Regulatory Free Zone Deliberation Committee Reviews New Designation of Busan Ammonia Eco-Friendly Energy Special Zone

Final Decision at Regulatory Free Zone Committee Meeting Chaired by Prime Minister on the 4th of Next Month

Kang Sung-chun, Vice Minister of the Ministry of SMEs and Startups, is delivering an opening remark at the 9th Regulatory Free Zone Deliberation Committee held at Seoul Central Post Office in Jung-gu, Seoul on the 28th.
[Photo by Ministry of SMEs and Startups]

[Asia Economy Reporter Kim Jong-hwa] On the 28th, the Ministry of SMEs and Startups held a Regulatory Free Zone Deliberation Committee meeting to review the special zone plan for the new designation of the Busan Ammonia Eco-friendly Energy Special Zone and the stabilization plans for seven second-phase special zone projects, including the Gwangju Unmanned Low-speed Special Vehicle Zone.

At the deliberation committee meeting, among the 12 special zone projects proposed by nine local governments for new special zone designation, the committee reviewed the plan for one special zone, the Busan Ammonia Eco-friendly Energy Special Zone, which demonstrated business feasibility.

The Busan Ammonia Eco-friendly Energy Special Zone is expected to create a carbon-neutral new business ecosystem through the development of ammonia-based fuel cell hybrid eco-friendly ships, the addition of uses and expansion of capacity and materials for mobile liquefied ammonia standard containers, and the demonstration of mobile-based ammonia bunkering (fueling) for ships.

The committee also reviewed stabilization plans for five temporary permit conversions and ten extensions of demonstration exceptions among 15 projects in seven second-phase special zones: Gwangju Unmanned Low-speed Special Vehicle, Daejeon Biomedical, Ulsan Hydrogen Green Mobility, Jeonbuk Eco-friendly Vehicles, Jeonnam New Energy Industry, Gyeongnam Unmanned Ships, and Jeju Electric Vehicle Charging Services. These 15 demonstration projects in the seven second-phase special zones were designated in November 2019 and are scheduled to conclude their two-year demonstrations this December.

To ensure the continued success of these projects, the committee decided to systematically revise regulatory laws and ordinances in consultation with relevant ministries based on demonstration results and safety verification agency assessments. Additionally, to prevent project suspension until regulatory revisions are completed, the committee plans to promote stabilization measures by converting to temporary permits or extending the demonstration exception periods.

For smooth progress of special zone projects, the committee also reviewed agenda items regarding changes to special zone plans, such as adjustments to the designated special zone areas and business operators. Follow-up measures for the stabilization plans of 24 first-phase special zone projects, reported at the special zone committee meeting in July, were also presented. The agenda items reviewed and reported at this meeting are scheduled to be finalized and announced at the Regulatory Free Zone Committee meeting chaired by the Prime Minister on the 4th of next month.

Deputy Minister Kang Seong-cheon of the Ministry of SMEs and Startups, who presided over the meeting, stated, "Despite the short period, the Regulatory Free Zones have attracted investments of 2.07 trillion won and created over 1,800 jobs, contributing to the foundation for revitalizing the regional economy. For projects whose safety has been proven in zones that are ending, we will promptly revise regulatory laws and ordinances and support their commercialization by converting to temporary permits before legal amendments, enabling visible outcomes such as sales."