Government Supports 9.3 Trillion Won Ulsan Petrochemical Complex Storage Yard Site

The government has decided to support securing storage yard and parking lot sites necessary for the construction of a 9.3 trillion KRW-scale petrochemical facility in Ulsan, promoted by S-Oil, through legal amendments if necessary. Considering that nearby unused sites cannot be leased under the Industrial Cluster Act, the government plans to explore alternative sites and, if that proves difficult, resolve the issue through relevant legal amendments.

On the 8th, the government held an emergency economic ministers' meeting combined with an export investment countermeasure meeting and finalized and announced the "Support Plan for Activating Corporate Investment Projects through Customized Resolution of Difficulties," which includes these details. The plan aims to review corporate investment projects to revitalize private investment and use active support as a driving force for a rapid economic rebound and expansion of growth potential.

First, the government intends to resolve the issues of securing equipment storage sites and parking spaces for an average of 11,000 workers per day, necessary for the large-scale petrochemical facility to be built in the Onsan National Industrial Complex in Ulsan. According to the current Industrial Cluster Act, industrial sites can be leased after completion notification of factory establishment or business commencement notification, but nearby unused sites cannot be leased if they are unsold or if the factory construction has not started.

Accordingly, the government plans to explore and negotiate alternative sites within the industrial complex that can be leased immediately. If utilizing alternative sites is difficult, the government intends to amend relevant laws by the first half of next year to enable the use of nearby unused sites. The government stated that since the expected effects, such as job creation from the establishment of large-scale production facilities, are significant, it plans to support improving conditions to ensure there are no delays in the original schedule.

[Image source=Yonhap News]

A separate hazardous materials management standard will also be established for the construction of a secondary battery production plant in Chungcheong. Recently, with the increase in demand for electric vehicles, LG Energy Solution's Ochang Plant 2 and SK On's Seosan Plant 3 are promoting the establishment of secondary battery production facilities. However, even if hazardous materials are handled in small quantities at some locations, the entire factory building is uniformly regulated, causing difficulties such as extended construction periods and increased investment costs. Therefore, the government plans to establish separate special provisions for general handling facilities by the end of this year, considering the unique characteristics of the secondary battery manufacturing process, to ease related regulations. The government explained that this is expected to result in an investment effect of about 1.9 trillion KRW over the next two years (2024?2025).

The government will also promote delegating approval authority for minor development project changes in research and development special zones to provincial governors. Until now, approval from the Minister of Science and ICT, who is the plan establisher, was required for minor changes to special zone development plans, causing procedural delays. Therefore, the government plans to delegate approval authority to provincial governors through amendments to the enforcement decree of relevant laws by the first half of next year. Additionally, the government is reviewing measures to expand the investment limit of local public enterprises when certain conditions are met in the Jeonnam offshore wind power project and to allow the construction of crossing transmission towers in wetland protection areas for transmission and transformation facility construction. Furthermore, the government plans to provide local tax reduction incentives for priority projects in population-declining areas to support the construction of the Yeongcheon Racecourse Park.

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