No Government Approval Required When Moving into Research and Development Special Zones

Amendment to the Enforcement Decree of Regulatory Relaxation Passed at the Cabinet Meeting on the 15th

Daejeon Daedeok Research and Development Special Zone, densely populated with government-funded research institutes

[Asia Economy Reporter Kim Bong-su] Until now, approval from the Ministry of Science and ICT was required when moving into the research and development special zones, but from now on, only a contract and notification with the Special Zone Foundation will be needed.

The Ministry of Science and ICT announced that the amendment to the Enforcement Decree of the "Special Act on the Promotion of Research and Development Special Zones," aimed at easing regulations for companies moving into R&D special zones, passed the Cabinet meeting on the 15th and will be enforced starting the 23rd.

The amendment simplifies the procedure by changing the approval for moving in or transferring from the Ministry of Science and ICT to a contract and transfer notification with the managing organization, the Special Zone Promotion Foundation, reducing the processing period from a maximum of 40 days to 14 days.

When establishing research institute companies, the mandatory equity ratio that public research institutions or other founding entities must hold has been lowered to 10%, regardless of capital, and if capital increases due to investment, the required equity ratio held by public research institutions has been relaxed from 10% or more to 5% or more.

The scope of buildings that can be constructed according to land use in the special zones has been expanded. When a management plan that determines the types of buildings according to other laws such as district unit plans is already established, that plan will be followed, enabling tenant companies and landowners to exercise property rights and use land efficiently.

Research and development special zones are areas established to concentrate universities, research institutions, and technology commercialization companies to create new technologies through R&D and promote the diffusion and commercialization of R&D outcomes. Currently, five major regional special zones and twelve small and strong special zones have been designated.

Kwon Seok-min, Director of Science and Technology Job Innovation at the Ministry of Science and ICT, said, "Through the amendment of the enforcement decree, unreasonable regulations have been identified and improved, greatly enhancing the convenience for companies moving into the special zones. We expect that in the future, special zone development tailored to regional characteristics will be carried out, tenant companies’ business activities will be revitalized, contributing to the local economy, and the special zones will develop into regional innovation hubs."

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