[Photo: Ministry of Trade, Industry and Energy]

South Korea's Industry Ministry is easing tenant restrictions for industrial complexes and knowledge industry centers. The Ministry of Trade, Industry and Energy said on Monday it had drafted amendments to parts of the enforcement decree and enforcement rules of the Industrial Agglomeration Act, and to industrial complex management guidelines, and pre-published the legislation to rationalise location regulations for industrial complexes and knowledge industry centers.

The amendments allow electricity, information and communications, firefighting facilities, and national heritage repair construction businesses to move into industrial complexes. For construction businesses that install or carry out work on products produced directly at a factory, the factory can also register the construction business. Companies are expected to face a reduced burden as manufacturers will no longer need to set up separate offices outside industrial complexes for construction businesses.

The scope of knowledge industry and information and communications industry will also expand to 95 categories from 78. Only manufacturing, knowledge industry and information and communications industry, among others, can move into industrial facility zones in industrial complexes and industrial facilities in knowledge industry centers. As more business types become eligible to move into industrial complexes and knowledge industry centers, it is expected to contribute to promoting new industries' entry and reducing vacancies at knowledge industry centers.

The scope of advanced industries will increase to 92 categories from 85. The Industrial Agglomeration Act defines advanced industries as those with high technology intensity and a fast pace of innovation. When classified as an advanced industry, the permitted scope for new factory construction and expansion in the Seoul metropolitan area broadens, and new construction and expansion also become possible in natural green areas.

Cultural and sports facilities installed as ancillary factory facilities within an industrial complex will also be recognised as ancillary facilities even when they are opened free of charge to workers at nearby companies or to local residents. In industrial complex green zones and on waste landfill sites where landfilling has ended, the installation of cultural and sports facilities and renewable energy facilities will be allowed under related laws such as the Act on Urban Parks and Green Spaces.

The scope of ancillary factory facilities will explicitly specify cafes and convenience stores for the factory's employees. Companies can install cafes and convenience stores without changing a building's designated use, easing time and financial burdens and improving workers' convenience, the ministry said. Officetels will also be allowed at support facilities of knowledge industry centers outside industrial complexes.

The ministry said it would "continue to refine Industrial Agglomeration Act regulations so that industrial complexes can grow into central spaces for advanced industries and new industries, and be transformed into spaces where workers and local residents can enjoy culture and leisure." It added it would "actively identify on-site difficulties for businesses and unnecessary location regulations for industrial complexes through proactive communication with business people and local residents, and swiftly improve related laws and regulations."

Keyword

#Ministry of Trade #Industry and Energy #Industrial Agglomeration Act #Knowledge Industry Center #Information and Communications #Advanced industries
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