Ruling Party and Government: "Newly Established 15 Industrial Complexes Construction Period Reduced from 8 Years to 5 Years"

The ruling party and government announced a plan to reduce the industrial complex development period, which used to take at least 8 years, to 5 years. This plan will also be applied to the 15 advanced industrial complex development projects announced by the government last month.

On the 12th, the People Power Party's Regulatory Reform Promotion Team, together with the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport, announced the 'Industrial Complex Location Regulation Innovation Plan' at the National Assembly. Chairman Hong Seok-jun said to reporters after the promotion team meeting, "The 15 complexes are the most proactive targets where the industrial complex development period can be shortened," adding, "The Ministry of Land will further examine whether there is room to reduce the period even more."

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According to the plan revealed at the forum held by the promotion team on the 22nd of last month, it was expected that the industrial complex development period could be shortened by about 4 years and 6 months, but the actual joint ministry promotion plan reduced it by about 3 years, which is a step back.

The announcement included measures to activate the 'negative zone,' which removes restrictions on industries that cannot move into industrial complexes, and a plan to allow the introduction of small-scale mixed-use land in completed industrial complexes for the first time without changing the development plan. It also included plans to expand convenience facilities within industrial complexes and increase the service industries eligible for entry to improve workers' environments and appeal to the younger generation.

Chairman Hong explained, "There are parts that require amendments to related laws to shorten the development period and parts that do not," adding, "It will be decided specifically depending on the methods chosen by the Ministry of Land." The ruling party and government plan to push for amendments to the Industrial Cluster Act, the Industrial Location Act, and related notifications within this year.

He continued, "Our country's industrial complexes structurally take at least 8 years to develop compared to international standards, and existing industrial complexes have quite severe regulations, so even as time passes and technology advances, companies are unable to invest because they are bound by outdated standards," adding, "I believe regulatory reform will have the expected effect of enhancing corporate investment and worker convenience."

However, the 'land compensation' procedure, which takes a long time in industrial complex development, remains a challenge. Chairman Hong said, "Some people say that the development period is shorter in the US, but unlike the US, land compensation in our country involves citizens' private property, so it takes quite a long time."

Yoon Chang-hyun, a member of the promotion team, also pointed out, "The philosophy of the Yoon Seok-yeol administration is deregulation and innovation, but talking about innovation after shortening the period by only 2 to 3 years is problematic."

In response, First Vice Minister of the Ministry of Trade, Industry and Energy Jang Young-jin explained, "Samsung is currently building a semiconductor factory in Texas, USA, where the landowner is one person, but here we have hundreds," adding, "Since land acquisition takes several years, even if we shorten the process as much as possible, there are physical (difficult) aspects to consider."

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