"Expansion of Industries in Industrial Complexes and Allowance of Asset Securitization"... Promulgation of Revised Industrial Cluster Act

Promulgated at the First Cabinet Meeting of the New Year
Subordinate Legislation to be Amended and Enforced in July

Industrial complex landscape in Ansan, Gyeonggi-do. Photo by Kang Hee-jong

Starting from July, the types of industries allowed to enter industrial complexes nationwide will be significantly expanded. Additionally, companies residing in industrial complexes will have the opportunity to raise funds by securitizing assets such as factories.

On the 2nd, the government approved the promulgation of a partial amendment to the "Act on the Activation of Industrial Complexes and Factory Establishment" at the first Cabinet meeting of the new year. This amendment legislates the "Industrial Complex Location Killer Regulation Reform Plan" announced at the Regulatory Innovation Strategy Meeting in August last year. It was prepared with the aim of modernizing aging industrial complexes and revitalizing the entry of new industries. After revising subordinate statutes, it will be fully implemented starting in July.

The revised Industrial Complex Act features a provision requiring managing authorities to review the eligible industries for industrial complex residency every five years, thereby making the previously rigid restrictions on eligible industries more flexible. For new types of industries with unclear classifications, an entry review body will be established to promptly determine eligibility for residency.

Companies located in non-metropolitan industrial complexes are now allowed to securitize assets such as industrial land and factories by selling them to public institutions or private financial investors. Furthermore, industrial land can be leased to adjacent resident companies.

The amended law expands the area for industrial complex structural advancement projects from 10% to 30% and broadens the target industrial complexes for these projects. It simplifies redevelopment procedures for industrial complexes, improving conditions for private investment in convenience and support facilities. Additionally, the authority to establish structural advancement plans for industrial complexes has been shifted from managing agencies to provincial governors, enabling local governments to proactively lead these projects.

Meanwhile, the Ministry of Trade, Industry and Energy announced that, in addition to this legal amendment, it has identified and resolved 23 issues faced by companies residing in industrial complexes over the past year. In June last year, it permitted multiple business sites of the same company, located separately within an industrial complex, to jointly use waste treatment facilities.

Moreover, the ministry is pursuing regulatory amendments to allow registration of specialized construction businesses and telemarketing businesses?required for directly installing, constructing, or selling products online?to be conducted within ancillary facilities inside factories. This will eliminate the burden on resident companies that previously had to establish separate offices outside the industrial complex factory area for business registration.

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