A photo shows ongoing construction and infrastructure work at the Yongin Semiconductor Cluster in Yongin, Gyeonggi, on June 29.YONHAP
Regulations for advanced industries including semiconductors, secondary batteries and biotechnology will be eased to encourage corporate investment, a move the government expects to generate a total investment of 4.2 trillion won ($2.97 billion).
The plan was announced during a meeting of economic ministers, chaired by Deputy Prime Minister and Finance Minister Koo Yun-cheol, held Thursday. The announcement is part of the first round of support aimed at backing the government's three megaprojects — large-scale initiatives aimed at strengthening Korea’s competitiveness in semiconductors, physical AI and AI data centers — by prioritizing regulatory changes requested by businesses.
For the semiconductor sector, the government will streamline procedures for factory expansions at the Yongin Semiconductor Cluster's general industrial complex.
Under the current Building Act, companies must amend existing building permits each time they add a new structure, potentially causing delays in large-scale factory expansion projects.
The government plans to revise the system so that additional buildings at industrial complexes above a certain size can receive separate permits without requiring changes to existing building permits. The change is expected to allow about 2.5 trillion won in investment to be carried out earlier than planned.
The government will also seek to exempt from gift taxes assets contributed by semiconductor companies and others to Trinity Fab, a corporation in the Yongin Semiconductor Cluster that supports demonstration projects. The measure is expected to encourage about 800 billion won in semiconductor investment.
In the secondary battery sector, the government will add secondary battery resource recovery, or recycling, to the industries permitted at the Gumi and Pohang national industrial complexes. Only manufacturing businesses related to secondary batteries have been allowed to operate at the complexes, restricting recycling companies because they are classified as waste-related businesses.
The government says it considers recycling a key part of the battery manufacturing process and plans to ease occupancy restrictions to support about 100 billion won in new investment.
The national industrial complex in Gumi, North Gyeongsang, is seen on June 29.YONHAP
In the biotechnology sector, the government will support the expansion of manufacturing facilities at the Ochang Science Industrial Complex in Cheongju, North Chungcheong. Green space owned by Cheongju will be converted into industrial land to allow construction of a new factory connected to an existing manufacturing facility. Additional investment of 530 billion won is expected from the change.
Occupancy regulations at the national food cluster in Iksan, North Jeolla, will also be eased. Land designated for beverage manufacturing that has seen low demand will be converted into sites for food and beverage manufacturing, which have higher demand. The change is expected to support about 350 billion won in new investment.
The government will also pursue regulatory reforms related to advanced and emerging industries.
It will establish safety standards in line with international standards for new types of robots, including collaborative robots. The definition of industrial robots will be broadened to include mobile robots used at manufacturing and logistics sites.
For the six advanced strategic industries — including semiconductors and secondary batteries — the government will seek to introduce performance-based design, which uses computer simulations to allow safety measures to be designed more flexibly. The safety inspection period for expansions of city gas facilities at semiconductor fabs will be shortened from seven days to three.
Deputy Prime Minister and Finance Minister Koo Yun-cheol speaks during an economic ministers’ meeting at the government complex in Jongno District, central Seoul, on Aug. 13.YONHAP
Regulations governing the location of businesses within industrial complexes will also be eased. When needed for emerging industries and the RE100 initiative, the government will raise the limit on designated zones where businesses from any industry may operate from the current 30 percent to 50 percent and ease requirements for designating special industry zones.
The system will also be revised to allow the Minister of Land, Infrastructure and Transport to designate urban innovation zones within national industrial complexes of major national policy importance. The urban innovation zones are not subject to restrictions on land use and can theoretically exceed the statutory floor area ratio ceiling of 1,500 percent. The government expects the measure to promote high-density, mixed-use development in areas with strong development demand.
The government will also ease land-use regulations to promote regional investment, including by expanding the maximum area that can be designated as an Opportunity Development Zone outside greater Seoul.
"We will quickly prepare and announce a second round of measures focusing on leading projects for hyper-innovative economies and green industries," Joo Hwan-wook, director-general for policy coordination at the Ministry of Economy and Finance, said.
BY JEONG JAE-HONG [lee.taehee@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
