S. Korea designates 7 regulation-free zones for innovative growth

Jul 25, 2019, 08:28 am

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The committee for regulation-free zone designations, headed by Prime Minister Lee Nak-yon, on Wednesday announced that the seven local governments have been designated as special regulation-free zones. Minister of SMEs and Startups Park Young-sun answers a reporter’s question./ Source: The Ministry of SMEs and Startups

By AsiaToday reporter Oh Sae-eun

The government has designated seven regulation-free zones to allow the testing of innovative technologies and fostering of new industries. Gangwon Province was designated as regulation-free for digital health care, Busan for blockchain technology, Daegu for smart wellness, South Jeolla Province for e-mobility, North Chungcheong Province for smart safety, North Gyeongsang Province for advanced battery recycling, and Sejong for autonomous driving. Local governments expect to attract 400 businesses to launch projects in the seven zones, create 3,500 jobs and generate sales of 700 billion won over the next four to five years.

The committee for regulation-free zone designations, headed by Prime Minister Lee Nak-yon, on Wednesday announced that the seven local governments have been designated as special regulation-free zones.

The government will apply 58 regulatory exceptions, including 49 special regulation exceptions and 9 menu-style exceptions, to the seven regulation-free zones.

In Gangwon Province, telemedicine between doctors and patients will be allowed. However, a nurse has to be present by the patient when the doctor remotely diagnoses the patient and makes prescriptions. Busan will provide a variety of services that cannot be falsified based on blockchain technology. Sejong will permit autonomous vehicles with driverless technology to serve passengers. In North Gyeongsang Province, dead electric vehicle batteries will turn into rare-earth element mines. Daegu will start a program to share the manufacturing infrastructure of medical equipment. South Jeolla Province will allow mini electric vehicles. In North Chungcheong Province, wireless controls will be used for gas industry safety.

The Ministry of SMEs and Startups plans to offer support for regional businesses, universities and research institutions to help them produce results in the seven special zones. It will provide R&D funds, help them upgrade pilot products, secure patents, and marketing routes at home and abroad as well as offer tax benefits for the zones to attract companies and invigorate investment.

The secondary special zone designation will be announced in December following pre-consultations and notification of special zone plans.

“The government took the first step today for regulation-free special zones which will resolve regulations on new industries and promote the regional economic through financial support,” Minister of SMEs and Startups Park Young-sun said. “Success doesn’t come overnight, so the government will take the lessons learned from the first project to speed up innovation,” she added.

Meanwhile, President Moon Jae-in attended a meeting held at Nurimaru APEC House in Busan and said, “Our goal is to attain the most innovative growth in the world. For that purpose, we have to create an environment where the world’s first new technologies are developed and commercialized.”

#regulation-free zones #innovative growth #South Korea #Gangwon #digital health care