Korea vows to ease regulations to support 3 megaprojects

The construction site of SK hynix's fabrication plant at the Yongin semiconductor cluster in Yongin, Gyeonggi Province, Tuesday / Joint Press Corps

Korea vowed to ease a set of regulations, including administrative procedures, to support the country's three megaprojects centered on semiconductors and artificial intelligence (AI) facilities, the finance ministry said Thursday.

Finance Minister Koo Yun-cheol unveiled the plan during a meeting with economy-related ministers, with the government expecting the measures to generate a total of 4.2 trillion won ($2.96 billion) in investment.

"The government came up with the measures to promptly address investment-related challenges on the ground, focusing on projects that are ready to proceed but have been held up by regulatory hurdles," the finance ministry said.

The ministry added that such deregulation is needed to smoothly implement the three megaprojects aimed at transforming the country's economy through investments in semiconductors, physical AI and AI data centers.

For example, under the current system, companies are required to revise their existing building permits when adding new structures to an ongoing construction project.

The government decided to revise relevant regulations to allow companies to obtain separate permits for new buildings at the semiconductor cluster under construction in Yongin, south of Seoul, paving the way for the early implementation of 2.5 trillion won worth of investment.

Additionally, while only manufacturing companies related to the secondary battery industry are currently allowed to enter national industrial parks in the southeastern cities of Gumi and Pohang, the government decided to allow battery recycling firms to use these complexes as well, a move expected to lead to 100 billion won worth of business investment.