Chungcheongnam-do under Gov. Kim Tae-heum in the eighth popularly elected term has surpassed 40 trillion won in investment agreements. That far exceeds double the 14.5984 trillion won in the seventh term. Advanced industry corporations in semiconductors, displays and other information technology (IT), as well as secondary batteries, biotech and mobility, are choosing South Chungcheong one after another.
In addition to its proximity to the greater Seoul area, evaluations say that an investment-attraction strategy that actively leverages the geographic advantage of being close to China, Korea's largest export destination, is paying off.
The South Chungcheong provincial government said on the 25th that it attracted a total of 40.9257 trillion won in investment over 40 months from July 2022, when the eighth popularly elected term began, through Nov. this year. If you add a further 2.74 trillion won in additional investment not yet reflected in the tally, the total comes to 43 trillion won.
◇ 300 corporations invest in South Chungcheong... employment effect of 57,000 people
During the eighth term, South Chungcheong attracted tens of trillions of won in investment annually. Investment attraction in 2023 alone reached 15.1442 trillion won. That is more than the amount attracted over four years in the seventh term.
A total of 295 corporations decided to invest in South Chungcheong during the eighth term. Two hundred fifty-five domestic corporations and 40 foreign corporations chose the province as their investment destination.
Large corporations' "big-ticket investments" also stand out. Starting in 2022 with Hyundai Engineering (400 billion won), LG CHEM (310 billion won) and Hanwha Solutions (201.7 billion won), in 2023 Samsung Display (4.1 trillion won), SK On (1.5 trillion won) and Celltrion (300 billion won) decided on large-scale investments. Last year Samsung C&T invested 4.5 trillion won, and Taihan Cable & Solution invested 1 trillion won. This year, HD Hyundai Oilbank (826.2 billion won) and Daeil Leisure Development (1.6845 trillion won) also pledged new investments with the province.
Attracting corporations translated directly into job growth. New hires at corporations that invested in South Chungcheong during the eighth term totaled 57,295. That is about double the 27,382 jobs created in the seventh term. Observers say this is why the effect of improving the overall structure of the regional economy is taking hold.
◇ Geographic strengths and expanded R&D infrastructure bear fruit
The biggest reason domestic and foreign corporations are turning to South Chungcheong is cited as its "geographic strengths." The province is close to the greater Seoul area, offering good living conditions for corporate employees, and transportation networks are rapidly improving with the opening of the Seohae Line and consolidation with the Gyeongbu high-speed rail. Its proximity to Sejong, where central government ministries are concentrated, is also seen by corporations as an advantage that speeds up decision-making.
Support behind the scenes from South Chungcheong became a trigger for corporations' investment decisions. In particular, the expansion of research and development (R&D) facilities is seen as a selling point for corporations.
Starting next year through 2030, the province plans to invest a total of 30 billion won in Asan to build an "advanced semiconductor back-end process materials, parts and equipment test bed." It will also invest a total of 40 billion won to support R&D for corporations moving into the specialized cluster for display materials, parts and equipment created in Cheonan and Asan.
To improve Autonomous Driving technology, a test bed will be built in and around Asan. The aim is to allow corporations to verify autonomous vehicles on real roads. A comprehensive support center was also established with a total investment of 52 billion won to support biotech and medical device companies.
◇ Goal to attract $5 billion in foreign capital... investments by foreign corporations increase
South Chungcheong's investment attraction performance is also being well received by the central government. The Ministry of Trade, Industry and Energy last year selected the province as an "excellent local government for investment attraction." The designation evaluates local governments comprehensively on their investment attraction efforts and post-management.
Foreign corporations are also increasing investment in the region. The amount of foreign capital attracted over just over three years of the eighth term exceeds $4.1 billion. Recently, four corporations from four countries, including Arab capital, signed memorandums of understanding (MOUs) to invest a total of $171 million in South Chungcheong.
U.S. advanced materials corporation Corning pledged investment for the second straight year, following last year and this year. Steady expansion investments are also underway by global semiconductor materials, parts and equipment corporations such as Edwards (U.K.), Towa (Japan), Linde (U.S.), Air Liquide (France) and Air Products (U.S.). Recognized for these achievements in attracting foreign capital, South Chungcheong received the presidential citation for "meritorious service in attracting foreign investment."
Gov. Kim Tae-heum said, "Our goal is to attract $5 billion in foreign capital during the eighth term, and we have secured more than $4.1 billion," adding, "We will make South Chungcheong an even more attractive investment destination and achieve the goal."