Donghae City Designated as an "Opportunity Development Zone" with Ambitions to Become a Hub for the Hydrogen Economy

Donghae City Designated as an "Opportunity Development Zone" with Ambitions to Become a Hub for the Hydrogen Economy

 

시사k뉴스 지형덕 기자

2024.11.08

 

Donghae City (Mayor Shim Gyu-eon) announced that the Bukpyeong National Industrial Complex Free Economic Zone has been officially designated as an Opportunity Development Zone by the Ministry of Trade, Industry, and Energy, following deliberation by the Presidential Committee on Local Autonomy and Balanced Development.

Designation Procedure

The designation process involved:

1. Application (Provincial Government → Ministry of Industry)
2. Inter-ministerial Consultation
3. Committee Review and Approval
4. Official Designation by the Ministry of Industry

Factors considered included corporate demand, economic viability, and growth potential.

An Opportunity Development Zone, as defined under the "Special Act on Local Autonomy Decentralization and Balanced Regional Development," is designed to attract large-scale corporate investments to non-metropolitan areas by offering a comprehensive package of tax, regulatory, and infrastructure support to reduce centralization around the Seoul metropolitan area and foster balanced regional development.

Key Facts about Donghae City’s Designation

• Zone Name: Hydrogen and Low-Carbon Green Industry Opportunity Development Zone
• Location: Bukpyeong National Industrial Complex Free Economic Zone (Guhodong 223-2 area)
• Size: 147,324 square meters (approximately 44,565 pyeong)
• Investment Plan: Led by anchor company Kumkang CNT Co., Ltd., with six other companies, totaling KRW 20.6 billion in investment and generating 93 jobs.

Expected Benefits and Incentives

With this designation, Donghae City is set to offer various incentives, including exemptions or reductions on income tax, corporate tax, acquisition tax, property tax, and inheritance tax, as well as increased investment subsidies and development fee exemptions. These measures are expected to accelerate investments in hydrogen and low-carbon green industries, stimulate the local economy, and create jobs.

Strategic Significance

The designation aligns with national policy priorities and the commitments of Gangwon Province's governor, marking a significant milestone for Donghae’s long-term economic development. It opens new opportunities for attracting corporate investments in locally specialized industries that support sustainable growth, regional balance, and the prevention of rural population decline.

Donghae City’s new Opportunity Development Zone is also expected to generate synergies with ongoing projects, including the pre-designated Hydrogen Storage and Transport Cluster in the neighboring Bukpyeong Phase 2 General Industrial Complex and the Clean Hydrogen Production Facility based on water electrolysis technology.

Future Plans

Beyond this initial designation, Donghae City plans to seek Opportunity Development Zone designation in 2025 for additional areas within the Bukpyeong National Industrial Complex, including a new knowledge industry center for public rental.

Mayor Shim Gyu-eon expressed gratitude to the local assembly members, the Special Autonomous Province of Gangwon, and anchor companies like Kumkang CNT Co., Ltd. He highlighted the city’s ambitions, stating, "With this designation, Donghae City will strive to lead the promising future industry of the hydrogen economy, establishing itself as a central hub for the hydrogen sector."

 

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