‘Manufacturing Lifeline’ Industrial Complex Regulations Eased…Industry Restrictions Lifted and Rent Interest Reduced by 50%

National Issues Review and Coordination Meeting

Prime Minister Kim Boo-kyum is presiding over the Government Policy Coordination Meeting held at the Government Seoul Office Building on the 22nd. July 22, 2021. Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] The government has decided to lift restrictions on industries allowed to enter industrial complexes and expand the designation of negative zones (special industry districts). This is to accelerate economic recovery by significantly easing regulations on manufacturing industries with high investment and employment shares.

On the 22nd, Prime Minister Kim Boo-kyum held a government Seoul office meeting to review national agenda issues and discussed the 'Factory Location Regulation Improvement Plan' with these contents. Prime Minister Kim said, "We will create an environment where companies can actively invest through various measures such as expanding industries allowed in industrial complexes and easing building regulations."

For individual industrial complexes such as Daegu and Gwangyang National Industrial Complexes, where restrictions on resident industries were strict, opportunities for entry will be expanded to foster new industries and regionally specialized industries. In particular, for the Gwangyang Industrial Complex, where the establishment of a secondary battery demonstration center had been delayed, approximately 270 billion KRW of new investment is expected following the designation of the negative zone this time.

For urban high-tech industrial complexes established in urban areas excluding Seoul, the building coverage ratio and floor area ratio will be eased to activate occupancy. For companies residing in rental-only industrial complexes, where rent must be prepaid every six months, the charging period can be shortened to three months considering economic conditions and other factors. This measure aims to reduce the rent procurement burden for industrial complex resident companies struggling due to the COVID-19 pandemic, and it is expected to reduce interest costs by 50% for about 300 companies in 24 industrial complexes.

Additionally, in production management areas previously limited to agricultural and marine product warehouses, sales facilities, and food factories, entry will be allowed for agricultural machinery repair shops, natural pesticide and organic agricultural material manufacturing factories. To attract new factory installations, the minimum distance requirement (1.5 to 6 meters) between factory buildings and adjacent roads stipulated by current law will be eased by half. However, this will be applied temporarily for the next three years.

The Office for Government Policy Coordination stated, "We will promptly organize this regulatory improvement to lead to investment and provide detailed information about the regulatory improvements to companies to support their investment preparations."

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