Mokpo, Yeongam, and Haenam Designated as 'Regulatory Free Zone for Modified Electric Vehicles'

[Muan=Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Mokpo City, Yeongam County, and Haenam County have been designated as the ‘Modified Electric Vehicle Regulatory Free Zone,’ which will serve as the foundation for Jeonnam’s future new growth engine industry by realizing carbon neutrality by 2050 through the conversion of internal combustion engine vehicles to electric vehicles.

Jeonnam Province announced on the 4th that the final designation was confirmed at the 7th Regulatory Free Zone Committee chaired by the Prime Minister.

This modified electric vehicle regulatory free zone is Jeonnam Province’s third achievement following the ‘Yeonggwang e-Mobility Regulatory Free Zone’ and the ‘Naju New Energy Industry Regulatory Free Zone,’ both designated in 2019.

The modified electric vehicle regulatory free zone, which will become Jeonnam’s future car forward base, will be established over two years starting in 2023 in Yeongam County (manufacturing and driving demonstration), Mokpo City, and Haenam County (driving demonstration), with a total investment of 15.9 billion KRW, including 9.3 billion KRW in national funds, 4 billion KRW in local funds, and 2.6 billion KRW in private capital.

A total of 12 companies and institutions, including nine companies such as RBT Motors and three research institutes including the Korea Automotive Technology Institute, will participate to demonstrate driving safety related to weight changes caused by motor, battery, and frame reinforcement during the conversion of internal combustion engine vehicles to electric vehicles.

The Regulatory Free Zone is designated by the Ministry of SMEs and Startups and is a special zone where various regulations are suspended or exempted so that companies can freely develop new technologies and challenge business entry without regulatory constraints.

Once designated, benefits such as ▲financial support and tax reductions ▲application of regulatory exceptions (rapid confirmation, demonstration exceptions, temporary permits) ▲regulatory suspension and exemption can be received.

The modified electric vehicle industry is gaining attention as a future-oriented eco-friendly automobile industry. However, due to the lack of clear detailed standards for driving safety tests related to weight changes during modification, it is practically difficult to promote electric vehicle conversion projects, limiting industry development.

Jeonnam Province plans to accelerate the agglomeration of companies and the creation of an industrial ecosystem centered on the province following this zone designation.

According to a survey conducted by the province’s own research, the related market size is estimated to reach 1.355 trillion KRW by 2030, including 740 billion KRW in the domestic market for delivery cargo vehicles and old vehicles at driving license academies, and 615 billion KRW for Southeast Asian export used cars and high value-added classic cars and camping cars. Jeonnam Province is expected to capture an annual market of 150 billion KRW.

In particular, nine companies participating as businesses in the regulatory free zone are expected to increase sales by 418.5 billion KRW by 2030.

It is also expected to create an eco-friendly automobile industry valley linked with Yeongam International Circuit, establish a modified electric vehicle value chain, attract 48 companies, and create about 1,800 jobs.

Kim Chajin, Jeonnam Province’s Corporate City Officer, said, “The electric vehicle market is an industry expected to grow rapidly due to environmental and fuel efficiency regulations following carbon neutrality,” adding, “We will nurture the electric vehicle conversion industry as a future growth new industry by utilizing the Regulatory Free Zone system.”

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