Easing Regulations and Boosting Investment: Government to Launch "Mega Special Zones" for Robotics, Renewable Energy, Bio, and Autonomous Vehicles

Introduction of a Customized Special Zone Model Combining Regulatory Easing and Large-Scale Demonstration

Comprehensive Innovation Including Power Market Reform, Relaxed Clinical Regulations, and Authorization for Unmanned Driving

The government is moving forward in earnest with plans to establish “mega-special zones” centered on four major strategic industries: robotics, renewable energy, biotechnology, and autonomous vehicles. The idea is to create “super-sized industrial hubs” that attract corporate investment and talent by allowing industry-specific regulatory easing and large-scale demonstration projects.

On April 15, during the first Regulatory Rationalization Committee meeting presided over by President Lee Jaemyung, the “Mega-Special Zone Promotion Plan” was discussed as a key agenda item. A mega-special zone is a “large-scale industrial specialization area” where regulatory easing and support in terms of finance, taxation, and infrastructure are focused at the metropolitan or supra-metropolitan level. Designed in conjunction with the 5-Region 3-Special Strategy for National Balanced Growth, these zones are intended to serve as major growth engines, simultaneously fostering regional economic development and nurturing national strategic industries.

The core of this plan is “sector-specific specialization.” Unlike the conventional approach of dividing by region, the government will ease regulations and concentrate support based on industry. Initially, mega-special zone models will be developed specifically for the four areas of robotics, renewable energy, biotechnology, and autonomous vehicles.

In the robotics mega-special zone, regulatory barriers will be significantly lowered. Unmanned firefighting robots will be allowed to travel on roads, and outdoor mobile robots will be permitted to enter parks and conduct business operations outdoors. Disinfection businesses using disinfection robots, previously not allowed under existing regulations, are also expected to be permitted through regulatory exemptions. Large-scale demonstrations to enable the use of humanoid robots at industrial sites will also become possible. The government plans to build an industrial ecosystem connecting robotics, artificial intelligence (AI), and client companies through the development of data factories and expanded public procurement.

The renewable energy mega-special zone targets even changes to the structure of the electricity market. Full-scale direct trading of renewable electricity will be permitted, and trading of self-generated electricity will also be liberalized. There are also plans to allow grid fee exemptions to promote demonstration projects for Vehicle-to-Grid (V2G) businesses using electric vehicle batteries and to boost investment in energy storage systems (ESS). The plan also includes building intelligent power grids and nurturing global renewable energy companies through the establishment of microgrids, deployment of dynamic control systems, and support for new technology testbeds.

The biotechnology mega-special zone will focus on easing clinical and medical regulations. Decentralized clinical trials will be permitted, and the range of advanced regenerative medical therapies eligible for application will be expanded. For wellness and beauty medical devices, usage will even be allowed prior to formal approval. Cross-industry convergence, such as using human pharmaceutical production facilities for veterinary drug manufacturing—which was previously blocked by existing regulations—will also be permitted. The government plans to create a 1 trillion won mega-fund and expand regional research and development (R&D) centered around national university hospitals to strengthen the competitiveness of the biohealth industry.

In the autonomous vehicle mega-special zone, demonstration-related regulations will be significantly relaxed. Provincial governors and mayors will be given the authority to grant temporary operation permits, reducing administrative burdens for companies, and new business models such as unmanned autonomous shuttles and rental car services will be allowed. Demonstration of remote-driving-based logistics services and fully unmanned autonomous vehicles is also expected to be enabled. Regulatory sandboxes will be used to resolve at once those areas previously blocked by regulatory gaps.

The mega-special zones are designed as “customized regulatory platforms” that selectively ease only those regulations needed for each industry. Regulatory exceptions will be prepared in advance and offered in a menu-style system, while additional regulatory needs arising in the field will be addressed swiftly through a “demand-responsive regulatory exemption” approach. This will be combined with an “upgraded regulatory sandbox” that allows for large-scale demonstration projects, with the aim of accelerating the commercialization of new technologies.

Policy support will also be provided as a package, bundling seven key areas—finance, financial services, taxation, talent, infrastructure, R&D, and systems—to offer large-scale investment incentives. This includes the introduction of special growth engine grants, preferential interest rates for policy financing, and expanded tax credits, alongside focused development of core infrastructure such as advanced national industrial complexes and RE100 industrial clusters. A one-stop corporate investment support center will be established to shorten the licensing process.

The method for designating mega-special zones will also be differentiated from past practices. Companies and local governments may directly draft and submit special zone plans; after review by the Regulatory Rationalization Committee and the Committee for the Era of Local Autonomy, the final designation will be made by the Minister of Trade, Industry and Energy.

Meanwhile, in line with the promotion of these mega-special zones, the government also plans to overhaul the entire regulatory reform system. The existing Regulatory Reform Committee will be completely reorganized into the Regulatory Rationalization Committee, and private sector participation will be expanded, marking the first major redesign in 28 years of the regulatory policy system.

Going forward, the government plans to implement “preemptive regulatory management” for new industries by cleaning up regulations in advance, and to shift toward a “negative regulation” approach that allows activities in principle and only regulates when necessary. Evaluation will shift from focusing on the number of regulatory relaxations to outcomes such as industrial activation and regional growth, and the regulatory sandbox system will be expanded to support the entire cycle from application to demonstration and legislative amendment.

A government official stated, “Mega-special zones are a flagship execution model for regulatory rationalization policy,” adding, “We will deliver regulatory innovation with tangible results that can be felt in the field.”

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