Government Eases Location Regulations for Gwangyang Industrial Complex… POSCO Announces "4.4 Trillion Won Investment"

by Song Seungseop

Published 19 Apr.2023 16:00(KST)

Prime Minister Han Deok-su Visits Gwangyang Steelworks Site

The government has decided to allow the entry of new growth industries into the Donghoan site in Gwangyang, which was previously limited to the steel industry. Following the deregulation, POSCO will invest more than 4.4 trillion won in national strategic industries by 2033.

On the 19th, Prime Minister Han Duck-soo visited the POSCO Gwangyang Steelworks site in Jeonnam and announced the site regulation innovation plan containing these details. Prime Minister Han stated, “We will immediately implement the feasible parts under the current system to ensure that new growth industry investments in the area proceed swiftly,” adding, “For matters requiring legal amendments, we will complete legislative notice within the first half of the year and execute accordingly.”

Donghoan Site, National Industrial Complex, Gwangyang-si, Jeollanam-do

Currently, the “Act on Industrial Location and Development (Industrial Location Act),” which forms the basis for the creation of national industrial complexes, imposes very restrictive regulations on the disposal of land and facilities. In the case of the Gwangyang National Industrial Complex, which has been developed mainly around the Donghoan area since project approval in 1989, it has been difficult to proceed with investments in new industry sectors due to regulations despite changes in the industrial structure. POSCO has also faced difficulties attracting investments in secondary battery materials, hydrogen production, and nickel sulfate refining.

With this improvement, POSCO plans to maximize synergy between the existing steel industry and national advanced industries to create a “mega future-oriented industrial complex.” It is also expected to invigorate the local economy, as the domestic employment inducement effect reaches 9,000 people annually.

Prime Minister Han said, “This government decision simultaneously achieves two effects: the proactive fostering of national advanced industries and balanced regional development,” adding, “Going forward, I will personally oversee regional investment issues on-site to ensure that large-scale private investments can serve as a catalyst for regional economic advancement.”