Choo Kyung-ho "Supporting 600 Billion Won in Private Investment... Discovering 55 Regulatory Innovation Tasks"

by Lee Dongwoo

Published 19 Apr.2023 14:39(KST)

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 19th, "We will resolve three difficulties related to investment projects, including support for the construction of global pharmaceutical company factories, thereby supporting investments worth 600 billion KRW and improving 41 government regulatory tasks identified by public institutions."

On the same day, Deputy Prime Minister Choo held the 6th Economic Regulatory Innovation Task Force (TF) meeting at the Government Seoul Office and said, "We will identify and improve a total of 55 regulatory innovation tasks, focusing on on-site pending investment projects and tasks discovered by public institutions." He emphasized the need for regulatory innovation and proactive administration as the Korean economy is gradually recovering in domestic demand but continues to experience a manufacturing-centered economic slowdown due to sluggish exports and facility investments.

The government will first identify projects delayed or uncertain due to regulatory or administrative procedure delays and support private investments worth 600 billion KRW. Deputy Prime Minister Choo said, "The initially desired site by the global pharmaceutical company was a research site where only urban-type factories with low emissions could be established, making large-scale factory construction difficult. However, the government supported new investments by exploring and presenting alternative sites considering regulations and infrastructure." The company plans to proceed with the investment after signing a memorandum of understanding (MOU) with the local government.

Deputy Prime Minister Choo also added, "Although electricity storage systems (ESS) for power generation emit minimal pollutants, they have been classified as general power plants, and environmental impact assessments were exempted only if the generation capacity was less than 10,000 kW (kilowatts). Going forward, environmental impact assessments will be exempted for capacities under 100,000 kW, similar to solar, wind, and fuel cell power plants."

Furthermore, he said, "When reviewing semiconductor industry process safety reports, companies are required to submit drawings for all equipment. However, companies have expressed difficulties in submitting drawings for all process equipment due to trade secrets and other reasons," adding, "If semiconductor sites select representative equipment within the same process in advance and prepare and submit drawings, submission of drawings for additional equipment will be exempted during subsequent reviews."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks while presiding over the Economic Regulatory Innovation Task Force meeting held on the afternoon of the 19th at the Government Seoul Office in Jongno-gu, Seoul.

The government has prepared 22 national contract system improvement measures to alleviate corporate burdens through discussions with industry, experts, and ordering institutions.

Deputy Prime Minister Choo explained, "We will ease the conditions for adjusting contract amounts when construction material prices rise and significantly raise the bid floor rate for safety equipment in high-risk occupations such as firefighting, military, and police from the current 60% to 80%, ensuring that companies receive appropriate compensation."

He also explained, "We will advance the timing of providing bidding information by ordering institutions to the time of bid announcement and raise the standard amount for the comprehensive evaluation system in the construction engineering field to reduce the bidding and contracting procedural burdens on small and medium-sized enterprises." The timing for providing bidding information will change from an arbitrary point during the period from the bid announcement date to the bid registration deadline to the bid announcement date as the reference point.

Deputy Prime Minister Choo said, "We will reduce the cost burden on companies participating in technically demanding bids by, for example, paying design compensation to unsuccessful turnkey bidders (design and construction integrated bids) at least six months earlier than currently," and added, "For contracts ordered by public enterprises and quasi-governmental institutions, we will ease the burden of bidding sanctions on companies by allowing minor violations to be resolved through payment of fines instead of bid participation restrictions, similar to national government contracts."

Deputy Prime Minister Choo stated, "To overcome the difficult economic situation, revitalizing private sector activity is essential, and for this, regulatory innovation and proactive administration are necessary," adding, "We will hold the Economic Regulatory Innovation Task Force monthly to actively resolve regulations supporting exports and investments, such as regulations on industrial complex residency."