Gov't spends 54.7 bln won to help corporate relocation

By Lee Joon-seung
SEOUL, June 22 (Yonhap) -- The government on Monday said it has spent 54.7
billion won (US$43 million) this year to facilitate corporate relocation, in an
effort to fuel new business investments and create more jobs in rural areas.

The total represents a 2.4-fold increase compared to the 22.8 billion won worth
of assistance provided by South Korea during the first six months of 2008, the
Ministry of Knowledge Economy said.
State funds are offered to buy real estate, augment new investments, hire workers
and conduct training programs for employees. The government also provides various
tax breaks.
The ministry said that if the 18 companies that received state support --
including Doosan Infracore Co., LS Cable and Yuhan-Kimberly -- complete the
relocation of their factories away from the capital to rural areas, they could
hire up to 2,141 new workers and invest 1.2 trillion won in new facilities.
"At the present rate, the government will be able to spend all of the 87.0
billion won set aside this year to get companies relocate to the provinces, which
could be a boom for investment and job creation," a ministry official said.
Job creation and business investment is seen as critical to stemming the economic
downturn. South Korea's economy, Asia's fourth-largest, is expected to post
negative growth in 2009 compared with the year before.
Corporate relocation support, first introduced in 2004, has been provided to 227
companies so far, with total expenditures reaching 188.6 billion won.
The government has actively urged businesses to move out of the Seoul
metropolitan area as part of a plan to balance national development. The
concentration of jobs and people in the capital has been cited as raising
production costs.
yonngong@yna.co.kr
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