Autonomous Ship Development Enabled in Busan... Selected as a 'Global Innovation Special Zone'

Ministry of SMEs and Startups Selects Busan, Gangwon, Chungbuk, Jeonnam
Next-Generation Marine Mobility, Healthcare Data
Advanced Regenerative Bio, Energy New Industries
Regulatory Special Cases, Demonstrations, and Commercialization in 4 Sectors

Im Jeong-uk, Director of the Startup Venture Innovation Office at the Ministry of SMEs and Startups, is announcing the results of the 'Global Innovation Zone' selection at the Government Seoul Office in Jongno-gu, Seoul, on the 28th.

Companies that have been unable to accelerate new technology development due to the lack of related laws and standards will find new opportunities.

On the 28th, the Ministry of SMEs and Startups announced the selection of candidate regions for the 'Global Innovation Special Zones': Busan Metropolitan City (next-generation marine mobility), Gangwon Special Self-Governing Province (healthcare data), Chungcheongbuk-do (advanced regenerative bio), and Jeollanam-do (new energy industries).

The 'Global Innovation Special Zone' is a Korean-style innovation cluster where systems aligned with global standards?such as regulations, demonstrations, certifications, approvals, and insurance?are applied to facilitate the development of new products in advanced fields and overseas expansion.

In response to rapid environmental changes such as intensified global advanced technology competition, there has been a growing need to create innovation clusters that can swiftly and flexibly respond through bold regulatory innovation, allowing for any kind of trial. Accordingly, the government established the 'Global Innovation Special Zone Creation Plan' and conducted a public contest to select candidate regions.

All 14 non-metropolitan cities and provinces eligible to apply participated in the recruitment announcement in September. An evaluation committee composed of experts in policy, law, technology, and economics selected the final four candidate regions through written and presentation evaluations of the special zone business plans.

The selected candidates will be officially designated as Global Innovation Special Zones after drafting a list of legal and regulatory restrictions for negative demonstration exceptions by sector, consulting with relevant ministries, and undergoing deliberation and resolution by the Regulatory Free Zone Committee under the 'Regional Special Zone Act.'

According to expert evaluations, all four candidate regions for the Global Innovation Special Zones are advanced fields urgently needing regulatory relief and global competitiveness. The establishment of these zones is expected to have economic ripple effects such as revitalizing the local economy and is assessed to have high future growth potential.

In the finally selected regions, new businesses that were previously impossible due to the absence of laws and regulations will become feasible. For example, in Busan, autonomous ships and electric propulsion ships, which had technology but lacked legal grounds for development, are expected to be developed. In Jeollanam-do, new energy businesses shifting from alternating current to direct current will be carried out.

However, the conditions under which companies can develop new technologies without regulation in the innovation special zones will be determined through future discussions. Depending on the local government, conditions such as establishing R&D centers or having headquarters located within the special zones are expected to vary.

Additionally, it is known that global companies have shown high interest in these Global Innovation Special Zones. Microsoft (MS) plans to provide consulting on U.S. AI regulations to domestic companies conducting AI-related businesses within the innovation special zones.

Yoon Seok-bae, head of the Special Zone Innovation Planning Team at the Ministry of SMEs and Startups, explained, "When domestic companies create new technologies and expand overseas, they are often told to redesign from the certification stage," adding, "The U.S. certification body UL Solutions will collaborate with local governments to support consulting on the safety of companies' new technologies to assist their overseas expansion."

Yoon Chang-beon, invited professor at POSTECH and chair of the evaluation committee, said, “All local governments participating in the Global Innovation Special Zone project had excellent plans and capabilities to innovate their regions through new technologies and industries, making the selection process difficult,” and added, “To achieve results, cooperation not only among local governments but also with central administrative agencies such as the Ministry of SMEs and Startups is crucial.”

Lim Jeong-wook, director of the Startup Venture Innovation Office at the Ministry of SMEs and Startups, stated, “The Ministry will boldly improve regulations that do not meet global standards and the times in the selected regions of Busan, Gangwon, Chungbuk, and Jeonnam, and will transform obstacles hindering our companies' overseas competitiveness into global standards, thereby solidifying a platform of opportunities for future generations.”

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