Urgent Need to Ease Entry Conditions for Industrial Complexes in Overlapping Regulation Border Areas [SME Regulation Field⑨]

Even with the Special Act on Border Area Support, Regulations like the Military Facility Protection Act and the Capital Region Readjustment Planning Act Pose Obstacles
Border Area Industrial Complexes Should Expand 'Negative Zones' to Allow Fuel Recycling, Chemical, Primary Metal, and Logistics Facilities
Exempt Various Development Charges and Urgently Address Foreign Worker Supply Measures

Foreign workers employed at mold company A-Tech, located in an industrial complex in the northern border area of Gyeonggi Province, are pouring castings into molds to manufacture various machine parts.
[Photo by A-Tech]

[Asia Economy Reporter Kim Jong-hwa] "Please relax the entry conditions so that industries such as fuel recycling, chemical, primary metals, and logistics facilities, which do not require many workers, can enter the industrial complex more easily."

This is the appeal of Go Byung-heon, CEO of Papyung Industrial Complex Development Co., Ltd., who is developing the 'Papyung Industrial Complex' located in Papyung-myeon, Paju-si, Gyeonggi Province, right in front of the Demilitarized Zone (DMZ) (photo). CEO Go jumped into the development of the Papyung Industrial Complex with the intention of revitalizing the local economy of his hometown, Paju-si, and preventing environmental damage caused by indiscriminate development.

Gobyungheon, CEO of Papyung Industrial Complex Development Co., Ltd.

The immediate challenge for the Papyung Industrial Complex is to expand the types of industries allowed to enter. Regulations on the northern border area of Gyeonggi Province are a major obstacle. In the northern Gyeonggi region, 42.8% of the total area is designated as a military facility protection zone, 11.7% as a development restriction zone, 9.0% as the Paldang Special Measures Area, and other overlapping regulations apply such as ecological landscape conservation areas and cultural heritage protection zones. Although there is the 'Special Act on Support for Border Areas' to revitalize the border area economy, it is a reality that building industrial infrastructure and improving the underdeveloped residential environment remain distant goals due to the simultaneous application of the Military Facilities Protection Act and the Capital Region Readjustment Planning Act.

Entrepreneurs located in border area industrial complexes, including the Papyung Industrial Complex, agree that smooth corporate attraction is essential for revitalizing the border area economy, and for this, the 'Negative Zone (Industry Special Zone)' should be expanded. The Negative Zone is a system that allows entry of all industries except gambling and other speculative industries, expanding the types of industries allowed in industrial facility zones, which are limited to manufacturing and knowledge industries.

However, unlike the nearby Jeokseong, Beopwon, and Yeoncheon industrial complexes, the Papyung Industrial Complex is not subject to the Negative Zone application. This is because it failed to pass the environmental impact assessment due to exceeding the standard for emissions of certain hazardous air pollutants. The problem is that local entrepreneurs do not trust these environmental impact assessment results.

A company preparing to enter the Papyung Industrial Complex stated, "The measurement was an error of figures taken temporarily when the environment deteriorated during the period of severe fine dust from China," and added, "Subsequent measurements were below the standard, and in the measurement taken last July, certain pollutants were not detected at all." Another prospective tenant said, "We requested a re-evaluation, but it requires nearly a year of measurement and re-evaluation based on those results, which takes too long," and lamented, "In a situation where we need to relocate the factory quickly, asking us to wait another year is no different from telling us to close the factory." Given the controversy, prospective tenants of the Papyung Industrial Complex argue that simplifying the re-evaluation measurement procedures is also necessary.

Exemptions from various charges, early installation of water supply facilities, and support measures for foreign workers are also urgent. Non-capital region areas are fully exempt from agricultural land conservation charges under the Farmland Act, alternative forest resource creation fees under the Mountainous Area Management Act, alternative grassland creation fees under the Grassland Act, and development charges under the Development Profit Recovery Act. However, the northern border area of Gyeonggi Province only receives a 50% exemption on development charges and partial reductions on other charges.

Water supply facilities are also needed. To build industrial infrastructure in the border area and improve the underdeveloped residential environment, attracting companies is essential. For this, infrastructure must be established, and entrepreneurs are prioritizing the installation of water supply facilities.

Industrial complexes in the border areas of northern Gyeonggi are also struggling to find foreign workers. Choi Hyung-man, CEO of A-Tech, lamented, "There are no people, so we have reached our limit. We have no choice but to close down." [Photo by A-Tech]

Labor shortages are also urgent. Some companies that have purchased lots in the industrial complex have been unable to relocate from their existing sites for years due to difficulties in securing manpower, and some are considering closure due to lack of workers. Choi Hyung-man (alias, 63), CEO of A-Tech, a mold company operating in a border area industrial complex, said, "Foreign workers applied for three years ago still have not arrived," and added, "We are maintaining operations by mobilizing my elderly wife, son, and relatives due to lack of people, but now we have reached our limit. We have no choice but to close." In fact, in industrial complexes located in southern Gyeonggi Province, it is relatively easy to find foreign workers with a monthly salary of about 2.5 million KRW, but in border area industrial complexes, it is difficult to find workers even with a monthly salary of 3.3 million KRW plus room and board.

CEO Go appealed, "If the Negative Zone cannot be applied, please diversify the types of industries allowed by integrating all manufacturing and service industries except speculative industries, so that we can develop our hometown," and urged, "Please reduce the disadvantages imposed solely because it is a border area."

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