The government has finished selecting 25 growth engines for eight regions nationwide under the "5 poles and 3 specials" plan. The "5 poles and 3 specials" is a blueprint to reorganize the nation into five mega-regions (the capital region, the southeast region, the Daegyeong region, the central region, and the Honam region) and three special self-governing provinces (Gangwon, North Jeolla, and Jeju). The government plans to concentrate support by designating these growth engines as "mega special zones" that grant regulatory exceptions, coupled with seven policy packages spanning finance, taxation, institutions, technology, talent, and infrastructure.
The Ministry of Trade, Industry and Resources on the 26th announced the "regional growth engine development plan linked to the three mega projects" at the 10th Central-Local Cooperation Council meeting presided over by President Lee Jae-myung.
The central region selected next-generation displays and semiconductors; high value-added biopharmaceuticals and materials; advanced batteries; and future defense and transport systems as growth engines, to foster an "advanced strategic industry global hub." The growth engines for the southwest region are future power systems, advanced semiconductor innovative manufacturing, artificial intelligence (AI) Autonomous Driving, and next-generation vaccines and Precision Medicine, aiming to build a "renewable energy-based semiconductor and AI cluster."
The Daegyeong region will develop into a "hub for advanced materials and parts and AI robots" through advanced semiconductor materials and parts; key secondary-battery materials and resource circulation; advanced mobility parts; and advanced AI robots. The southeast region plans to leap forward as an "ultra-gap manufacturing AI industrial belt," using advanced shipbuilding and shipping; space and defense; future Mobility Innovation manufacturing; and next-generation nuclear power and energy as growth engines.
North Jeolla will build a "next-generation life and physical AI manufacturing industry platform" with a green hydrogen platform, an advanced robot foundry, and agricultural and life bio. Gangwon will be nurtured as an "AI and clean industry innovation hub" through smart bio and medical devices; specialized semiconductors and ceramics; and clean resources and tourism, while Jeju will become a "future industry frontier demonstration site" based on a renewable energy convergence system, small satellite systems, and clean bio wellness. The AI industry will apply as a common base industry across all regions.
The government will create "growth engine special subsidies" to provide the nation's highest level of subsidies for large-scale local investments and will invest 40% of the Public Growth Fund (80 trillion won+α) in the provinces. Tax benefits, including a domestic production tax credit, will be applied up to 50% more for local companies only. Regulatory exceptions will be operated in a "menu-style" format so that local governments and corporations can choose the exceptions they need.
The government will draw up region-specific development plans within the year and operate a "local-led growth council" to provide close support for key projects.