New Regulatory Free Zones to Be Established in Gyeongnam, Gyeongbuk, Ulsan, and Jeonbuk

"Regulatory Free Zone Regulation Exception Review Committee" Held on June 4
New Global Innovation Zones Designated in Gyeongbuk and Jeonnam

The government will newly designate a total of four Regulatory Free Zones this year in Gyeongnam, Gyeongbuk, Ulsan, and Jeonbuk. In addition, three Global Innovation Regulatory Free Zones will be established, including two in Gyeongbuk and one in Jeonnam.

On June 4, the Ministry of SMEs and Startups announced that it held the 25th Regulatory Free Zone Regulatory Special Case Deliberation Committee and is currently proceeding with the process of designating new Regulatory Free Zones and Global Innovation Regulatory Free Zones.

Four Regulatory Free Zones will be designated in Gyeongnam, Gyeongbuk, Ulsan, and Jeonbuk. Gyeongnam will conduct a bidirectional power generation demonstration from electricity to hydrogen and from hydrogen to electricity, establishing new facility standards. In the Gyeongbuk Regulatory Free Zone, the cultivation and use of cannabis for medical product development, currently restricted, will become possible. Ulsan will recycle high-purity oil extracted from industrial plastic waste as an alternative to petroleum fuel. Jeonbuk will expand the range of clinical trials permitted for companion animals and streamline toxicity testing procedures.

Hansung-sook, Minister of SMEs and Startups, is delivering a greeting at the 'Regulatory Free Zone Deliberation Committee' held at the Korea Chamber of Commerce and Industry International Conference Hall in Jung-gu, Seoul on the 4th. Ministry of SMEs and Startups

In Gyeongbuk, which is designated as a global special zone, a cooperative framework will be established with institutions such as Crimson University in the United States to demonstrate low-speed vehicles on public roads, which is not permitted in Korea. Additionally, together with demonstration agencies in Northern Europe, such as Iceland, projects will be launched to convert small fishing vessels into electric boats. In Jeonnam, joint demonstrations of three-wheeled electric motorcycles for special purposes such as refrigeration and cleaning will be conducted.

The Regulatory Free Zone is a type of regulatory sandbox that grants special exemptions, such as fast-track regulatory verification, demonstration exceptions, and temporary permits. Since the introduction of the Regulatory Free Zone system in 2019, the Ministry of SMEs and Startups has designated 49 zones nationwide and granted a total of 136 regulatory exemptions. As of May this year, a total of 62 laws have been revised through demonstrations in these zones.

The initiative has also led to achievements in revitalizing regional economies, such as attracting investment and relocating companies to local areas. For example, the Gyeongbuk Battery Recycling Regulatory Free Zone, designated in 2019, was the first in Korea to allow demonstrations for reuse and recycling of batteries from electric vehicles. Based on the technology and experience accumulated during these demonstrations, EcoPro, one of the participating companies, established itself as a battery supply chain company. Participating companies, including EcoPro, have achieved cumulative sales of 600 billion won, created 800 new jobs, and attracted investments amounting to 250 billion won.

Sung-sook Han, Minister of SMEs and Startups, stated, "The Regulatory Free Zone system is a policy that rationalizes new industry regulations and fosters local industries in collaboration with local governments. We will push for bold regulatory reforms in cutting-edge industries such as bio and climate tech, and further advance the Regulatory Free Zone system by representing the interests of SMEs and startups so that the results can lead to 'smart regulations.'

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