Industrial Complex Move-in Allowed for All Except Gambling Businesses (Comprehensive)

Emergency Employment Stability Fund 940 Billion KRW
Youth Job-Seeking Support Fund 54.5 Billion KRW Additional Allocation
12 Items Deliberated and Resolved at Cabinet Meeting

[Asia Economy Reporters Kwangho Lee and Chaeseok Moon] The government has expanded the range of industries allowed to enter industrial complexes, excluding gambling businesses. This aims to reorganize these spaces to promote the growth of new industries and the convergence between industries, as well as to revitalize the operation of industrial complexes. Additionally, the government approved the expenditure of 940 billion KRW in contingency funds to provide emergency employment stabilization subsidies for special employment workers (SEWs) who have been struggling due to the COVID-19 pandemic. An additional 54.5 billion KRW will also be allocated for youth job-seeking activity support funds.

On the 4th, the government held a Cabinet meeting at the Government Seoul Office, chaired by Prime Minister Chung Sye-kyun, where it deliberated and approved a total of 12 items, including the partial amendment of the Enforcement Decree of the Act on the Activation of Industrial Clusters and Factory Establishment, the expenditure plan for COVID-19 emergency employment stabilization subsidies from contingency funds, and the expenditure plan for youth job-seeking activity support funds from general contingency funds.

First, the partial amendment of the Enforcement Decree of the Act on the Activation of Industrial Clusters and Factory Establishment, approved that day, includes expanding the range of industries allowed to enter industrial complexes. Currently, the industrial facility zones are limited to manufacturing and knowledge industries, but for certain zones designated by industrial complex management guidelines, a negative regulation system with a principle of permission and prohibition of exceptions was introduced, allowing all industries except some restricted ones such as gambling businesses to enter.

For zones where the principle of permission and prohibition of exceptions does not apply, the Minister of Trade, Industry and Energy is authorized to promptly add permissible industries by public notice if deemed necessary to promote new industries or the convergence and fusion of industries.

Through the amendment of the enforcement decree, the Ministry of Trade, Industry and Energy expects industrial complexes to be further revitalized by allowing entry of industries previously classified as service industries and thus unable to enter industrial facility zones, such as e-commerce, prototype production and sales (makerspaces), automobile tuning-related services (sales, repair, education), and drone-related services (experience, education, assembly, aerial photography).

The government also approved the expenditure plan for COVID-19 emergency employment stabilization subsidies, which provide up to 1.5 million KRW to vulnerable employment groups in the blind spots of employment insurance, including special employment workers and freelancers. This is a follow-up measure to the "Special Employment Stability Measures in Response to the COVID-19 Crisis" confirmed at the 5th Emergency Economic Meeting chaired by President Moon Jae-in on the 22nd of last month. The government had previously decided to invest 1.5 trillion KRW for the emergency employment stabilization subsidies, with the remaining required budget to be covered through the third supplementary budget.

The expenditure plan for youth job-seeking activity support funds from general contingency funds was also approved. This is due to the exhaustion of the initially allocated budget for 50,000 youths, and an additional 54.5 billion KRW will be invested to support 30,000 more youths.

The partial amendment of the Enforcement Decree of the Act on the Promotion of Industrial Convergence, approved that day, includes establishing a private reception body for the "Regulatory Sandbox" at the Korea Chamber of Commerce and Industry. This body will grant exemptions or suspensions of regulations that unreasonably hinder the launch of new industries or new technologies, making it more convenient for companies to apply for the regulatory sandbox.

Meanwhile, although Cabinet meetings are usually held every Tuesday, this week's Tuesday was Children's Day (May 5), a public holiday, so the government advanced the schedule and held the Cabinet meeting on Monday.

This content was produced with the assistance of AI translation services.