Ruling Party to Complete Mega Regulatory Zone Bill After Local Elections, Backing the '5 Mega Regions, 3 Special Zones' Plan

\r\n[Financial News] The ruling Democratic Party of Korea plans to focus on finalizing the Special Act on Mega Regulatory Free Zones, which would ease regulations in regional industrial zones, immediately after the June 3 local elections.
Han Jeoung-ae, the party's Policy Committee Chairperson, told reporters at the National Assembly of the Republic of Korea on the 13th that the party would push ahead with the plan. "We need to ensure that mega regulatory zones are designated quickly, especially in areas where close cooperation between local government and central government is possible. Over the next five years under the Lee Jae-myung administration, I will make sure balanced regional development takes firm root," she said.
Under the special act, which could be completed as early as late June, local governments designated as mega regulatory zones will be able to choose regulatory exemptions related to site approvals, industrial technology, labor supply, settlement and education, as needed. The measures include deeming permits approved if they are not processed in time, as well as simplifying environmental impact assessments, site reviews and factory construction rules inside industrial complexes. For new technology sectors, regulations on technology verification, standard certification and data use will in principle be allowed, while shifting to a negative regulatory system that bans only specific exceptions.
\r\nThe plan also calls for easing building regulations related to dormitories, rental housing and mixed residential facilities for companies in the zones, while improving settlement conditions by converting private daycare centers into public ones. For foreign professionals, the government will establish a fast-track system to speed up settlement procedures such as visa processing. It also plans to simplify admissions to special-purpose high schools in the zones for children of employees at foreign-invested companies.
Financial and tax support will also be significantly expanded. The government will widen preferential loan rates and guarantee limits for policy finance aimed at priority investment in mega regulatory zones, using the National Growth Fund and the Regional Growth Fund, and will support export voucher packages. Tax incentives, including income tax, corporate tax and acquisition-related property taxes, will be extended to employees of companies that relocate to regional areas. The package also includes infrastructure such as power, water and AI data centers, as well as expanded Bus Rapid Transit (BRT) services to improve transportation convenience.
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jiwon.song@fnnews.com Song Ji-won Reporter