S. Korea vows to ease regulations to support 3 megaprojects

Seoul, 13th August (Yonhap) - The South Korean government pledged to ease a number of regulations, including administrative procedures, to bolster the nation's three megaprojects, primarily focused on semiconductors and artificial intelligence (AI) facilities, according to the finance ministry. Finance Minister Koo Yun-cheol presented the plan during a meeting with economy-focused ministers, anticipating the measures to attract a combined investment of 4.2 trillion won (US$2.96 billion).

The government aimed to swiftly tackle investment-related issues on the ground, prioritizing projects that were prepared to commence but had been delayed by regulatory obstacles, the finance ministry stated.

The ministry emphasized that this deregulation was essential for the successful execution of the three megaprojects seeking to reshape South Korea's economy via investments in semiconductors, physical AI, and AI data centers. For instance, under the existing system, enterprises must amend their current building permits when incorporating new structures into ongoing construction projects.

Consequently, the government decided to amend pertinent regulations, enabling companies to secure distinct permits for new buildings at the semiconductor cluster under development in Yongin, located south of Seoul, thus facilitating the early realization of 2.5 trillion won worth of investment. Additionally, while only secondary battery industry companies are presently eligible to enter national industrial parks in the southeastern cities of Gumi and Pohang, the government opted to permit battery recycling firms to utilize these complexes as well, a decision projected to stimulate 100 billion won worth of business investment.