Changwon City Anticipates Enhanced Future Industry Responsiveness with Revised Knowledge Industry Center Ordinance

Commitment to Address Local Labor Concerns Including 'Real Estate Speculation Promotion'

Changwon City Hall Panorama

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] While local labor groups are concerned about the promotion of real estate speculation due to the revised ordinance on knowledge industry centers, Changwon City appears to be expecting an increase in future industry responsiveness through the ordinance.

The city announced its position on the revision of the knowledge industry center ordinance on the 21st, following the passage of the “Partial Amendment to the Ordinance on the Establishment and Support of Knowledge Industry Centers within Changwon National Industrial Complex” jointly proposed by 36 Changwon City council members including Assemblyman Joo Chul-woo, through the council’s standing committee on the 20th.

In its statement, the city emphasized that the Changwon National Industrial Complex, established in 1974, has served as the growth engine of the regional economy for over 50 years, but has recently experienced a decline in vitality over the past few years. Given the significant concerns in the local community, it is an important time at a crossroads between growth and decline depending on the response strategy adopted.

According to the city, the ordinance enacted in 2015, which restricts the construction of knowledge industry centers on industrial sites larger than 10,000 square meters, was considered at the time of enactment to exceed the scope of delegation under the higher-level law by the Ministry of Trade, Industry and Energy, and there was an opinion that the relevant provision should be deleted.

The Ministry of Government Legislation also opined that ordinances infringing without delegation from higher laws are illegal and ineffective. Since the ordinance’s enactment, the city has faced continuous complaints due to excessive regulation, making it impossible to ignore the opinions of companies and the business community.

Accordingly, the city mentioned that in March last year, it conducted a study on strengthening the locational competitiveness of the industrial complex, concluding that the provision is a regulation that hinders the fostering of new industries and investment attraction, and is a restrictive factor related to the industrial location of the complex moving toward the Fourth Industrial Revolution, thus should be promptly abolished.

Therefore, the knowledge industry center is viewed not simply as an apartment-style factory, but as a complex facility where labor-friendly spaces, cultural facilities, daycare centers, and parking spaces are concentrated, expecting an expansion of worker welfare and a reduction in logistics costs among partner companies.

The city acknowledged that it fully sympathizes with the labor sector’s concerns regarding the promotion of real estate speculation and other issues. Therefore, it stated that sufficient communication with local economic stakeholders and labor groups will be necessary regarding anticipated problems, and that countermeasures will be prepared.

Jung Hyun-seop, Director of Changwon City’s Strategic Industry Division, said, “We will continue to consult with the Ministry of Trade, Industry and Energy to include matters related to the construction of knowledge industry centers in the basic management plan for the Changwon National Industrial Complex.” He added, “We will also consider employment measures and the future direction of Changwon’s industry together with regional innovation institutions, and will strive to ensure that citizens do not suffer any harm.”

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