Rep. Shin Jeong-hoon's Proposed "Root Industry Innovation Act" Passed in National Assembly Plenary Session

Passage of the 'Economic Free Zone Activation Act'

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] The "Act on the Promotion and Advancement of Root Industries" (Root Industry Innovation Act), which was primarily proposed by Representative Shin Jeong-hoon (The Democratic Party of Korea, Jeonnam Naju Hwasun) in October last year, passed the National Assembly plenary session on the 21st.

Root industries, which correspond to basic manufacturing processes such as mold and press, have significantly contributed to South Korea's rise as a global manufacturing powerhouse. However, the low value-added structure has become entrenched, causing companies to become small-scale and facing difficulties in workforce supply and management innovation.

In particular, although the growth of new industries such as future cars and energy has diversified basic materials and processes into ceramics, plastics, and others, government support has been limited to the metal sector, remaining within a narrow scope.

Accordingly, Representative Shin Jeong-hoon expanded the scope of root industries from the existing metal materials sector to core materials such as ceramics and plastics used across industries, extending policy targets to process technologies utilized in all industries including new industries like future cars and energy. He actively worked to strengthen periodic support for root industries, including jobs, advancement, specialized complexes, and financial support.

Representative Shin Jeong-hoon said, "Starting with the amendment of the Root Industry Act, we aim to rapidly transform the root industries, which have been characterized by low value-added and poor working conditions, into advanced industries that create quality jobs," adding, "Through root industry innovation, we will nurture South Korea's small and medium enterprises into global hidden champions."

Meanwhile, at the plenary session of the National Assembly on the same day, the "Special Act on the Designation and Operation of Free Economic Zones" (Free Economic Zone Revitalization Act), also primarily proposed by Representative Shin Jeong-hoon and passed by the Industry, Trade, and Small and Medium Enterprises Committee's bill subcommittee on the 11th, was approved. It is expected that government policies focusing on attracting and fostering advanced industries, advanced technologies, and core strategic industries in free economic zones will gain further momentum.

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