The Ministry of Trade, Industry and Energy (MOTIE) of Korea has announced a legislative notice for amendments to the Act on the Promotion of Industrial Cluster and Factory Establishment, aiming to rationalize location regulations for industrial complexes and knowledge industry centers. The reforms, open for public comment until March 3, are designed to stimulate investment in advanced and emerging industries. The amendments were developed through extensive consultations with businesses, local governments, and industry associations, as well as collaboration with expert institutions such as the Korea Institute for Industrial Economics & Trade. These changes are expected to significantly alleviate regulatory burdens that have hindered business operations within industrial complexes.
Key measures include allowing electrical, information and communication, and fire safety contractors to move into industrial complexes, which was previously prohibited. The scope of knowledge and information communication industries eligible for entry will be expanded from 78 to 95 categories, while advanced industry sectors will increase from 85 to 92. Additionally, cultural and sports facilities within factories can now be opened to neighboring workers and local residents free of charge. The installation of cultural, sports, and renewable energy facilities will also be permitted in green zones and reclaimed landfill sites, further enhancing the industrial ecosystem.
The reforms are expected to reduce the need for manufacturers to maintain separate offices outside industrial complexes, easing operational burdens. The inclusion of cafes and convenience stores as auxiliary facilities within factories, without requiring a change of building use, will improve worker convenience and reduce costs. Furthermore, officetels will now be allowed in support facilities of knowledge industry centers located outside industrial complexes, helping to address vacancy issues. Administrative procedures will be streamlined, enabling electronic notifications and remote site verification for non-manufacturing businesses.
These regulatory changes mark a significant turning point for the innovation ecosystem of industrial complexes and the expansion of cultural and leisure spaces for workers and local communities. By improving the investment environment and attracting new industries, the reforms are expected to revitalize local economies and enhance the competitiveness of industrial complexes. The government’s ongoing commitment to regulatory reform and system improvement will be closely watched for its impact on the industrial landscape.
The amendments to Korea’s industrial cluster regulations represent a strategic move to lower entry barriers for high-tech and emerging industries while fostering a more worker- and community-friendly environment. Easing restrictions on auxiliary facilities and opening cultural and sports amenities align with global ESG trends, promoting sustainable development. Streamlined administrative processes and expanded industry categories will reduce costs and accelerate business operations, potentially strengthening the global competitiveness of Korea’s industrial complexes.