Regulations on semiconductors and rechargeable batteries eased to unlock over 4 trillion won in private investment

The government will ease regulations on advanced industries such as semiconductors, rechargeable batteries and biotechnology, opening the way for more than 4 trillion won in private investment. In particular, it will relax building permit rules that have blocked plant expansions at the Yongin Semiconductor Cluster so that 2.5 trillion won in investment can be carried out quickly.
The government announced the measures at an Emergency Economic Headquarters meeting and Council of Economic Ministers meeting held on the 13th and chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol. Koo said, "We will actively support the swift launch of projects waiting on site where investment has been delayed." The package is the first of its kind to identify and improve regulations and systems, focusing on projects that can begin investment immediately while also accelerating the three major mega-projects.
In semiconductors, the government will remove long-standing regulations raised by companies on the ground. To speed up plant expansions at the Yongin Semiconductor Cluster, it has allowed separate building permits for expansion projects. Under the current Building Act, the "one site, one permit" principle requires an existing building permit to be revised if a new structure not included in the original plan is added during construction. This has caused expansion investment to be delayed in a chain reaction until permits are issued.
The government has therefore decided to revise the Building Act so that expansion structures can receive separate permits, apart from the existing building permit. This creates an exception to the "one site, one permit" rule for industrial complexes above a certain size. Ju Hwan-wook, policy coordination director at the Ministry of Economy and Finance, explained, "Once the building permit restrictions are lifted, we expect 2.5 trillion won worth of semiconductor investment to be executed earlier."
Tax exemptions for semiconductor companies will also be expanded. Property contributed by semiconductor companies and others to the demonstration support corporation Trinity Fab will be exempt from gift tax. Through this measure, 800 billion won in semiconductor investment is expected to move forward quickly.
In rechargeable batteries, entry restrictions at the Gumi and Pohang National Industrial Complexes will be eased. Recycling industries will be added to the list of permitted sectors, which had previously been limited to manufacturing businesses related to rechargeable batteries. Ju said, "The aim is to build out the battery industry's value chain all the way to critical mineral recycling," adding, "By lowering the entry barrier, we will support 100 billion won in new investment."
In biotechnology, the government will remove investment barriers created by green space regulations. Green land owned by Cheongju City within the Ochang Science and Industrial Complex will be converted into industrial land, allowing additional factories connected to existing manufacturing facilities to be built. This land-use change is expected to speed up 530 billion won in new investment. At the Korea National Food Cluster in Iksan, North Jeolla Province, the government will apply a more flexible standard to eligible business types. Some plots with low sales rates will be converted into sites for food and beverage manufacturing, where corporate demand is high. New investment of 350 billion won is expected.
Safety standards for advanced and new industries will also be eased. The government plans to revise safety standards for industrial robots and relax fencing requirements so that new types of robots, including collaborative robots and mobile robots, can work alongside people.
[email protected] Jung Sang-gyun Reporter