Deputy Prime Minister and Minister of Economy and Finance Gu Yun-cheol said tax cuts for small business employees should increase as regions get farther from Seoul [1].

The proposal aims to accelerate region-led growth and reduce the economic gap between the capital region and rural provinces. By incentivizing employment in underserved areas, the government seeks to promote sustainable development outside the metropolitan hub [1].

Speaking in Haenam, Jeollanam-do, Gu said it is reasonable to provide deeper tax reductions for those working in the most challenging and remote regions [1]. This strategy is part of a broader effort to stimulate local hiring and revitalize provincial economies [1].

As part of this regional push, Gu highlighted the "Solarcity" project in Haenam. He also noted that a Samsung SDS consortium AI data center is scheduled to begin construction in July [1].

Gu said the success of such data centers depends on access to affordable and stable power [1]. The integration of renewable energy hubs with high-tech infrastructure is intended to attract corporate investment to the southern tip of the peninsula [1].

Government officials are currently speeding up the development of these region-led growth policies following the conclusion of local elections [1].

“"Seoul서 멀수록, 어려운 지역일수록 중소기업 취업자에 대한 세금을 더 깎아주는 게 타당합니다."”

This proposal signals a shift toward aggressive fiscal decentralization in South Korea. By linking tax incentives directly to geographic remoteness, the government is attempting to counteract the extreme centralization of wealth and talent in Seoul. The simultaneous push for AI data centers in rural areas like Haenam suggests a strategy to marry green energy production with high-tech industry to create a new economic anchor in the provinces.