▲ Panorama of Cheonan Industrial Complex 5

The robust Chungnam administration, under its eighth elected term, is set to expand the 'sold-out' Foreign Investment Zones (FIZ) to provide land for foreign-invested companies attracted to the province.
 
The province announced that on the 20th, it had officially notified the recently approved expansion plan for the Cheonan Foreign Investment Zone 5 by the Ministry of Trade, Industry, and Energy.
 
This expansion marks the first case of its kind nationwide, highlighting the province's active efforts to attract foreign investment and the high demand from foreign-invested companies wishing to operate production facilities within the region.
 
The expansion of the Cheonan Foreign Investment Zone 5, located in Seongnam-myeon and Susin-myeon, Dongnam-gu, Cheonan, encompasses an additional area of 155,337 square meters.
 
This expansion represents 45.5% of the existing 336,604 square meters, with a total project cost of 115.8 billion KRW, including 69.4 billion KRW from the national budget and 46.4 billion KRW from the local budget.
 
Three foreign-invested companies, including semiconductor materials and components firms attracted by the province, are scheduled to move into the expanded site by the end of the year. These three companies are making an initial investment of 130 million USD, with further investments planned for the leased land to foster future industry development.
 
If the three companies operate as planned, their total production over the next five years is expected to reach 2.668 trillion KRW.
 
Additionally, there is an anticipated import substitution effect of 1.9888 trillion KRW and a production inducement effect of 3.9915 trillion KRW.
 
The projected number of new jobs created is 330.
 
The province plans to provide these companies with long-term leases, financial support for rental fees, and local tax reductions.
 
A provincial official stated, "As a result of our foreign investment attraction efforts, companies now occupy nearly 90% of the available space in the province's Foreign Investment Zones. We will continue to expand these zone complexes to meet the growing demand from foreign-invested companies looking to establish operations in the province."
 
The official further added, "To create jobs and stimulate the local economy, we will intensify our foreign investment attraction activities, focusing on Chungnam's strategic industries such as semiconductors, displays, the carbon-neutral economy, future vehicles, and the hydrogen industry."
 
Currently, the province has seven complex-type Foreign Investment Zones, the highest number in the country, out of a total of 30 nationwide.
 
The total area of the intra-provincial complex-type foreign investment zones is 1,467,300㎡ (excluding the expansion area of Cheonan No. 5 Foreign Investment Zone), with 73 companies operating on 1,316,000㎡, accounting for 89.7% of the total area.
Four foreign investment zones―Cheonan (Baekseok), Cheonan No. 5, Asan Inju, and Asan Tangjeong―have achieved 100% occupancy rates. Other areas such as Dangjin Songsan No. 2 have an occupancy rate of 50.4%, Dangjin Songsan No. 2-1 stands at 79.7%, and Dangjin Songsan No. 2-2 is at 56.8%.
 
Among these, Dangjin Songsan No. 2 and Songsan No. 2-1 foreign investment zones are expected to reach 100% occupancy within the year once the companies that have signed investment agreements move in.
 
The province has established key strategies for attracting foreign investment, such as diversifying the global supply chain for strategic industries and strengthening both online and offline investment promotion activities. Their goal is to attract over $3 billion in foreign investment during the 8th civilian administration, aiming to reclaim the top position in foreign investment attraction among non-metropolitan regions.
 
In just a year and a half since its inauguration, the 8th civilian administration of Chungnam has already attracted over $2.5 billion in foreign investment, achieving more than 120% of the total attracted during the 7th administration.
 
 
Department: Foreign Investment Attraction Team, Investment and Trade Policy Division
Contact Number: 041-635-3356