Core Strategic Industries, Below-Cost Sale and Rent Reduction for Non-Capital Region Economic Zone Tenants

Resolution of the Cabinet Meeting on the Amendment to the Enforcement Decree of the Special Act on the Designation and Operation of Economic Free Zones

[Sejong=Asia Economy Reporter Kwon Haeyoung] Domestic companies investing in core strategic and advanced industries in non-capital region Free Economic Zones will be able to receive benefits such as land sales below development cost and rent reductions. Until now, only foreign-invested companies could receive land at prices below development cost, but from now on, such incentives will also be provided to 'returning companies.'

The Ministry of Trade, Industry and Energy announced that the partial amendment to the Enforcement Decree of the Special Act on the Designation and Operation of Free Economic Zones, which includes these details, was approved at the Cabinet meeting on the 7th and will be implemented from the 16th.

First, the scope of entities eligible to receive land below development cost has been expanded from existing foreign-invested companies to include core strategic industry investment companies, advanced technology and product investment companies, and domestic returning companies located in Free Economic Zones outside the capital region. The scope of rent reductions for national and public property has also been expanded from existing foreign-invested companies and domestic returning companies to include core strategic industry investment companies and advanced technology and product investment companies located in non-capital region Free Economic Zones.

Additionally, the limit for the amount of current transactions that can be paid directly in foreign currency or other external payment methods without reporting has been raised from $20,000 to $100,000. A 'complex land' category allowing the installation of two or more facilities with different uses on a single site has also been added.

Furthermore, a procedure for selecting core strategic industries has been newly established, and related regulations have been supplemented as the duties of Free Economic Zone authorities have expanded to include fostering and supporting new industries and companies, as well as discovering regulatory innovation tasks.

Based on this, the Ministry of Trade, Industry and Energy will receive applications for core strategic industries by Free Economic Zone, select and announce the core strategic industries by the end of October, and the Free Economic Zone authorities will establish development plans and submit them to the ministry by the end of December. The ministry will prepare support programs in consultation with the Free Economic Zone authorities.

Ansungil, head of the Free Economic Zone Planning Group, stated, "We will closely cooperate with local governments and related ministries to ensure that the key tasks of Free Economic Zone 2.0 are carried out smoothly so that Free Economic Zones can lead the creation of new growth engines and revitalization of regional economies centered on core strategic industries."

Meanwhile, to promote advanced investment, the amendment to the Act on the Activation of Industrial Complexes and Factory Establishment, which includes the designation of advanced investment districts and support for advanced investment companies within the districts, was also approved at the Cabinet meeting on the same day.

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