Licensing Period for Ulsan Hyundai Internal Combustion Engine to Electric Vehicle Plant Cut from Three Years to One

MOEF Announces Second Phase of On-Site Corporate Investment Support Plan
Integrated Bidding for Electricity and Telecommunications Work at Semiconductor Fabs Allowed

The government will drastically shorten the permit approval period for reconstructing Hyundai Motor's internal combustion vehicle plant in Ulsan into an electric vehicle plant from three years to just one year. For the construction of new semiconductor fabs, where precise coordination between processes is essential, the government will also allow integrated contracting of electrical and telecommunication works.

The Ministry of Economy and Finance and other relevant ministries held an Emergency Economy Headquarters and Economic Ministers' Meeting on September 30, and announced the "On-site Corporate Investment and Innovation Support Plan (Phase 2)" containing these measures. The government intends to unblock stalled investments, promptly resolve on-site difficulties, and support corporate investment and innovation so they lead to a rebound in the potential growth rate and creation of quality jobs.

Workers are operating on the automobile production line at the Ulsan Plant.

Ulsan Plant Conversion Moves to Fast-Track: Early Implementation of 7.9 Trillion Won Worth of Pending Projects

First, the government will expedite the implementation of pending on-site high-tech industrial projects with a total value of 7.9 trillion won.

The 4 trillion won project to reconstruct Hyundai Motor's internal combustion vehicle production line in Ulsan is a prime example. By applying a fast-track process, the company will be able to shorten the permit approval and various impact assessment periods from three years to within a single year for converting the plant to focus on autonomous electric vehicles.

The full-scale reconstruction currently underway at Hyundai Motor's Plant 1 and Plant 4 was expected to take 6 to 8 months for preliminary preparation, 12 to 16 months for environmental, transportation, and disaster impact assessments, and 14 to 16 months for permit approvals, raising concerns about project delays. The government will provide prior consulting and start all required procedures simultaneously, aiming to complete all administrative steps within 12 months.

An official from the Ministry of Economy and Finance said, "We will assign a dedicated project manager (PM) to Ulsan City to support communication between the central government, local government, and the company. If similar investments are made in other regions, we will consult with relevant ministries and local governments to ensure the same fast-track is applied."

In addition, the government will open a clean hydrogen power generation bidding market this month to address 3 trillion won worth of pending domestic investments in clean hydrogen production and power generation facilities. The government had previously announced a competitive bidding notice last year, only to abruptly cancel it. At that time, the notice included a provision permitting coal-ammonia mixed combustion power generation, which was deemed inconsistent with the current administration's policy pledge to phase out coal power by 2030. Therefore, going forward, coal-ammonia mixed combustion power generation will be excluded from facility requirements, and the level of contribution to the domestic clean hydrogen ecosystem will be widely reflected in the evaluation. As a result, more than 3 trillion won in corporate investments are expected to resume.

The government will also reduce the period required to review changes to environmental impact assessments for introducing eco-friendly, high-efficiency LNG mixing technology into byproduct cogeneration plants from three months to less than one month, helping companies save approximately 6.97 billion won in fuel costs and secure investment funds more quickly.

The fast-track designation for the Muan National Industrial Complex will move up the approval process by more than a year. The special regulatory exemption for hazardous materials safety management will be extended to companies in the secondary battery materials and components sector, attracting an additional investment of 70.2 billion won. For underwater acoustic sensor (sonar) specialist companies, support will be provided for occupying sites in the Bio-Convergence Industrial Technology Complex (worth 40 billion won) as expanded manufacturing facilities.

Semiconductor Fab 'Integrated Electrical and Telecommunication Contracting' Allowed ... Field-Oriented Regulatory Improvements

The government will also establish institutional frameworks to encourage investment. Samsung Electronics, SK hynix, and others will be able to issue integrated orders for electrical and telecommunication works when constructing new semiconductor fabs. Previously, such works were ordered separately, which prevented general contractors from overseeing construction as a whole and led to recurring issues such as insufficient safety management, process management challenges, and difficulty in making speedy repairs. From next year, integrated contracting will be allowed exclusively for semiconductor fabs. An official from the Ministry of Economy and Finance explained, "This is a measure that reflects technological development and external environmental changes. For fabs, process coordination is incredibly important, and separating electrical and telecommunication works can easily lead to errors due to small differences, so integrated contracting was allowed only for fabs."

A special provision will also be established to prevent delays in the operation of semiconductor production equipment. Currently, whenever a cylinder cabinet is installed, it requires technical review and an amendment permit, taking at least one week for each case. Moving forward, the procedure will be streamlined to handle multiple installations at once. The ministry commented, "This decision was made to accommodate industry requests, as it is common to frequently change the number of cylinder cabinets due to process characteristics."

Additionally, to expand the adoption of solar power for agriculture, standards for small-scale environmental impact assessments will be rationalized. Regulatory sandbox designation will be pursued to allow for pilot installation of stand-alone reformers inside buildings, provided that safety devices are in place. For Build-Transfer-Operate (BTO) revenue-type private investment projects, labor cost changes due to adjustments in statutory weekly working hours will be explicitly stated as reasons to adjust operating expenses, thereby invigorating private investments.

New R&D Programs for Core Robot and Semiconductor Components ... Expanded Fiscal Support for Future Advanced Industries

Fiscal support for securing core technologies in future advanced industries will also be expanded. A new project will be launched to secure core technologies in large-diameter wafer (8-inch or larger) process equipment, with 5 billion won allocated for next year to reinforce demonstration infrastructure. 13.3 billion won will be provided to maximize the performance of commercial batteries for humanoid robots and to develop next-generation battery technology. In addition, a dedicated R&D program focusing on the development of the three main vulnerable components of robots—next-generation actuators, sensors, and robotic hands—will be established, with total national funding of 100 billion won to be invested from next year through 2029.

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