Easing Conditions for Industrial Complex Joint Development "Expecting Balanced Regional Growth"

Cooperative Regional Job-Creating Companies Also Eligible to Move into Industrial Complex Rental Sites

Examples of Relaxed Conditions for Industrial Complex Joint Development.

[Asia Economy Reporter Kangwook Cho] The Ministry of Land, Infrastructure and Transport announced on the 4th that it has further promoted ‘combined development,’ which invests profits generated from industrial complexes with abundant future development demand into underdeveloped complexes, and relaxed regulations to allow win-win regional job companies to also move into rental sites within the complexes.

Until now, losses between complexes could only be compensated when the same project implementer (limited to local governments or local public corporations) developed the industrial complexes. Through the revision of the ‘Integrated Industrial Site Guidelines,’ even when projects are jointly implemented but are recognized as being carried out by a single project implementer in practice, losses between industrial complexes can be compensated after signing a ‘loss compensation implementation agreement’ among related parties such as the heads of local governments and project implementers, thereby easing the conditions for ‘combined development of industrial complexes.’

Accordingly, the Ministry of Land expects this to serve as a catalyst to lead balanced development between regions with abundant development demand and relatively underdeveloped areas.

Additionally, although only small and medium-sized enterprises were previously allowed to move into rental sites within industrial complexes, the scope of tenant companies has been expanded to allow win-win regional job companies to also move into rental sites in industrial complexes located in non-metropolitan areas.

The Ministry expects that by having good companies that have signed win-win agreements with labor groups, businesses, civic organizations, and local governments move in, it will not only revitalize the regional economy in non-metropolitan areas but also improve work environments and bring industrial complexes closer to being resident-friendly.

Furthermore, if an industrial complex designation plan established annually was reflected but the complex was not designated as an industrial complex that year, and if there were no changes in important matters such as the ‘project implementer,’ it will be reflected in the next year’s ‘industrial complex designation plan’ without separate procedures only once, thereby reducing the burden on provincial governors and project implementers who establish the ‘industrial complex designation plan.’ Also, the previously unclear ‘method for calculating land price increases due to changes in development plans of completed industrial complexes,’ which caused confusion among project implementers due to the lack of separate regulations, has been clearly stipulated.

The Ministry of Land stated that this is a result of continuously collecting opinions from various stakeholders such as industrial complex tenant companies, project implementers, and local governments, and especially improving shortcomings by considering the perspectives of companies and project implementers. Going forward, it will also pay closer attention to the opinions of workers and local residents within the complexes to further promote regional economic revitalization, welfare, and improvement of residential environments through industrial complexes.

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