Regulatory Exemption Conditions in Regulatory Free Zones to Be Clarified... Easing the Burden on Businesses

Limited to Ensuring Safety and Preventing Risks
Scope of Permitted Foreign Language Medical Advertisements Also Clarified

The Ministry of SMEs and Startups is moving to improve the special regulatory zone system by limiting the imposition of excessive regulatory exemption conditions within regulatory free zones and by clarifying the scope of foreign language medical advertisements permitted in medical tourism zones.

Ministry of SMEs and Startups Plaque in Sejong City. Photo by The Asia Business Daily Database

The Ministry of SMEs and Startups announced on June 23 that the revised enforcement decree of the "Act on Special Regulatory Zones for Deregulation and Regional Specialized Development Zones" was approved at the Cabinet meeting held that day.

This amendment is a follow-up measure to the relevant law that was revised and promulgated in December of last year. It is intended to ease the burden on businesses and enhance the effectiveness of the special zone system. It also incorporates the "Plan to Reform the Regional Specialized Development Zone System" that was announced in November last year.

Regulatory free zones are designated areas outside the capital region where regulations are temporarily eased or not applied in order to support demonstration of products and services based on new technologies.

Until now, in some special zones, regulatory authorities have imposed conditions that were either not directly related to the business or were excessive, resulting in delays in project implementation. Going forward, regulatory exemption conditions will be limited to those necessary for ensuring safety and preventing risks, and ambiguous or excessive conditions will not be imposed.

The scope of permitted foreign language medical advertisements within regional specialized development zones has also been clarified. According to the amendment, specialized project operators who establish and operate medical institutions registered under the "Act on Supporting Overseas Expansion of Medical Services and Attraction of Foreign Patients" will be allowed to conduct foreign language medical advertisements within these zones.

In addition, the amendment includes measures to enhance the efficiency of special zone operations, such as setting a post-management period for regulatory free zones, introducing quantitative indicators when reviewing the designation of regional specialized development zones, and strengthening the requirements for revoking zone designations.

The revised enforcement decree is scheduled to take effect on July 1. The Ministry will provide follow-up support to ensure the amended system is stably established in the field.

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