive industrial locations.
President Lee Jae-myung stated, "Balanced development is not a choice or a privilege, but a necessary strategy for the survival and sustainable growth of South Korea." He emphasized the commitment to fostering industries and jobs centered around the five poles and three special zones while also improving living conditions related to housing, education, and welfare.
* This article has been translated by AI.
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