Thirty years have passed since the local autonomy system began in 1991. There have been many changes. With the Fourth Industrial Revolution, industry and daily life are changing rapidly. Competition is accelerating further and it has changed from ideological, continental and national to between business and local cities. In this era of globalization, local competitiveness is becoming more important, but small and medium-sized cities in Korea are facing many limitations. With the entry into a super-aged society, fiscal income is decreasing, welfare spending is increasing, and the younger generation is turning their backs on the region due to a decrease in quality jobs. Now most regions are looking for solutions by attracting enterprises.
With the enactment of the Special Act on Balanced National Development on January 1, 2004, the "Standards for Government Financial Support for Local Governments' Attraction of Local Investment Companies" was prepared and the Local Investment Promotion Subsidy System was implemented to curb overcrowding in the Seoul metropolitan area and to relocate companies to the provinces.
In this study, we would like to focus on statistical data such as changes in manufacturers to see how effective the local investment promotion subsidy system is. In addition, we would like to see if there are any problems with the operation of the subsidy system by local governments due to excessive competition to attract businesses. In addition, although there is a limit to the analysis method, we would like to analyze how much the transferred companies contribute to the region through the case of Jeonju City.
The composition of this study will consist of five chapters. Chapter 1 highlighted the recent acceleration of the crisis in local small and medium-sized cities, especially for research purposes, concerning the background, purpose and scope of research. In Chapter 2, it aims to understand the relevant policies and systems that can be a theoretical background by organizing the enterprises' policies for local relocation and the local investment promotion subsidy system. We also look at the importance of subsidies in relation to transferred companies through prior research on the factors that determine the company's previous investment. We would like to find out what the limitations are for prior research on subsidy support effects.
Chapter 3 includes to see the status of government funding support for local investment promotion subsidies and changes in corporate transfer due to support, on the other hand, report the actual state of system operation of local governments and the effects of transferred companies on the region through Jeonju City's case. Based on the results of the study, in Chapter 4, I would like to suggest ways to improve the local investment promotion subsidy system.